Sonoro Metals Announces Closing of $8 Million Private Placement Including the Fully Subscribed 60% Overallotment Option - Seite 2

The Company plans to use the proceeds from the Offering to launch Phase One of the 2020-21 Core Drilling Program to test the Cerro Caliche epithermal system’s potential to host high-grade gold mineralization at depth as discussed in the Company's June 26, 2020 News Release titled, “Sonoro Drilling Targeting High-grade Epithermal Gold Mineralization at Cerro Caliche”  which referenced Sonoro’s Report,  “2020 Drilling Program - Phase 1 Targeting High Grade Mineralization at Depth”.

The Company also intends to apply a portion of the Offering proceeds to fund additional shallow reverse circulation drilling for the advancement of the Company’s proposed Heap Leach Pilot Operation (HLPO) which is intended to assess the economic feasibility of the bulk mining of the shallow oxide gold mineralization at Cerro Caliche.  The initial target for such future test production is the Japoneses zone, which is the location of most of the 201,000 ounce AuEq (gold equivalent) inferred resource documented in a July 26, 2019 independent NI 43‑101 Technical Report on the Cerro Caliche Gold Project (the “July 2019 Report”) available on the Company’s website under the “Investors” tab at www.sonorometals.com.

As an initial step, the Company plans to expedite the completion of a Preliminary Economic Assessment of the proposed HLPO.  Readers are cautioned that, until the Preliminary Economic Assessment's completion, no definitive conclusions can be made as to the technical or economic viability of the proposed HLPO.

The inferred resources documented in the July 2019 Report, together with the deeper high-grade gold targets, are located within a larger 3km by 4km area of near-ubiquitous surface gold mineralization which hosted seven 19th century artisanal mine workings.  High grade chip and channel samples returned from 4 to 95 g/t Au (See the Company’s May 25, 2020 Cerro Caliche Project Development Report available under the “Projects” tab at www.sonorometals.com).  The Company intends to use the balance of the proceeds of the Offering for additional project assessment, general corporate and administrative costs, and working capital purposes.