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TSX Venture Exchange Symbol: SNV
CALGARY, Dec. 22 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or the "Company") (TSX-V:SNV) is pleased to announce the closing of its non-brokered private placement. Sonoro issued 20,420,000 units at a price of $0.25 per unit for gross proceeds of Cdn $5,105,000. Each unit is comprised of one common share ("common share") and one-half of one warrant, with each whole warrant exercisable into one common share for a period of one year after closing at an exercise price of $0.50 per share.
Sonoro paid finders' fees in connection with this private placement totalling $139,485. Management and insiders subscribed for over 4,000,000 units ($1,000,000) under the private placement.
The proceeds from the private placement will be used to advance the Company's project in the Republic of Iraq, including shallow drilling activities, seismic and data acquisition, topping facilities engineering and for general working capital requirements, including the ongoing development of the Company's technologies.
The Company's previously announced $10 million brokered private placement (the "Offering") is in addition to this non-brokered private placement and is scheduled to close in January 2011. In the event that the Offering closes within 45 days of the non-brokered private placement, the one year term of the warrants issued under the non-brokered private placement will be extended such that the expiry date of those warrants is the same as the one year expiry date of the warrants issued under the Offering. The securities issued pursuant to this private placement will be subject to a four-month hold period.
Sonoro Energy Ltd. now has 149,924,454 common shares outstanding, and trades on the TSX Venture Exchange under the symbol SNV.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements, including the amount of the offering and its completion, are subject to risks and uncertainties, including those specific factors disclosed under the heading "Risk Factors" and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement except in compliance with applicable securities laws.
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