Sonoran Desert Copper Corporation Files for Closing of $1 Million Private Placement

Rhea-AI Summary

Sonoran Desert Copper (TSXV: SDCU) has filed documents with the TSX Venture Exchange to close its private placement financing for gross proceeds of $1,010,750. The financing involves issuing 10,107,500 units, each consisting of one common share and one share purchase warrant, exercisable at $0.25 per share for 24 months. The company can accelerate the exercise period if its shares trade at or above $0.50 for 10 consecutive days. Three insiders are participating, contributing $150,000, making it a related party transaction. The proceeds will be allocated as follows: $156,550 for project payments, $236,000 for work programs, $136,000 for accrued expenditures, $101,301 for legal and auditor fees, and $380,899 for operations and general administration. All securities will be subject to a four-month and one-day hold period.

Positive

• Secured $1,010,750 in financing.
• Insider participation of $150,000.
• Potential share price increase with $0.25 warrants exercisable.
• Allocation of funds to key areas including project payments and operations.

Negative

• Related party transaction involving three insiders.
• $380,899 allocated to general administration, which may not directly contribute to growth.

Vancouver, British Columbia--(Newsfile Corp. - July 8, 2024) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company has filed documents with the TSX Venture Exchange seeking approval to close its private placement financing (the "Financing") for aggregate gross proceeds of $1,010,750. The Financing consists of 10,107,500 units (the "Units"), each Unit consisting of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant being exercisable for one additional common share of the Company at an exercise price of $0.25 for 24 months from the date of issue, subject to the right of the Company to accelerate the exercise period to 30 days if, after the expiry of the 4 month hold, common shares of the Company close at or above $0.50 for 10 consecutive trading days.

There are three (3) insiders subscribing to the Financing for $150,000 or 1,500,000 Units, that portion of the Financing is a "related party transaction" as such term is defined under MI 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is relying on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25% of the Company's market capitalization. All securities issued pursuant to the Financing will be subject to a four-month and one-day hold period.

USE OF PROCEEDS
Project Payments			$	156,550
Work Programs			$	236,000
Accrued Expenditures			$	136,000
Legal Fees + Auditor			$	101,301
Operations & G&A			$	380,899
			$	1,010,750

 

ABOUT SONORAN DESERT COPPER CORPORATION
Sonoran Desert Copper Corporation is focused on securing, developing and monetizing materials assets and technologies to build shareholder value.

On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION

"Brian Leeners"

Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)

FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215890

FAQ

What is the value of Sonoran Desert Copper 's recent financing?

The value of the recent financing is $1,010,750.

What does each unit in Sonoran Desert Copper's financing consist of?

Each unit consists of one common share and one share purchase warrant.

What is the exercise price and period for the warrants issued by Sonoran Desert Copper?

The exercise price for the warrants is $0.25 per share, and they are exercisable for 24 months from the date of issue.

What conditions allow Sonoran Desert Copper to accelerate the warrant exercise period?

The company can accelerate the exercise period if its shares close at or above $0.50 for 10 consecutive trading days.

How much are insiders contributing to Sonoran Desert Copper's financing?

Insiders are contributing $150,000 to the financing.

What is the hold period for securities issued in Sonoran Desert Copper's financing?

All securities will be subject to a four-month and one-day hold period.

How will Sonoran Desert Copper use the proceeds from the financing?

Proceeds will be used for project payments, work programs, accrued expenditures, legal fees, auditor fees, and general administration.