Sokoman Announces Closing of Non-brokered Private Placement with Eric Sprott as Lead Investor

Rhea-AI Summary

Sokoman Minerals Corp. has successfully closed a non-brokered private placement to raise $5 million, primarily through strategic investor Eric Sprott. The allocation includes 12.5 million flow-through units, priced at an exercise rate of $0.45 for 24 months. Funds will be used for further exploration projects, with all securities under a hold period until July 22, 2022. Following this placement, Sprott owns approximately 28.2% of the company’s shares, increasing his stake significantly. CEO Tim Froude expresses gratitude towards investors, indicating a promising year ahead.

Positive

• Raised $5 million through a private placement, enhancing financial resources.
• Strategic investment from Eric Sprott, raising his ownership to approximately 28.2%.
• Funds allocated to advance exploration projects, indicating growth potential.

Negative

• None.

ST. JOHN'S, NL / ACCESSWIRE / March 21, 2022 / Sokoman Minerals Corp. ('Sokoman' or 'the Company') (TSX.V:SIC) (OTCQB:SICNF) is pleased to announce that, further to its March 7, 2022 news release, it has received approval from the TSX Venture Exchange (the "Exchange") to close its non-brokered private placement of flow-through units (the ‘Private Placement') for gross proceeds of $5,000,000, with $4,000,000 allocated to Mr. Sprott, a strategic, long-term investor.

The Company will now issue 12,500,000 flow-through shares units ("FT Units") each FT Unit consisting of one (1) common share of the Company and one common share purchase warrant (a "Warrant"), each Warrant being exercisable for an additional common share of the Company, each of which will not qualify as a flow-through share, at an exercise price of $0.45 for 24 months from the date of issue.

All securities issued pursuant to the Private Placement will be subject to a four-month-and-a-day hold period, expiring July 22, 2022.

In connection with the Private Placement, the Company is paying $47,250 in cash finders' fees to various finders, as permitted by the policies of the TSX Venture Exchange.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Units, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on or before December 31, 2023, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Units effective December 31, 2022. The proceeds from the sale of the Units will be used to advance Sokoman's various exploration projects.

Mr. Sprott acquired 10,000,000 FT Units pursuant to the Private Placement for total consideration of $4,000,000. Subsequent to the Private placement, Mr. Sprott beneficially owns and controls 60,414,465 Shares and 19,615,385 Warrants, representing approximately 28.2% of the issued and outstanding Shares on a non-diluted basis, and approximately 34.3% on a partially diluted basis assuming exercise of the Warrants. Prior to the Private Placement, Mr. Sprott beneficially owns and controls 50,414,465 Shares and 9,615,385 Warrants, representing approximately 25.0% of the issued and outstanding Shares on a non-diluted basis, and approximately 28.4% on a partially diluted basis assuming exercise of the Warrants

The FT Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of Eric Sprott's early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Tim Froude, President and CEO stated "I would like to thank Mr. Sprott and our other loyal investors for their continuous support of the Company. 2022 will be an exciting year for our shareholders."

About Sokoman Minerals Corp.

Sokoman Minerals Corp. is a discovery-oriented company with projects in the province of Newfoundland and Labrador, Canada. The Company's primary focus is its portfolio of gold projects; flagship, advanced-stage Moosehead, Crippleback Lake (optioned to Trans Canada Gold Corp.) and East Alder (optioned to Canterra Minerals Corporation) along the Central Newfoundland Gold Belt, and the district-scale Fleur de Lys project in northwestern Newfoundland, that is targeting Dalradian-type orogenic gold mineralization similar to the Curraghinalt and Cavanacaw deposits in Northern Ireland. The Company also recently entered into a strategic alliance with Benton Resources Inc. through three, large-scale, joint-venture properties including Grey River, Golden Hope and Kepenkeck in Newfoundland.

Sokoman now controls, independently and through the Benton alliance, over 150,000 hectares (>6,000 claims - 1500 sq. km), making it one of the largest landholders in Newfoundland, in Canada's newest and rapidly-emerging gold districts. The Company also retains an interest in an early-stage antimony/gold project (Startrek) in Newfoundland, optioned to White Metal Resources Inc., and in Labrador, the Company has a 100% interest in the Iron Horse (Fe) project which has Direct Shipping Ore (DSO) potential.

Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company's property.

To learn more, please contact:
Timothy Froude, P.Geo., President & CEO	Cathy Hume, Director, Investor Relations	Website: www.sokomanmineralscorp.com
709-765-1726	416-868-1079 x 251	Twitter: @SokomanMinerals
tim@sokomanmineralscorp.com	cathy@chfir.com	Facebook: @SokomanMinerals

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

Investors are cautioned that trading in the securities of the Corporation should be considered highly speculative. Except for historical information contained herein, this news release contains forward- looking statements that involve risks and uncertainties. Actual results may differ materially. Sokoman Minerals Corp. will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Sokoman Minerals Corp.

SOURCE: Sokoman Minerals Corp.

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FAQ

What is the total amount raised by Sokoman Minerals in the recent private placement?

Sokoman Minerals raised a total of $5 million in the recent private placement.

Who is the lead investor in Sokoman's private placement?

Eric Sprott is the lead investor in Sokoman's private placement.

What is the exercise price for the warrants issued in the private placement?

The exercise price for the warrants is $0.45.

When does the hold period for the private placement securities expire?

The hold period for the securities will expire on July 22, 2022.

What percentage of Sokoman's shares does Eric Sprott own after the private placement?

After the private placement, Eric Sprott owns approximately 28.2% of Sokoman's issued and outstanding shares.