Sokoman Minerals closes $26.22-million financing

Executive Summary

• Sokoman Minerals Corp. has closed a $26.2 million bought deal private placement, including the full exercise of the over-allotment option.
• The offering consisted of two tranches: 53 million common shares at $0.19 per share and 60.95 million flow-through shares at $0.265 per share.
• Eric Sprott, through an affiliated corporation, acquired the entire block of 53 million common shares.

Key Details

• Total Gross Proceeds: $26,221,750.
• Common Share Tranche:
  • Quantity: 53,000,000 common shares.
  • Price: $0.19 per share.
  • Gross Proceeds: $10,070,000.
  • Investor: Eric Sprott (via 2176423 Ontario Ltd.) acquired all 53 million shares.
• Flow-Through Share (FT) Tranche:
  • Quantity: 60,950,000 common shares (including 7,950,000 shares from the full exercise of the overallotment option).
  • Price: $0.265 per share.
  • Gross Proceeds: $16,151,750.
  • Structure: Distributed on a charity flow-through basis.
  • Use of Proceeds: To incur Canadian exploration expenses qualifying as flow-through mining expenditures.
  • Expenditure Timeline: Qualifying expenditures to be incurred on or before December 31, 2026.
  • Renunciation Date: Effective date no later than December 31, 2025.
• Underwriting Details:
  • Lead Underwriter/Sole Bookrunner: Canaccord Genuity Corp.
  • Co-Underwriter: BMO Capital Markets.
  • Cash Commission Paid: $1,073,305.
  • Broker Warrants Issued: 3,679,105 warrants.
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of $0.19 per share for a period of 24 months following closing.
• Insider Participation:
  • A director participated in the offering for 130,000 common shares.
  • This constitutes a related party transaction exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the fair market value of the consideration did not exceed 25% of the Company's market capitalization.
• Regulatory Status:
  • Shares are subject to a four-month hold period under Canadian securities laws.
  • Offering remains subject to final approval of the TSX Venture Exchange.

Notable Quotes

• None provided in the text.