Sona closes first tranche of $450,000 private placement financing

Sona Resources (CVE:SYS) said Friday it has closed the first tranche of its $450,000 non-brokered private placement financing.

To date, the company has issued 500,000 units at a purchase price of $0.60 per share, for gross proceeds of $300,000.

Each unit consists of one common share of Sona stock and one half of a share purchase warrant. Each full warrant entitles the holder to purchase one additional share of the company at an exercise price of $0.90 for two years following the closing date.

Should the company's share price exceed $1.30 per share for ten consecutive trading days after one year from the date of closing, however, the warrant expiration date will be accelerated to 30 calendar days from the trigger date.

The next tranche of the private placement will see the issuance of 250,000 units at $0.60 each, for total proceeds of $150,000.

A finder's fee equal to eight percent of the gross proceeds raised may be paid, Sona said.

All proceeds from the financing will be used for exploration and development work on the company's wholly-owned Elizabeth gold property, and its wholly-owned Blackdome gold mine, each in British Columbia.

At Blackdome, which is located 250 kilometres north of Vancouver, indicated mineral resources are estimated at 144,500 tonnes, grading 11.3 g/t, containing 52,600 ounces of gold. Inferred resources are estimated at 90,600 tonnes, grading 8.8 g/t gold.

The company is aiming to bring the property back into production over the next year and a half at a rate of 200 tonnes per day, with feed from the Blackdome mine, as well as its Elizabeth gold deposit, just 30 kilometres south of Blackdome.

At Elizabeth, Sona has outlined an inferred gold resource of 522,900 tonnes, grading 12.3 g/t gold, containing 206,100 ounces.

In November, the company said it completed the latest surface diamond drilling program at its Blackdome gold property, uncovering a whole new potential gold area.

Sona also holds a 100 percent interest in the Montgolfier project, located in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.