Proactive - Interviews for investors

Sonoro Gold CEO Discusses Private Placement and New Mexican Presidency

Sonoro Gold Corp CEO Kenneth Macleod joined Steve Darling from Proactive to shared exciting updates regarding the company's successful completion of an over-subscribed non-brokered private placement, raising $875,000. These funds will support the ongoing development of the Cerro Caliche Gold Project in Sonora, Mexico.

Macleod noted that the company's Preliminary Economic Assessment (PEA) highlights the project's potential viability as a 9-year open-pit, heap leach mining operation. The next key step for Sonoro is to secure environmental approval for mine construction.

Macleod also addressed the challenges in Mexico's mining industry, emphasizing that no new mines have been developed in the past six years. However, he expressed optimism about working with the newly elected Mexican President Claudia Sheinbaum, whose policies could improve the outlook for foreign mining companies, potentially fostering growth and investment in the sector.

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Broadcast on:: 07 Oct 2024
Audio Format:: other

All right. Welcome back inside our proactive newsroom and joining me now is Ken McLeod. He is the CEO of Sonoro Goldcorp and Ken. Welcome back. Good to see you again. Thank you, Steve. Good to see you too. Yeah. So the company you're announcing the closing of an oversubscribed, non-broker private placement. So exciting news for the company. The demand was there, it seems Ken. The demand was there and the timing was absolutely perfect. Over the past six years, we faced rather insurmountable issues politically in Mexico under the presidency of Lopez Obrador. Now, as of July or June the 2nd, we had the Mexican election and Claudia Chienbaum became the present elect at that time. And as of October the 1st, the transition to the new presidency occurred. So the timing for the financing, just before October the 1st, was very, very attractive as far as the shareholders are concerned because now we have the new presidency and we're looking forward to working with the new regime. Yeah. I want to ask you about working with the new regime. Just on the dollars themselves, obviously, you've got some work that you want to complete at Cerro Coliche. And so this will go really towards the in the ground, so to speak. It will certainly go into the ground. However, the main focus now is on getting the environmental approval to build the mine. And we fully expected to have this in place two years ago. And we were stalled and continuously stalled at that time by the president's office. And so as a result now, we fully believe that under the presidency of Claudia Chienbaum that we will be able to get the permit in recently close time. Yeah. In a recent speech, she talked about trying to have a foreign investment within Mexico and the importance of it. And a couple of the ministers that she's appointed seem to have some mining background, at least a background that would be beneficial to your company and others as well. Yeah. So these officials, the secretary of the economy, for example, has an extensive experience in multilateral affairs, including the negotiation of the USMCA, for example. And so these are people that are actively engaged with foreign investors and foreign companies and foreign politicians. And so we feel strongly that we can work with these people. They have a similar vision to us. And the most important thing, of course, is they want to protect the Mexican economy. And by hurting the Mexican mining industry over the past six years, it has led taking us to a point where with no new open pit mines or even no new mines in general, except for extensions to existing mines taking place, the economy would eventually suffer quite dramatically. Now, fortunately for the Mexican economy, a lot of the mining companies have been taking their profits and reinvesting back into Mexico. And so that has helped to keep the stability within the mining industry. But keep in mind, with no new mines coming on stream and no new concessions being granted over the past six years, we are now at a point where a tipping point where the Mexican mining economy could take a dramatic downturn. Yeah. Ken, do you feel almost a breath of fresh air in what you're doing within Mexico? Not really about the project, but just more the general feel that you have now moving forward? I think the general feel is one of great optimism. But the simple reason that since the old government under López Obrador was very populist and was focused solely on getting reelected. And then the Moreno Party, of which Claudia Shinebaum is now the president and the leader of the country, the Moreno Party was focused on re-election. And the re-election aspects were to get the support of the Greens, for example, within the country. And to do so, they had to exert pressure on the mining industry, negative pressure in the mining industry. That is all behind them now. The one significant majority, super majorities, if I may call it that. And so, they now kind of enact the main policies that they wanted to achieve over the López Obrador term. And that was judicial reform was the main one. And that was accomplished in the month of September. And so, that was accompanied before the change of government took place or the change of presidency took place. And then one was to transfer the management of the, or the control of the National Guard from civilian to military control. And that was accomplished in September as well. So, they accomplished the key objectives of the López Obrador presidency. Now, Claudia Shinebaum can go ahead now and continue running the country for the benefit of all Mexicans. Well, it sounds like it's going to be exciting times ahead. We look forward to talking to you more about this when the time is right. Ken, thanks so much. Congratulations on getting the financing done. And we look forward to our next conversation. Okay. Thank you, Steve. It's a pleasure to welcome to you. All right, Ken McLeod, the CEO of Sonor O'Gold Corp.