Written By John Darch
To our Shareholders and Friends,
During this global crisis I would like to express our support and heartfelt sympathy for those most affected by the COVID-19 pandemic.
As a gold exploration and development company with significant ties to China, we note that the country’s evident success in curbing the spread of COVID-19 gives us optimism that the virus can be successfully contained, and the crisis eventually resolved. Also important to Sonoro and its shareholders, is the anticipation of accelerating the discussions with our Chinese counterparts on debt finance, engineering, procurement and construction contracts for the development of the proposed heap leach pilot gold production at our Cerro Caliche project in Sonora State, Mexico. We will be closely monitoring developments and maintaining our readiness to resume activities as they relate to China as soon as circumstances permit. Meanwhile, our technical team in Mexico continues to advance the Cerro Caliche project with the processing of surface samples and ongoing data analysis.
The Market Collapse shows Gold is a Key Investment
The COVID-19 pandemic has reinforced our bullish long-term view for gold principally because of its effect on financial markets and an evidently fragile fiat-dollar based global financial system. The clear impact of the pandemic and resulting global slowdown, has precipitated a world-wide stock market collapse. Sonoro’s strategy of fast-tracking its path to gold production is calibrated to benefit from an anticipated growth in the demand for gold as the next chapter of global debt growth which will likely involve a material increase of government deficit spending, thereby devaluing all currencies.
Strategic Fast-Tracking Gold Production & Debt Finance
We anticipated that the initial stages of the gold bull market would not necessarily be supportive for the gold juniors listed on the Toronto Venture Exchange, especially those that are dependent on equity financings, with many not making the transition from exploration to gold production. This was a big reason to find and fast-track the development of a project with the potential to quickly produce cash flow. It also motivated our strategy of eschewing traditional financing channels to fund development with debt provided by the same Chinese companies which propose to do the EPC work.
We Remain Committed to Proactive Communications
Clearly this is an unprecedented and rapidly evolving situation and Sonoro is committed to remaining proactive in its communications regarding any developments.
Like most companies across the globe, the majority of our business operations are being conducted by our partners and employees from their respective residences. In China, the development of detailed proposals regarding project financing and EPC work is underway and we anticipate returning to China as soon as permissible to resume meetings with potential partners.
In closing, I would again like to emphasize our sincerest wishes for the good health and safety of our shareholders and their loved ones. And that the recent events only serve to reinforce our commitment and confidence in Sonoro Metals and its path to success.
If you have any questions or would like more information, please contact us directly at email@example.com or visit our website at sonorogold.com.
Chairman, Sonoro Metals.