News

February 17, 2009

Back In The Saddle In Mexico: Soho Resources Has New Friends, And New Funding Too

By Chris Cann

A modest but vital private placement to a group of Chinese investors has guaranteed the future of Toronto-listed Soho Resources, as the company looks to move its Tahuehueto polymetallic project in Mexico from the exploration to the development stage. And Soho’s new Chinese friends may also be able to open up fresh opportunities for the company. Soho’s chief executive Ralph Shearing has told Minesite that the deal lays the foundations for Soho potentially to broaden its Chinese investor base and pursue Chinese project opportunities. However, he also cautioned that the relationship is still in its infancy. At the very least, though, December’s raising has injected a much-needed C$1 million into the coffers, money that will see the company through 2009, albeit at reduced rates of activity, without the need for further financing.

“In these very difficult market conditions we are pleased to have negotiated this private placement, which ensures Soho will have adequate working capital throughout 2009 at our current vastly reduced burn rate,” Shearing said. “Should market conditions improve such that it allows for additional funding to be achieved at less dilutive rates we intend to accelerate exploration work required to advance the Tahuehueto project towards economic studies and possible future production.”

The flagship...