SOMA GOLD Amends GOLD Loan with Sun Valley Group to Increase 2024 Exploration Budget
SOMA GOLD AMENDS GOLD LOAN WITH
SUN VALLEY GROUP TO INCREASE 2024
EXPLORATION BUDGET
VANCOUVER, BC
,
May 21, 2024
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce that the Company has
amended its offtake agreement (the "Offtake Agreement") with Goldlogic Corp. ("Goldlogic" -
formerly Nueva Granada Gold Corp.) and MVPR International Incorporated, dated
September 4
th
,
2020, by securing an additional
US$3 million
. The proceeds will be used to complete the
development work at the Aurora Mine, with the aim of commencing production in Q3 2024.
Furthermore, it will also augment the 2024 exploration budget, facilitating accelerated drilling across
several high-potential targets on the Company's approximately 41,000 Ha property.
Amended Offtake Agreement
Under the terms of the amended Offtake Agreement, Soma has received a new advance payment of
US$3 million
from Goldlogic. In return, the Company will deliver a monthly cash payment equivalent
to 59.9 ounces of gold to Goldlogic for a period of 36 months, commencing in
June 2024
(Tranche
4).
Soma successfully completed Tranches 1 and 2 of the Offtake Agreement in
January 2023
, while
Tranche 3 – a 1% NSR – remains in effect.
Otu Centro Payment
On
May 10th
, Soma fulfilled its commitment by making the second and final payment of
US$1.12
million
under the agreement to purchase the Otu Centro properties. As a result, the Company now
owns 100% of the properties, subject to a 2% NSR on metallic minerals. Half of the NSR (1%) can
be repurchased for
US$1 million
(indexed to US CPI).
The Otu Centro properties contain eleven known mineralized quartz vein occurrences, featuring
varying amounts of historic and small-scale mining. Of particular significance are the La Aurora and
La Constancia mines, which have a combined
1,000m
of development work to a depth of
130m
.
Soma has made considerable progress in dewatering the mines and is currently in the final de-
mucking stage at the lower level. Power, ventilation and support rehabilitation have been completed,
enabling crews to access the drifts for sampling and mine planning. With all necessary permits
secured, including environmental permits undergoing updates, Soma intends to commence mining in
the near term.
Exploration
Soma's geological team has undertaken a comprehensive re-interpretation of the geology and
structural controls on gold mineralization in the region. This enhanced regional exploration model is
based on the results of drilling and mapping across various exploration targets, including the Cordero
Mine and several past-producing mines within the Company's property. The revised interpretation
suggests the presence of "en echelon" parallel veins, previously unidentified, which aids in tracing
vein systems along strike, expanding drill targets in historical mining areas. Significant additional
exploration drilling will be needed to test the new geological model along the Otú Fault.
Geoff Hampson
, Soma's President and CEO, states, "Soma values its longstanding and mutually
beneficial relationship with the Sun Valley Group. We are very pleased to continue our partnership
with a company and neighbor that possesses profound insights into both the industry and the local
environment in Antioquia,
Colombia
. Sun Valley's numerous investments and operations in properties
adjacent to Soma's underline their support towards expanding our geological understanding of the
structures and increasing the resource and production potential on our property in Antioquia."
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a mining company focused on gold production and exploration.
The Company owns two adjacent mining properties in Antioquia,
Colombia
, with a combined milling
capacity of 675 tpd. (Permitted for 1,400 tpd). The El Bagre Mill is currently operating and
producing. Internally generated funds are being used to finance a regional exploration program.
With a solid commitment to sustainability and community engagement, Soma Gold Corp. is
dedicated to achieving excellence in all aspects of its operations.
The Company also owns an exploration property near Tucuma, Para State,
Brazil
that is currently
under option to Ero Copper Corp.
On behalf of the Board of Directors
"Geoff Hampson"
Chief Executive Officer and President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements, analysis and other information contained in this press release about anticipated
future events or results constitute forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect" and "intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions. Forward-looking statements
are subject to business and economic risks and uncertainties and other factors that could cause
actual results of operations to differ materially from those contained in the forward-looking
statements. Forward-looking statements are based on estimates and opinions of management at
the date the statements are made. The Company does not undertake any obligation to update
forward-looking statements even if circumstances or management's estimates or opinions should
change except as required by applicable laws. Investors should not place undue reliance on
forward-looking statements.
SOURCE
Soma Gold Corp.
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For further information:
Andrea Laird, telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 05:20e 21-MAY-24