SOMA GOLD Corp. Announces Agreement to Option Tucumã Properties
SOMA GOLD CORP. ANNOUNCES
AGREEMENT TO OPTION TUCUMÃ
PROPERTIES
VANCOUVER, BC
,
March 15, 2022
/CNW/ -
Soma Gold Corp.
(the "
Company
" or "
Soma
") (TSXV:
SOMA) (OTCQB: SMAGF
)
is pleased to announce that it has entered into a Property Option
Agreement (the "
Agreement
") with Angra Metals Mineração Ltda. ("
Angra Metals
", and together
with Soma the "
Optionors
") and Ero Copper Corp. ("
Ero
") pursuant to which the Optionors agreed
to grant to Ero an option (the "
Option
") to purchase 100% of the legal and beneficial interest in the
Tucumã Properties, located in the Carajás province in the State of Pará, Brazil (the "
Properties
").
Pursuant to the Agreement, Ero can acquire a 100% interest in the Properties by paying to Soma up
to
US$6,450,000
and incurring
US$1,700,000
in exploration expenditures across three phases as
set out below:
Cash payments:
US$250,000
on signing of the Agreement;
US$100,000
on or before five business days after
September 6, 2023
; and
US$100,000
on or before five business days after
September 6, 2024
.
Phased exploration expenditures:
US$1,200,000
on or before
September 6, 2023
;
US$250,000
on or before
September 6, 2024
; and
US$250,000
on or before
September 6, 2025
.
Final option payment of
US$6,000,000
in cash or common shares in the event that Soma has
exercised the Buy-Back Option (defined below), or
US$3,000,000
in cash or common shares in
the event that Soma has failed to exercise the Buy-Back Option (as defined below), on or
before
September 6, 2025
.
Soma entered into a separate agreement with the former owners of certain mining rights within the
Properties providing Soma an option (the "
Buy-Back Option
") to acquire the former owners' 1% net
smelter returns royalty ("
NSR
") from the mining rights held by the former owners and to extinguish
the former owners' right to a
US$3,000,000
payment due upon commencement of commercial
production on the mining rights. Soma can exercise the Buy-Back Option by issuing to the former
owners an initial 250,000 common shares of Soma within 30 days of the execution of the Buy-Back
Option agreement and issuing an additional 250,000 common shares of Soma within three years of
the execution of the Buy-Back Option agreement.
Upon Soma having exercised the Buy-Back Option and Ero having exercised the Option to acquire a
100% interest in and to the Properties, Soma will be entitled to receive a 1.5% NSR, subject to Ero
retaining the exclusive right and option to repurchase a 1.0% NSR by paying to Soma
US$1,000,000
by the third anniversary after the date on which Ero publicly announces a construction decision on
the Properties.
Geoff Hampson
, Soma's Executive Chairman, states, "Soma is very pleased to have reached an
agreement with a company of Ero's stature, and whose knowledge of the region and experience in
Brazil
will assist in demonstrating the potential of the Tucumã property."
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. The
Company also owns an exploration and development property near Tucumã, Para State,
Brazil
.
On behalf of the Board of Directors
Javier Cordova Unda
Chief Executive Officer and President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
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. Such statements include
statements regarding receipt of further funds pursuant to the Option or the exercise of the Option or
the Buy-Back Option, which cannot be confirmed as at the current date. 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, Corporate Secretary, Telephone: +1-604-259-0302
CO: Soma Gold Corp.
CNW 06:15e 15-MAR-22