SOMA GOLD Receives First Shipment from Formalized Small MINE at El Limon
SOMA GOLD RECEIVES FIRST SHIPMENT
FROM FORMALIZED SMALL MINE AT EL
LIMON
Highlights:
First small mine completed formalization process
Ore sorting equipment arrives in Colombia
Nechi Permit Application pending
VANCOUVER, BC
,
March 12, 2026
/CNW/ -
Soma Gold Corp.
(TSXV: SOMA) (WKN: A2P4DU)
(OTC: SMAGF) (the "
Company
" or "
Soma
") is pleased to announce that the first delivery of mined
material from the formalized Diamantina Mine has been received at the El Limon Mill in Zaragoza,
Antioquia, Colombia. The Diamantina Mine was formalized under Colombian law after more than five
years of effort. The formalization contract allows Soma to purchase mineralized rock in exchange for
a percentage of the gold contained in each shipment. The Diamantina Mine is permitted to produce
up to 40 MT of material per day, with the objective of reaching this production rate by mid-year. In
the interim, 1,700 MT of stockpiled material produced at Diamantina is currently being transported to
the mill for processing.
Diamantina is the first of 24 small mines, in various stages of formalization. The other mines in the
process account for 23 of the approximately 60 small mines operating on Soma's 43,000-hectare
property. The Company expects several other small mines nearing the end of the formalization
process to start supplying El Limon later this year. In addition, other small mines are expected to
initiate the formalization process with the Company. Soma restarted the El Limon Mill in Q3 2025 to
increase the Company's total milling capacity and thereby accommodate the material produced by
the Aurora and Escondida mines, which are owned by the Company, as well as the feed expected
from the formalized small miners.
Supply from these sources may be processed at the El Limon Mill or at the Company's El Bagre
Mill, where ore sorting equipment is being installed. The equipment has arrived in Colombia and is
expected to be installed and tested by mid-2026. The Company expects full commercialization of the
ore sorting technology in the second half of this year. Once operational, the ore sorting system is
expected to increase throughput at the El Bagre Mill from 450 TPD to between 700 and 750 TPD.
The final permit submission for the Nechi Mine is approximately 95% complete, with the PTO (mining
permit) application expected to be submitted in April 2026. Approval of the permit is anticipated
before the end of the year. Once constructed, the Nechi Mine is expected to provide an additional
250 TPD of feed to the El Bagre Mill, resulting in incremental production of approximately 25,000
AuEq ounces per year.
Geoff Hampson, Soma's CEO, states, "We are pleased that, after many years of effort, we have
completed the formalization process for the first small mine on our property. We expect this will be a
catalyst to begin formalizing additional small miners and to expedite the completion of the process
for those already in the pipeline. Formalization of small miners has been a key part of our strategy
for many years, and it is gratifying to see the first one complete. This is an important part of how we
increase production and capture the gold being produced on our property." Hampson further states,
"We are several months behind schedule in increasing production from both the Company's small
mines and from formalized small miners. These delays have been caused by the lingering effects of
last year's strike, which halted all work, as well as the difficulty in hiring qualified workers in the
region."
The Company also confirms that 2025 AuEq production totaled 18,670 ounces. Production was
below expectations due to the two-month work stoppage and the difficulty in restarting operations
following the strike. Mechanical issues identified during the restart period have since been
addressed, and normal operations have resumed.
The Company also announces that its Board of Directors has approved the grant of equity incentives
pursuant to the Company's Equity Incentive Plan. In total, the Company has granted 1,118,334 stock
options, 159,910 restricted share units ("RSUs"), and 76,756 deferred share units ("DSUs") to
certain directors, officers, and employees of the Company.
The stock options are exercisable at a price of $2.06 per common share and will expire five years
from the date of grant. The options vest as follows: 25% immediately, 25% six months from the date
of grant, 25% twelve months from the date of grant, and 25% eighteen months from the date of
grant. The RSUs vest in three equal annual installments from the date of grant. The DSUs were
granted to certain directors of the Company and will vest in accordance with the terms of the
Company's Equity Incentive Plan.
Certain grants under the Company's Equity Incentive Plan may constitute a related party transaction
pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is exempt from the requirements to obtain a formal
valuation and minority shareholder approval in connection with the grant of the RSUs to related
parties in reliance on the exemptions contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101,
respectively as the fair market value of the grants to related parties does not exceed 25% of the
Company's market capitalization.
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA) is a profitable mining company focused on gold production and
exploration. The Company owns over 430 sq. kilometers of mineral concessions following the prolific
OTU fault in Antioquia, Colombia and two fully permitted mills located within 25 kilometers of each
other, with a combined milling capacity of 675 TPD. The El Bagre Mill operates at 450 TPD and the
El Limon Mill restarted operations in Q3 2025. 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:
For further information, please contact Andrea Laird, telephone: +1-604-
259-0302
CO: Soma Gold Corp.
CNW 04:15e 12-MAR-26