Updated: Aug 5
July 6, 2020, Vancouver, B.C. – Soma Gold Corp. (the “Company” or “Soma”) announces that it has closed its non-brokered private placement (the “Private Placement”) in the amount of $4,440,000. The private placement was originally announced on May 29, 2020 for $3.75 million and was over-subscribed by $690,000. The Company has issued 29,599,997 common shares and 29,599,997 share purchase warrants (each a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for a period of 2 years at a price of C$0.25. Two insiders of the Company participated in the Private Placement and subscribed to a total of 20,344,798 Units for proceeds of $3,051,719.70.
Finders’ fees in cash and 54,600 non-transferable finder’s warrants (having the same terms as the private placement warrants) were issued to registrants in connection with this closing. All securities issued in the Private Placement are subject to a hold period of 4 months from closing.
The proceeds of the Private Placement are expected to be used for general corporate and working capital purposes related to the Company’s projects.
Because the Company’s shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101. The Company did not file a material change report 21 days before this closing of the Private Placement because the Company wished to complete the Private Placement in a timely manner.
The Company also reports that a 717.4-ounce AuEq doré bar was produced at its 100% owned La Ye Mine in El Bagre, Antioquia, Colombia. The bar contained 704.16 ounces of Au and 1,385.3 ounces of Ag. The bar was transported by helicopter and delivered to a refinery in Medellin. The Company netted and was paid $1,730.16 per Au Eq ounce for a total of US $ 1,241,219.74.
Figure 1. One of the doré bars cast at La Ye,
El Bagre, Antioquia, Colombia on June 26th 2020
Javier Cordova, the Company’s CEO, states, “The gold production of doré was on-plan for the anticipated production of approximately 1,400 ounces per month. We expect this level of production to be consistent through the balance of 2020. In Q1 2021, production is expected to increase as mine development work accesses Balvina Cordero, where the grade is considerably higher. Construction work on the new access is proceeding as planned and is on budget. New security protocols at La Ye have been instituted and are functioning well. We have also begun a continuous security review process. In addition, the Company’s two exploration drilling rigs continue to work on the property. An update to the exploration program will be released in July.”
The Company also announces, subject to regulatory approval, the grant of a total of 2,025,000 stock options to directors, employees and consultants of the Company to purchase common shares of the Company in accordance with its equity incentive plan. The options vest immediately and are issued at an exercise price of 19 cents per common share and expire five years from the date of issuance.