Soma Gold Acquires Minority Interest in Four Points Mining to Achieve 100% Ownership
October 20, 2020, Vancouver, B.C., - Soma Gold Corp. (the “Company” or “Soma”) is pleased to announce that is has entered into a share purchase agreement (the “Agreement”) with two arm’s length parties, Mineral FF S.A.S. and Rulvix Holding Inc (together, the “Vendors”), to purchase the 25,992 common shares (the “Acquisition”) in the capital of Four Points Mining S.A.S. (“Four Points”). As a result of the Agreement, Four Points will become a 100% owned subsidiary of Soma. Four Points is the owner and operator of the El Limon Mine located in Antioquia, Colombia. Soma currently holds approximately 88.1% of the issued and outstanding common shares of Four Points. Upon completion of the Acquisition, Four Points will become a wholly-owned subsidiary of the Company.
Under the terms of the Agreement, the Company has agreed to issue 1,218,232 common shares (the “Consideration Shares”) to the Vendors at a deemed issue price of $0.55 per Consideration Share, which represents a 2.01% equity ownership in the Company. The Acquisition and the issuance of the Consideration Shares is subject to approval of the TSX Venture Exchange.
Geoff Hampson, Soma’s Executive Chairman, states, “We are pleased to have signed the Share Purchase Agreement. Now that Soma will own 100% of Four Points, Soma can integrate operations at El Limon and El Bagre owned by Soma’s other wholly-owned subsidiary, Operadora Mineras, SAS. The two properties and mills are on contiguous properties, and management feels that there is a good chance that the mineralized trend crosses from one property to the other. Fully integrating the two companies, properties, and their management will allow Soma to attain efficiencies and synergies from operating in Colombia, as one wholly-owned subsidiary. ”