Soma Gold Corp. has successfully closed a non-brokered private placement, raising C$7,500,000 to fund production expansion and exploration at its Colombian mining operations. The financing, conducted under the Listed Issuer Financing Exemption (LIFE Exemption), positions the company to accelerate growth at its Escondida and Aurora mines while completing critical infrastructure projects.

Offering Details

Pursuant to the offering, Soma Gold issued 10,000,000 common shares at a price of C$0.75 per share. The company paid aggregate cash commissions of C$525,000 and issued 700,000 non-transferable broker warrants to certain arm's length finders. Each broker warrant entitles the holder to acquire one common share at an exercise price of C$1.10 per share for a period of 24 months from the date of issuance.

Use of Proceeds

The net proceeds from the offering will be allocated to several strategic initiatives. These include capital expenditures to expand production at the Escondida and Aurora mines and the completion of ore sorting equipment installation. Funds will also support accelerated exploration activities at the Escondida property. Additionally, the company will utilize working capital to pre-pay for ore purchases from small legal mines near its mills and for general corporate purposes.

Management Commentary

Geoff Hampson, CEO of Soma Gold Corp., stated that the financing positions the company to accelerate production growth at both mines while completing ore sorting infrastructure. He noted that these milestones are expected to have a meaningful impact on output and margins. Hampson also highlighted the company's commitment to supporting the formalization of small-scale legal mining operations in the region through ore purchase agreements.

Regulatory and Exchange Approval

The offering remains subject to the final approval of the TSX Venture Exchange. An offering document related to the transaction is available under the company's profile on SEDAR+ and on its website. The common shares issued pursuant to the offering have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registration or an applicable exemption.

Soma Gold Corp. has commenced shipments of mineralized material from the Aurora and El Limon mines to the El Bagre Gold Complex following the receipt of the final Explosives Permit required to restart operations at Aurora. The company is also currently mining at the historic El Limon Mine, with deliveries to the El Bagre Mill already underway. These developments are expected to increase the total tonnage of feed material produced by the company.

The Aurora Mine, purchased by Soma in 2024, is undergoing full rehabilitation, including the installation of new power, ventilation, and hoisting systems. Development work on Levels 5 and 6 is currently producing mineralized material, which is being shipped to the El Bagre Gold Complex. Commercial Production is expected in Q3 or Q4, when production reaches the permitted 20 TPD. In the interim, the company plans to ship 10-15 TPD of mineralized material to the mill for processing.

Operations at the El Limon Mine, which closed in 2020 due to low gold prices, have resumed after the mine was dewatered to Level 5. The company is currently mining stopes and pillars remaining from pre-closure operations. While additional exploration is needed to quantify the remaining resource, El Limon serves as an additional source of mineralized material for the mill in the interim.

To support expanding operations, Soma announced the delivery of a new underground haul truck to the Cordero Mine. The addition was necessitated by increased haul distances as the mine has expanded. The new truck arrives as average grades at Cordero return to anticipated levels.

Geoff Hampson, Soma's CEO, stated that the increased production from Cordero, Escondida, El Limon, and Aurora Mines will justify the start of processing at the El Limon Mill once full production is achieved. He also noted that the addition of sorting equipment at El Bagre will enable processing of feed from the Nechi Mine, expected to commence production in Q3 2027.

Operational Overview

Soma Gold Corp. operates two fully permitted mills in Colombia, the El Bagre Mill and the El Limon Mill, with a combined milling capacity of 675 tpd. The El Limon Mill resumed operations in Q3 2025.