Soma Gold Corp. (TSX-V:SOMA) has announced the acquisition of a new package of exploration properties in Antioquia, Colombia, covering a total area of 11,160 hectares that are contiguous with the company's existing Zara exploration properties.
With the acquisition, Soma Gold now controls approximately 60% of a 100-kilometre (km) long mineralized trend that stretches from the Nechi Project in the North to Aris Mining Corporation's Segovia Operations in the South.
The newly acquired Otú Centro properties boast eleven known mineralized quartz vein occurrences, including the La Aurora and La Constancia mines, which have over 1,000 meters of development work to a depth of 130 meters.
The Otú fault system, which spans over 100 km from Segovia-Remedios in the South to Nechi in the North, has been a prolific source of high-grade gold mineralization. The district has seen significant gold production, including approximately 329,000 ounces annually from underground operations and placer mining. The presence of gold-bearing quartz veins along the Otú Fault suggests the potential for discovering additional large-scale deposits.
In a statement, Soma Gold's CEO, Javier Cordova, expressed excitement about the acquisition, commenting: "The acquisition of the Otú Centro Property by Soma represents a significant consolidation of the ground within a prolific Colombian gold belt. The Otú Centro Property contains numerous gold occurrences that have seen only limited modern exploration. In contrast, the quantity of gold produced from hard rock and alluvial mining operations along this mining belt indicates the prospective trend for discovering significant new gold deposits."
The agreement for the acquisition includes an initial cash payment of US$1 million, with an additional cash payment of US$1.12 million due in May 2024. Soma Gold will also assume liabilities of US$150,000 related to the properties.
As part of the deal, a 2% net smelter return (NSR) on metallic minerals will be granted, with the option for Soma Gold to repurchase half of the NSR (1%) for US$1 million.
Soma Gold owns two adjacent mining properties in Antioquia, with a combined milling capacity of 675 tons per day, and is financing a regional exploration program using internally generated funds. Additionally, Soma Gold owns an exploration property in Brazil, which is under option to Ero Copper Corp.
Contact the author at jon.hopkins@proactiveinvestors.com