Soma Gold Corp. (TSX-V:SOMA, OTCQX:SMAGF) has announced an amendment to its existing offtake agreement with Goldlogic and MVPR International, securing an additional US$3 million.
The funds will be allocated towards the completion of development work at the Aurora Mine, which is slated to begin production this year.
Additional funds will go towards the 2024 exploration budget, accelerating drilling across multiple high-potential targets on Soma's expansive 41,000-hectare property.
Under the revised terms, Soma will receive a US$3 million advance payment from Goldlogic. In exchange, Soma will deliver a monthly cash payment equivalent to 59.9 ounces of gold to Goldlogic over 36 months, starting in June 2024.
This comes after the successful completion of Tranches 1 and 2 in January 2023, with Tranche 3, a 1% Net Smelter Return (NSR), still in effect.
Soma also announced the completion of the second and final payment of US$1.12 million for the acquisition of the Otu Centro properties. With this payment, Soma now holds 100% ownership of the properties, subject to a 2% NSR on metallic minerals, with an option to repurchase half (1%) for US$1 million indexed to the US Consumer Price Index.
The Otu Centro properties feature 11 known mineralized quartz vein occurrences, including the La Aurora and La Constancia mines, which have a combined development of 1,000 meters to a depth of 130 meters. Soma has progressed in dewatering these mines and is currently finalizing de-mucking at the lower levels.
With power, ventilation, and support systems rehabilitated, Soma's crews can now access the drifts for sampling and planning. All necessary permits, including environmental updates, are in place, Soma noted.
Soma’s geological team has developed a new exploration model indicating previously unidentified "en echelon" parallel veins, which will guide expanded drilling along the Otú Fault to enhance exploration in historical mining areas.
Geoff Hampson, Soma’s President and CEO, told investors that Soma “values its longstanding and mutually beneficial relationship with the Sun Valley Group.”
“We are very pleased to continue our partnership with a company and neighbor that possesses profound insights into both the industry and the local environment in Antioquia, Colombia,” Hampson said in a statement.
“Sun Valley's numerous investments and operations in properties adjacent to Soma's underline their support towards expanding our geological understanding of the structures and increasing the resource and production potential on our property in Antioquia."