Soma Gold to acquire Escondida Mine in Colombia

Soma Gold Corp has signed an agreement to acquire the La Escondida Mine in Antioquia, Colombia, subject to final legal due diligence.

The La Escondida Gold Mine, covering 1,051 hectares, is a small-scale operation with a full set of permits. The mine is located within trucking distance to the company’s El Limón Mine. As part of the deal, Soma Gold will pay US$3 million ($4.61 million) in four tranches, with the first US$1 million to be paid upon closing the transaction.

Soma will also pay a 0.5% net smelter royalty (NSR) on all gold produced from the site. The NSR can be purchased at any time for a one-time payment of US$750,000.

CEO Geoff Hampson says acquiring Escondida aligns with the company’s strategy to grow production from its operations in Antioquia.  “Some will invest in operational improvements to quickly increase production at Escondida to 40-50 tonnes per day,” Hampson says.