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Highlights
- Soma Gold to acquire fully permitted La Escondida Mine in Colombia
- Ore to be processed at El Limón Mill, boosting average head grade
- Exploration activities and drilling program set for resource expansion
Soma Gold Corp (V:SOMA) has taken a strategic step to strengthen its production capabilities by securing an agreement to acquire the La Escondida Gold Mine, located in Antioquia, Colombia. The transaction is currently subject to final legal due diligence but marks a significant milestone in the company’s growth plan.
The La Escondida Mine spans over 1,000 hectares and is equipped with a full set of permits, positioning Soma Gold to ramp up operations with minimal regulatory hurdles. Conveniently located within trucking distance from Soma's existing El Limón Mine, the ore from Escondida will be transported and processed at the El Limón Mill. The anticipated benefit? A boost in the mill's average head grade, thanks to Escondida’s richer ore compared to Soma’s Cordero and Aurora mines.
This acquisition is structured through a staged payment plan totaling US$3 million and includes a net smelter royalty (NSR) arrangement that provides financial flexibility. Notably, the NSR can be bought out through a single future payment, ensuring Soma retains optionality over long-term operational costs.
The company has ambitious plans to ramp up Escondida’s production levels to approximately 40–50 tonnes per day. Beyond immediate production enhancements, Soma aims to unlock further value through systematic geological exploration. Early assessments of the vein structure have shown promising signs, with coarse-scale geophysical data suggesting potential extensions of the gold-hosting structures both northeast and southwest of the existing mine area.
In response to these signals, Soma has outlined a comprehensive exploration program for Q3 2025. This includes geological mapping, prospecting, soil sampling, and a focused drilling campaign targeting up to 800 meters of strike length and depth extension. Additionally, known surface quartz veins from prior unregulated mining activities will be evaluated for further potential.
Soma Gold’s broader presence in the region is marked by over 43 square kilometers of mineral concessions and two fully permitted mills within a 25-kilometer radius, supporting a combined capacity of 675 tonnes per day. The acquisition of La Escondida aligns with the company’s strategy to consolidate and scale its Colombian operations in a sustainable and cost-effective manner.
