EL Limon Mill Commissioning, labor negotiations in Colombiaand new VP appointment
Soma Gold Corp. (TSXV: SOMA,OTC:SMAGF) (WKN: A2P4DU) (OTC: SMAGF) (the “Company” or “Soma”) is pleased to announce the following operational update:
Update from the El Limon Mill
The El Limon mill is in operation and in the planned start-up phase. Ball mill number 1 is operational and bull gear replacement for mill number 2 is underway. The company expects the factory to operate at full capacity in December, despite the challenges posed by the ongoing labor strike in El Bagre. El Limon’s workforce is not unionized but relies on certain support services from the El Bagre facility. Management has successfully outsourced these services and progress is being made. The first gold production from the Merril Crowe circuit occurred last week and produced 40kg of fallout. Additional automation is being installed to resolve operational disruptions related to the thickening tank, improving processing reliability. Full production of 200 TPD is expected in the first quarter of 2026.
Soma appoints vice president of Business Development
Furthermore, Soma announces that Mr. Julian Storz has joined the company’s management team as Vice President, Business Development, based in Toronto. Historically, Soma has expanded its operations by acquiring properties, mines and processing facilities in Antioquia. Colombiathereby increasing that region’s mineral real estate portfolio, resources and gold production. Mr. Storz will now lead Soma’s efforts to pursue accelerated inorganic growth through mergers and acquisitions and other strategic initiatives to create jurisdictional diversity and develop new production in new regions that align with the company’s strategy and investment criteria.
“I am pleased to join Soma at this crucial stage,” said Mr. Storz. “Soma has built a robust platform with meaningful organic growth opportunities that position the company to scale production and pursue additional value-add initiatives.”
Mr. Storz is a financial professional with more than ten years of experience in corporate finance, banking, mergers and acquisitions and capital markets. Before joining Soma, Mr. Storz was Director of Investment Banking – Mining & Metals at an independent investment bank based in Toronto. In this role, he advised a broad range of clients, from senior producers to early-stage exploration companies, on strategic initiatives including corporate financing, mergers and acquisitions, joint ventures, strategic investments, streaming and royalty transactions, and Indigenous community engagement.
Strike and labor negotiations in El Bagre
Negotiations to end the work stoppage by the union workers at the company’s El Bagre factory and Cordero mine continue with the help of the Colombian Ministry of Labor. Progress has been made on a number of key issues, but the union’s demand for co-governance rights, among other things, remains a major point of contention. The company remains committed to reaching a fair agreement with its employees and is confident that a mutually beneficial resolution will be reached, allowing work to resume quickly.
Under Colombian law, after a strike has lasted 60 days, the case is submitted to binding arbitration. Employees must return to work approximately ten days after the 60th daye day while the arbitration is in progress. November 7 marks the 60e day since the start of the strike. The company remains hopeful that the issues will be resolved before that date.
CEO statement
Geoff HamsonSoma’s CEO said: “We are very grateful for the assistance and guidance provided by the Colombian Ministry of Labor in seeking agreements with Sintramienergetica Nacional, the union representing employees at the company’s El Bagre facility. We believe that we have made a generous offer that goes beyond the contract terms recently negotiated by the same union with other mining companies in the region. November 7e milestone, the company will adhere to the terms of the arbitration process.”
Mr. Hampson further commented, “I am pleased to see the El Limon plant returning to production. Limon was the first asset we acquired in Colombia. We upgraded the plant from 50 TPD to 225 TPD in 2018-2019 and then acquired the El Bagre mill, which offered greater capacity. Limon received care and maintenance while we developed sufficient ore resources to feed both mills. With the development of the Aurora mine, the purchase of the Escondida mine and the formalization of several small miners, we have now achieved that goal. Production at Limon is estimated to yield 500 to 1,000 ounces of gold per month. Although throughput will be limited during start-up, we expect to reach a nominal capacity of 200 TPD by the end of the year. Once testing of the ore sorting equipment is completed, management will consider a facility at El Limon, which would increase production to 400-425 TPD, reducing Soma’s dependence on production from the El Bagre plant.”
ABOUT SOMA GOLD
Soma Gold Corp. (TSXV: SOMA,OTC:SMAGF) is a profitable mining company focused on the production and exploration of gold. The company owns more than 43 square kilometers of mining concessions following the prolific OTU fault in Antioquia, Colombia and two fully permitted mills within 15 miles of each other, with a combined milling capacity of 675 tons per day. The El Bagre mill is running at 450 TPD and the El Limon mill is expected to resume operations in the third quarter of 2025. Internally generated funds are used to finance a regional exploration program.
With a solid commitment to sustainability and community involvement, Soma Gold Corp. committed to achieving excellence in all aspects of its activities.
The company also owns an exploration site near Tucuma, Para State, Brazilwhich is currently under option with Ero Copper Corp.
On behalf of the Board of Directors
“Geoff Hampson”
General Manager and Chairman
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analyzes and other information in this press release regarding expected future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “could” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual operating results to differ materially from those in the forward-looking statements. Forward-looking statements are based on management’s estimates and opinions as of the date the statements are made. The Company undertakes no obligation to update any forward-looking statements, even if circumstances or management’s estimates or opinions should change, except as required by applicable law. Investors should not place undue reliance on forward-looking statements.
SOURCE Soma Gold Corp.
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