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Soma Gold Corp V.SOMA

Alternate Symbol(s):  SMAGF

Soma Gold Corp. is a Canada-based mining company. The Company is focused on gold production and exploration. It is engaged in the business of acquiring, exploring, developing, and operating mining properties in South America. It owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd. The Company's principal operation is the El Bagre Gold Mining Complex (El Bagre), which consists of an operating gold processing plant (the El Bagre Mill) and the Cordero underground mine. The El Limon Project (El Limon) is adjacent to the El Bagre Project and includes a past producing underground mine and a gold processing plant with a capacity of approximately 225 tpd. The Company also owns an exploration property, Tucuma Exploration Project (Tucuma), a copper/gold exploration project, which is located in the Carajas metallogenic province in the State of Para, Brazil. Its exploration projects include the Nechi Project, the Zara Project, and the Otu Project.


TSXV:SOMA - Post by User

Comment by tobinator01on Jan 20, 2023 11:53am
96 Views
Post# 35235677

RE:RE:RE:RE:Soma now at 52-week high

RE:RE:RE:RE:Soma now at 52-week highI'm an investor for capital appreciation and dividends are secondary to me.  It's great insiders own over 70% of the outstanding shares but it also means the float is extremely small.  Using equity to fund the mill expansion and the fleet of the new mining equipment, would result in Soma using institutions to raise the capital.  That would open the float up and bring more trading volume liquidity to the stock.  Today Soma's stock volume is extremely thin and is likely the reason for the tiny institutional holdings.

Obviously, I would not want a ton of dilution so an equity raise would have to be much higher share price than today.  I like the idea of not accumulating debt, having the funds in hand quickly.  They don't have the Gold resources to justify the expansion today but they likely will in 2 years. 
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