News
Soma Gold produces, sells 1,204.33 oz AuEq in July
2020-08-05 07:14 ET - News Release
Mr. Javier Unda reports
SOMA GOLD ANNOUNCES OPERADORA JULY GOLD SALES OF 1,204.33 OUNCES
Soma Gold Corp. (formerly Para Resources Inc.) produced and sold a total of 1,204.33 equivalent ounces (1) of gold in dore during the month of July, 2020, slightly ahead of budgeted sales of 1,156 AuEq ounces. The Company sold the dore bars for a total of US $2,225,765.42 or US $1,869.67 per equivalent ounce of gold, ahead of budgeted revenue of US $1,849,600.00. All cash costs, including Soma's corporate overhead, run at approximately US $1,700,000 per month.
Superscript 1 Note: Gold equivalent ounces are calculated based on actual realized prices
Le Ye Production data for the last two months is as follows:To view an enhanced version of this graphic, please visit:https://orders.newsfilecorp.com/files/3819/61084_8bcfc15e94233866_001full.jpg
Superscript 2 Note: Revenue does not include insurance proceeds of approximately US $600,000 which are expected to be received in September 2020
Soma also announces that, subject to TSXV approval, it has entered into an agreement with Conex Services Inc., ("Conex") Soma's largest shareholder, whereby Conex will, effective July 31, 2020, consolidate all existing advances, loans and accrued interest into one new Subordinated Loan. Certain of the advances include convertible debt instruments issued August 3, 2018. The loan is for a total of C $18,295,140.35 and has a ten-year term with interest of 12% per annum, compounded quarterly. Interest accrues for the first four years with monthly payments of principal and interest, amortized over the remaining six years. The loan is not convertible into shares of Soma and there is no pre-payment penalty. In connection with the loan, the Company will issue 5,500,000 Share Purchase Warrants to Conex. Each Share Purchase Warrant allows Conex to purchase one full Common Share at an exercise price of $0.66 per share, for 3 years.
ABOUT SOMA GOLD:
Soma is a junior gold mining and exploration company. The Company owns two adjacent mining properties in Antioquia, Colombia with a combined milling capacity of 675 tpd. The La Ye mine is currently operating and producing and the El Limon mine and mill are scheduled to begin operating in Q1 2021. Internally generated funds will be used to finance a regional exploration program.