VANCOUVER, BC, May 21, 2024 /CNW/ - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (the "Company" or "Soma") is pleased to announce that the Company has amended its offtake agreement (the "Offtake Agreement") with Goldlogic Corp. ("Goldlogic" - formerly Nueva Granada Gold Corp.) and MVPR International Incorporated, dated September 4^th, 2020, by securing an additional US$3 million. The proceeds will be used to complete the development work at the Aurora Mine, with the aim of commencing production in Q3 2024. Furthermore, it will also augment the 2024 exploration budget, facilitating accelerated drilling across several high-potential targets on the Company's approximately 41,000 Ha property.

Amended Offtake Agreement

Under the terms of the amended Offtake Agreement, Soma has received a new advance payment of US$3 million from Goldlogic. In return, the Company will deliver a monthly cash payment equivalent to 59.9 ounces of gold to Goldlogic for a period of 36 months, commencing in June 2024 (Tranche 4).

Soma successfully completed Tranches 1 and 2 of the Offtake Agreement in January 2023, while Tranche 3 – a 1% NSR – remains in effect.

Otu Centro Payment

On May 10th, Soma fulfilled its commitment by making the second and final payment of US$1.12 million under the agreement to purchase the Otu Centro properties. As a result, the Company now owns 100% of the properties, subject to a 2% NSR on metallic minerals. Half of the NSR (1%) can be repurchased for US$1 million (indexed to US CPI).

The Otu Centro properties contain eleven known mineralized quartz vein occurrences, featuring varying amounts of historic and small-scale mining. Of particular significance are the La Aurora and La Constancia mines, which have a combined 1,000m of development work to a depth of 130m. Soma has made considerable progress in dewatering the mines and is currently in the final de-mucking stage at the lower level. Power, ventilation and support rehabilitation have been completed, enabling crews to access the drifts for sampling and mine planning. With all necessary permits secured, including environmental permits undergoing updates, Soma intends to commence mining in the near term.

Exploration

Soma's geological team has undertaken a comprehensive re-interpretation of the geology and structural controls on gold mineralization in the region. This enhanced regional exploration model is based on the results of drilling and mapping across various exploration targets, including the Cordero Mine and several past-producing mines within the Company's property. The revised interpretation suggests the presence of "en echelon" parallel veins, previously unidentified, which aids in tracing vein systems along strike, expanding drill targets in historical mining areas. Significant additional exploration drilling will be needed to test the new geological model along the Otú Fault.