Soma Gold talks El Limon ramp-up, hires Storz as VP

Executive Summary

• Soma Gold Corp. provided an operational update on its El Limon mill, which is currently in a ramp-up phase with the first gold production from the Merril Crowe circuit yielding 40 kilograms of precipitate.
• The company announced the appointment of Julian Storz as Vice-President, Business Development, to lead inorganic growth and M&A efforts.
• Labor negotiations at the El Bagre mill and Cordero mine continue; the strike has reached the 60-day mark (Nov 7), triggering a potential binding arbitration process under Colombian law if a resolution is not reached.

Key Details

• El Limon Mill Operations:
  • The mill is operating and in the planned ramp-up stage.
  • Ball mill No. 1 is operational; bull gear replacement for mill No. 2 is underway.
  • First gold production from the Merril Crowe circuit occurred last week, yielding 40 kilograms of precipitate.
  • Additional automation is being installed to resolve operational disruptions related to the thickener tank.
  • The company expects the mill to run at full capacity (200 tonnes per day) by December 2025, with full production anticipated by Q1 2026.
  • CEO Geoff Hampson estimates production at Limon will contribute 500 to 1,000 ounces of gold per month.
  • Future potential: Once ore-sorting equipment testing is completed, management may install it at El Limon to increase production to 400-425 tpd.
• Executive Appointment:
  • Julian Storz has joined as Vice-President, Business Development, based in Toronto.
  • Storz brings over a decade of experience in corporate finance, banking, M&A, and capital markets, previously serving as Director, Investment Banking – Mining and Metals at an independent investment bank.
  • His role focuses on pursuing accretive inorganic growth, mergers and acquisitions, and jurisdictional diversity.
• El Bagre Strike and Labor Negotiations:
  • Negotiations are ongoing with the union (Sintramienergetica Nacional) with assistance from the Colombian Ministry of Labor.
  • Key disagreement remains regarding the union's demand for co-administration rights.
  • Nov. 7 marks the 60th day of the strike; under Colombian law, this triggers binding arbitration.
  • Workers are required to return to work approximately 10 days after the 60th day while arbitration is underway.
  • CEO Geoff Hampson stated the company made a "generous offer" exceeding recent contract terms negotiated by the same union with other regional mining companies.
  • The company remains hopeful for a resolution before the Nov. 7 milestone to avoid arbitration.
• Corporate Context:
  • Soma owns two fully permitted mills in Antioquia, Colombia: El Bagre (450 tpd) and El Limon (slated for restart in Q3 2025, currently ramping up).
  • Combined milling capacity is 675 tpd.
  • The company owns over 43 square kilometers of mineral concessions.
  • An exploration property near Tucuma, Brazil, is under option to Ero Copper Corp.

Notable Quotes

• Julian Storz, VP, Business Development: "I am excited to join Soma at this pivotal stage... Soma has built a robust platform with meaningful organic growth opportunities that position the company to scale production and pursue additional value-accretive initiatives."
• Geoff Hampson, CEO: "We are very thankful for the assistance and guidance provided by the Colombian Ministry of Labor... We believe we have made a generous offer that exceeds the contract terms recently negotiated by the same union with other mining companies in the region. If the strike continues beyond the Nov. 7 milestone, the company will abide by the terms of the arbitration process."
• Geoff Hampson, CEO: "I am pleased to see the El Limon mill producing again... 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."