Soma Gold's Operadora Minera employees go on strike

Executive Summary

• The union representing employees of Operadora Minera SAS (a wholly‑owned subsidiary of Soma Gold Corp.) initiated an immediate strike, halting production at the Cordero mine and El Bagre gold complex.
• Soma Gold’s CEO Geoff Hampson confirmed the company remains in good‑faith negotiations and has offered binding arbitration, which the union declined.
• The work stoppage poses a material negative impact on Soma Gold’s short‑term gold output and cash flow.

Key Details

• Union Action: Sintramienergetica, Seccional Zaragoza declared an immediate strike at Soma Gold’s Colombian operations.
• Affected Assets: Production suspended at both the Cordero mine and the El Bagre gold complex.
• Company Offer: Included significant wage increases, enhanced benefits, higher living allowances, additional days off, and a signing bonus; offered binding arbitration as a resolution path (declined by union).
• CEO Statement: Geoff Hampson emphasized continued commitment to negotiations, respect for the union’s right to strike, and openness to resume discussions at any time.
• Operational Capacity Impact: El Bagre mill (450 tpd) and Cordero mine output are currently halted; no production forecast provided.
• Financial Implications: Potential short‑term reduction in gold sales and cash flow; no immediate cost estimates disclosed.

Notable Quotes

“Soma remains committed to continuing good faith negotiations and to reaching a fair and mutually beneficial resolution… We have proposed binding arbitration as a path forward, which was declined by the union.” – Geoff Hampson, CEO, Soma Gold Corp.