Soma Gold to acquire Escondida Mine in Colombia

Soma Gold Corp acquires the La Escondida Mine in Colombia to boost production and exploration in Antioquia, with plans for drilling and integration into its El Limón operations.

Soma Gold Corp (TSX-V:SOMA) has entered into a binding agreement to acquire the La Escondida Gold Mine in Antioquia, Colombia, marking a strategic move to bolster its regional production capacity. The acquisition, still subject to final legal due diligence, aligns with the company’s ongoing expansion in one of Colombia’s most prolific gold belts.

The La Escondida Mine, a small-scale but fully permitted operation, spans 1,051 hectares and is situated within trucking distance of Soma’s El Limón Mine and Mill. The close proximity enables seamless integration of ore processing, a key factor in the company's decision.

Under the terms of the agreement, Soma Gold will pay US$3 million in four tranches, starting with an initial US$1 million upon closing. Additionally, a 0.5% net smelter royalty (NSR) will apply to all gold produced at Escondida. The NSR is buyable at any time for a one-time payment of US$750,000.

“This acquisition is perfectly aligned with our growth strategy in Antioquia,” said Geoff Hampson, CEO of Soma Gold. “We plan to make targeted operational upgrades at Escondida to ramp up production to 40-50 tonnes per day. The ore will be transported to El Limón for processing, and with grades higher than those from our Cordero and Aurora mines, it will improve the average head grade at our mill.”

Hampson also noted the exploration potential of the Escondida property. Initial geological studies indicate that the mineralised vein structures extend northeast and southwest across the property. While some additional quartz veins have been identified from historical illegal mining, the area has never been systematically explored.

To unlock further value, Soma plans to conduct geological mapping, soil sampling, and prospecting across the tenement. A drilling campaign is scheduled for Q3 2025 to test an 800m strike length, assess down-dip extensions, and investigate a newly identified vein on the site.

“It is anticipated that the drilling results will support the inclusion of additional resources in the NI 43-101 Technical Report update expected in early 2026,” added Hampson.

Colombia’s mining sector is a vital contributor to the national economy, accounting for over 2% of GDP, with gold among the top mineral exports. According to CEIC data, the country produced 60,000kg of gold as of December 2024.

With more than 43km² of mineral concessions and two fully permitted mills located within 25km of each other, Soma Gold continues to solidify its role as a key gold producer and explorer in Colombia. The company’s combined milling capacity now stands at 675 tonnes per day, reinforcing its ambition to scale up operations in a responsible and efficient manner.