Vancouver, British Columbia--(Newsfile Corp. - August 5, 2020) - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: PRSRF) (formerly Para Resources Inc.) (the "Company" or "Soma") announces that the Company produced and sold a total of 1,204.33 equivalent ounces¹ of gold in doré during the month of July 2020, slightly ahead of budgeted sales of 1,156 AuEq ounces. The Company sold the doré 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.
¹ Note: Gold equivalent ounces are calculated based on actual realized prices
Le Ye Production data for the last two months is as follows:
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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.
The Company also owns an exploration and development property near Tucuma, Para State, Brazil.
On behalf of the Board of Directors
"Javier Cordova Unda"
Chief Executive Officer and President
For further information, please contact Andrea Laird, telephone: +1-604-259-0302
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.
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