Soma Gold (TSX-V:SOMA) has raised around C$15.51 million ($17.34 million) through the first tranche of a private placement to fund the ongoing mill expansion at the El Limon property in Colombia.
The company issued 13.49 million units at an offer price of C$1.15 per unit, comprising one share and one-half of a warrant for each unit held.
Warrant holders are entitled to purchase an additional share at an exercise price of C$2 per share, on offer for a three year period unless the company’s shares trade above a C$3 mark for a 30 day period.
CEO Geoff Hampson says the company is pleased to close the first tranche, which retained support from both new and existing shareholders.
“The participation of various strategic investors further validates our long-term vision and growth strategy,” Hampson says.
While the company progresses its mill expansion at El Limon currently, Soma will use the remaining funds to install ore sorting infrastructure, and also bolster the Nechi mine with exploration and development activities, as reported by Mining.com.au.
Soma was also required to pay an aggregate C$930,780 towards finders, totalling 808,473 finder’s warrants for this offer under the same conditions.
The company will continue to work towards completing the second tranche, which is currently pending exercise of the full greenshoe option.
Meanwhile, Soma Gold has settled its C$10 million worth in debt into units under this offering’s terms, awaiting final approval from the TSX Venture Exchange.
Soma Gold is a gold producer and explorer holding more than 43km2 of mineral concessions along the OTU fault in Antioquia, Colombia and two full permitted mills.
Write to Maddison Elliott at Mining.com.au
Images: Soma Gold
