Soma Gold (TSX-V:SOMA) has returned commitments to fully cover its C$15 million ($16.78 million) private placement ahead of mill expansion activities at El Limon in Colombia.
The company will issue 13.04 million units at an offer price of C$1.15 per unit, expected to close by the end of the week (8 August).
Each unit comprises one share and one-half of a purchase warrant. Holders will be entitled to purchase an additional share at a set price of C$2 with each warrant owned, with the offer period lasting 36 months from the date of issue.
Warrants are set to expire if Soma consistently trades above C$3 for a 30-day period. Warrants will expire another 30-days after this period.
As reported by Mining.com.au, Soma is looking to expand its El Limon mill by an additional 40% of tons capacity with funds, as well as installing an ore sorting infrastructure, exploration costs, and development costs of the Nechi mine in Colombia.
Soma Gold is a producer and explorer focused on developing its assets in Antioquia, Colombia.
Write to Maddison Elliott at Mining.com.au
Images: Soma Gold
