Soma Gold Corp. Plans $15M Private Placement to Fuel Growth
Soma Gold Corp. Announces Exciting Private Placement Offering
Soma Gold Corp. (TSXV: SOMA) has taken a significant step forward by announcing a non-brokered private placement offering designed to raise up to C$15 million. This initiative aims to increase the company’s capacity for growth and development in the mining sector.
Details of the Private Placement Offering
The offering will consist of up to 13,043,478 units, each priced at C$1.15. Investors can expect potential gross proceeds of C$15 million, with an option to increase by 15%, which could bring total proceeds up to C$17.25 million if fully subscribed.
Structure of Each Unit
Each unit in this offering comprises one common share and one-half a common share purchase warrant. Holders of these warrants will be entitled to buy one additional common share at CAD$2.00 for a timeframe of 36 months following issuance. It's noteworthy that these warrants may have an accelerated expiry clause if the company's shares trade above C$3.00 for 30 consecutive days.
Use of Proceeds and Strategic Goals
The funds generated from this private placement are crucial as they will be earmarked for various strategic projects. These include the ongoing expansion of milling operations, installation of advanced ore sorting infrastructure, exploration development of the Nechi mine, and essential working capital.
Debt Conversion Enhancing Financial Position
In a move to reinforce its financial standing, Soma Gold Corp. intends to convert approximately C$10 million of existing debt into equity at the terms offered in this placement. This strategy not only strengthens the balance sheet but also aligns the interests of insiders with those of investors, further solidifying confidence in the company's future.
Partnership for Success
ECM Capital Advisors and Greenwood Capital Partners are acting as finders for this offering, ensuring that the initiative is well-supported through experienced financial guidance. Additionally, the company plans to compensate ECM and other advisors through a cash commission model and brokers' warrants for their contributions in securing investments.
Soma’s Commitment to Sustainable Practices
With a robust focus on sustainability, Soma Gold Corp. adheres to responsible mining practices while also engaging actively with the communities around its operations. As a profitable entity, Soma continues to expand its footprint in the mining industry.
About Soma Gold Corp.
Soma Gold Corp. is renowned for its commitment to mining excellence. With over 43 square kilometers of mineral concessions in Colombia, the company operates two mills within proximity of each other, significantly enhancing its milling capacity. Furthermore, one of its key facilities, the El Limon mill, is set to resume operations shortly.
Future Outlook and Growth Opportunities
The strategic initiatives outlined in the private placement are essential as Soma positions itself for continued growth and exploration. The company’s efforts emphasize increasing production capacities while also exploring new resource avenues to maintain its competitive edge in the market.
Frequently Asked Questions
What is the purpose of the private placement offered by Soma Gold Corp.?
The private placement aims to raise funds for operational expansions, including mill upgrades, ore sorting infrastructure, and exploration efforts.
How many units are being offered in the Soma Gold private placement?
Soma Gold Corp. is offering up to 13,043,478 units at a price of C$1.15 each.
What is the exercise price of the common share purchase warrants?
The exercise price for the common shares purchased through the warrants is set at CAD$2.00 for a period of 36 months.
Who are the financial advisors for the private placement?
ECM Capital Advisors and Greenwood Capital Partners are acting as finders in relation to the private placement.
What is Soma Gold Corp.'s commitment towards sustainability?
Soma Gold Corp. is dedicated to sustainable mining practices and actively works to engage with local communities around its operations to ensure responsible progress.
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