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Soma Gold Announces It Has Closed a US $5 Million Offtake Financing with Nueva Granada Gold Corp and Made the US $ 4.5 Million Second Tranche Payment to Mineros
Vancouver, British Columbia--(Newsfile Corp. - September 9, 2020) - Soma Gold Corp.  (TS...
About this update from Soma Gold Corp.
[{"type":"text","content":"Soma Gold Announces It Has Closed a US $5 Million Offtake Financing with Nueva Granada Gold Corp and Made the US $ 4.5 Million Second Tranche Payment to MinerosSoma Also Announces August Gold Production of 1,671.5 OuncesVancouver, British Columbia--(Newsfile Corp. - September 9, 2020) - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: PRSRF) (formerly Para Resources Inc.) (the \"Company\" or \"Soma\") announces that the Company has entered into an Off Take Agreement with Nueva Granada Gold Corp (\"NG\") and a Purchase and Refining Agreement (collectively the \"Agreements\") with MVPR International Incorporated (\"MVPR\") (a wholly-owned subsidiary of NG) for the mineral production at the Company's Operadora Mineras S.A.S. (\"Operadora\") operations in Antioquia, Colombia. The terms of the Agreements are as follows:Under the offtake, MVPR has advanced Soma US $4.5 million of the US $5.0 million (the \"Advance\") Soma will sell its doré production exclusively from the La Ye, Mangos and Balvina Cordero mines (collectively the \"Mines\") to MVPRUnder the offtake agreement, Soma will pay to MVPR a percentage of the gold ounces as follows:12% of the first 24,500 ounces delivered6% of the next 22,000 ounces delivered and 1% of the ounces delivered until the end of the production of the MinesNG will take senior security over the assets of OperadoraThe loan from Conex Services, Inc (\"Conex\") to Soma is subordinated to the AdvanceThe Agreements do not cover the El Limon Mine, the Nechi property or any subsequent mine, deposit or property that Soma brings into productionIt is expected, based on current estimates of future production from the Mines, that the Advance will be re-paid before December 31, 2023The Company used US $4.5 million of the proceeds of the Advance to pay the second tranche payment under the Share Purchase Agreement (\"SPA\") between Soma and Mineros S.A. dated June 4th, 2020. This payment satisfies all of the SPA conditions, and the shares of Operadora, held in escrow pending the second tranche payment, have now been released such that Soma now owns 100% of Operdora. The balance of the Advance of US $500,000 will be used for general working capital purposes and to cover the cost of this transaction. In addition, Soma announces that the August 2020 production at its 100% owned Operadora subsidiary in Colombia...