Goldlogic Corp. Announces Amendment to Offtake Agreement with Soma Gold Corp. to Support 2024 Exploration and Development Initiatives

Rhea-AI Summary

Goldlogic Corp. has amended its offtake agreement with Soma Gold Corp. to include an additional $3 million advance.

This brings the total amount to $8 million to support Soma's Aurora Mine development and increase its 2024 exploration budget. Soma will provide Goldlogic with a monthly cash payment equivalent to 59.9 ounces of gold for 36 months starting June 2024. The funds will expedite drilling on several targets across Soma's 41,000-hectare property in Colombia, aiming to enhance production and resource identification. The amendment follows successful completion of earlier tranches and aligns with Goldlogic's goal of fostering growth in the Colombian gold mining sector.

Positive

• Goldlogic provides an additional $3 million advance, totaling $8 million, supporting Soma's development work at Aurora Mine.
• Funds will accelerate Soma's 2024 exploration across a 41,000-hectare property, aiming to enhance production and resource identification.
• Soma committed to delivering 59.9 ounces of gold monthly to Goldlogic for 36 months starting June 2024, ensuring a stable return.
• Previous tranches have been successfully completed, indicating ongoing productive collaboration.
• Strategic financial support aligns with goals to foster growth in the Colombian gold mining sector.

Negative

• The requirement for Soma to deliver monthly gold payments may strain its cash flow and operational budget.
• The unchanged terms of Tranche 3 involving a 1% Net Smelter Return (NSR) may impact Soma's profitability.
• Gold deliveries starting June 2024 could pressure Soma's production timelines and overall financial health if delays occur.

TORONTO--(BUSINESS WIRE)-- Goldlogic Corp. (“Goldlogic”) (formerly Nueva Granada Gold Corp.), a subsidiary of Sunvalley Company DMCC (“Sun Valley” or “Sun Valley Investments”) is pleased to announce an amendment to its offtake agreement (the “Offtake Agreement”) with Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTC: SMAGF) (“Soma”). The amendment includes an additional US$3 million advance to facilitate Soma’s development work at the Aurora Mine and increase their 2024 exploration budget.

Details of the Amended Offtake Agreement

The revised Offtake Agreement provides Soma with an additional US$3 million from Goldlogic, for a total consolidated amount of US$8 million. In return, Soma will deliver a monthly cash payment equivalent to 59.9 ounces of gold to Goldlogic for 36 months, starting in June 2024 (Tranche 4). This follows the successful completion of Tranches 1 and 2 in January 2023. Tranche 3, which involves a 1% Net Smelter Return (NSR), remains unchanged.

Strategic Allocation of Funds

The additional funds will support Soma in completing the development work at the Aurora Mine to bring it into production by Q3 2024. Additionally, the funds will significantly increase Soma’s 2024 exploration budget, accelerating drilling on several promising targets across their approximately 41,000-hectare property. These efforts aim to expand resource identification and enhance production capabilities.

Vikram Sodhi, Executive Chairman of Goldlogic Corp., stated: “We are excited to continue our successful partnership with Soma Gold Corp. This amendment to our Offtake Agreement underscores our commitment to supporting Soma’s exploration and development efforts in Antioquia, Colombia. Soma’s advanced geological insights and commitment to exploration are evidenced by their impressive 2023 resource update and align well with our goal of fostering growth and success in the highly prospective and largely unexplored Colombian gold mining sector. We look forward to seeing the positive impacts of Soma’s upcoming exploration campaign on their production and resource profile.”

Dentons Cardenas & Cardenas Abogados S.A.S (Colombia) acted as legal advisors to Sun Valley in connection with the Transaction.

About Goldlogic

Goldlogic (formerly Nueva Granada Gold Corp.), is a precious metals investments company, with a rapidly growing and innovative model of financing producers and developers around their refining requirements.

Goldlogic provides up-front financing for capital requirements of precious metals producers. The company has a unique value proposition by investing in hi quality producing assets and cautiously selecting investment targets via strict due diligence processes and jurisdictional risk assessment.

About Sun Valley

Sun Valley is a private investment firm focused on the metals and mining industry with portfolio companies and branch offices in the Americas, Europe and Asia. Sun Valley's senior leadership team has several decades of experience in mining and investment companies and combines investment skills across diverse asset classes with hands-on experience at both senior and junior companies in the precious metals mining and refining industry. The firm finances the entire precious metals supply chain: mineral exploration, mine construction, production, processing and refining.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522423581/en/

For further information relating to Sun Valley, please contact:



Camilo Alvarez

email: calvarez@sunvalleyinv.com phone: +1 281 994 7031

Source: Sun Valley

FAQ

What is the latest amendment in the offtake agreement between Goldlogic Corp. and Soma Gold Corp.?

The latest amendment includes an additional $3 million advance to support Soma's Aurora Mine development and increase its 2024 exploration budget.

How much total funding has Goldlogic provided to Soma Gold Corp.?

Goldlogic has provided a total of $8 million to Soma Gold Corp.

What are the terms of the amended offtake agreement for Soma Gold Corp.?

Soma will deliver a monthly cash payment equivalent to 59.9 ounces of gold to Goldlogic for 36 months starting June 2024.

How will the additional funds from Goldlogic be utilized by Soma Gold Corp.?

The additional funds will support development work at the Aurora Mine and increase Soma's 2024 exploration budget.

When will Soma Gold Corp. start delivering gold payments to Goldlogic?

Soma Gold Corp. will start delivering gold payments to Goldlogic in June 2024.