Soma Gold Corp. (TSXV:SOMA; OTC:SMAGF; WKN:A2P4DU) has completed the acquisition of two additional mining concessions from Grupo de Bullet SAS for US$50,000, along with a 2% net smelter return (NSR) royalty. The NSR may be reduced to 1% at any time through a US$1 million payment. These newly acquired concessions are adjacent to properties Soma purchased in May 2023 and lie along the Otú Fault, a well-known regional structure associated with high-grade gold-bearing quartz veins.
The Otú Fault is considered a key mineralized trend in Antioquia, Colombia, and extends from Aris Mining's 5.5-million-ounce Segovia Mine to Mineros' alluvial holdings, approximately 60 kilometers to the north. Soma's expanded land position enhances its presence in this district-scale gold corridor and builds on its ongoing exploration strategy.
At the same time, Soma announced that negotiations to acquire and process material from Denarius Metals Corp.'s Zancudo Mine have concluded without an agreement due to constraints related to Denarius's offtake arrangement with Trafigura. Soma stated that its El Limon Mill will be supplied with surplus feed from the company's existing operations at the Cordero and Aurora mines, as well as from other formalized sources within its portfolio.
Chris Buchanan, Soma's Vice-President of Exploration, stated in the news release, "Ongoing drilling at the Colossa Mine indicates that the down-dip projection of the vein system extends to the northwest onto these new mining concessions. Our exploration team is excited to follow the veins onto these licenses." He added that soil anomalies identified at the concessions' northwestern edge further support the potential for new vein discoveries. These areas have now been included in Soma's geophysics and LIDAR survey programs.
Soma continues to advance its production and exploration activities in Colombia. For the nine months ending Q3 2024, the company reported CA$64.44 million in revenue, adjusted EBITDA of CA$23.01 million, and adjusted net income of CA$587,500 (US$0.01 per share). Long-term debt stood at CA$30 million. Despite power-related disruptions during the third quarter, which temporarily impacted gold grades, Soma expects operational improvements in Q4 following the installation of backup generators in Q4 2024.
Gold's Momentum Driven by Policy Risks, Structural Demand, and Safe-Haven Appeal
Gold's recent performance reflected a convergence of geopolitical uncertainty, aggressive trade policy, and renewed institutional demand. These factors underscored the metal's role as a stabilizing asset during periods of systemic stress. On April 8, Stewart Thomson of 321 Gold described investor activity around key technical levels as aligned with broader market conditions. He stated, "Gold looks fantastic," as the price bounced from a horizontal support zone near US$2,956. Thomson emphasized that inflationary risks tied to tariffs and debt stress reinforced gold's strategic value. He suggested that "the US government is fighting another unwinnable war, like fiat money itself is fighting an unwinnable war against gold."
The following day, Reuters reported that gold climbed more than 2% and was on track for its strongest single-day performance since October 2023. Spot gold prices rose to US$3,059.76 an ounce, while U.S. gold futures settled at US$3,079.40. Safe-haven demand and inflation concerns drove the surge, according to Bart Melek, head of commodity strategies at TD Securities. He stated, "Gold continues to be seen as a hedge against instability," linking the rally to rising inflation expectations and stronger yields.
Maund's interpretation highlighted both the strength of accumulation in the stock and the significance of the multi-year chart pattern, suggesting that a break above key levels could lead to strong upward momentum.
Kitco reported later that day that President Trump's announcement of a temporary suspension of tariffs led to a 3.39% jump in gold futures. Prices closed at US$3,099.80 following an intraday high of US$3,118.50.
The World Gold Council reported that gold-backed exchange-traded funds recorded inflows of 226.5 metric tons in the first quarter of 2025, valued at about US$21.1 billion. Kitco noted this was the highest quarterly ETF inflow in three years, which contributed to the metal's strong rebound.
On April 10, GoldFix examined the sector in greater depth through a revised forecast from Goldman Sachs. The bank raised its year-end target for gold to US$3,300 per ounce and outlined a possible high-end scenario of US$4,500 based on multiple demand-side developments. Goldman attributed its revision to "upside surprises in ETF inflows and persistent, large-scale central bank gold purchases." The analysis also highlighted a new Chinese policy allowing insurers to invest up to 1% of their assets in gold, estimating that this could result in 280 tonnes of additional demand. The report stated that this demand had not yet been fully realized but could provide strong support during market pullbacks.
Goldman further noted that "the geopolitical hedging motive has gained relevance since the freezing of the Russian central bank assets in 2022." The firm identified central bank buying as a long-term shift in reserve strategy rather than a short-term reaction. It pointed to China as an example, where gold comprises only 8% of foreign reserves compared to an average of about 70% in developed markets.
Technical Setup Signals Potential Breakout from Multi-Year Base
On April 10, technical analyst Clive Maund offered a bullish technical perspective on Soma Gold's long-term chart setup, identifying a major base formation that could support a significant move. He told Streetwise Reports:
"Soma Gold is readying to break out of a very large two-year-long trading range, and if we look at the bigger picture, we see that this trading range forms the Handle part of a giant Cup & Handle base that dates back to early 2020. Breakout will be signified by the price-clearing resistance toward the upper boundary of the pattern, which is at around CA$0.75, so once it gets above this level, it can be expected to accelerate to the upside. The Accumulation line is strong and suggests this outcome. While there is some resistance above about CA$1.20, arising from the trading above this level pre-2020, in the sort of environment we are entering, it should have little trouble overcoming it."
Maund's interpretation highlighted both the strength of accumulation in the stock and the significance of the multi-year chart pattern, suggesting that a break above key levels could lead to strong upward momentum.
Strengthening a Regional Foothold: Strategic Growth Through Concession Expansion
According to Soma Gold's April 2025 corporate presentation, the acquisition of new concessions along the Otú Fault aligns with its broader objective of becoming a mid-tier gold producer through strategic exploration, development, and operational optimization. The company currently controls more than 410 square kilometers of mineral rights in a geologically rich district with multiple producing and high-potential assets.
Soma's two mills, the El Bagre and El Limon facilities, are permitted for a combined capacity of 1,400 tonnes per day (TPD), with current throughput averaging 450–475 TPD. Plans are underway to increase this rate to over 500 TPD in early 2025. The El Limon Mill is in the final stages of rehabilitation and is expected to restart in Q2 2025.
The Cordero Mine continues to anchor Soma's production profile, with high-grade underground development targeting 25,000 to 30,000 ounces of gold per year. Meanwhile, additional sources of future production include the Nechí and Machuca projects. Nechí has substantial underground development and is awaiting a PTO permit anticipated in the second half of 2025. Machuca, located 10 kilometers from El Limon, is fully permitted and expected to return to production in mid-2025 with minimal capital requirements.
Soma's exploration program is self-financed through operational cash flow and includes 20,000 meters of annual drilling supported by four in-house diamond drill rigs. The company has drilled over 300,000 meters to date across its portfolio and is targeting an increase in its total resource base to over one million ounces of gold by 2027. A new NI 43-101 resource update is expected in Q1 2026.
Streetwise Ownership Overview*
Soma Gold Corp. (TSXV:SOMA; OTC:SMAGF; WKN:A2P4DU)
With a projected 2025 gold production of more than 37,000 ounces and expansion plans that could bring output to over 65,000 ounces annually by 2028, Soma Gold continues to position itself as an emerging regional producer in one of Colombia's most productive mining jurisdictions.
Ownership and Share Structure
According to Refinitiv, 18.13% of the company is held by management and insiders.
CEO and Chairman Geoffrey Hampson has 17.25%.
Stategic entities hold 44.24% with Conex Services Inc owning 43.68%. A further 0.29% of control is vested in institutions. The rest is with retail investors.
Soma has 34.68 million free float shares, a market cap of CA$42.54 million and a 52 week range of CA$0.42 to 0.76
Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Soma Gold Corp.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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