Soma Gold, a Canadian gold mining company focused on gold production in Colombia, is actively exploring potential acquisitions. The company owns the El Bagre Mine in Colombia and two Merrill Crowe mills. Soma Gold is currently engaged in several mergers and acquisitions discussions while its El Limon mine undergoes recommissioning in Colombia.
According to CEO Geoff Hampson, the company is considering two types of deals: smaller, strategic ‘tuck-in’ acquisitions, similar to the recent La Escondida Gold Mine acquisition, and larger ‘merger of equals’ transactions to increase scale and asset diversity. Soma Gold recently signed an agreement to acquire the La Escondida Gold Mine in Antioquia, a fully permitted small-scale operation located near the El Limón Mine.
Hampson noted that Soma Gold is open to advisory approaches from firms regarding attractive targets, though it currently has no retained advisors actively searching for deals. The driving force behind this acquisitive strategy is the belief that the market rewards companies that achieve greater scale. The company believes that increasing production to over 100,000 ounces per year will attract larger funds and investors.
While Hampson acknowledges the mining industry presents inherent challenges such as equipment breakdowns and permit delays, he stated that Soma Gold has not encountered any significant difficulties in its M&A discussions, and there are no major impediments to the company’s overall strategy or operations.
