Soma Gold arranges C$2.5M revolving credit facility from CEO Geoff Hampson
Soma Gold (SMAGF) has arranged an unsecured revolving credit facility of up to C$2.5M from Hampson Equities Ltd., a firm controlled by Chairman and CEO Geoff Hampson.
The company plans to use the funds for general working capital and to finance the advance purchase of mineralized material from third-party miners located near its Colombian milling facilities.
Structured as a revolving credit note, the facility features advances with six-month maturities that can be prepaid at any time without penalty, though all amounts remain subject to demand repayment on five business days' written notice.
Advances will accrue interest at a fixed rate of 6.00% per annum.
As an insider-backed transaction, the facility was approved by the board (with Hampson abstaining) and is exempt from MI 61-101 valuation and minority shareholder approval rules because it does not exceed 25% of Soma's market capitalization.
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