08:28 AM EDT, 10/27/2025 (MT Newswires) -- Soma Gold ( SMAGF ) over the weekend provided updates on its El Limon Mill commissioning and labor negotiations in Colombia.

The company said that ball mill number 1 is operational, and the bull gear replacement for mill number 2 is underway. It expects the mill to be running at full capacity by December, despite the challenges posed by the ongoing labor strike at El Bagre.

"Negotiations to end the work stoppage by the unionized employees at the company's El Bagre Mill and Cordero Mine continue with the assistance of the Colombian Ministry of Labor," said the company in a statement. "Progress has been made on some crucial issues, but the union's demand for co-administration rights, among other items, remains a significant point of disagreement."

It also said that it successfully outsourced certain support services from the El Bagre operation, and progress is being made.

The first gold production from the Merril Crowe circuit occurred last week, yielding 40 kg of precipitate. Full production at 200 TPD is anticipated by the first quarter of 2026.

"We believe we have made a generous offer that exceeds the contract terms recently negotiated by the same union with other mining companies in the region," said Soma Gold ( SMAGF ) chief executive Geoff Hampson. "If the strike continues beyond the November 7th milestone, the company will abide by the terms of the arbitration process."

Shares of the company closed up 2.5% to $1.24 Friday on the TSX Venture Exchange.