Sarama Resources Ltd. (TSX-V:SWA) is pleased to announce that it has completed the previously announced sale of three exploration properties in Liberia to Aureus Mining Inc. for a total consideration of 6,645,070 Aureus common shares.
In addition to the sale of the three exploration properties sold to Aureus, Sarama has purchased an uncapped 1% net smelter return royalty on gold produced from the Cape Mount property, from the previous owner.
Sarama has been issued 5,648,310 Aureus common shares. Sarama will be issued the remaining 996,760 Aureus common shares upon the required withholding tax clearance certificates being obtained from the government of Liberia.
Sarama understands that Aureus has applied to the London Stock Exchange plc for admission to trading of the first tranche of 5,648,310 shares on the AIM Market of the London Stock Exchange plc and that admission of such shares will become effective on or around January 7, 2016.
The Aureus common shares issued to Sarama will be subject to a statutory four month hold period from the date of issue, as required under Canadian securities laws.
Sarama’s President and CEO, Andrew Dinning, commented:
“The divestment of our Liberian assets allows us to focus our resources on Burkina Faso and leverage our well established position there. This deal provides potential upside value to the Company, and, with properties being adjacent to Aureus’ New Liberty mine, has scope to provide a future royalty stream.
“We look forward to advancing our Burkina Faso interests where we have several separate project areas, including an inferred mineral resource of 1.5Moz of gold 1,2 on our South Houndé Project, where Acacia Mining plc is funding on-going exploration and earning into the Project as part of a US$15 million deal.”
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd is a West African focused gold explorer with substantial landholdings in Burkina Faso.
Sarama’s flagship properties are situated within the Company’s South Houndé Project area in south-west Burkina Faso. Located within the prolific Houndé greenstone belt, Sarama’s exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1,2. Acacia Mining plc is earning up to a 70% interest in the South Houndé Project by satisfying certain conditions, including funding earn-in expenditures of up to US$14 million over a 4-year earn-in period, and may acquire an additional 5% interest, for an aggregate 75% interest in the Project, upon declaration of a minimum mineral reserve of 1.6 million ounces of gold. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.
Sarama holds a 35% participating interest in the Karankasso Project Joint Venture (“JV“) which is situated adjacent to the Company’s South Houndé Project in Burkina Faso and is a JV between Sarama and Savary Gold Corp. who is the operator of the JV. In October 2015, Savary declared a maiden Inferred Mineral Resource estimate of 671,000 ounces of contained gold3,4 at the Karankasso Project JV. Further details of the Karankasso mineral resource estimate and supporting information can be found in Savary’s News Release dated 8 October, 2015.
Incorporated in 2010, the Company’s Board and management team have a proven track record in Africa and a strong history in the discovery and development of large-scale gold deposits. Sarama is well positioned to build on its current success with a strong financial position and a sound exploration strategy across its property portfolio.
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