Sarama Resources Limited (TSX-V: SWA) is pleased to announce that it has closed the first Tranche of its previously announced private placement for up to C$3 million, announced on July 13, 2020. The second tranche of the Private Placement is expected to close on or about July 31, 2020. On closing of the First Tranche, the Company has raised aggregate gross proceeds to date of C$1,568,823 through the issue of 14,262,027 common shares at a price of C$0.11 per common share.
All proceeds from the Private Placement shall be immediately available to the Company and used to advance the Company’s projects in Burkina Faso including a mineral resource update on the South Houndé Project, high value oxide focused exploration drilling, general technical work to support framing up of development options and general corporate purposes.
The securities issued in connection with the First Tranche are subject to a four-month hold period expiring November 25, 2020.
Certain insiders of the Company have acquired an aggregate of 780,295 Shares in the First Tranche, and as such the Private Placement is considered a “related party transaction” as defined under Multilateral Instrument 61-101. The Company has relied on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the insiders’ participation in the Private Placement, as the Private Placement does not exceed 25% of the Company’s market capitalization.
Finders fees were paid to Cormark Securities Inc. in accordance with the policies of the TSX Venture Exchange, pursuant to a finders agreement between Cormark and the Company. The Company paid Cormark a 4% cash fee of C$24,400 for the First Tranche.
The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Shares within the United States or to, or for the account or benefit of, U.S. Persons (as defined under Regulation S under the U.S. Securities Act), nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT SARAMA RESOURCES LTD.
Sarama Resources Ltd is a West African focused gold explorer and developer with substantial landholdings in south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key projects towards development.
Sarama’s adjoining South Houndé and ThreeBee Projects, in which the Company holds a 100% interest(4), are located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and are the exploration and development focus of the Company. Its exploration programs have successfully discovered an inferred mineral resource of 2.1Moz gold(1) at the South Houndé Project which is complemented by the Bondi Deposit(4) (historical estimate of mineral resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(2)).
The project area includes a cluster of advanced gold deposits, within trucking distance of one another, which potentially offers a development option for a central processing facility fed from multiple sources in the southern Houndé Belt.
Sarama has further potential in its portfolio including a 600 km² exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 40km along strike.
Sarama also holds approximately 19% participating interest in the Karankasso Project Joint Venture which is situated adjacent to the Company’s South Houndé Project in Burkina Faso and is a JV between Sarama and Endeavour Mining in which Endeavour is the operator of the JV. The Karankasso Project has an inferred mineral resource estimate of 709koz gold(3) which was released in February 2020.
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 sound strategy to surface and maximise the value of its property portfolio.
iii. The historical estimate was informed by 886 drill holes, assayed for gold by cyanidation methods, were used to interpret mineralised envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID² methodology based on input parameters derived from geostatistical and geological analyses assessments. Field measurements and geological logging of drill holes were used to determine weathering boundaries and bulk densities for modelled blocks.
vii. A qualified person engaged by Sarama has not undertaken sufficient work to verify the historical estimate as a current mineral resource and Sarama is therefore not treating the historical estimate as a current mineral resource.
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