VANCOUVER, BC--(Marketwired - July 20, 2017) - Sarama Resources Ltd. ("Sarama" or the "Company") (TSX VENTURE: SWA) announces that it is conducting a private placement (the "Private Placement") to raise gross proceeds of up to C$2,500,000. The Private Placement will involve the issuance of up to 13,888,889 common shares of Sarama (the "Shares") at a price of C$0.18 per Share.
The Private Placement will be conducted on a non-brokered basis to institutional and accredited investors pursuant to prospectus exemptions available under applicable securities laws and is subject to the approval of the TSX Venture Exchange. A four-month hold period will apply to all of the Shares. The Company plans to close the Private Placement on or about August 3, 2017, but reserves the right to extend the closing date, and may close the placement in one or more tranches.
The proceeds of the Private Placement will be used principally to fund exploration activity in Burkina Faso and for general working capital purposes.
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).
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX VENTURE: SWA) is a West African focused gold explorer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.
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 an inferred mineral resource estimate of 2.1 Moz gold.(1) 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. Acacia has satisfied certain milestones and currently holds a 50% interest in the South Houndé Project and is continuing to sole fund exploration activities.
