VANCOUVER, BC--(Marketwired - August 03, 2017) - Sarama Resources Limited ("Sarama" or the "Company")(TSX VENTURE: SWA) announces that it has completed its previously announced private placement (the "Private Placement").
As part of the Private Placement, originally announced on July 20, 2017, 10,277,777 common shares of Sarama ("Shares") have been issued for gross proceeds of C$1,850,000. The proceeds of the Private Placement will be used principally to advance the exploration of the Company's resource properties in Burkina Faso and for general working capital purposes.
The Private Placement was conducted on a non-brokered basis to institutional and accredited investors pursuant to prospectus exemptions available under applicable securities laws. A four-month hold period will apply to all of the Shares. Pursuant to the Private Placement, Sarama paid a finder's fee of $19,800 and $300 of associated expenses to a third party in relation to the issuance of 5,500,000 Shares.
Sun Valley Gold Master Fund, Ltd. ("Sun Valley") is a related party of the Company as a result of owning approximately 15% of the Company's outstanding Shares. Sun Valley purchased a total of 1,666,667 Shares in the Private Placement. The participation in the Private Placement by, and issuance of Shares to Sun Valley constituted a "related party transaction" as defined in Canadian Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, which has been adopted by the TSX Venture Exchange pursuant to its Policy 5.9 - Protection of Minority Security Holders in Special Transactions (the "61-101 Policy"). However, the Private Placement is exempt from the formal valuation and minority shareholder approval requirements of such instrument and policy, as the Company's Shares are listed on the TSX Venture Exchange and, in respect of the minority shareholder approval requirement, neither the fair market value of the Shares, nor the consideration received for the Shares exceeds 25% of the Company's market capitalization.
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.
Sarama holds a 31% 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. ("Savary"). Savary is the operator of the JV and in October 2015, declared a maiden inferred mineral resource estimate of 671,000 ounces of contained gold(2) at the Karankasso Project JV.
Sarama has also agreed to acquire(3) a 100% interest in the Bondi Deposit from Orezone Gold Corporation (refer to news release dated May 24, 2016). Bondi has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated) and 0.1Moz Au (inferred).(4)
Together, the South Houndé Project, Bondi Deposit and the Karankasso Project form a cluster of advanced gold deposits, within trucking distance of one another, which potentially offers a development option for a multi-source fed central processing facility in the southern Houndé Belt region of Burkina Faso.
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 sound exploration strategy across its property portfolio.
| Footnotes | ||||
| (1) | South Houndé Project - 43.0 Mt @ 1.5 g/t Au (reported above cut-off grades ranging 0.3-2.2 g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the inferred mineral resources having reasonable prospects for eventual economic extraction). The effective date of the Company's inferred mineral resource estimate is February 4, 2016. For further information regarding the mineral resource estimate please refer to the technical report titled "NI 43-101 Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under Sarama Resources Ltd.'s profile on SEDAR at www.sedar.com. | |||
| (2) | Karankasso Project - 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut-off). The effective date of the Karankasso Project JV mineral resource estimate is October 7, 2015. For further information regarding the mineral resource estimate please refer to the technical report titled "Technical Report and Resource Estimate on the Karankasso Project, Burkina Faso", dated October 7, 2015. The technical report is available under Savary Gold Corp's profile on SEDAR at www.sedar.com. Sarama has not independently verified Savary's mineral resource estimate and takes no responsibility for its accuracy. Savary is the operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons' assurance of the validity of the mineral resource estimate. | |||
| (3) | Upon closing of the respective purchase agreements, Sarama will hold a 100% interest in the Botoro Property and the Djarkadougou Property, which hosts the Bondi Deposit. | |||
| (4) | Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000 oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700 oz Au (inferred), reported at a 0.5 g/t Au cut-off. | |||
| i. | The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corporation ("Orezone") which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled "Technical Report on the Mineral Resource of the Bondigui Gold Project", dated date of February 20, 2009 (the "Bondi Technical Report") and is available under the profile of Orezone on SEDAR at www.sedar.com. | |||
| ii. | Sarama believes that the historical estimate is relevant to investors' understanding of the property, as it reflects the most recent technical work undertaken in respect of the Bondi Deposit. | |||
| iii. | The historical estimate was informed by 886 drillholes, 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 drillholes were used to determine weathering boundaries and bulk densities for modelled blocks. | |||
| iv. | The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101. | |||
| v. | No more recent estimates of the mineral resource or other data are available. | |||
| vi. | Sarama is currently undertaking the necessary verification work in the field and on the desktop that may support the future reclassification of the historical estimate to a mineral resource. | |||
| 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. | |||
