Sarama Res Ltd Stock Price, News & Analysis

Sarama Resources has completed Tranche 1 of its A$2 million equity placement, issuing 66,666,666 Chess Depository Instruments (CDIs) at A$0.03 per CDI. Tranche 2 will include 16,666,666 free attaching unlisted options and 14,000,000 broker options, exercisable at A$0.09 and expiring November 30, 2028, subject to shareholder approval. The funds will support exploration activities and working capital, with a A$120,000 management fee paid to Ventnor Capital. The company's executives and directors, who suspended their salaries in September 2023, will receive approximately A$394,000 in CDIs at the placement price, subject to approval.

Sarama Resources has secured binding commitments for a A$2 million equity placement at A$0.03 per CDI, issuing up to 66,666,666 Chess Depository Interests. The placement includes one free attaching unlisted option for every 4 CDIs, exercisable at A$0.09 until November 2028. Additionally, the company will issue shares to executives and directors for deferred salaries totaling A$393,981.18, comprising 13,132,706 shares and 3,283,174 warrants. The funds will support exploration activities and working capital. The placement price represents a 15% discount to the 10-day VWAP and 21% discount to the last ASX traded price.

Sarama Resources announces a key milestone in acquiring the Cosmo Gold Project in Western Australia, with Cosmo Gold shareholders voting in favor of the transaction. Sarama will acquire an initial 80% interest in the 580km² project, with the option to increase to 100% within 2 years. The project, located 85km north-east of Laverton, covers one of Western Australia's last unexplored greenstone belts with +50km strike length. The acquisition has received shareholder approval from both companies and regulatory approvals from ASX and conditional approval from TSX-V. Transaction completion is expected in mid-November 2024.

Sarama Resources has secured a US$4.4 million non-recourse loan facility from Locke Capital II to fund international arbitration proceedings against the Government of Burkina Faso. The dispute stems from the illegal withdrawal of the company's Tankoro 2 Exploration Permit in August 2023, which hosted a multi-million-ounce gold resource. The four-year facility covers all legal expenses, with repayment only required upon successful claim settlement. Boies Schiller Flexner, a leading international law firm, has been engaged to handle the arbitration process through the World Bank's International Centre for Settlement of Investment Disputes.

Sarama Resources announced progress on its acquisition of the Cosmo Gold Project in Western Australia. Field exploration, including soil geochemistry programs, is underway. Meetings with local Traditional Owner groups have been positive. The acquisition, involving an 80% interest in most exploration licences, awaits shareholder approval at Cosmo Gold's AGM on November 4, 2024, with completion expected by mid-November. The 580km² project covers the Cosmo-Newbery Greenstone Belt, known for its gold potential. Sarama's shareholders and securities exchanges in Australia and Canada have already approved the transaction. The project, one of the last unexplored greenstone belts, offers significant exploration opportunities. Board changes include Simon Jackson becoming Non-Executive Director and Andrew Dinning assuming the role of Executive Chairman.

Sarama Resources is advancing towards completing the acquisition of a majority interest in the Cosmo Gold Project in Western Australia. The acquisition has received strong support from shareholders and necessary approvals from Australian and Canadian securities exchanges. Completion is expected in late October 2024. The 580km² project covers the Cosmo-Newbery Greenstone Belt, a largely unexplored area with significant gold potential. Sarama will initially acquire 80% interest, with the option to increase to 100%. Exploration programs are set to commence, focusing on soil geochemistry to generate regional targets. This acquisition aligns with Sarama's strategy to expand its gold exploration portfolio.

Sarama Resources (ASX:SRR, TSX-V:SWA) has completed the issue of shares to settle deferred executive salaries and director fees. The company issued 22,348,980 Chess Depository Instruments (CDIs) at a deemed price of A$0.02 per CDI, totaling A$446,979.60. This share-for-debt arrangement, approved by shareholders on September 11, 2024, aims to reduce the company's liabilities. The CDIs are subject to a 4-month hold period on the TSX Venture Exchange. Sarama also provided a notice under section 708A(5)(e) of the Corporations Act 2001, confirming compliance with disclosure requirements and the absence of excluded information that investors would reasonably require for informed assessment.

Sarama Resources (ASX:SRR, TSX-V:SWA) has completed the final tranche of its A$1 million equity placement. The second tranche raised A$100,000 by issuing 5 million CDIs at A$0.02 each. This follows the first tranche completed in June, which raised A$900,000. The placement received shareholder approval on September 11, 2024.

Funds will be used for exploration, evaluating acquisitions, and working capital. Finders' fees of A$6,000 were paid for Tranche 2. The placement is subject to TSXV final approval. The company provided a notice under section 708A(5)(e) of the Corporations Act 2001, confirming compliance with disclosure requirements and the absence of excluded information.

Sarama Resources has entered into a binding agreement to acquire a majority interest in the Cosmo Newbery Gold Project in Western Australia. The 580km² project covers the entire Cosmo-Newbery Greenstone Belt, located 85km north-east of Laverton. Key highlights include:

- One of the last effectively unexplored greenstone belts in Western Australia
- Excellent access to infrastructure and nearby producing gold mines
- Sarama to initially acquire an 80% interest in the majority of the Project
- Option to increase ownership to 100% within 2 years post-completion

The transaction involves issuing 25 million Sarama shares and 7.5 million unlisted options to Adelong Gold , along with various payments totaling approximately A$427,000. Upon completion, Sarama and Cosmo will form an unincorporated joint venture, with Sarama free-carrying Cosmo's interest until a decision to mine is made.