Sarama Resources – Corporate Update

Rhea-AI Summary

Sarama Resources Ltd. has granted 6,809,999 stock options to directors, officers, employees, and consultants as part of its annual compensation review. This grant aligns with the company’s stock option plan approved by shareholders on December 21, 2022, allowing options issuance up to 10% of its rolling issued shares annually. The options have an exercise price of A$0.16, significantly above recent capital raise and trading prices. Approval for options issued to directors, totaling 3,016,666, will be sought at the upcoming AGM in June 2023. Currently, a total of 13,190,000 options remain outstanding, subject to approval. The options are exercisable for three years and vest immediately.

Positive

• Options grant aligns with shareholder-approved stock option plan.
• Options have an exercise price significantly above previous capital raise and market prices.

Negative

• Options require shareholder approval, potentially delaying benefits for directors.
• Recent options expired without being exercised, indicating possible challenges in previous incentives.

News Market Reaction – SRMMF

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On the day this news was published, SRMMF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PERTH, AUSTRALIA and VANCOUVER, BC / ACCESSWIRE / April 20, 2023 / The Board of Directors of Sarama Resources Ltd. ("Sarama" or the "Company") (ASX:SRR)(TSX-V:SWA) has granted 6,809,999 options to directors, officers, employees and consultants of the Company. The option grant is the result of the Company's annual compensation review historically undertaken in January but delayed due to the restrictions imposed by the Company's Trading Policy. This granting of options is made in accordance with the Company's stock option plan which was approved by shareholders on December 21, 2022, and allows for the issuance of a number of options up to 10% of its rolling issued and outstanding common shares during any 12 month period. The Australian Securities Exchange ("ASX") Listing Rule 7.2, exception 13(b) provides an exception to ASX Listing Rule 7.1 such that issues of Equity Securities under an employee incentive scheme are exempt for a period of three years from the date on which the Shareholders approve the issue of Equity Securities under the scheme as an exception to ASX Listing Rule 7.1. ASX Listing Rule 7.1 provides that a company must not, subject to specified exceptions, issue or agree to issue more Equity Securities during any 12-month period than that amount which represents 15% of the number of fully paid ordinary securities on issue at the commencement of that 12 month period. The grant of options under the Company's stock option plan falls within the scope of ASX Listing Rule 7.2, exception 13(b) and therefore does not count towards the 15% threshold under ASX Listing Rule 7.1 described above.

Options to be granted to Directors will require Shareholder approval under ASX Listing Rule 10.14 as it is an issue to a related party. Approval will be sought at the next AGM in June 2023. The Company is proposing to issue an aggregate of 3,016,666 options to directors (or their nominees) on the basis described below:

Director	Number of options
Adrian Byass	300,000
Andrew Dinning	1,916,666
Simon Jackson	500,000
Steven Zaninovich	300,000

The options have an exercise price of A$0.16 each, 60% above the price of the last capital raise of A$0.10, and 33% above the 10-day VWAP of A$0.12 and the trading price of the last trading day of A$0.12 on the ASX prior to grant. The options will immediately vest and are exercisable for a period of 3 years from the date of the grant thereof.

On January 16, 2023, 3,599,999 options granted on January 16, 2020, and exercisable at C$0.21 had expired.

Total options outstanding is 13,190,000 subject to approval of the number of options that is to be granted to directors.

For further information on the Company's activities, please contact:

Andrew Dinning
e: info@saramaresources.com
t: +61 (0) 8 9363 7600

This announcement was authorised for release to the ASX by the Board of Sarama Resources Ltd.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Sarama Resources Ltd.

View source version on accesswire.com:
https://www.accesswire.com/750530/Sarama-Resources-Corporate-Update

FAQ

What stock options did Sarama Resources grant?

Sarama Resources granted 6,809,999 stock options to directors, officers, employees, and consultants.

What is the exercise price of the options granted by Sarama Resources?

The options have an exercise price of A$0.16.

When will shareholder approval for the directors' options be sought?

Approval for the directors' options will be sought at the AGM in June 2023.

How many options are currently outstanding for Sarama Resources?

There are a total of 13,190,000 options outstanding, subject to approval.

Why did Sarama Resources delay its option grants?

The option grants were delayed due to restrictions imposed by the Company's Trading Policy.