SOURCE: Sarama Resources Ltd.

Sarama Resources Ltd.

December 22, 2015 15:49 ET

Sarama Resources Announces Closing of Financing Bringing Total Funds Raised to C$800,000

VANCOUVER, BC--(Marketwired - December 22, 2015) -

Not for Distribution to a United States Newswire or for Dissemination in the United States

Sarama Resources Ltd. (TSX VENTURE: SWA) (the "Company" or "Sarama") is pleased to announce that on December 22, 2015 it closed its private placement (the "Private Placement"), which was announced November 10, 2015. The Company has raised aggregate gross proceeds of C$800,305 through the issue of 8,003,047 units. Each unit was priced at C$0.10 and consisted of one common share and one half of one common share purchase warrant. Each whole share purchase warrant is exercisable into one common share for a period of three years at a price of C$0.15 per share.

The securities issued in connection with the Private Placement will be subject to a four-month and one day hold period expiring on April 23, 2016 in accordance with relevant Canadian Securities Laws.

The proceeds of the Private Placement will be used principally to fund exploration-related work in Burkina Faso and for general working capital purposes.

These securities 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 securities in this Private Placement 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'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 a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1,2. 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. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.

Sarama holds a 35% 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 joint venture between Sarama and Savary Gold Corp. ("Savary"), who is the operator of the JV. In October 2015, Savary declared a maiden Inferred Mineral Resource estimate of 671,000 ounces of contained gold3,4 at the JV. Further details of the Karankasso mineral resource estimate and supporting information can be found in Savary's News Release dated 8 October, 2015.

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 strong financial position and a sound exploration strategy across its property portfolio.

  1. 29.13 Mt @ 1.6 g/t Au (at a 0.8 g/t Au cut-off)
  2. The effective date of the Company's Mineral Resource estimate is September 16, 2013. For further information regarding the Mineral Resource estimate please refer to the technical report titled "NI 43-101 Independent Technical Report, South Houndé Project, Bougouriba and Ioba Provinces, Burkina Faso", dated October 28, 2013. The technical report is available under the Company's profile on SEDAR at www.sedar.com.
  3. 9.16 Mt @ 2.28 g/t Au (at a 0.5 g/t Au cut-off)
  4. 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 the Savary Gold Corp's profile on SEDAR at www.sedar.com.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the size of the Private Placement and the Company's planned use of proceeds from the Private Placement, as well as statements regarding mineral resource estimates at the South Houndé Project and Karankasso Project. Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking information due to known and unknown risks, uncertainties and other factors. Such factors include, among others, delay in receipt of, or failure to receive, approvals, whether Acacia will exercise its earn-in rights in whole, in part or at all, general market conditions, the price of gold and other commodities, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; Mineral Resources are not Mineral Reserves, they do not have demonstrated economic viability, and there is no certainty that they can be upgraded to Mineral Reserves through continued exploration; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory approvals will be obtained, or that the conditions precedent to completion of the transaction with Aureus will be satisfied. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions upon which such forward-looking information has been based include that the conditions to completion of the agreement will be satisfied or waived and approvals will be obtained. Assumptions have also been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company, Aureus, Acacia and their respective Projects will not be affected by adverse political events, the ability of the Company, Aureus and Acacia to operate in a safe, efficient and effective manner and the ability of the Company, Aureus and Acacia to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

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.

QUALIFIED PERSON'S STATEMENT

Scientific or technical information in this news release that relates to the preparation of the Company's mineral resource estimate is based on information compiled or approved by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered to be independent of Sarama Resources Ltd. Adrian Shepherd is a chartered professional member in good standing of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Adrian Shepherd consents to the inclusion in this news release of the information, in the form and context in which it appears.

Scientific or technical information in this news release that relates to the preparation of the Karankasso Project's mineral resource estimate is based on information compiled or approved by Eugene Puritch and Antoine Yassa. Eugene Puritch and Antoine Yassa are employees of P&E Mining Consultants Inc. and are considered to be independent of Savary Gold Corp. and Sarama Resources Ltd. Antoine Yassa is a member in good standing of the Ordre des Géologues du Québec and Eugene Puritch is a member in good standing of Professional Engineers Ontario. Eugene Puritch and Antoine Yassa have sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which they are undertaking to qualify as a Qualified Person under National Instrument 43-101. Eugene Puritch and Antoine Yassa consent to the inclusion in this news release of the information, in the form and context in which it appears.

Contact Information

  • For further information on the Company's activities, please contact:
    Andrew Dinning or Paul Schmiede

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