Business
Sarama Resources Announces C$3,000,000 Private Placement
Not for Distribution to a United States Newswire or for Dissemination in the United States ...
About this update from Sarama Resources Ltd.
[{"type":"text","content":"Sarama Resources Announces C$3,000,000 Private PlacementNot for Distribution to a United States Newswire or for Dissemination in the United StatesVANCOUVER, BC / ACCESSWIRE / July 13, 2020 / Sarama Resources Limited (\"Sarama\" or the \"Company\") is pleased to announce that it is conducting a private placement (the \"Private Placement\") to raise gross proceeds of up to C$3,000,000. The Private Placement will involve the issuance of up to 27,272,727 common shares of Sarama (the \"Shares\") at a price of C$0.11 per Share.The Company's CEO, Andrew Dinning, commented: \"Sarama is undertaking this placement at a time when there is increasing interest in and consolidation of gold assets and companies in West Africa. At current gold price there are multiple paths that Sarama is exploring to significantly increase the value of its assets. The proceeds from this raise will be used to undertake a variety of work that will ultimately allow the Company to demonstrate the intrinsic value of its projects and set out the preferred path to development under this new gold price regime.\" The proceeds of the Private Placement will be used to advance the Company's projects in Burkina Faso including a mineral resource update on the South Houndé Project, high value oxide focused exploration drilling, general technical work to support framing up of development options and general corporate purposes.The Private Placement will be conducted on a non-brokered basis to accredited investors pursuant to prospectus exemptions available under applicable securities laws and is subject to the approval of the TSX Venture Exchange.Sarama anticipates that certain insiders will acquire securities in the Private Placement. To the extent such insiders participate in the Private Placement, any such participation would be considered a \"related party transaction\" as defined under Multilateral Instrument 61-101.Sarama may pay a finder's fee to one or more arms' length parties who introduce Sarama to investors, in accordance with the policies 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 July 24, 2020, but reserves the right to extend the closing date, and may close the Private Placement in one or more tranches.The Shares have not been and will not be registered u...