Business
Sarama Resources announces private placement to fund drill programs in Liberia, Mali and Burkina Faso
/NOT FOR DISTRIBUTION TO A UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED ...
About this update from Sarama Resources Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO A UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nVANCOUVER, May 12, 2014 /CNW/ - 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 $3,000,000.  The Private Placement involves the issuance of up to 20,000,000 units (the \"Units\") at a price of $0.15 per Unit.  Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each, a \"Warrant\").  Each Warrant will entitle the holder to purchase one common share of the Company for $0.20 at any time prior to two years after the issue date.\n\nThe Private Placement will be conducted on a non-brokered basis to institutional and accredited investors under applicable securities laws and is subject to regulatory approvals including the approval of the TSX Venture Exchange. The Company will close the placement on May 24, 2014 and may pay a finder's fee to selected parties.  The Company expects that approximately one-third of the Private Placement will be subscribed for by existing shareholders.  Management and directors of the Company have indicated an intention to subscribe for at least 10% of the Private Placement. There is no minimum amount to be raised in the Private Placement.\n\nThe proceeds of the Private Placement will be used principally to fund diamond drilling at the Company's properties in Liberia, oxide focussed air core drilling at the Company's South Hounde' Project in Burkina Faso, an air core scout drilling program at the company's Kandiole' Sud permit which is adjacent to Papillion Resources' Fekola Gold Project in Mali and for general working capital purposes.\n\nThese 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 accou...