Business
Sarama Resources Announces Private Placement to Fund Exploration Program in Burkina Faso
VANCOUVER, BC--(Marketwired - June 08, 2016) - NOT FOR DISTRIBUTION TO A UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES Sarama Resources Limit
About this update from Sarama Resources Ltd.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - June 08, 2016) - NOT FOR DISTRIBUTION TO A UNITED STATES NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES Sarama Resources Limited (\"Sarama\" or the \"Company\") announces that it is conducting a private placement (the \"Private Placement\") to raise gross proceeds of up to C$2,250,000. The Private Placement will involve the issuance of up to 15,000,000 units (the \"Units\") at a price of C$0.15 comprised of one common share of the Company and one-half of one common share purchase warrant (each full warrant, a \"Warrant\"). Each Warrant will be exercisable for two years from the date of issue at a price of C$0.20 each. The Private Placement will be conducted on a non-brokered basis to institutional and accredited investors pursuant to prospectus exemptions available under applicable securities laws and is subject to the approval of the TSX Venture Exchange. A four-month hold period will apply to all securities issued in the Private Placement. The Company plans to close the placement on or about June 22, but reserves the right to extend the closing date, and may close the placement in one or more tranches. The Company may pay a finders' fee to selected parties including to Red Cloud Klondike Strike Inc. The finder's fee is expected to consist of a 7% cash fee and finder's warrants exercisable for 18 months at a price of C$0.20 each in an amount equal to 7% of the number of Units issued to subscribers sourced by the finder. Certain of the directors and members of senior management of the Company have indicated that they intend to subscribe in the offering. There is no minimum amount to be raised in the Private Placement. The proceeds of the Private Placement will be used principally to fund exploration activity 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...