Business
Sarama Resources Closes C$2.07 Million Private Placement
VANCOUVER, BC / ACCESSWIRE / August 4, 2020 / Sarama Resources Limited ("Sarama" or the "Company") is pleased to announce that it has closed the second and fina
About this update from Sarama Resources Ltd.
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / August 4, 2020 / Sarama Resources Limited (\"Sarama\" or the \"Company\") is pleased to announce that it has closed the second and final tranche (the \"Second Tranche\") of its private placement (the \"Private Placement\") previously announced on July 13, 2020, and July 27, 2020. The Second Tranche of the Private Placement raised aggregate proceeds of C$505,000 through the issue of 4,590,909 common shares (the \"Shares\") at a price of C$0.11 per Share. With this final closing of the Private Placement, the Company has raised aggregate gross proceeds of C$2,073,823 and issued 18,852,936 Shares at a price of C$0.11 per Share. All proceeds from the Private Placement are immediately available to the Company and 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. Certain insiders of the Company have acquired an aggregate of 3,371,204 Shares in the Private Placement, and as such the Private Placement is considered a \"related party transaction\" as defined under Multilateral Instrument 61-101. The Company has relied on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the insiders' participation in the Private Placement, as the Private Placement does not exceed 25% of the Company's market capitalization. The securities issued in connection with the Second Tranche are subject to a four-month hold period expiring December 1, 2020. The Shares 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 Shares 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), nor shall there be any sale of these securities i...