Business
Sarama Resources Closes Financing
VANCOUVER, BC--(Marketwired - June 30, 2016) - Not for Distribution to a United States Newswire or for Dissemination in the United States Sarama Resources Ltd.
About this update from Sarama Resources Ltd.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - June 30, 2016) - Not for Distribution to a United States Newswire or for Dissemination in the United States Sarama Resources Ltd. (the \"Company\" or \"Sarama\") is pleased to announce that on June 30, 2016 it upsized the amount of its non-brokered private placement announced June 8, 2016 by C$101,848, and closed the second tranche of the private placement. The total aggregate gross proceeds for the private placement were C$2,351,848 through a total issuance of 15,678,985 units. Each unit was priced at C$0.15 and consisted of one common share of the Company and one half of one common share purchase warrant. Each whole warrant is exercisable into one common share for a period of two years from the date of closing of the second tranche, at a price of C$0.20 per common share. The securities issued in connection with the second tranche of the private placement will be subject to a four-month hold period expiring on October 30, 2016 in accordance with relevant Canadian securities legislation. Aggregate gross proceeds for the second tranche were C$1,349,000 through the issue of 8,993,333 units. Finder's fees were paid to Red Cloud Klondike Strike, under a finder's fee agreement between Red Cloud and the Company, pursuant to which the Company paid Red Cloud a 7% cash fee on proceeds from subscriptions sourced by Red Cloud, 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 Red Cloud. Total finder's fees paid to Red Cloud for the private placement were C$73,710 and 491,400 finder's warrants. 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 for the account or benefit of, U.S....