Business
Sarama Resources Closes First Tranche of Financing
VANCOUVER, BC--(Marketwired - June 24, 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 24, 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 24, 2016 it closed the first tranche (the \"First Tranche\") of its non-brokered private placement (the \"Private Placement\") for up to C$2.25 million, which was announced June 8, 2016. The second tranche of the Private Placement is expected to close on or about June 30. On closing of the First Tranche, the Company has raised aggregate gross proceeds to date of C$1,002,848 through the issue of 6,685,652 units. Each unit was priced at C$0.15 and consisted of one common share of the Company (each a \"Common Share\") and one half of one Common Share purchase warrant (a \"Warrant\"). Each whole Warrant is exercisable into one Common Share for a period of two years at a price of C$0.20 per Common Share. The securities issued in connection with the first tranche of the Private Placement will be subject to a four-month hold period expiring on October 24, 2016 in accordance with relevant Canadian securities legislation. Finder's fees were paid to Red Cloud Klondike Strike (\"Red Cloud\"), under a finder's fee agreement between Red Cloud and the Company, pursuant to which the Company paid Red Cloud a 7% cash fee, for a total fee of C$14,280 and finder's warrants exercisable for 18 months at a price of C$0.20 each (\"Finder's Warrants\") in an amount equal to 7% of the number of units issued to subscribers sourced by Red Cloud, for a total of 95,200 Finder's Warrants. Finder's fees were paid to Canaccord Genuity Corp. (\"Canaccord\") under a finder's fee agreement between Canaccord and the Company, pursuant to which the Company paid Canaccord a 7% cash fee, for a total of C$1,575 and Finder's Warrants equal to 7% of the number of units issued to subscribers sourced by Canaccord, for a total of 10,500 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 u...