Business
Sarama Resources Closes First Tranche of Private Placement
Not for Distribution to a United States Newswire or for Dissemination in the United States ...
About this update from Sarama Resources Ltd.
[{"type":"text","content":"Sarama Resources Closes First Tranche of Private PlacementNot for Distribution to a United States Newswire or for Dissemination in the United StatesVANCOUVER, BC / ACCESSWIRE / July 27, 2020 / Sarama Resources Limited (\"Sarama\" or the \"Company\") is pleased to announce that it has closed the first Tranche (the \"First Tranche\") of its previously announced private placement (the \"Private Placement\") for up to C$3 million, announced on July 13, 2020. The second tranche of the Private Placement is expected to close on or about July 31, 2020. On closing of the First Tranche, the Company has raised aggregate gross proceeds to date of C$1,568,823 through the issue of 14,262,027 common shares (the \"Shares\") at a price of C$0.11 per common share.All proceeds from the Private Placement shall be immediately available to the Company and 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.The securities issued in connection with the First Tranche are subject to a four-month hold period expiring November 25, 2020.Certain insiders of the Company have acquired an aggregate of 780,295 Shares in the First Tranche, 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.Finders fees were paid to Cormark Securities Inc. (\"Cormark\") in accordance with the policies of the TSX Venture Exchange, pursuant to a finders agreement between Cormark and the Company. The Company paid Cormark a 4% cash fee of C$24,400 for the First Tranche.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 ...