Business
Sarama Undertakes A$2m Placement to Advance Sanutura Project
Funds raised will be used for the completion of a Preliminary Economic Assessment ("PEA") to eval...
About this update from Sarama Resources Ltd.
[{"type":"text","content":"Sarama Undertakes A$2m Placement to Advance Sanutura ProjectFunds raised will be used for the completion of a Preliminary Economic Assessment (\"PEA\") to evaluate accelerating the development of the Sanutura ProjectNOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATESPERTH, AUSTRALIA / VANCOUVER, BC / ACCESSWORE / April 3, 2023 / Sarama Resources Ltd. (\"Sarama\" or the \"Company\") (ASX:SRR, TSX-V:SWA) is pleased to announce it has received binding commitments to undertake a A$2.0 million equity placement (the \"Placement\") to advance development studies for its 100%-owned(4) Sanutura Project (the \"Project\"). The Placement was strongly supported by existing shareholders and new domestic and international institutional, professional and sophisticated investors.HighlightsBinding commitments received for Placement of A$2.0 millionStrong demand for Placement from existing and new institutional, professional and sophisticated investorsThe funds raised will be used to complete a PEA evaluating an accelerated, multi-stage development of the Sanutura Project and for general working capital purposesSarama's Managing Director, Andrew Dinning commented:\"We are very pleased with the strong support received for the Placement from our existing shareholders and look forward to welcoming a number of new institutional, professional and sophisticated investors to the Company's share register.The funds raised from the Placement will be used to evaluate an accelerated multi-stage development at the Sanutura Project which we believe has the potential to generate a very compelling investment case based on the extensive oxide resource and related grade and cost profile.\"Use of ProceedsFunds raised from the Placement will be used to complete a preliminary economic assessment to evaluate an accelerated multi-stage development at the Sanutura Project and to fund administration and general working capital costs.Placement DetailsThe Placement will comprise the issue of 20,000,000 Chess Depository Instruments (\"CDIs\") at an issue price of A$0.10 per CDI to raise gross proceeds of A$2.0 million. The issue price represents a ~4.8% discount to Sarama's last traded price on the ASX on Wednesday, 29 March 2023 of A$0.105. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interes...