Sarama Resources (ASX:SRR) is awaiting the approval of Cosmo Gold’s (ASX:CSM) shareholders to complete the acquisition of the Cosmo Gold Project in Western Australia.
Approval for the transaction will be sought at Cosmo Gold’s upcoming annual general meeting, which has been delayed slightly and is now scheduled for 4 November 2024.
Sarama notes that the majority of the key conditions precedent have been met and expects shareholder approval to pave the way for completion of the transaction, which it anticipates will be in mid-November.
The 580km2 project, which is currently owned by Cosmo Gold and Adelong Gold (ASX:ADG), covers the entire Cosmo-Newberry Greenstone Belt and lies 85km north-east of Laverton in Western Australia.
Sarama, which has a market capitalisation of $8.71 million, will acquire 80% of the project via the issue of 25 million shares and 7.5 million unlisted options to Adelong Gold.
The company will also pay $50,000 to Cosmo Gold within 21 days of executing a share purchase agreement.
Sarama is also progressing exploration with soil geochemistry programs currently underway at the project.
CEO Andrew Dinning says the company is pleased with the progress of on-the-ground exploration so far.
“We look forward to completing the acquisition of the Cosmo Gold Project which we view as a compelling opportunity for the company,” Dinning says.
The Cosmo Project captures one of the last unexplored greenstone belts in Western Australia and with a strike length of more than 50km, the Cosmo Newberry belt represents a ‘large and prospective’ system.
Gold was first discovered in the area of the belt around the 1890s and there are multiple historical gold workings documented within the project area.
Sarama says work undertaken to date has uncovered numerous targets for follow-up exploration.
The company expects future exploration programs will initially follow up any preliminary targets generated from the regional soil sampling and limited reconnaissance drilling programs.
Sarama Resources is a West African gold explorer and developer focused on establishing a new mining district in Burkina Faso.
Write to Aaliyah Rogan at Mining.com.au
Images: Sarama Resources
