Sarama Resources (ASX:SRR) has received firm commitments to begin a $2 million equity placement to advance development studies for its wholly owned Sanutura Project in Burkina Faso.
Sarama reports the placement is strongly supported by existing shareholders, as well as new domestic and international institutional, professional, and sophisticated investors.
The company notes funds raised will be used to finalise a preliminary economic assessment to evaluate an accelerated multi-stage at the project, as well as fund administration and general working capital costs.
Sarama also says the placement will comprise the issue of 20 million Chess Depository Instruments (CDIs) at an issue price of $0.10 per CDI across 2 tranches. This price represents a 4.8% discount to the company’s last traded price of $0.105 on the ASX on 29 March 2023.
Additionally, each new CDI issued under the placement is expected to rank equally with existing CDIs on issue, and will represent a beneficial interest in 1 common share of the company. Sarama will also issue 1 free attaching unlisted option for every 2 new CDIs issued, with each new option being exercisable at $0.15 before expiring 3 years from the date of issue.
Commenting on the placement, Sarama Resources Managing Director, Andrew Dinning, says: “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.
“We are very pleased with the strong support received for the placement from our existing shareholders…”
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.”
Sarama Resources announces the placement is subject to approval of the TSX Venture Exchange, and that Euroz Hartleys, the largest wealth management firm in WA, will act as sole lead manager and bookrunner to the placement.
Sarama Resources is an ASX-listed West African-focused gold exploration and development company with ‘substantial’ landholdings in south-west Burkina Faso. The company’s 100%-owned Sanutura project is located within the prolific Houndé Greenstone Belt and represents the exploration and development focus of the company.
Images: Sarama Resources CDI
