Sarama Resources (ASX:SRR) has secured approval from Cosmo Gold’s shareholders to take a majority stake in the Cosmo Gold Project in Western Australia.
The Cosmo Gold Project, owned by Cosmo Gold and Adelong Gold (ASX:ADG), spans 580km2 which covers the entire Cosmo-Newberry Greenstone Belt in the Laverton region of Western Australia.
Shareholder approval was a key condition of the transaction, which is now anticipated to be completed in mid-November 2024.
In August, Sarama entered into a binding agreement to purchase an 80% interest in the project by paying $50,000 to Cosmo Gold within 21 days of executing a share purchase agreement and an additional $50,000 upon receiving shareholder approval.
Once the transaction is completed, Sarama and Cosmo will form an unincorporated joint venture, in which Sarama will hold 80% and Cosmo will hold the remaining 20%.
Sarama, which has a market capitalisation of $9.48 million, will also be granted the right to acquire the remainder of Cosmo’s interest in the project within a two-year period, post completion.
Executive Chairman Andrew Dinning says, alongside Cosmo, the company has begun its first soil geochemistry program which will continue over the next six to eight weeks and feed into larger targeting efforts.
The soil geochemistry program also aims to generate drilling targets for the 2025 exploration season. Sarama anticipates the results from this initial program will inform design of expanded soil geochemistry programs to be conducted, post completion of the transaction.
Sarama adds that future exploration programs will initially comprise following up preliminary targets, as well as reconnaissance drilling programs.
While the company’s exploration focus is gold, the project is considered prospective for nickel and rare earths, for which soil anomalism at a kilometre-scale has already been uncovered.
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
