News Release
Not for Distribution to a United States newswire service or for Dissemination in the United States
SARAMA RESOURCES ANNOUNCES COMPLETION OF C$ 1,850,000 PRIVATE PLACEMENT
VANCOUVER, CANADA. Sarama Resources Limited (“Sarama” or the “Company”) announces that it has completed its previously announced private placement (the “Private Placement”).
As part of the Private Placement, originally announced on July 20, 2017, 10,277,777 common shares of Sarama (“Shares”) have been issued for gross proceeds of C$1,850,000. The proceeds of the Private Placement will be used principally to advance the exploration of the Company’s resource properties in Burkina Faso and for general working capital purposes.
The Private Placement was conducted on a non-brokered basis to institutional and accredited investors pursuant to prospectus exemptions available under applicable securities laws. A four-month hold period will apply to all of the Shares. Pursuant to the Private Placement, Sarama paid a finder’s fee of $19,800 and $300 of associated expenses to a third party in relation to the issuance of 5,500,000 Shares.
Sun Valley Gold Master Fund, Ltd. (“Sun Valley”) is a related party of the Company as a result of owning approximately 15% of the Company’s outstanding Shares. Sun Valley purchased a total of 1,666,667 Shares in the Private Placement. The participation in the Private Placement by, and issuance of Shares to Sun Valley constituted a “related party transaction” as defined in Canadian Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, which has been adopted by the TSX Venture Exchange pursuant to its Policy 5.9 – Protection of Minority Security Holders in Special Transactions (the “61-101 Policy”). However, the Private Placement is exempt from the formal valuation and minority shareholder approval requirements of such instrument and policy, as the Company’s Shares are listed on the TSX Venture Exchange and, in respect of the minority shareholder approval requirement, neither the fair market value of the Shares, nor the consideration received for the Shares exceeds 25% of the Company’s market capitalization.
For further information on the Company’s activities, please contact:
Andrew Dinning or Lui Evangelista
e: info@saramaresources.com
t: +61 (0) 8 9363 7600
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.
