Sarama Issues 30.7M Options at A$0.09, Completing A$2M Equity Raise

Completion of Placement Tranche 2

Sarama Resources Ltd (ASX: SRR, TSXV: SWA) has successfully completed the second and final tranche of its previously announced A$2 million equity placement. This milestone, announced on 11 February 2025, follows shareholder approval secured at a special meeting held on 4 February 2025, a necessary step under ASX Listing Rules for the issuance of the tranche’s options.

The tranche involved issuing 16,666,666 free attaching unlisted options alongside 14,000,000 broker options. Both sets of options carry an exercise price of A$0.09 and will expire on 30 November 2028. These options were placed with institutional and sophisticated investors, reflecting continued confidence from the investment community in Sarama’s strategic direction.

Context and Use of Funds

This tranche completes the company’s A$2 million placement, with the first tranche having raised the same amount through the issuance of 66,666,666 CDIs at A$0.03 each in late November 2024. Importantly, no board or management members participated in the placement, underscoring a clear separation between company leadership and investor subscription.

Proceeds from the placement are designated primarily for advancing Sarama’s exploration activities, alongside bolstering general working capital and administrative costs. The company has explicitly stated that none of the funds will be directed towards payments to non-arm’s length parties or investor relations activities, a transparency measure that should reassure shareholders.

Regulatory and Market Implications

The placement remains subject to final approval by the TSX Venture Exchange, a routine procedural step. Notably, the CDIs issued are not subject to hold periods, as all subscribers were located outside Canada, potentially facilitating quicker liquidity for investors.

Sarama’s cautious approach to capital raising, combined with the strategic allocation of funds, positions the company to sustain its exploration momentum amid the inherent risks of gold exploration. The company’s forward-looking statements acknowledge the speculative nature of mineral exploration, emphasizing the uncertainties that lie ahead despite the fresh capital injection.

Looking Ahead

With the placement now complete, market participants will be watching closely for updates on Sarama’s exploration progress and how effectively the company deploys these funds. The absence of insider participation in the placement and the clear use of proceeds suggest a disciplined capital management approach, but the ultimate test will be the translation of exploration efforts into tangible resource development.