Sarama Issues 86.7 Million CDIs at A$0.03 in First Placement Tranche
Sarama Resources has successfully closed the first tranche of a A$2.7 million equity placement to fund exploration at its Cosmo Gold Project and support ongoing arbitration efforts. The second tranche, involving options and director participation, awaits shareholder approval.
- Tranche 1 raised A$2.6 million via 86.7 million CDIs at A$0.03 each
- Tranche 2 includes 30 million free attaching options and director CDIs, pending shareholder approval
- Funds earmarked for maiden drilling campaign at Cosmo Gold Project in Western Australia
- Board and management subscribed for nearly 5 million CDIs
- Placement subject to TSX Venture Exchange approval and includes related party transactions
Equity Placement Closes First Tranche
Sarama Resources Ltd (ASX, SRR) has completed the initial phase of its A$2.7 million equity placement, raising A$2.6 million through the issuance of 86.7 million Chess Depository Instruments (CDIs) priced at three cents each. This capital injection marks a significant step in funding the company’s exploration ambitions and ongoing legal proceedings.
Funding Exploration and Arbitration
The proceeds from this tranche are primarily allocated to advancing exploration activities at Sarama’s Cosmo Gold Project, a belt-scale asset located in the Eastern Goldfields of Western Australia. The company plans to initiate its maiden drilling campaign alongside infill soil geochemistry programs, aiming to delineate high-priority targets. Additionally, funds will support general working capital needs and the company’s arbitration claim against the Government of Burkina Faso, a legal matter that remains a key strategic focus.
Tranche 2 Awaits Shareholder Approval
The second tranche of the placement, expected to close following a shareholder meeting in September 2025, involves issuing 30 million free attaching unlisted options exercisable at A$0.09 and expiring in late 2028. It also includes the issuance of director CDIs and attaching options to Andrew Dinning, a company director. This tranche is contingent on shareholder approval and TSX Venture Exchange consent, underscoring the regulatory oversight surrounding related party transactions.
Board Participation and Market Implications
Notably, Sarama’s board and management have collectively subscribed for nearly 5 million CDIs across both tranches, signaling internal confidence in the company’s prospects. The placement was conducted without disclosure under certain Australian securities provisions, with no proceeds allocated to investor relations or non-arm’s length parties. A capital raising fee of approximately A$123,000 was paid to Powerhouse Advisory Australia Pty Ltd for facilitating the transaction.
Looking Ahead
With the first tranche closed and the second tranche pending approvals, Sarama is positioned to accelerate its exploration timeline while managing the complexities of its arbitration claim. The company’s ability to convert exploration potential into tangible resources and successfully navigate legal challenges will be critical to its medium-term trajectory.
Bottom Line?
Sarama’s capital raise sets the stage for pivotal exploration results and arbitration developments in the coming months.
Questions in the middle?
- Will shareholder approval for Tranche 2 proceed smoothly given related party involvement?
- How soon can Sarama deliver initial drilling results from the Cosmo Gold Project?
- What is the current status and potential impact of the arbitration claim against Burkina Faso?
