Sarama’s Placement Hinges on TSXV Approval Amid Arbitration and Exploration Risks
Sarama Resources has completed the third tranche of its A$2.7 million equity placement, raising A$100,000 to advance exploration at its Cosmo Gold Project and support ongoing arbitration efforts.
- Third tranche of A$2.7m placement completed, raising A$100,000
- 3.33 million CDIs issued at A$0.03 each plus 1.11 million free attaching options
- Placement includes securities issued to director Andrew Dinning with shareholder approval
- Funds earmarked for Cosmo Gold Project drilling and arbitration claim against Burkina Faso
- Placement subject to final TSX Venture Exchange approval and hold periods for management
Completion of Third Tranche Placement
Sarama Resources Ltd (ASX – SRR) has successfully closed the third and final tranche of its previously announced A$2.7 million equity placement, raising an additional A$100,000. This tranche involved issuing 3,333,333 CHESS Depositary Interests (CDIs) at a unit price of A$0.03, accompanied by 1,111,111 free attaching unlisted options exercisable at A$0.09 each, expiring in November 2028. Notably, these securities were issued to director Andrew Dinning, following shareholder approval secured at a special meeting in early October.
Strategic Use of Funds
The capital raised across all tranches of the placement is primarily intended to fund exploration activities at Sarama’s flagship Cosmo Gold Project, located in the Eastern Goldfields of Western Australia. The company plans to undertake infill soil geochemistry surveys and initiate its maiden drilling campaign, aiming to advance the project’s resource definition. Additionally, proceeds will support general working capital needs and the company’s ongoing arbitration claim against the Government of Burkina Faso, underscoring Sarama’s dual focus on exploration and legal recourse.
Governance and Regulatory Compliance
The placement was offered to a mix of existing shareholders, institutional investors, and sophisticated parties, with board and management collectively subscribing for nearly 5 million CDIs. The issuance to related parties, including Mr. Dinning, was conducted in compliance with Canadian regulatory frameworks, specifically Canadian Multilateral Instrument 61-101, with exemptions applied due to the size of the transactions relative to market capitalization. The placement remains subject to final approval by the TSX Venture Exchange, which has imposed a four-month hold period on securities issued to management and directors.
Market and Operational Outlook
While the placement bolsters Sarama’s financial position, the company cautions that exploration remains inherently speculative, with no guarantee of economic mineralisation. The success of the Cosmo Gold Project’s upcoming drilling campaign will be pivotal in shaping investor sentiment and the company’s valuation trajectory. Meanwhile, progress in the arbitration claim against Burkina Faso could materially impact Sarama’s future prospects, adding a layer of geopolitical risk to its operational outlook.
Looking Ahead
With funding secured, Sarama is positioned to advance its exploration agenda and legal strategies. Investors will be watching closely for drilling results and updates on the arbitration process, which together will inform the company’s next phase of growth and capital requirements.
Bottom Line?
Sarama’s final tranche completion sets the stage for critical exploration milestones and legal developments that could redefine its value proposition.
Questions in the middle?
- What initial results will the maiden drilling campaign at Cosmo Gold reveal?
- How might the arbitration claim against Burkina Faso influence Sarama’s financial health?
- When will the TSX Venture Exchange grant final approval, and could conditions affect the placement?
