Sarama Issues 40.5 Million CDIs at A$0.035 in First Placement Tranche

Tranche 1 Placement Secures Majority of Target Capital

Sarama Resources Ltd (ASX:SRR) has successfully closed the first tranche of its A$1.5 million equity placement, raising approximately A$1.42 million through the issuance of over 40.5 million CHESS Depository Instruments (CDIs) at A$0.035 each. These CDIs rank equally with existing shares, offering investors the same rights and benefits.

The placement attracted participation from existing shareholders and institutional investors, with a finder’s fee of A$28,692 paid in connection with the tranche. Importantly, Sarama’s board and management subscribed for nearly 2.9 million CDIs in total, including those planned for issuance to directors in the upcoming tranche 2.

Director Participation Awaits Shareholder Approval

The second tranche involves issuing 2,335,715 CDIs to directors Andrew Dinning, Simon Jackson, and Michael Bohm, representing A$81,750 in funds. This tranche is contingent on shareholder approval expected at a general meeting slated for late August 2026. The company anticipates completing this tranche shortly after securing the necessary approvals.

Due to the size of the director participation being below 25% of Sarama’s market capitalisation, the placement qualifies as a related party transaction exempt from formal valuation and minority shareholder approval under Canadian Multilateral Instrument 61-101. Nevertheless, the company will file a material change report detailing director participation consistent with market practice.

Funds to Propel Exploration and Legal Pursuits

The capital raised will underpin Sarama’s exploration projects and general working capital requirements as it pursues a substantial US$242 million damages claim against the Government of Burkina Faso. This arbitration claim, filed in previous quarters, remains a significant potential value driver for the company, though its outcome and timing remain uncertain.

Exploration efforts primarily focus on advancing projects in Australia, including copper-gold targets in New South Wales, complementing Sarama’s ongoing arbitration activities. The company’s recent placement builds on its strategy to maintain momentum in both legal and operational fronts, as highlighted in earlier reports on the $1.5M placement to back NSW exploration and advancement of Australian gold projects.

Regulatory and Holding Period Conditions

The TSX Venture Exchange (TSXV) has yet to provide final approval for the placement, with CDIs issued to management under tranche 1 subject to a mandatory four-month hold period. Other investors outside Canada face no such restrictions. Directors and officers participating in the placement will also be bound by this hold period, which aims to regulate securities trading post-issuance.

Additionally, the placement securities are not registered under the United States Securities Act and cannot be offered or sold within the U.S. without registration or an applicable exemption, limiting the placement’s geographic reach.