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Adelong Gold (ASX:ADG) has completed its settlement of an outstanding loan arrangement with private Cosmo Gold Ltd for a stake in Sarama Resources (ASX:SRR).
Through that deal, Adelong now owns a stake in the latter. The company received 25M shares in Sarama – currently worth 2.8cps – as well as 7.5M options worth approximately $675,000 put together.
This, Adelong said, provides it with a boost to its asset portfolio – and “positions [us] for further growth in the gold and rare earth sectors.”
Under the arrangement, Adelong now considers Cosmo Gold Ltd has satisfied loan obligations owed by the other in a three-party swap. Cosmo Gold has shifted 80% of its own Cosmo project to Sarama; the latter has a right to acquire the other 20% in the next two years.
Should Sarama wish to pick up that remaining stake, it would only cost $1.25M. At any rate, now Adelong has exposure, all hunky dory in its own eyes.
“The completion of this transaction marks a pivotal moment for Adelong Gold,” ADG chief Ian Holland said.
“By securing a significant equity stake in Sarama Resources, we are not only strengthening our balance sheet but also positioning the company to benefit from Sarama’s high-quality gold assets.
“This outcome underscores our commitment to unlocking value for our shareholders as we continue advancing our gold and rare earth projects in Australia and Brazil.”
ADG last traded at 0.05cps after open on Friday morning.
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