- Sarama Resources (SRR) taps investors for $2 million to further develop its lead project, Sanutura, in Burkina Faso
- Under the placement, the company plans to issue 20 million shares at 10 cents per share, with one free attaching 15-cent option for every two shares issued
- The placement received “strong support” from new and existing investors, including from Sarama’s board and management, who will subscribe for 500,000 shares
- Funds will be used for a preliminary economic assessment to develop the Sanutura project, plus admin and working capital costs
- SRR shares closed 4.76 per cent higher at 11 cents on Monday afternoon
Junior miner Sarama Resources(SRR) has tapped investors for $2 million to further develop its lead project, Sanutura, in Burkina Faso.
The dual TSX-listed company said it received “strong support” from new and existing investors for the placement, under which it will issue 20 million shares at 10 cents per share — representing a 4.8 per cent discount to SRR’s last trading price.
In addition, Sarama will issue one free attaching unlisted option for every two new shares issued, exercisable at 15 cents.
Sarama’s board and management will subscribe for 500,000 CDIs, subject to shareholder approval.
Funds will be used for a preliminary economic assessment to evaluate an accelerated multi-stage development at the Sanutura project and to fund administration and general working capital costs.
The placement will consist of two tranches, with tranche one involving 13.75 million new CDIs (and 6.875 million attaching placement options) under the company’s ASX listing.
Funds received from the tranche one placement will total $1.375 million.
The company expects to complete the allotment of the new CDIs under tranche one by April 12, 2023.
The second tranche will involve the remaining 6.25 million new CDIs (and 3.125 million attaching placement options), subject to shareholder approval at the General Meeting.
Tranche two includes participation by directors or entities associated with the directors totalling $20,000.
The funds received from tranche two will total $625,000.
“We are very pleased with the strong support received for the placement from our existing shareholders and look forward to welcoming a number of new institutional, professional and sophisticated investors to the company’s share register,” SRR Managing Director Andrew Dinning said.
“The funds raised from the placement will be used to evaluate an accelerated multi-stage development at the Sanutura project, which we believe has the potential to generate a very compelling investment case based on the extensive oxide resource and related grade and cost profile.”
The placement is subject to approval from the TSX.
SRR shares closed 4.76 per cent higher at 11 cents on Monday afternoon.