Sarama Resources Enters Earn-In Agreement With Acacia Mining

Sarama Resources (TSXV:SWA) has entered an earn-in agreement on its South Houndé Project in Burkina Faso with Acacia Mining (FWB:33A), formerly known as African Barrick Gold. Acacia will be able to earn up to a 70 percent interest in the project over a four year earn-in period, and may earn a further 5 percent interest on declaration of a minimum mineral reserve at South Houndé.

The agreement will provide funding to advance South Houndé to the next stage of development.

As quoted in the press release:

• Acacia makes a cash payment of US$1 million to Sarama upon completion;
• Acacia will earn a 50% interest in the Project upon the expenditure of US$7 million by the end Year 2;
• Acacia will earn an additional 20% interest, for an aggregate 70% interest in the Project upon the expenditure of a further US$7 million by the end Year 4;
• upon Acacia acquiring a 70% interest in the Project, Sarama and Acacia will advance the Project under a joint venture arrangement with both parties funding the venture according to their proportionate interests; and
• upon attaining a 70% interest in the Project, Acacia will have the right to acquire an additional 5% interest, for an aggregate 75% interest in the Project, upon the declaration of a mineral reserve of at least 1.6 million ounces of gold.

Sarama president and CEO, Andrew Dinning, said:

Sarama is pleased to have entered into this arrangement with Acacia Mining (formerly known as African Barrick Gold) who from a strong operational base in Tanzania, is seeking to fulfil its growth aspirations. Acacia’s decision to gain exposure to West Africa and Burkina Faso via this arrangement endorses Sarama’s exploration and technical work to date and supports the Company’s belief that the South Houndé Project has significant potential to build upon the current mineral resource.

Click here to read the full Sarama Resources (TSXV:SWA) press release.