Sarama Announces Equity Placement of up to A$1M

Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) is pleased to announce it has received binding commitments to undertake a A$1 million equity placement (the “Placement”).

Funds raised will be used to assess and pursue a potential acquisition, undertake exploration on the Company’s properties and for general working capital purposes. The Placement was well supported by existing shareholders and professional and sophisticated investors.

The Placement will comprise the issue of 50,000,000 Chess Depository Instruments (“CDIs”) at an issue price of A$0.02 per CDI to raise gross proceeds of A$1 million. The issue price represents a ~13% discount to Sarama’s 10- day VWAP and a 9.1% discount to the last traded price on the ASX on Friday, 14 June 2024 of A$0.022. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in 1 common share of the Company.

Members of Sarama’s Board and Management do not intend to subscribe for any CDIs in the Placement. The Placement is comprised of two tranches:

• Tranche 1 consists of 45 million new CDIs under the Company’s ASX Listing Rule 7.1 capacity. Funds received from the Tranche 1 placement will total A$0.9 million. The Company expects to complete allotment of the new CDIs under Tranche 1 by 21 June 2024.
• Tranche 2 consists of a further 5 million new CDIs which will be subject to shareholder approval at a general meeting on or around 5 September 2024. Total funds received from Tranche 2 will total A$0.1 million.

The Placement remains subject to the approval of the TSX Venture Exchange.

This announcement was authorised for release to the ASX by the Board of Sarama Resources Ltd.

Click here for the full ASX Release

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