Sarama Resources Ltd. completes initial public offering to raise gross proceeds of $16,684,840

/Not for Distribution to a United States Newswire or for Dissemination in the United States/

PERTH, AUSTRALIA, Nov. 2, 2011 /CNW/ - Sarama Resources Ltd. (TSXV:SWA) ("we" or the "Company" or "Sarama" ). We are pleased to announce the completion of our initial public offering ("Offering") and the issuance of a total of 18,538,711 Units (which includes the partial exercise of the over-allotment option of 1,872,045 Units) at $0.90 per Unit, raising gross proceeds of $16,684,840. Each Unit consists of one Common Share of the Company and one-half of one Common Share purchase warrant of the Company (each whole warrant being a "Warrant").  Each Warrant will entitle the holder to purchase one Common Share at a price of $1.20 for a period of 24 months following the closing date.  The Units separated into Common Shares and Warrants immediately upon issue.

The Offering was sold pursuant to a final long form prospectus of the Company by a syndicate co-led by Cormark Securities Inc. and GMP Securities L.P. and including BMO Capital Markets and Raymond James Ltd. (the "Agents").  The Agents were paid a cash fee and received 973,656 Agents' Warrants, which entitle the holder to purchase one Common Share at a price of $0.90 for a period for 24 months following closing.

The TSX Venture Exchange has conditionally approved the listing of the Company as a Tier 2 mining company. We are satisfying the conditions to listing today and have been informed that, upon those conditions being satisfied, our Common Shares and Warrants will begin trading on the TSXV on November 3, 2011 under the symbol "SWA".

Sarama is an early stage mineral exploration company whose principal business objectives are the acquisition, exploration and development of gold properties and resources on the African continent. We are taking a disciplined portfolio approach to our exploration and are pursuing an aggressive consolidation and exploration program targeting geology that has the potential to host significant gold mineralisation.  We are earning a 100% interest in each of our principal properties in the South Houndé Project, an area covering approximately 801 km² in south-west Burkina Faso, Africa, and that we consider to be highly prospective for gold, and potentially other minerals. We also hold title to, or have entered into agreements to acquire up to a 100% interest in, a number of other permit areas in Burkina Faso, Liberia and Mali.  We will use the net proceeds of the Offering principally to advance our exploration activities at the South Houndé Project where extensive drill programs are planned and our other prospects in Liberia and Mali where significant exploration programs are already underway.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statement Regarding Forward-Looking Information: Statements in this news release that are not statements of historical fact may constitute forward-looking information. Forward-looking information includes, but is not limited to, information with respect to our business objectives or goals, planned acquisition, exploration and development activities and use of funds and our anticipated date of commencement of trading of our Common Shares and Warrants on the TSXV. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking information. In developing the forward-looking information, assumptions have been made regarding, among other things: that our Common Shares and Warrants will begin trading on the TSXV on November 3, 2011 and about our ability to carry on our exploration and development activities, our ability to meet our obligations under our property agreements, the timing and results of drilling programs, the discovery of mineral resources and mineral reserves on our mineral properties, the timely receipt of required approvals, the price of gold, the costs of operating and exploration expenditures, our ability to operate in a safe, efficient and effective manner and our ability to obtain financing as and when required and on reasonable terms.  Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. We do not undertake to update any forward-looking information, except in accordance with applicable securities laws

 

SOURCE Sarama Resources Limited

For further information:

For more information on Sarama, please visit the Company web site at www.saramaresources.com or contact:

Andrew Dinning, CEO +61 (8) 9363 7602 info@saramaresources.com  

 

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Sarama Resources Limited

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