Sarama Resources Ltd. (TSX-V: SWA) (FSE: SWA) (Sarama or the Company) is pleased to announce that it has entered into agreements with Mako Gold Limited (ASX: MKG) (Mako) to raise up to A$2 million (the Placement) through the issue of new Sarama ordinary shares to sophisticated and institutional investors.
This cornerstone agreement supports Sarama’s strategy of leveraging its exploration assets in Burkina Faso to unlock value through active joint venture and strategic partnership initiatives. Sarama’s existing portfolio, which includes the Djarkadougou, South Houndé, and ThreeBee projects, has been recognized for its significant potential in one of West Africa’s prime gold belts.
The Placement comprises the issue of up to approximately 6.35 million new ordinary shares in Sarama at an issue price of A$0.315 per share, representing an 11.1% discount to the 15-day VWAP of Sarama shares to the placement date. The funds raised from the Placement will be used to advance exploration activities across its projects and for general working capital purposes.
In addition to the Placement, Sarama has entered into an agreement with Mako to convert certain outstanding debt owed to Mako of approximately A$1.03 million into Sarama ordinary shares at the same issue price as the Placement. This equity for debt conversion reflects the strong support and confidence of Mako in Sarama’s prospects and underscores the collaborative relationship between the two companies.
Through this equity placement and debt conversion, Sarama enhances its financial position and operational capabilities, reinforcing its commitment to advancing its projects and delivering value for its shareholders. The strategic partnership with Mako further solidifies Sarama’s position as a leading explorer in Burkina Faso, a jurisdiction known for its high-grade gold deposits and attractive mining investment climate.
Sarama remains focused on exploration success and building shareholder value through disciplined resource development and strategic growth initiatives. With a strong management team, a solid project portfolio, and a commitment to operational excellence, Sarama is well-positioned to capitalize on the opportunities presented by the dynamic gold market and the favorable mining landscape in West Africa.
As Sarama continues to execute its exploration strategy and pursue value-adding opportunities, the Company aims to deliver sustainable growth and returns for its stakeholders while upholding its commitment to responsible mining practices and community engagement. By leveraging its technical expertise, strategic partnerships, and operational efficiency, Sarama is poised to unlock the full potential of its assets and create long-term value for its shareholders and local communities alike.