Sarama Resources Announces C$3,000,000 Private Placement
July 13, 2020
Not for Distribution to a United States Newswire or for Dissemination in the United States
SARAMA RESOURCES ANNOUNCES
C$3,000,000 PRIVATE PLACEMENT
VANCOUVER, CANADA. Sarama Resources Limited (“ Sarama” or the “ Company”) is pleased to announce that it is
conducting a private placement (the “ Private Placement”) to raise gross proceeds of up to C$3,000,000. The Private
Placement will involve the issuance of up to 27,272,727 common shares of Sarama (the “Shares”) at a price of C$0.11
per Share.
The Company’s CEO, Andrew Dinning, commented: “Sarama is undertaking this placement at a time when there is
increasing interest in and consolidation of gold assets and companies in West Africa. At current gold price there are
multiple paths that Sarama is exploring to significantly increase the value of its assets. The proceeds from this raise will
be used to undertake a variety of work that will ultimately allow the Company to demonstrate the intrinsic value of its
projects and set out the preferred path to development under this new gold price regime.”
The proceeds of the Private Placement will be used to advance the Company’s projects in Burkina Faso including a
mineral resource update on the South Houndé Project, high value oxide focused exploration drilling, general technical
work to support framing up of development options and general corporate purposes.
The Private Placement will be conducted on a non -brokered basis to accredited investors pursuant to prospectus
exemptions available under applicable securities laws and is subject to the approval of the TSX Venture Exchange.
Sarama anticipates that certain insiders will acquire securities in the Private Placement. To the extent such insiders
participate in the Private Placement, any such participation would be considered a "related party transaction" as defined
under Multilateral Instrument 61-101.
Sarama may pay a finder’s fee to one or more arms’ length parties who introduce Sarama to investors, in accordance
with the policies of the TSX Venture Exchange.
A four-month hold period will apply to all of the Shares. The Company plans to close the Private Placement on or about
July 24, 2020, but reserves the right to extend the closing date, and may close the Private P lacement in one or more
tranches.
The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, (the
“U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is
available. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Shares
within the United States or to, or for the account or benefit of, U.S. Persons (as defined under Regulation S under the
U.S. Securities Act), nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
For further information on the Company’s activities, please contact:
Andrew Dinning or Lui Evangelista
t: +61 (0) 8 9363 7600
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ABOUT SARAMA RESOURCES LTD.
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer and developer with substantial landholdings
in south-west Burkina Faso. Sarama is focused on maximising the value of its strategi c assets and advancing its key
projects towards development.
Sarama’s adjoining South Houndé and ThreeBee Projects, in which the Company holds a 100% interest (4), are located
within the prolific Houndé Greenstone Belt in south-west Burkina Faso and are the exploration and development focus
of the Company. Its exploration programs have successfully discovered an inferred mineral resource of 2.1Moz gold (1)
at the South Houndé Project which is complemented by the Bondi Deposit (4) (historical estimate of mineral resources
of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(2)).
The project area includes a cluster of advanced gold deposits, within trucking distance of one another, which potentially
offers a development option for a central processing facility fed from multiple sources in the southern Houndé Belt.
Sarama has further potential in its portfolio including a 600 km² exploration position in the highly prospective Banfora
Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends
of gold-in-soil anomalism extending for over 40km along strike.
Sarama also holds approximately 19% participating interest in the Karankasso Project Joint Venture (“ JV”) which is
situated adjacent to the Company’s South Houndé Project in Burkina Faso and is a JV between Sarama and Endeavour
Mining (“Endeavour”) in which Endeavour is the operator of the JV. The Karankasso Project has an inferred mineral
resource estimate of 709koz gold(3) which was released in February 2020.
The Company’s board and management team have a proven track record in Africa and a strong history in the discovery
and development of large -scale gold deposits. Sarama is well positioned to build on its current success with a sound
strategy to surface and maximise the value of its property portfolio.
FOOTNOTES
1. South Houndé Project - 43.0Mt @ 1.5g /t Au (reported above cut -off grades ranging 0.3 -2.2g/t Au, reflecting the mining methods and
processing flowsheets assumed to assess the likelihood of the inferred mineral resources having reasonable prospects for eventual economic
extraction). This miner al resource contains an oxide and transition component of 16.0Mt @ 1.2g/t Au for 611koz Au (reported at a cut -off
grade of 0.3g/t Au for oxide and 0.8g/t Au for transition material). The effective date of the Company’s inferred mineral res ource estimate is
February 4, 2016. For further information regarding the mineral resource estimate please refer to the technical report titled “NI 43 -101
Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso ”, dated March 31 , 2016 and
prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is independent of Sarama. The technical report
is available under Sarama’s profile on SEDAR at www.sedar.com .
2. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000 oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700oz Au (inferred), reported
at a 0.5 g/t Au cut-off.
i. The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corporation (“Orezone”)
which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled “ Technical Report on
the Mineral Resource of the Bondigui Gold Project”, dated date of February 20, 2009 and prepared by Yves Buro (the “Bondi Technical
Report”). Yves Buro is an employee of Met-Chem Canada Inc and is considered to be independent of Orezone and Sarama. The technical
report is available under Orezone’s profile on SEDAR at www.sedar .com.
ii. Sarama believes that the historical estimate is relevant to investors’ understanding of the property, as it reflects the most recent
technical work undertaken in respect of the Bondi Deposit.
iii. The historical estimate was informed by 886 drill holes, a ssayed for gold by cyanidation methods, were used to interpret mineralised
envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID²
methodology based on input parameters derived from geostatistical and geological analyses assessments. Field measurements and
geological logging of drill holes were used to determine weathering boundaries and bulk densities for modelled blocks.
iv. The historical estimate uses the mineral resource reporting categor ies required under National Instrument 43 -101.
v. No more recent estimates of the mineral resource or other data are available.
vi. Sarama is currently undertaking the necessary verification work in the field and on the desktop that may support the future
reclassification of the historical estimate to a mineral resource.
vii. A qualified person engaged by Sarama has not undertaken sufficient work to verify the historical estimate as a current mineral resource
and Sarama is therefore not treating the historical estimate as a current mineral resource .
3. Karankasso Project mineral resource estimate – the mineral resource estimate for the Karankasso Project of 12.74Mt @ 1.73g/t Au for 709koz
Au (effective date of December 31, 2019) was disclosed on February 24, 2020 by Sema fo Inc (“ Semafo”). For further information regarding
that mineral resource estimate, refer to the news release “Semafo: Bantou Project Inferred Resources Increase to 2.2Moz” dated February 24,
2020. The news release is available under Semafo’s profile on S EDAR at www.sedar.com. The mineral resource estimate was fully prepared
by, or under the supervision of Semafo. Sarama has not independently verified Semafo’s mineral resource estimate and takes no responsibility
for its accuracy. Semafo was the operator o f the Karankasso Project JV and Sarama is relying on their Qualified Persons’ assurance of the
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validity of the mineral resource estimate. Additional technical work has been undertaken on the Karankasso Project since the effective date
but Sarama is not in a position to quantify the impact of this additional work on the mineral resource estimate referred to above.
4. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako 2(5) and Nakar (formerly Bouni)(5) Properties and Sarama has, or is entitled
to have, a 100% interest in each of the properties. The Djarkadougou Exploration Permit is going through a process with the government of
Burkina Faso where it is required it be re -issued as a new full -term exploration permit. The Company is in discussion with senior government
officials regarding certain impediments to the re -issue of the Exploration Permit and anticipates these discussions will be completed in due
course, though there can be no assurance that the process will be successfully completed on a tim ely basis, or at all.
5. For further information regarding the drilling on the Bamako 2 (formerly Bamako) and Nakar (formerly Bouni) Properties, pleas e refer to the
technical report titled “NI 43-101 Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso”,
dated October 28, 2013 and prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is cons idered
independent of Sarama. The technical report is available under Sarama’s profile on SEDAR at www.sedar.com
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this disclosure that is not a statement of historical fact constitutes forward- looking information. Such forward- looking information
includes statements regarding the intended use of the proc eeds from the Private Placement and the expected timing of completion of the Private
Placement, the potential for the Karankasso , South Houndé and ThreeBee Projects to host mineralization of economic significance, any potential
development of a central processing facility as part of regional project development, the potential for the receipt of regulatory approvals, the potential
of the projects to host mineralization of significance to support regional development plans, the timing and prospects for the re -issuance of the
Djarkadougou Exploration Permit by the Government of Burkina Faso, plans for exploration and development at the South Houndé, ThreeBee and
Karankasso Projects, the potential to expand the present oxide component of the existing estimated mineral resources at the South Houndé Project
and the reliability of the historical estimate of mineral resources at the Bondi Deposit.
Actual results, performance or achievements of the Company may vary from the results suggested by s uch forward-looking statements due to known
and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious
minerals involves a high degree of risk and is highly speculative in nature; Mineral Resources are not Mineral Reserves, they do not have demonstrated
economic viability, and there is no certainty that they can be upgraded to Mineral Reserves through continued exploration; fe w properties that are
explored are ultimate ly developed into producing mines; geological factors; the actual results of current and future exploration; changes in proje ct
parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s publicly filed documents. There can be no assurance
that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained.
However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions
have been made regarding, among other things, the Company’s ability to carry on its exploration activities, the sufficiency of funding, the timely receipt
of required approvals, the price of gold and other precious metals, that the Company will not be affected by adverse political events, the ability of the
Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and o n
reasonable terms. Readers should not place undue reliance on forward- looking information.
Sarama does not undertake to update any forward- looking information, except as required by applicable laws.
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.
QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to exploration activities on the Company’s properties in Burkina Faso is based on
information compiled or approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources Ltd. and is a member in goo d standing of the
Ordre des Géologues du Québec and has suffici ent experience which is relevant to the commodity, style of mineralisation under consideration and
activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Guy Scherrer consents to the inclusion in this
disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the preparation of the South Houndé Project mineral re source estimate is based on
information compiled or approved by A drian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is independent of Sarama
Resources Ltd. Adrian Shepherd is a Chartered Professional Member in good standing of the Australasian Institute of Mining and Metallurgy and has
sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is under taking to qualify as
a Qualified Person under National Instrument 43 -101. Adrian Shepherd consents to the inclusion in this disclos ure of the information, in the form and
context in which it appears.
Scientific or technical information in this disclosure, in respect of the Bondi Deposit relating to mineral resource and expl oration information drawn
from the Technical Report prepared for Orezone on that deposit has been approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources
Ltd and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style
of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Guy
Scherrer consents to the inclusion in this disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project’s mineral resource estimate and exploration
activities is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a F ellow in good standing
of the Australasian Institute of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodity, style of
mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instr ument 43 -101. Paul
Schmiede consents to the i nclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have
not independently verified Semafo’s mineral resource estimates and take no responsibility for their accuracy .