Sarama Resources Receives Strong Demand IN Equity Raising FOR Dual Listing ON the Australian Securities Exchange
March 25, 2022
SARAMA RESOURCES RECEIVES STRONG DEMAND IN
EQUITY RAISING FOR DUAL LISTING ON THE
AUSTRALIAN SECURITIES EXCHANGE
Not for release or distribution in the United States or through any U.S. newswire service
VANCOUVER, CANADA. Sarama Resources Ltd. (“ Sarama” or the “ Company”) (TSX-V: SWA) is pleased to advise that
following the lodgement of a prospectus (the “Prospectus”) in relation to its proposed dual listing on the Australian
Securities Exchange ("ASX"), it has received subscriptions in excess of A$10 million for its equity raising and anticipates
closing on or before the planned closing date of March 30, 2022 , with gross proceeds being limited to the prescribed
maximum of A$8 million.
Under the Prospectus, the Company proposed to issue between 28,571,429 and 38,095,238 CHESS Depositary Interests
("CDIs") over common shares in the capital of the Company ("Offer Shares") at an issue price of A$0.21 per CDI for gross
proceeds between A$6 million and A$8 million (the "Offer"). Each CDI will represent a beneficial interest in 1 common
share of the Company.
Leading Australian resources broker, Euroz Hartleys, is the Lead Manager for the ASX listing process. The net proceeds
raised pursuant to the dual listing on the ASX will be used to support and expedite an extensive and predominantly
shallow drilling campaign across the Company’s 100% -owned Sanutura Project (the ” Project”). The planned drill
programs aim to augmen t and upgrade the currently defined oxide and free -milling mineral resource and test high
priority targets identified through previous grassroots exploration that have the potential to significantly impact project
growth.
The Project is an advanced-stage exploration project covering approximately 1, 420km² that hosts a significant , well-
defined gold mineral resource base and a suite of exploration targets. As announced on November 16, 2021, the mining-
shape constrained mineral resource estimate at the Project stands at 9.4Mt @ 1.9g/t Au for 0.6Moz gold (Indicated)
plus 52.7Mt @ 1.4g/t Au for 2.3Moz gold (Inferred)(1). The combined oxide and transition component of the pit shell-
constrained mineral resource totals 0.2Moz gold (Indicated) plus 0.8Moz gold (Inferred)(2).
The large mineral resource base and suite of exploration targets provide significant optionality and leverage to the gold
price and the Project remains key to the development of the southern Houndé Belt.
Sarama’s President and CEO, Andrew Dinning commented:
“We are very pleased with the level of interest shown in the Company and recognition of the inherent value in our assets.
The funds will allow us to pursue an aggressive exploration program focused on shallow and highl y accretive material
and to have a closer look at some of the regional exploration targets that have intrigued us for some time. ”
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 (0) 8 9363 7600
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.
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This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be registered un der 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 or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is
available. In accordance with section 734(6) of the Australian Corporations Act 2001 (Cth), the Compan y advises in
respect of the offer of Offer Shares under the Prospectus:
• the issuer of the Offer Shares is Sarama Resources Ltd. ARBN 143 964 649;
• the Prospectus is available online at www.saramaresources.com or by contacting the Company by email at
• offers of Offer Shares will only be made in, or accompanied by, a copy of the Prospectus ;
• a person should consider the Prospectus in deciding whether to acquire the Offer Shares ;
• anyone who wishes to acquire the Offer Shares will need to complete the application form that will be in or will
accompany the Prospectus;
• the offer of Offer Shares under the Prospectus will only be made available to persons receiving the Prospectus
in Australia and certain institutional investors (as defined in the Prospectus) in, Hong Kong, United Kingdom, New
Zealand, Europe Union (excluding Austria), and Singapore and the United States; and
• the offer of Offer Shares under the Prospectus will not be available to residents of Canada .
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 strategic assets and advancing its key
projects towards development.
Sarama’s 100%-owned(4) Sanutura Project is principally located within the prolific H oundé Greenstone Belt in south-
west Burkina Faso and is the exploration and development focus of the Company. The project hosts the Tankoro and
Bondi Deposits which have a combined mineral resource of 0.6Moz gold (Indicated) and 2.3Moz gold (Inferred)(1).
Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which
may be established and paid for by the significant oxide mineral resource base.
Sarama has built further optionality into its portfolio including an approximate 470km² 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 an approximate 18% participating interest in the Karankasso Project Joint Venture (“ JV”) which is
situated adjacent to the Company’s Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining
Corp (“ Endeavour”) in which Endeavour is the operator of the JV. In February 2020, an updated mineral resource
estimate of 709koz gold(3) was declared for the Karankasso Project JV.
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.
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FOOTNOTES
1. Current mineral resource estimate for Sanutura Project - 9.4Mt @ 1.9g/t Au for 0.6Moz Au ( Indicated) plus 52.7Mt @ 1.4g/t Au for 2.3Moz
(Inferred), reported at cut-off grades ranging 0. 2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the
liklihood of the mineral resources to have reasonable prospects for eventual economic extraction. The effective date of the Company’s mineral
resource estimate is November 16, 2021. For further information regarding the mineral resource estimate refer to the technical report titled “NI
43-101 Independent Technical Report Sanutura Project, South -West Burkina Faso”, dated February 7, 2022 and prepared by Paul Schmiede,
Rindra Le Grange and Fred Kock. Paul Schmiede is an employee of Sarama. Ms Le Grange and Mr Kock are employees of Cube Consulting Pty
Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent of Sarama. The technical report is available under
Sarama’s profile on SEDAR at www.sedar.com.
2. Oxide & transition component of the current mineral resource - 3.2Mt @ 1.6g/t Au for 0.2Moz Au ( Indicated) plus 23.4Mt @ 1. 1g/t Au for
0.8Moz Au (Inferred), reported above cut-off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition material respectively.
3. Karankasso Project current mineral resource estimate – the current mineral resource estimate for the Karankasso Project of 12.74Mt @ 1.73g/t
Au for 709koz Au (effective date of Decembe r 31, 2019) was disclosed on February 24, 2020 by Semafo Inc (“Semafo”, since acquired by
Endeavour Mining Corp. “Endeavour”). For further information regarding that mineral resource estimate, refer to the news release “Semafo:
Bantou Project Inferred Reso urces Increase to 2.2Moz” dated February 24, 2020 and Semafo: Bantou Project NI43 -101 Technical Report –
Mineral Resource Estimate” dated April 3, 2020. The news release and technical report are available under Semafo’s and Endeavour’s profile
on SEDAR 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 accu racy. Semafo, and now Endeavour, is the
operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons’ assurance of the validity of the mine ral 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 Government of Burkina Faso has processed the requisite documents to facilitate the grant of the new, full-term Tankoro 2 and Djarkadougou
2 Exploration Permits (the "Permits") and subsequently issued the invitation to pay the permit issuance fees (the "Fees") and the Fees were paid
within the requisite 10-day timeline. Following the payment of the Fee, the issuance of the Permit's arrêté and related paperwork becomes an
administrative process during which time the Company may undertake work on the Tankoro 2 and Djarkadougou 2 Properties. The C ompany
expects the arrêtés and related paperwork to be issued in due course. The properties, hosting the Tankoro and Bondi Deposits respectively, were
formerly known as Tankoro and Djarkadougou, but have been renamed as part of the process of re-issuing the respective Permits.
CAUTION REGARDING FORWARD LOOKING INFORMATION
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information
includes, but is not limited to, statements regarding the Company’s plans to list on the ASX and the associated gross proceeds, the number of shares
(CDIs) to be issued and pricing, statements regarding the Company’s future exploration and development plans, the potential for the Sanutura and
Karankasso Projects to host economic minerali sation, the potential for open pit and underground mining at the Sanutura Project, the potential to
expand the present oxide component of the existing estimated mineral resources at the Sanutura Project, the reliability of th e historical exploration
work and estimates for artisanal mining depletion at the Bondi Deposit, the potential for the receipt of regulatory approvals and the timing and
prospects for the issuance of the arrêtés for the Tankoro 2 and Djarkadougou 2 Exploration Permits by the Government of Burkina Faso. Actual results,
performance or achievements of the Company may vary from the results suggested by such 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; few properties that are explored are ultimately
developed into producing mines; geological factors; the actual results of current and future explo ration; changes in project 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 on 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.
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QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to the preparation of the mineral resource estimate for the Sanutura Project is based
on information compiled or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow 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 inclusion in this news release of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the metallurgical testwork at the Bondi Deposit is bas ed on information compiled
or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute
of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodi ty, style of mineralisation under consideration
and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Paul Schmiede consents to the inclusion in
this news release of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to tank-based and oxidative metallurgical testwork and mineral processing is based on
information compiled or approved by Fred Kock. Fred Kock is an employee of Orway Mineral Consultants Pty Ltd and is considered to be independent
of Sarama Resources Ltd. Fred Kock is a Fellow 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 undertaking to qualify as a Qualified Person
under National Instrument 43-101. Fred Kock consents to the inclusion in this news release of the information, in the form and context in which it
appears.
Scientific or technical information in this disclosure that relates to exploration activities at the Sanutura Project is based on information compiled or
approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources Ltd and is a memb er 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 acti vity which he is
undertaking to qualify as a Qualified Person under National Inst rument 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 Fellow 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 inclusion 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 (now Endeavour’s) mineral resource estimate and take no responsibility for its accuracy.