Jan 7 2016
Sarama Resources Ltd. is pleased to announce that it has completed the previously announced sale of three exploration properties in Liberia to Aureus Mining Inc. for a total consideration of 6,645,070 Aureus common shares.
In addition to the sale of the three exploration properties sold to Aureus, Sarama has purchased an uncapped 1% net smelter return royalty on gold produced from the Cape Mount property, from the previous owner.
Sarama has been issued 5,648,310 Aureus common shares. Sarama will be issued the remaining 996,760 Aureus common shares upon the required withholding tax clearance certificates being obtained from the government of Liberia.
Sarama understands that Aureus has applied to the London Stock Exchange plc for admission to trading of the first tranche of 5,648,310 shares on the AIM Market of the London Stock Exchange plc and that admission of such shares will become effective on or around January 7, 2016.
The Aureus common shares issued to Sarama will be subject to a statutory four month hold period from the date of issue, as required under Canadian securities laws.
Sarama's President and CEO, Andrew Dinning, commented:
"The divestment of our Liberian assets allows us to focus our resources on Burkina Faso and leverage our well established position there. This deal provides potential upside value to the Company, and, with properties being adjacent to Aureus' New Liberty mine, has scope to provide a future royalty stream.
"We look forward to advancing our Burkina Faso interests where we have several separate project areas, including an inferred mineral resource of 1.5Moz of gold on our South Houndé Project, where Acacia Mining plc is funding on-going exploration and earning into the Project as part of a US$15 million deal."