Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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.
