Sarama Resources Ltd. has announced that Aureus Mining has agreed to an amendment to terms of a previously announced acquisition of three exploration properties.
The properties are held by Sarama Resources Ltd.
In a statement released recently, Aureus said it originally agreed to acquire the exploration properties for a total consideration of 2,600,000 Aureus common shares.
To reflect the increased share capital and current share price of the company, the statement said, Aureus has agreed to increase the consideration of common shares by 4,045,070 to a total consideration of 6,645,070 Aureus common shares.
The statement added that all other terms remain unchanged, including the agreed purchase by Sarama of an uncapped 1% net smelter return royalty on gold produced from the Cape Mount property from the previous owner.
“Closing of the transaction with Aureus is subject to the satisfaction of usual conditions model, including receipt of all governmental and regulatory approvals, including the approval of the Toronto Stock Exchange and TSX Venture Exchange,” the statement noted.
The shares issued to Sarama would be subject to the statutory four months hold period from the date of issue.
“The divestment of our Liberian assets allows us to focus our resources on Burkina Faso and leverage our well established position there,” a Sarama official said.
“This deal provides potential upside value to the Company and with permits being adjacent the New Liberty mine, has scope to provide a royalty stream earlier than if we had continued to progress the assets within Sarama,” he added.
“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 1,2 on our South Houndé Project and where Acacia is funding ongoing exploration and earning into the Project as part of a US$15 million deal agreed in late 2014.”
The statement indicated that, Sarama’s flagship properties are situated within the Company’s South Houndé Project area in southwest Burkina Faso.
Sarama Resources Ltd is a West African focused gold explorer with substantial landholdings in Burkina Faso.
Located within the prolific Houndé greenstone belt, Sarama’s exploration programs have built on significant early successes to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1,2. Acacia Mining PLC is earning up to a 70% interest in the South Houndé Project by satisfying certain conditions, including funding earn-in expenditures of up to US$14 million over a 4-year earn-in period, and may acquire an additional 5% interest for an aggregate 75% interest in the Project upon declaration of a minimum mineral reserve of 1.6 million ounces of gold.
Sarama is focused on consolidating underexplored landholdings in Burkina Faso and other established mining jurisdictions.
Sarama holds a 35% 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 Savary Gold Corp, who is the operator of the JV.
In October 2015, Savary declared a maiden Inferred Mineral Resource estimate of 671,000 ounces of contained gold at the Karankasso Project JV.
Incorporated in 2010, 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 strong financial position and a sound exploration strategy across its property portfolio.