Sarama Resources Ltd. ('Sarama' or the 'Company') (TSXV:SWA.VN) is pleased to announce the satisfaction of all conditions precedent in relation to the binding agreement (the 'Agreement') for the sale of its non-core Kandiole Sud Exploration Property, West Mali (the 'Property') to Oklo Resources Limited ('Oklo', ASX:OKU).
Pursuant to the Agreement, Sarama has received a cash payment of A$200,000 and shares in Oklo of value A$500,000 (calculated using a fixed Oklo share price of A$0.379/share), representing the Tranche 1 and Tranche 2 Consideration payments respectively.
Sarama is further entitled to a Tranche 3 Consideration payment in Oklo shares of value A$300,000 (calculated using a fixed Oklo share price of A$0.379/share) upon Oklo, or its nominee, being registered by the Mali Ministry of Mines as the 100% owner of the Property.
Sarama's President and CEO, Andrew Dinning, commented: 'We are pleased to have completed the transaction with Oklo and look forward to accreting potential further value from Sarama's indirect exposure to Oklo's exploration projects.
Sarama's focus is now firmly on advancing its ThreeBee and Koumandara Projects in Burkina Faso, both of which have untested exploration potential.'
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ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSXV:SWA.VN) is a West African focused gold explorer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and other established mining jurisdictions.
Sarama's flagship properties are situated within the Company's South Hounde Project area in south-west Burkina Faso. Located within the prolific Hounde Greenstone Belt, Sarama's exploration programs have built on significant early success to deliver an inferred mineral resource estimate of 2.1Moz gold(2). Acacia Mining plc is earning up to a 70% interest in the South Hounde 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. Acacia has satisfied certain milestones and currently holds a 50% interest in the South Hounde Project and is continuing to sole fund exploration activities.
Sarama holds a 30% participating interest in the Karankasso Project Joint Venture ('JV') which is situated adjacent to the Company's South Hounde Project in Burkina Faso and is a JV between Sarama and Savary Gold Corp. ('Savary'). Savary is the operator of the JV and in October 2015, declared a maiden inferred mineral resource estimate of 671,000 ounces of contained gold(3) at the Karankasso Project JV.
Sarama has also acquired a 100% interest in the Bondi Deposit from Orezone Gold Corporation (refer news release May 24, 2016). Bondi has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated) and 0.1Moz Au (inferred)(1).
Together, the South Hounde Project, Bondi Deposit and the Karankasso Project form a cluster of advanced gold deposits, within trucking distance of one another, which potentially offers a development option for a multi-source fed central processing facility in the southern Hounde Belt region of Burkina Faso.
Sarama had recently established a new 600km2 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.
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 sound exploration strategy across its property portfolio.
Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz 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.
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.
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.
The historical estimate was informed by 886 drillholes, assayed 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 drillholes were used to determine weathering boundaries and bulk densities for modelled blocks.
The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101.
No more recent estimates of the mineral resource or other data are available.
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.
South Hounde 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). The effective date of the Company's inferred mineral resource 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 Hounde 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 considered to be independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com.
For further information regarding the drilling on the Bamako and Bouni Properties, please refer to the technical report titled 'NI 43-101 Independent Technical Report South Hounde 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 considered 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 potential for the Company to receive the Tranche 3 Consideration payment in respect of the Kandiole Sud sale, the value of the share-based consideration received by Sarama over time, the potential for further value creation through exposure to Oklo's shares, plans for exploration at the ThreeBee and Koumandara Projects, drilling and geochemical and geophysical surveys at the South Hounde Project, the Earn-In Agreement with Acacia, including the amounts that may be spent on exploration and interests in the South Hounde Project that may be earned by Acacia upon making certain expenditures and estimating a minimum reserve, the potential to expand the present oxide component of the Company's existing estimated mineral resources, and future exploration plans.
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 exploration; 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, Acacia's continued funding of exploration activities, 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.