Sarama Resources Announces AU$2 million Capital Raise with Equity Incentives

Highlights:

• Sarama Resources Ltd. (ASX: SRR) has raised AU$2 million through an equity placement, issuing 66.67 million CDIs at A$0.03 per share.
• The placement is structured in two tranches, with Tranche 1 expected to close by November 27, 2024, and Tranche 2 subject to shareholder approval in January 2025.
• Executives and directors will settle deferred salaries and fees through equity, with one free unlisted option issued for every four CDIs, exercisable at A$0.09 until November 2028.

Capital Raise Overview

Sarama Resources Ltd. (ASX: SRR) has secured binding commitments for a AU$2 million equity placement aimed at advancing exploration activities, supporting general administration, and ensuring sufficient working capital. At the time of writing, the placement includes issuing up to 66,666,666 Chess Depository Interests (CDIs) at $0.03 per CDI, representing a discount of approximately 15% to the company's 10-day volume-weighted average price (VWAP) on the ASX.

Structure of the Placement
The equity placement will occur in two tranches:

• Tranche 1: Involves issuing 66,666,666 new CDIs, expected to be allotted by November 27, 2024.
• Tranche 2: Includes issuing up to 16,666,666 placement options and 14,000,000 broker options, contingent on shareholder approval at a special meeting anticipated in January 2025.

Equity Incentives and Management Involvement

As part of the offering, Sarama will issue one free unlisted option for every four CDIs subscribed. These options will have an exercise price of $0.09, expiring in November 2028. Sarama’s board members and executives have opted to settle deferred salaries and director fees through equity, aligning their interests with the company's growth.

Advisory and Market Impacts

Ventnor Securities Pty Ltd and RM Capital are leading the capital raise and will receive broker options and a 6% capital-raising fee. This capital initiative is expected to strengthen Sarama's financial position and facilitate its strategic objectives amid ongoing exploration challenges.

By focusing on sustainable funding, Sarama Resources positions itself for future growth while enhancing shareholder value through structured incentives.

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