Tranche 1 of the Placement raised aggregate gross proceeds of A$900,000 with the Company issuing 45,000,000 Chess Depository Instruments (“CDIs”) at an issue price of A$0.02 per CDI. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in one common share of the Company. Tranche 2 of the Placement will consist of the remaining 5,000,000 CDIs. The issuance of the CDIs pursuant to tranche 2 will be subject to shareholder approval at a general meeting expected to be held in September 2024. Total funds received from Tranche 2 are expected to be A$100,000.
The Placement was issued to institutional and other sophisticated and professional investors under its existing placement capacity under ASX Listing Rule 7.1 and 7.1A.
Members of Sarama’s Board and Management have not subscribed for any CDIs in the Placement. Tranche 2 of the Placement is anticipated to occur shortly following the receipt of the necessary shareholder approvals at the general meeting to be held in September 2024.
Funds raised from the Private Placement will be used to assess and pursue a potential acquisition, undertake exploration on the Company’s properties and for general working capital purposes. None of the proceeds from the Placement will be used for payments to non-arm’s length parties or persons conducting investor relations activities.
Finders’ fees of A$54,000 were paid in connection with the tranche 1 closing of the Placement.
The Placement remains subject to the final approval of the TSX Venture Exchange (“TSXV”). The CDIs issued under tranche 1 of the Placement were not subject to any TSXV hold periods as all subscribers under tranche 1 of the Placement were located outside of Canada.
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