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Sarama Resources has entered into a binding agreement for the sale of its non-core Kandiole Sud Exploration Property, West Mali to Oklo Resources for consideration comprising cash and shares in Oklo for a total value of A$1 million.

Upon completion, the transaction will rationalise Sarama Resources’ exploration portfolio and allow the company to focus on its advanced exploration assets located in the Houndé and Banfora Belts in south-western Burkina Faso.

The sale provides Sarama Resources with funds to augment its recent C$4 million capital raise and provides opportunity for further value accretion for the company via exposure to Oklo’s nearby exploration projects.

“The divestment of Kandiole Sud property to Oklo Resources is a great outcome for both companies,” comments Sarama Resources president and CEO, Andrew Dinning.

“While the property is well-located in West Mali and has untested exploration potential, Sarama Resources’ primary focus is Burkina Faso and the completion of this transaction allows us to direct our resources and capital toward our promising ThreeBee and
Koumandara projects.

“Oklo has established a strong presence in the West Mali region and is well-funded and positioned to undertake the exploration programs that the property warrants.

“Sarama Resources looks forward to the evolution of this exploration story where
it may derive further value through its interest in Oklo,” he continues.

Terms of transaction

The transaction is agreed on the basis that Sarama’s Malian subsidiary (Sarama Mali) has earned a 100% ownership interest in the Property and agrees to sell such interest to Oklo (or its nominee).

Completion of the transaction will occur on the date that is two business days after the later of date on which the binding agreement has been executed by both Sarama Mali and Oklo or the date on which all of the conditions precedent have been satisfied.