The all share deal to acquire the Djarkadougou exploration permit as part of the Bondi project will allow Sarama Resources to further consolidate and explore the prolific Houndé Belt in Burkina Faso, West Africa.
Orezone and Sarama consider Bondi to be a strategic permit within the package of land currently being explored by Sarama – including Sarama’s joint venture with Acacia Mining and Savory Gold. [quote]
Orezone intends to support the efforts of Sarama and others in the area in order to consolidate enough resources and to justify the construction of a central processing facility.
The Houndé Belt has become one of the two most active gold districts in Burkina Faso and Orezone made the first major discovery in the belt in 1997, before the discovery of Mana by Semafo, Yaramoko by Roxgold and Houndé by Endeavour.
Orezone and Sarama anticipate completing all final documentation in the coming weeks and apply for the transfer of the permit.
As per the transaction conditions, Sarama will issue to Orezone:
- 9.6 million shares currently valued at $0.15/share;
- 3 million warrants priced at $0.195 for two years;
- 2 million warrants priced at $0.24 for three years; and
- A US$20/oz royalty on the first 200 000 oz sold out of production from the Bondi permit area.
At the closing of the transaction, Orezone will have an actual beneficial ownership and control of 9.1% of the then issued and outstanding common shares of Sarama, and will be deemed to beneficially own 5,000,000 common shares issuable upon the exercise of the warrants, representing approximately 13.2% of Sarama’s then issued and outstanding common shares on a partially diluted basis.