Sarama Resources Nears Completion of Cosmo Gold Project Acquisition
SARAMA RESOURCES LTD (SRR) Share Update September 2024 Tuesday 24th
Sarama Resources Advances Cosmo Gold Project Acquisition
Sarama Resources Ltd. (ASX:SRR, TSX-V:SWA) is making significant strides in acquiring a majority interest in the Cosmo Gold Project, a move that promises to bolster their exploration efforts in Western Australia.
Instant Summary:
- Sarama acquiring a majority interest in the Cosmo Gold Project.
- Majority of key closing conditions satisfied.
- Completion of the transaction anticipated in late October 2024.
- Initial 80% interest acquisition with potential to increase to 100%.
- 580km² landholding in a highly prospective gold-producing region.
- Soil geochemistry program to commence imminently.
Acquisition Details
Sarama Resources Ltd. is pleased to announce that it is nearing the completion of its acquisition of a majority interest in the Cosmo Gold Project, located in Western Australia. The project spans 580km² and covers the entirety of the Cosmo-Newbery Greenstone Belt, a region known for its prolific gold endowment.
The acquisition has received strong support from shareholders and has obtained the necessary approvals from securities exchanges in both Australia and Canada. The transaction is expected to be finalized by late October 2024.
Project Overview
The Cosmo Gold Project is located approximately 85km north-east of Laverton and 95km west of the world-class Gruyere Gold Mine. The project area is one of the last effectively unexplored greenstone belts in Western Australia, presenting a unique opportunity for extensive exploration.
Despite its significant prospectivity, the project has seen virtually no modern exploration due to historical land access issues. With these issues now resolved, Sarama is poised to conduct systematic and modern-day exploration programs.
Exploration Plans
Sarama plans to commence a soil geochemistry program to generate regional targets in unexplored areas. The initial exploration efforts will follow up on preliminary targets identified through regional soil sampling and limited reconnaissance drilling programs.
The project is not only prospective for gold but also for other commodities such as nickel and rare earth elements. Initial soil anomalism at a kilometre-scale has already been identified, indicating the potential for significant discoveries.
Transaction Progress
The acquisition is being executed through a binding Asset Sale and Purchase Agreement with Cosmo Gold Limited and Adelong Gold Limited. Sarama will acquire 80% of Cosmo's interest in the project and has the right to acquire the remaining 20% within two years post-completion.
Regulatory approvals have been secured from the Australian Securities Exchange and conditional approval from the TSX Venture Exchange. The transaction has also received overwhelming support from Sarama's shareholders.
The acquisition of the Cosmo Gold Project is expected to significantly enhance Sarama's exploration portfolio, potentially leading to substantial gold discoveries. This could positively impact the company's stock price as investors anticipate future exploration successes. The project's location in a highly prospective region further adds to its attractiveness.
Investor Reaction:
Analysts are likely to view this acquisition positively, given the project's potential for significant gold discoveries. The strong shareholder support and regulatory approvals also indicate confidence in Sarama's strategic direction.
Conclusion:
Investors should keep an eye on Sarama Resources as they finalize the acquisition of the Cosmo Gold Project and commence exploration activities. The project's potential for substantial gold discoveries makes it an exciting opportunity for investors.