Sarama Resources Acquires 100% Interest in the Tankoro Exploration Property in Burkina Faso
TSX-V Ticker: SWA
VANCOUVER, April 11, 2013 /PRNewswire/ - Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to announce that it has acquired a 100% interest in the Tankoro exploration property ("Tankoro" or the "Property") at its South Houndé Project in Burkina Faso (refer Figure 1).
The Company entered into an agreement in respect of the exploration rights to the Property in January 2011, giving it the right to acquire a 100% interest after making instalment payments to the vendor over a period of three years.
Sarama has achieved considerable exploration success on the Property, with drilling returning significant intersections at several prospects over an 11.5km-long strike length, including the discovery of the high-grade MM Prospect which has been delineated over a 1.9km strike length. On this basis, the Company elected to make the final instalment payment early and initiated the transfer process on November 2, 2012.
Pursuant to the agreement with the vendor, the vendor retains the right to a 1.5% net smelter return royalty ("NSR") for any future mineral production from the Property. The Company retains the right to acquire the NSR for US$1,000,000 at any time.
Sarama's 100% interest in exploration rights has been acknowledged by Burkina Faso's Ministry of Mines and Energy which duly issued a transferred exploration permit in the name of the Company on March 23, 2013. The exploration permit contained no additional conditions upon the Company and is valid until December 17, 2014. Pursuant to the Burkina Faso Mining Code, the Company can elect to renew the permit for a further three years from this expiry date.
Sarama's President and CEO, Andrew Dinning, commented:
"We are pleased to have obtained 100% ownership of the Tankoro exploration property. Exploration results to date and Sarama's substantial investment in the area highlight the ongoing importance of this permit to the Company. With a cash balance of around US$11M (unaudited) as at March 31, 2013, we are continuing to actively explore the South Houndé Project and look forward to completing the necessary work to support the release of a maiden mineral resource in Q3 2013."
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
telephone: +61 8 9363 7600
About Sarama Resources Ltd
Sarama Resources Ltd is a Canadian company with a focus on the exploration and development of gold deposits in West Africa. The board of directors and management team, a majority of whom are founders of the Company, are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
The South Houndé Project in south-west Burkina Faso is the Company's flagship property and is currently the focus of an aggressive exploration program to increase the size of its maiden discovery and to test gold-in-soil anomalies located in a 30km-long structural corridor. Recent drilling programs at the South Houndé Project have intersected significant mineralisation in several prospect areas which the Company is actively following up. The Company has built substantial early stage exploration landholdings in prospective and underexplored areas of Burkina Faso (~3,100 km²), Liberia (~2,400 km²) and Mali (~560 km²) and is aggressively exploring across the property portfolio.
Caution Regarding Forward Looking Statements
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's planned exploration programs. Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.
There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company will not be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.
Sarama does not undertake to update any forward-looking information, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Sarama Resources Limited