Sarama consolidates in Burkina

PERTH-based, Toronto-listed Sarama Resources is looking at regional development potential after executing its definitive agreement with London-listed Acacia Mining to regain full control of the South Houndé project in Burkina Faso.
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Core logging at South Houndé in Burkina Faso

Staff reporter

Barrick Gold-controlled Acacia agreed to terminate its earn-in in November, for US$2 million in staged payments, a further $2 million on commercial production, 5 million warrants and an NSR of 1-2%, describing the project as "non-core".

South Houndé has an inferred 2.1 million ounce gold resource and is contiguous to Sarama's 100%-owned ThreeBee project, which has an historic resource of about 400,000oz.

Sarama also holds a 25% stake in the neighbouring Karankasso joint venture with Semafo.

"Acacia's exit is fundamental to consolidating our regional position and allows us to finally start advancing our key assets up the value curve and towards mine development," president and CEO Andrew Dinning said.

"Sarama looks forward to re-commencing management of the project and will initially focus on resource development work which includes drilling attractive near-field and extensional oxide and free-milling targets, whilst framing-up potential development options for the project."

Repayments to buy back South Houndé are being funded by a C$5.86 million private placement at 8.5c per share that closed in April, with ASX-listed mid-tier gold producer Silver Lake Resources taking an 11.78% stake to become a cornerstone investor.

Sarama shares closed down 13.6% or 1.5c yesterday to 9.5c to capitalise it at $23.8 million.