Sarama Resources Acquires 100% Interest In The Tankoro Exploration Property In Burkina Faso
TSX-V Ticker: SWA SWA.WT
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:
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