Sarama Resources (SWA.V) has announced it plans to raise C$3M at C$0.15/unit to fund further drilling at its African projects. Each unit will consist of one common share and ½ warrant with each full warrant allowing an investor to purchase an additional share at C$0.20 within two years.
We aren’t surprised by this capital raise, as Sarama spent a lot of money on its properties in the past six months. We hope the company will mainly use the proceeds at South Houndé, as we’re not convinced it makes sense to advance four properties at the same time when the market isn’t rewarding any company doing so.
> Click here to read the press release
Disclosure: The author holds no position in Sarama Resources. Please see our disclaimer for current positions.
