Sarama Resources Ltd. Provides Update on Capital Raising and ASX Listing Rules Compliance

Sarama Resources Ltd. Faces Listing Rule Breach in Capital Raising Efforts

In a recent announcement, Sarama Resources Ltd. disclosed a breach of Listing Rule 7.1A in connection with its capital raising activities. The company had agreed to issue a portion of the Tranche 1 CDIs in breach of the listing rule, as its mandate approval had lapsed by 13 days at the time of issuance.

The inadvertent breach was attributed to the company’s practice of holding its annual general meeting in accordance with Canadian law requirements, rather than the customary 12 months in Australia. Sarama emphasized that the oversight was an honest mistake and confirmed that it does not affect the terms of the CDIs issued under Listing Rule 7.1A or the overall Placement.

As a consequence of the breach, Sarama is precluded from issuing any new securities under Listing Rules 7.1 and 7.1A until February 2, 2025, unless an exception in Listing Rule 7.2 (Placement Holiday) applies. The company intends to seek shareholder approval for additional placement capacity at its upcoming 2024 annual general meeting, but will be unable to seek ratification for the Tranche 1 CDIs issued under Listing Rules 7.1 and 7.1A.

Sarama is committed to ensuring future compliance with Listing Rules 7.1 and 7.1A and has taken remedial action to prevent similar breaches in the future. The company will conduct regular assessments of its placement capacity to mitigate further rule violations.

For further information, interested parties can contact Andrew Dinning at Sarama Resources Ltd. via email at [email protected] or by phone at +61 8 9363 7600.

This announcement was authorized by the Board of Sarama Resources Ltd. Stay tuned for updates on the company’s efforts to address the listing rule breach and enhance its corporate governance policies.