Sarama Signs MOU Over West Australian Gold Project

Sarama Resources Ltd. (ASX:SRR)(TSX-V:SWA) has signed a non-binding Memorandum of Understanding (MOU) with Cosmo Gold Limited and Adelong Gold Limited to acquire rights to the Cosmo Newbery Project. The Project is located in the Eastern Goldfields of Western Australia, a historically prospective region.

The acquisition depends on due diligence, a definitive agreement, and shareholder and stock exchange approvals. Sarama intends to acquire the interest through share and cash payments and tenement expenditure. Key terms include the issuance of 25 million Sarama shares, 7.5 million options, a payment of A$100,000, and covering tenement expenditure over two years.

The Cosmo Newbery Project encompasses 7 early-stage gold exploration properties over 583km². It is located 85km northeast of Laverton, near the 7Moz Gruyere Gold Mine. The area has seen minimal modern exploration, restricted by land access impediments which have now been resolved with Agreements in place.

Sarama's Managing Director, Andrew Dinning, called the Project a unique exploration opportunity, citing its favorable geological setting and historic gold showings.