Sarama Resources (ASX: SRM) Secures Key Acquisition in Western Australia’s Gold-Rich Region

Key Highlights:

- Sarama Resources signs a binding agreement to acquire a majority stake in the Cosmo Newbery Gold Project.

- The project covers 580 km², including a 50 km strike length in a prolific gold-producing region of Western Australia.

- Cosmo Newbery is one of the last effectively unexplored greenstone belts in the region, presenting a significant exploration opportunity.

- Sarama to initially acquire 80% of the project, with an option to increase ownership to 100%.

Sarama Resources (ASX: SRM) is making strategic moves to strengthen its portfolio with the acquisition of the Cosmo Newbery Gold Project in Western Australia. This 580 km² project, located just 85 km northeast of Laverton, is one of the last effectively unexplored greenstone belts in the region—a fact that adds considerable allure to this deal.

CEO and MD Andrew Dinning expressed the company’s excitement, stating, “We are pleased to have reached this milestone in the acquisition of a majority interest in the Cosmo Newbery Gold Project. The Project’s scale, location, and truly underexplored status present a unique exploration opportunity.”

The project encompasses a significant 50 km strike length within a region known for its prolific gold endowment, sitting near the ~7 million-ounce Gruyere Gold Mine. Despite its promising potential, the Cosmo Newbery Belt has seen virtually no modern exploration due to historical land access challenges. With these issues now resolved, Sarama is poised to unlock the project’s value through systematic and modern exploration techniques.

Under the terms of the deal, Sarama will initially acquire an 80% interest in the project, with the potential to increase its stake to 100% within two years. This acquisition not only strengthens Sarama’s position in a gold-rich region but also provides an exciting platform for future growth as the company advances exploration efforts in one of Western Australia’s most promising areas.

As of 2:45 PM, 14th August 2024, Fertoz shares are trading at A $0.022.