Sarama Resources Ltd (TSXV:SWA) signed a non-binding memorandum of understanding to acquire 80% stake in the Cosmo Newbery Project in Eastern Goldfields of Western Australia from Cosmo Gold Limited for AUD 0.65 million on June 17, 2024. A cash consideration of AUD 0.1 million will be paid by Sarama Resources Ltd. in two tranches. The consideration consists of 25 million common equity of Sarama Resources Ltd to be issued for assets of the Cosmo Newbery Project in Eastern Goldfields of Western Australia. As part of consideration, AUD 0.1 million is paid towards assets of the Cosmo Newbery Project in Eastern Goldfields of Western Australia.

The transaction is subject to approval by regulatory board / committee, approval of merger agreement by target board, approval of offer by target shareholders and consummation of due diligence investigation.