Strategic Acquisition Announcement

Sarama Resources Limited (ASX:SRR) has acquired an 80% interest in the Cosmo Project from Adelong Gold Limited. This strategic transaction involves the exchange for 25 million shares and 7.5 million options in Sarama, valued at approximately $675,000. This move aligns with Sarama's growth strategy in the gold sector.

Transaction Summary and Future Outlook

Sarama Resources Limited has successfully acquired an 80% interest in the Cosmo Project from Adelong Gold Limited. The transaction includes the provision of 25 million Sarama shares and 7.5 million options to Adelong Gold. This acquisition is expected to enhance Sarama's asset portfolio, providing significant growth opportunities in the gold sector. As part of the agreement, Sarama also holds an option to acquire the remaining 20% interest in the Cosmo Project within two years for $1.25 million in cash or shares. This strategic move not only settles existing financial obligations but also positions Sarama for expanded exploration and development initiatives. Adelong Gold, in turn, aims to leverage this transaction to further its projects, particularly in the Adelong Goldfield Project in Australia and lithium exploration in Brazil. The company is focused on unlocking value for shareholders through strategic transactions and exploration efforts.

Executive Commentary on Strategic Transaction

This transaction is a pivotal moment, strengthening the balance sheet and positioning for growth through Sarama's gold assets.