MONTREAL, Nov. 28, 2017 (GLOBE NEWSWIRE) -- Sama Resources Inc. (“Sama” or the “Company”) (TSX-V:SME) is pleased to report that SRG Graphite Inc. (“SRG”) (TSXV:SRG) announced today that Coris Capital SA (“Coris”) has filed an early warning report (the “Report”) regarding the exercise of 2,625,000 share purchase warrants at a price of $0.50 per warrant share (the “Warrants”), thereby securing beneficial ownership of, or control and direction over an additional 2,625,000 common shares (the “Transaction”).
“The exercise of these warrants further enhances the treasury of SRG (by over $1,300,000) for the development work required to advance its Lola Graphite Project in the Republic of Guinea, West Africa. Increased funding and activity at the Lola graphite project is material to Sama shareholders due to Sama’s ownership of over 24.6m shares of SRG, so we are pleased to see the confidence Coris has placed in SRG with its early exercise of the warrants. The current market value of the SRG stock position held by Sama is in excess of $31m”, stated Marc-Antoine Audet, President and CEO of Sama.
The Warrants were previously issued by way of private placement at which time Coris acquired the beneficial ownership of, or control and direction over 7,500,000 share units (“Units”) of SRG at a price of $0.40 per Unit, with each Unit consisting of one common share and one/half of one non-transferable share purchase warrant. Each whole warrant entitled the holder to purchase one common share under the terms of a subscription agreement for an aggregate purchase price of $0.40 and each Warrant entitled the Coris to acquire one common share at a purchase price of $0.50 for a period of 24 months following the closing date of the private placement.
The proceeds of the Transaction will be used to build an on-site laboratory to prepare graphite concentrate for potential offtakers. Funds will also be used to extend the current drilling program by an additional 6,000 meters.
Sama holds a control position in SRG of 24,658,267 shares representing 40.3% of the issued and outstanding shares of SRG and is considered an insider for reporting purposes.
FOR FURTHER INFORMATION, PLEASE CONTACT:
SAMA RESOURCES INC./RESSOURCES SAMA INC.
Dr. Marc-Antoine Audet, President and CEO
Tel: (514) 726-4158
OR
Mr. Matt Johnston, Corporate Development Advisor
Tel: (604) 443-3835
Toll Free: 1 (877) 792-6688, Ext. 5
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
Certain of the statements made and information contained herein are "forward-looking statements" or “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties.
In addition, forward-looking statements and forward-looking information are based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.