Burkina Faso Permit Dispute Puts Sarama’s Sanutura Project and Finances at Risk

Exploration Momentum in Australia

Sarama Resources Ltd. has made significant strides in expanding its footprint in Western Australia's prolific gold districts. The company acquired a majority interest in the Cosmo Gold Project in December 2024, covering 580 square kilometres of the underexplored Cosmo Newbery Belt. This area, historically known for gold discoveries dating back to the 1890s, has seen little modern exploration due to longstanding land access issues. With these now resolved, Sarama completed a large-scale soil geochemistry survey in Q1 2025, sampling approximately 5,000 sites to identify promising drill targets.

Further bolstering its Australian portfolio, Sarama entered a binding agreement in February 2025 to acquire an 80% interest in the Mt Venn Gold Project, a 420 square kilometre belt-scale project adjacent to Cosmo. The Mt Venn acquisition awaits shareholder approval at the June 2025 AGM. The project benefits from a strong historical exploration database and proximity to major gold mines, positioning Sarama to leverage synergies between the two projects for systematic exploration.

Legal Dispute Casts Shadow Over Burkina Faso Operations

While advancing in Australia, Sarama faces a significant setback in Burkina Faso. The government unlawfully withdrew the company’s Tankoro 2 Exploration Permit in August 2023, which hosted a key component of the Sanutura Project’s mineral resource base. This action halted development studies and forced Sarama to initiate international arbitration proceedings under the Canada-Burkina Faso Bilateral Investment Treaty. Supported by litigation funding, Sarama seeks compensation of no less than US$120 million for the expropriation and associated damages.

The arbitration process formally commenced in December 2024 with the submission of a Request for Arbitration to ICSID, the World Bank’s dispute resolution arm. Sarama has engaged Boies Schiller Flexner LLP, a leading international law firm experienced in mining disputes, to pursue its claim. The company remains committed to protecting shareholder value and recovering losses through this legal avenue.

Financial Performance and Corporate Developments

For the quarter ended March 31, 2025, Sarama reported a net loss of $673,644, up from $393,408 in the same period last year. The increase reflects higher exploration expenditures, primarily at the Cosmo Project, and elevated legal and advisory fees related to the Mt Venn acquisition and arbitration efforts. Salaries decreased due to the CFO transitioning to a part-time consultancy role, partially offsetting costs.

The company’s cash position stood at $463,420 as of March 31, 2025, with a working capital deficit of $625,901. Executive management agreed to defer salary payments to preserve liquidity amid ongoing uncertainties. Sarama completed a $2 million equity placement in late 2024 and early 2025, issuing shares and options to strengthen its treasury.

Board changes included the appointment of Michael Bohm as a Non-Executive Director, bringing extensive mining industry experience. Post-quarter, Sarama granted stock options and equity incentives to directors, employees, and consultants, subject to shareholder approval at the upcoming AGM.

Outlook and Strategic Focus

Looking ahead, Sarama plans to continue interpreting exploration data from the Cosmo Project and, pending approval, will accelerate systematic drilling programs at Mt Venn. In Burkina Faso, the company will pursue its arbitration claim vigorously while seeking to optimise remaining assets, including its interest in the Karankasso Project joint venture. However, the lack of operator activity at Karankasso and ongoing geopolitical risks in the region remain challenges.

Sarama’s dual focus on advancing promising Australian gold projects and resolving its Burkina Faso dispute underscores a pivotal phase for the company. Success in either arena could significantly influence its trajectory and shareholder value.