How Will Sarama’s A$2.7M Raise Accelerate Gold Exploration in Australia?

• A$2.7 million capital raising supports maiden drilling at Cosmo Gold Project
• Completion of Mt Venn Project acquisition expands Australian footprint to ~1,000km²
• Eight priority gold targets identified from extensive soil sampling at Cosmo
• Arbitral tribunal constituted for dispute over Burkina Faso Tankoro 2 permit
• Q2 net loss of $544k reflects increased exploration and legal expenditures

Capital Raising and Exploration Momentum

Sarama Resources Ltd. has successfully raised A$2.7 million through an equity placement to fund exploration activities at its Australian gold projects. The funds will primarily support infill soil geochemistry and the company’s maiden drilling campaign at the Cosmo Gold Project, located in the Eastern Goldfields of Western Australia. This capital injection underscores Sarama’s commitment to unlocking value from one of the last relatively unexplored greenstone belts in the region.

The Cosmo Project, acquired in late 2024, spans approximately 580 square kilometres and has seen significant progress with the completion of a large-scale soil geochemistry survey. Over 5,000 soil samples were collected, leading to the identification of eight priority gold targets. Preparations for infill sampling and reconnaissance drilling are underway, including engagement with heritage consultants and submission of necessary survey applications.

Expanding Presence with Mt Venn Acquisition

In July 2025, Sarama completed the acquisition of an 80% interest in the Mt Venn Gold Project, adding a further 420 square kilometres to its Australian portfolio. This acquisition consolidates Sarama’s landholding in the Laverton region to approximately 1,000 square kilometres across two underexplored greenstone belts. The Mt Venn Project, located near the Gruyere Gold Mine, offers promising gold and base metal targets, with historical data review now underway to guide systematic exploration.

Ongoing Arbitration Over Burkina Faso Permit

While advancing its Australian assets, Sarama continues to pursue legal recourse following the Government of Burkina Faso’s unlawful withdrawal of its Tankoro 2 Exploration Permit, a core component of the Sanutura Project. The company filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) in December 2024, seeking compensation exceeding US$120 million. The arbitral tribunal was constituted in June 2025, and the first procedural hearing occurred in July to establish the case timetable. Sarama has secured non-recourse litigation funding and engaged experienced international counsel to support its claim.

Financial Performance and Outlook

For the quarter ended June 30, 2025, Sarama reported a net loss of $544,255, reflecting increased exploration expenditure primarily related to the Cosmo Project and higher legal and advisory costs associated with corporate activities and arbitration proceedings. The company’s working capital deficit widened to over $1.1 million, partly due to accrued executive salaries and leave entitlements, with management agreeing to contract variations to mitigate immediate cash outflows.

Looking ahead, Sarama plans to commence reconnaissance drilling at Cosmo once heritage and environmental approvals are secured, while systematic exploration at Mt Venn will ramp up following the acquisition. Concurrently, the arbitration process in Burkina Faso is progressing, with key submissions due later in 2025. Sarama’s dual focus on advancing promising Australian projects and pursuing compensation for its African asset loss reflects a strategic balancing act amid geopolitical and operational challenges.

Bottom Line?

Sarama’s next moves in Australian drilling and Burkina Faso arbitration will be pivotal for its growth trajectory and investor confidence.

Questions in the middle?

• When will Sarama release results from its maiden drilling campaign at the Cosmo Gold Project?
• How might the arbitration outcome in Burkina Faso impact Sarama’s financial position and strategic plans?
• What are the prospects for shareholder approval of the tranche 2 placement and associated options?