Sarama Reports $697K Q3 Loss Amid Australian Exploration and Burkina Faso Claim
Sarama Resources has raised A$2.7 million to fund exploration at its Australian gold projects while progressing a significant arbitration claim against Burkina Faso for expropriation of its African permit.
- A$2.7 million capital raising completed to fund Cosmo and Mt Venn exploration
- Cosmo Project soil geochemistry defines 45km strike and eight priority targets
- Mt Venn acquisition finalized with historical data review underway
- US$242 million arbitration claim filed against Burkina Faso over permit expropriation
- Q3 FY25 net loss of $697,565 with increased Australian exploration expenditure
Capital Raising Fuels Australian Exploration Push
Sarama Resources Ltd. has successfully completed a A$2.7 million equity placement aimed at advancing exploration activities at its two key Australian gold projects, Cosmo and Mt Venn, located in Western Australia's Eastern Goldfields. The funds will primarily support infill soil geochemistry and the company's maiden drilling campaign at the Cosmo Gold Project, marking a significant step in unlocking the potential of one of the region's last relatively unexplored greenstone belts.
Cosmo Gold Project, Unlocking a Hidden Gold Belt
Since acquiring the Cosmo Project in December 2024, Sarama has made notable progress with a large-scale soil geochemistry survey outlining a 45-kilometre strike length and identifying eight priority target areas. This systematic exploration effort is the first of its kind on the project, which historically suffered from land access constraints that limited modern exploration techniques. With heritage clearances pending, Sarama is poised to commence reconnaissance drilling, aiming to validate and expand upon these promising geochemical anomalies.
Mt Venn Acquisition Completes Strategic District-Scale Footprint
In July 2025, Sarama completed the acquisition of an 80% interest in the Mt Venn Gold Project, adding approximately 420 square kilometres to its portfolio. The project, situated near the Gruyere Gold Mine, is underexplored but shows potential for gold and base metals. Sarama is currently compiling and reviewing historical data to identify high-priority drill targets, with plans for systematic exploration including geochemistry and geophysical surveys.
Arbitration Proceedings Against Burkina Faso Advance
Separately, Sarama is engaged in international arbitration proceedings following the Government of Burkina Faso's unlawful expropriation of its Tankoro 2 Exploration Permit, a core asset within the Sanutura Project in West Africa. The company filed a detailed Memorial with the International Centre for Settlement of Investment Disputes (ICSID) seeking US$242 million in damages. The arbitration tribunal has been constituted, and the Government of Burkina Faso’s Counter-Memorial is due in early 2026. Sarama has secured non-recourse litigation funding and retained experienced legal counsel to pursue full compensation.
Financial Performance Reflects Strategic Transition
For the quarter ended September 30, 2025, Sarama reported a net loss of $697,565, widening from $379,500 in the prior year period. Exploration expenditure increased, driven by activities in Australia, while legal and corporate costs rose due to the arbitration and acquisition processes. The company holds a working capital deficit but continues to manage its finances prudently as it advances its exploration and legal strategies.
Looking Ahead
Sarama’s focus remains on progressing its Australian gold projects through systematic exploration and drilling, while simultaneously pursuing its arbitration claim to recover value lost in Burkina Faso. The coming months will be critical as drilling results emerge and the arbitration process unfolds, potentially reshaping the company’s asset base and shareholder value proposition.
Bottom Line?
Sarama’s dual-track approach of advancing Australian exploration while pursuing a major arbitration claim sets the stage for pivotal developments in 2026.
Questions in the middle?
- What initial results will Sarama’s maiden drilling campaign at Cosmo reveal about the gold potential?
- How will the arbitration tribunal rule on Sarama’s US$242 million claim against Burkina Faso?
- What are the prospects for Sarama securing additional funding to sustain its exploration and legal efforts?
