Sarama Resources Posts $1.9M Loss, Raises A$2.7M, Files $242M Arbitration Claim

Financial Performance and Capital Raising

Sarama Resources Ltd, an exploration-stage mining company focused on mineral properties in Burkina Faso and Australia, released its unaudited interim financial statements for the three and nine months ended September 30, 2025. The company reported a net loss of approximately USD 1.92 million for the nine-month period, widening from a USD 1.14 million loss in the same period last year. Despite the loss, Sarama maintained a cash balance of USD 1.26 million at the end of September, supported by a significant equity raise.

During the period, Sarama completed several capital raising initiatives, including a notable A$2.7 million placement in July 2025. This placement was executed in multiple tranches, with the final tranche completed in October 2025, raising additional funds through the issuance of shares and attaching options exercisable at A$0.09. These efforts reflect the company’s ongoing need to secure funding to support its exploration activities and corporate overheads.

Exploration Focus and Operational Context

The company’s primary exploration activities remain concentrated in Burkina Faso, with additional interests in Western Australia. Sarama’s projects, including the Karankasso and Cosmo Gold projects, are still in the exploration stage without proven mineral reserves. Exploration expenditures continue to be expensed as incurred, consistent with industry practice for early-stage explorers. The company’s financial statements highlight the challenges of generating revenue at this stage, with losses driven by exploration costs, administrative expenses, and stock-based compensation.

Legal and Regulatory Challenges

A significant development disclosed in the filing is Sarama’s arbitration proceedings against the Government of Burkina Faso. The company filed a claim seeking US$242 million plus interest, alleging unlawful expropriation of a mining permit. This dispute is being pursued through the International Centre for Settlement of Investment Disputes (ICSID), with legal support from Boies Schiller Flexner LLP and litigation funding secured from Hamilton Locke Capital LLC. The arbitration represents a material event for Sarama, with potential implications for the company’s asset base and future operations in Burkina Faso.

Additionally, Sarama disclosed ongoing tax disputes with Burkina Faso authorities arising from tri-annual audits. While the company is engaged in a review process, the outcome remains uncertain and could pose further financial liabilities. These legal and regulatory issues underscore the geopolitical risks inherent in mining investments in West Africa.

Going Concern and Outlook

Management has flagged going concern uncertainties, noting that continued operations depend on successful capital raising or alternative financing within the next twelve months. The company is actively pursuing funding options to support its exploration programs and administrative costs. The timing and quantum of future financing remain uncertain, which introduces risk to Sarama’s ability to sustain its activities without dilution or restructuring.

Investors should monitor developments in the arbitration case, the resolution of tax disputes, and the company’s ability to secure additional capital. The outcome of these factors will be critical in shaping Sarama’s financial health and strategic direction in the coming quarters.