Sarama Resources Secures A$1.5M Placement to Fund NSW Projects and Arbitration

Funding Boost for NSW Exploration and Legal Battle

Sarama Resources Ltd (ASX:SRR, TSXV:SWA) has secured A$1.5 million in a private placement, aiming to propel its copper-gold exploration projects in New South Wales while maintaining momentum in its substantial arbitration claim against the Government of Burkina Faso. The placement, priced at A$0.035 per CDI, represents a modest discount to recent trading prices and attracted strong support from existing institutional and sophisticated investors.

The capital injection arrives as Sarama advances a US$242 million damages claim through the International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank Group. The arbitration process is on track with key procedural milestones completed, including the scheduling of the merits hearing for February 2027. This legal pursuit is fully funded by a US$4.4 million non-recourse litigation facility, with Boies Schiller Flexner (UK) LLP providing legal representation, a firm noted for its expertise in investor-state arbitration and mining disputes.

Executive Chairman Andrew Dinning emphasised the dual purpose of the raise: "The Placement ensures the Company is funded to advance its NSW exploration projects, while also maintaining sufficient working capital to support ongoing progress of the Company’s arbitration claim against the Government of Burkina Faso." The placement includes participation from Sarama’s board and management, though their involvement remains below thresholds requiring formal shareholder approval under Canadian regulations.

Placement Structure and Shareholder Considerations

The placement will issue up to 42.86 million Chess Depository Interests (CDIs) in two tranches. The first tranche, comprising over 40.5 million CDIs, will be issued under Sarama’s ASX placement capacity, while the second tranche of approximately 2.3 million CDIs awaits shareholder approval at the upcoming annual general meeting, anticipated in late August 2026. The transaction is also subject to TSXV approval, with settlement expected on 25 May 2026 and allotment on 27 May 2026.

A 6% finder’s fee applies to equity procured by intermediaries. Each CDI represents a beneficial interest in one common share, ranking equally with existing CDIs. The placement pricing reflects a 1% discount to the 15-day volume-weighted average price on ASX and a 10.6% discount to the TSXV 15-day VWAP, highlighting a modest cost to investors for immediate capital deployment.

Asset Sale to Riedel Resources and Strategic Focus

In parallel with the placement, Sarama is moving forward with the sale of its Western Australian gold assets to Riedel Resources Ltd, a transaction valued at approximately A$4.6 million in cash and shares. Post-transaction, Sarama is expected to retain an initial ~32% equity stake in Riedel, potentially rising to ~44% subject to performance rights vesting. This strategic divestment allows Sarama to focus on its high-potential copper-gold projects in the Lachlan Fold Belt of New South Wales, while maintaining exposure to gold exploration through its stake in Riedel.

The sale complements Riedel’s recent expansion in Western Australia and Arizona, positioning it as a well-funded multi-jurisdictional explorer with significant growth potential. Sarama’s decision to streamline its portfolio aligns with its broader strategy to concentrate resources on its core projects and legal claim, a move that follows its earlier capital raises and exploration efforts documented in its Australian gold projects advancement and Western Australia acquisition and capital raise updates.