Sarama Resources has offloaded its Cosmo and Mt Venn gold projects to Riedel Resources, securing a substantial equity stake while progressing a US$242 million arbitration claim against Burkina Faso.
- A$1.5m capital raising supports exploration and working capital
- Sale of Cosmo and Mt Venn projects completed with equity and expense reimbursement
- Sarama gains initial ~32% stake in Riedel Resources, up to ~44% with performance rights
- Arbitration against Burkina Faso progressing toward February 2027 hearing
- H1 2026 loss narrows to $836,651 with exploration spend down amid permitting delays
Strategic Sale of Australian Gold Projects
Sarama Resources Ltd (ASX:SRR) has completed the sale of its Cosmo and Mt Venn gold projects in Western Australia to Riedel Resources Ltd, transforming its asset base and shareholder exposure. The transaction, finalised on 21 July 2026, involved Sarama transferring its 100% interest in the projects via a wholly owned subsidiary in exchange for 150 million Riedel shares at A$0.025 each, 100 million performance rights tied to exploration and resource milestones, and reimbursement of up to A$300,000 in project-related expenses.
This deal gives Sarama an initial ~32% equity stake in Riedel, which could rise to ~44% if all performance rights vest and are exercised. Sarama also secured board influence with Executive Chairman Andrew Dinning joining Riedel’s board and key Sarama executives appointed to senior roles, ensuring operational continuity.
Exploration Progress and Permitting Delays
Prior to sale completion, Sarama advanced exploration at both projects. At Cosmo, it secured Aboriginal cultural heritage clearance in June 2026, enabling Riedel to plan and commence reconnaissance drilling targeting anomalies identified in a 2025 soil geochemistry survey. At Mt Venn, a project-scale reinterpretation of historical geophysical data was completed to generate drill targets, with government mining entry permits obtained. However, exploration expenditure fell to $147k in Q2 2026 from $235k a year earlier, reflecting permitting delays and the winding down of Sarama’s direct activities ahead of the sale.
Capital Raising and Financial Position
In May 2026, Sarama raised A$1.4 million through the first tranche of a private placement to fund ongoing exploration and general working capital. A second tranche involving director participation valued at A$81,750 awaits shareholder approval in October 2026. As of 30 June 2026, Sarama held $960,110 in cash and cash equivalents but reported a working capital deficit of $827,687, highlighting ongoing funding needs. The company recorded a net loss of $408,968 for Q2 2026, narrowing from $544,255 in Q2 2025, with a six-month loss of $836,651 compared to $1.22 million in the prior year.
Burkina Faso Arbitration Advances Toward Hearing
Sarama is simultaneously pursuing a US$242 million arbitration claim against the Government of Burkina Faso over the illegal expropriation of its Tankoro 2 Exploration Permit, central to the Sanutura gold development project. The arbitration, administered by the International Centre for Settlement of Investment Disputes (ICSID), has progressed through key procedural steps, including the filing of Sarama’s Memorial and Burkina Faso’s Counter-Memorial. The merits hearing is scheduled for 22–26 February 2027, with the final award date pending. Sarama has secured non-recourse litigation funding of US$4.4 million from Locke Capital II LLC to cover arbitration costs and engaged leading international law firm Boies Schiller Flexner for representation.
Ongoing Exploration and Asset Management
Beyond the Australian projects, Sarama maintains interests in early-stage copper-gold exploration licences in New South Wales and holds a 17% stake in the Karankasso Project joint venture in Burkina Faso. The company continues to evaluate options to realise value from its remaining assets as part of its strategy to mitigate damages from the Burkina Faso permit dispute and preserve shareholder value.
Bottom Line?
Sarama’s pivot to equity exposure in Riedel Resources and progress toward a high-stakes arbitration hearing mark a strategic reshaping, but ongoing funding and permit hurdles underscore operational uncertainties.
Questions in the middle?
- Will Sarama secure shareholder approval for the director CDI tranche to complete its A$1.5 million placement?
- How will Riedel Resources advance drilling at Cosmo and Mt Venn, and what impact will this have on Sarama’s equity value?
- What is the potential timeline and quantum for Sarama’s arbitration settlement or award against Burkina Faso?