Sarama Completes Tranche 2 Equity Placement And ASX Cleansing Notice
Sarama raises A$1.5m to fund its $242m Burkina Faso arbitration and New South Wales exploration program.
Sarama Resources Ltd. has completed Tranche 2 of its previously announced A$1.5 million equity placement. The company raised gross proceeds of A$81,750 through the issuance of 2,335,715 Chess Depository Instruments (CDIs) at a price of A$0.035 per CDI. Subscribers for this tranche included company directors Andrew Dinning, Simon Jackson, and Michael Bohm, with the transaction proceeding following shareholder approval at the October 21, 2026 annual general meeting.
The combined Tranche 1 and Tranche 2 placement raised a total of A$1.5 million, resulting in the issuance of 42,857,142 CDIs. Sarama Resources designated the proceeds for exploration projects, general working capital, and specifically to fund a US$242 million damages claim against the Government of Burkina Faso. CDIs issued to the directors are subject to a four-month hold period, and approval from the TSXV remains pending.
The transaction is classified as a related party transaction under Canadian National Instrument 61-101. It is exempt from formal valuation and minority shareholder approval requirements because director participation is below 25% of the company’s market capitalization.
Sarama Resources Ltd. (SWA) has completed Tranche 2 of its financing, an expected follow-up to the placement announcement made in May 2026. The transaction provides incremental liquidity and extends the company's operational runway by a few months, though it does not introduce new strategic shifts or unexpected catalysts.
The financing adds approximately 4.6% to the share count, resulting in ~42.8M new shares on top of the ~503.6M outstanding. This cash infusion directly supports the timeline for the company's arbitration claim, reducing the immediate risk of halting legal proceedings due to cash constraints. As the market had already priced in this financing step, the stock reaction is likely to be muted, with the news serving as routine and incremental rather than altering the fundamental risk/reward profile.
Sarama Resources Ltd. (SWA) is shifting its operational focus from traditional asset development to a litigation-driven strategy. The company’s primary focus is a US$242 million ICSID arbitration claim against the Government of Burkina Faso, alleging the unlawful expropriation of the Tankoro 2 Exploration Permit, which hosted the Sanutura gold project.
The written memorial for the claim was filed in October 2025, with the merits hearing scheduled for February 22-26, 2027, in Washington, D.C. The claim is supported by an independent valuation from Accuracy London and legal representation from Boies Schiller Flexner.
In July 2026, Sarama sold its Western Australian Cosmo and Mt Venn gold projects to Riedel Resources. The company retained a ~32% equity stake in the transaction, which has the potential to rise to ~44%, aiming to minimize shareholder dilution while maintaining upside exposure. Additionally, Sarama has secured three new copper-gold exploration tenements in New South Wales—Bald Hill, Bong Bong Creek, and Gegedzerick Copper Lode—targeting the Lachlan Fold Belt.