Sarama Files Memorial in US$242M Damages Claim Against Burkina Faso

On November 3, 2025, Sarama Resources announced that it has filed its Memorial, a comprehensive statement of its case, with the International Centre for Settlement of Investment Disputes (ICSID). This filing is a key step in its arbitration proceedings against the government of Burkina Faso for the unlawful expropriation of the Tankoro 2 Exploration Permit, part of the Sanutura Project. The company is seeking damages amounting to US$242 million. The arbitration is fully funded through a US$4.4 million non-recourse litigation facility.

This news is a positive procedural update on a previously disclosed, long-term catalyst. The filing of the Memorial demonstrates tangible progress in the arbitration case. The most significant new information is the quantification of the damages sought at US$242 million. This is a substantial increase from the A$180 million (approx. US$120 million) initially mentioned in December 2024 and provides a clear, albeit ambitious, target for the potential outcome.

However, the impact is more routine than material at this stage. An arbitration claim is not an award. The process is lengthy, the outcome is highly uncertain, and collection of any potential award from the state of Burkina Faso presents a further, significant challenge. The market likely views this as a "lottery ticket" scenario, and while this news increases the potential jackpot, it does not change the odds of winning.

The company's operational focus and near-term value driver has pivoted to its exploration assets in Western Australia. This news does not impact the Australian operations or the company's immediate, and precarious, financial situation. Therefore, while positive in demonstrating progress and quantifying the upside, it does not fundamentally change the company's risk profile or business operations. It is a necessary and expected step in a legal process that will take years to resolve.

Sarama Resources was historically focused on its flagship Sanutura Gold Project in Burkina Faso. In August 2023, the government of Burkina Faso unlawfully expropriated the key Tankoro 2 Exploration Permit, effectively halting the project.

In response, Sarama has executed a strategic pivot. The company is now pursuing a two-pronged strategy: 1. Arbitration: Seeking US$242 million in damages from Burkina Faso through international arbitration. 2. Exploration in Australia: Acquiring and exploring a new portfolio of gold projects in the Laverton gold district of Western Australia. The new flagship assets are the Cosmo and Mt. Venn Gold Projects, which together form a ~1,000 sq km land package in a tier-1 mining jurisdiction.