Sarama files $242M (U.S.) arbitration vs. Burkina Faso

Executive Summary

• Sarama Resources Ltd. has filed its written memorial with the International Centre for Settlement of Investment Disputes (ICSID) detailing a US$242-million damages claim against the government of Burkina Faso for the unlawful expropriation of its Tankoro 2 exploration permit.
• The filing includes the statement of case, witness evidence, and expert reports, supported by an independent valuation from Accuracy London.
• The next procedural step is the filing of a counter-memorial by the government of Burkina Faso by January 31, 2026, followed by a case management conference on February 17, 2026.

Key Details

• Claim Amount: US$242 million plus interest.
• Legal Action: Filing of written memorial (statement of case, witness evidence, and expert reports) with ICSID on October 31, 2025.
• Underlying Dispute: Unlawful expropriation of the 100%-owned Tankoro 2 exploration permit, which hosts a multimillion-ounce gold resource and formed the core of the Sanutura project.
• Background: The permit was retroactively rejected by Burkina Faso's Ministry of Energy, Mines and Quarries in August 2023, despite prior approval. Sarama initiated arbitration under the Canada-Burkina Faso Bilateral Investment Treaty (BIT) in November 2023.
• Arbitration Status:
  • Request for Arbitration (RFA) filed in December 2024.
  • Three-member arbitral tribunal constituted in June 2025.
  • First procedural hearing held on July 25, 2025.
• Next Steps:
  • Government of Burkina Faso counter-memorial due by January 31, 2026.
  • Case management conference scheduled for February 17, 2026, to determine the final procedural timetable and hearing date.
  • Final hearing to be held in Washington, D.C.
• Legal Representation: Represented by Boies Schiller Flexner (U.K.) LLP (BSF).
• Funding:
  • Secured a US$4.4 million, four-year non-recourse loan facility from Locke Capital II LLC in October 2024.
  • Facility covers all legal and arbitration-related costs.
  • Repayment is contingent on a successful claim, settlement, or default; no recourse to company assets outside the project ownership structure.
  • Funder's return is contingent on the successful outcome and timing of the arbitration.

Notable Quotes

• Andrew Dinning, Executive Chairman: "The filing of our memorial is a significant milestone in the arbitration process and provides a comprehensive and substantiated basis for Sarama's claim for compensation. The company has invested more than a decade of work and substantial capital in advancing the Sanutura project, which was unlawfully expropriated."
• Andrew Dinning, Executive Chairman: "We are pursuing this process to protect shareholder value and to seek a fair and just outcome under internationally recognized mechanisms. With our legal team, expert advisors and funding arrangements in place, we remain fully committed to advancing the arbitration to its conclusion."