Sarama Completes Sale of its West Australian Gold Assets

Sarama Resources Ltd. has completed the sale of its 100% interest in Yikarri Resources Pty Ltd, which holds the Cosmo and Mt Venn gold projects in Western Australia, to Riedel Resources Limited. The consideration for the transaction consists of 150 million Riedel shares issued at a deemed price of A$0.025 per share, along with 100 million performance rights that will vest across four exploration and price milestones.

As a result of the deal, Sarama receives an initial relevant interest of approximately 32% in Riedel, which can increase to approximately 44% if all performance rights vest. These shares are held in escrow for 12 months. Additionally, Riedel will cover project-related costs incurred by Sarama, capped at A$300,000.

Key personnel transitions accompany the transaction, with Executive Chairman Andrew Dinning joining Riedel as a Non-Executive Director. Paul Schmiede and Jack Hamilton will take on CEO and Special Advisor - Exploration roles at Riedel, respectively. The transaction is designed to minimize shareholder dilution for Sarama's ongoing US$242 million arbitration claim against the Government of Burkina Faso, while retaining upside exposure to Riedel's multi-project portfolio.

Sarama Resources Ltd. announced the completion of its asset sale in April 2026, a move that directly followed previously disclosed plans. The market had already priced in the divestment of the Western Australian assets.

The transaction provides a non-cash, non-dilutive funding mechanism for the arbitration claim and removes the cash burn associated with advancing the Cosmo and Mt Venn projects. The value of the consideration is entirely tied to Riedel's equity performance. The initial valuation of the consideration is approximately A$3.75 million (150M shares × A$0.025), plus the contingent value of the performance rights.

The performance rights vesting could dilute Riedel's existing shareholders and potentially suppress Riedel's share price, which would directly impact the realized value of Sarama's stake. Additionally, Sarama's liquidity remains constrained, and the sale does not immediately inject cash into Sarama's balance sheet.

Sarama Resources Ltd. (SWA) is a gold exploration company with a diversified portfolio that includes projects in Western Australia, such as Cosmo and Mt Venn; New South Wales, featuring Bald Hill, Bong Bong Creek, and the Gegedzerick Copper Lode; and Burkina Faso. The company’s flagship asset is the Sanutura project in Burkina Faso, which hosts a multimillion-ounce gold resource. In August 2023, the Government of Burkina Faso subjected the project to unlawful expropriation, halting all activities.

Following this event, Sarama Resources has pivoted its strategy from traditional exploration to funding a US$242 million damages claim against the Burkina Faso government through the International Centre for Settlement of Investment Disputes (ICSID). The recent sale of the Western Australian assets marks a definitive shift in capital allocation, prioritizing legal proceedings over physical exploration.