Sarama Resources Secures Funding for Arbitration Claim in Burkina Faso

Sarama Resources Ltd. has announced a Litigation Funding Agreement with Locke Capital II LLC to initiate arbitration proceedings against the Government of Burkina Faso. The dispute concerns the illegal withdrawal of the Tankoro 2 Exploration Permit, essential for Sarama's Sanutura Project with significant gold reserves. The funding provides a four-year non-recourse loan of $4.4 million, covering all arbitration-related costs.

The proceedings follow Sarama's Notice of Intent to Submit Claims to Arbitration, contested under a Canada-Burkina Faso treaty. The company aims to secure compensation for its investment losses due to the permit withdrawal. Legal proceedings will be led by Boies Schiller Flexner LLP, experienced in international disputes.

Despite the government's lack of response, Sarama continues its pursuit of redress, emphasizing no obligations to repay the funds if the claim is unsuccessful. This step maintains Sarama's operational continuity outside the contested project's assets.