SARAMA RESOURCES SUBMITS REQUEST FOR ARBITRATION AGAINST BURKINA FASO Formal Commencement of International Arbitration Proceedings for Significant Damages Claim
11 December 2024
SARAMA RESOURCES SUBMITS REQUEST FOR
ARBITRATION AGAINST BURKINA FASO
Formal Commencement of International Arbitration Proceedings for Significant Damages Claim
VANCOUVER, CANADA/PERTH, AUSTRALIA . Sarama Resources Ltd. (“ Sarama” or the “ Company”) (TSX -V:SWA,
ASX:SRR) announces that it has formally commenced arbitration proceedings against the State of Burkina Faso in
relation to a dispute concerning the expropriation of the Company’s Sanutura Project (refer to news release dated 5
September 2023).
The Company will seek full compensation for the loss and damages the Company has suffered as a result of certain
acts and omissions by the Government of Burkina Faso. Based on a preliminary estimate, the Company will be seeking
damages of no less than A$180 million and as the arbitration proceeds, the Company expects to appoint a quantum
expert who will prepare a professional damages assessment for review by the arbitration tribunal.
Following the establishment of a non-recourse litigation funding facility of A$6.7M ( refer to news release dated 24
October 2024 ), the Company has submitted a Request for Arbitration (“RFA”) to the International Centre for
Investment Disputes (“ ICSID”), a division of the World Bank Group. The submission of the RFA setting out the
preliminary details of the case and addressing certain procedural matters marks the formal commencement of the
arbitration process.
The Company's arbitration claim will be pursued according to the established and enforceable legal framework of ICSID
which has heard numerous investor -state disputes, including recent proceedings brought by Indiana Resources
(IDA:ASX) and GreenX Metals (ASX:GRX) which resulted in awards in favour of the claimants of A$180M and A$490M
respectively.
The submission of the RFA follows the prior issuance of a Notice of Intent to Submit Claims to Arbitration to the
Government of Burkina Faso (refer to news release dated 30 November 2024) which initiated a 60-day consultation
period between the parties to amicably resolve the dispute. Despite the Company’s best efforts, the Government of
Burkina Faso neglected to respond and no settlement was reached, leaving Sarama with no alternative but to initiate
international arbitration proceedings.
The Company has engaged Boies Schiller Flexner (UK) LLP (“BSF”), a leading international law firm, to assist with legal
matters pertaining to the dispute (refer to news release dated 17 October 2023). BSF is an internationally recognised
dispute resolution law firm with extensive experience representing investors in international investment arbitrations
in the mining and natural resources sectors worldwide.
For further information, please contact:
Andrew Dinning
Sarama Resources Ltd
t: +61 8 9363 7600
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CAUTION REGARDING FORWARD LOOKING INFORMATION
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-
looking information includes, but is not limited to, the quantum and pursuit of compensation for the loss and damages; the intention
to appoint a quantum expert and preparation of a professional damages assessment; and the pursuit and outcome of the arbitration
claim. Actual results may vary from the forward -looking information due to known and unknown risks, uncertainties and other
factors. Such factors include, among others, foreign country and political risks, i ncluding risks relating to foreign operations and
expropriation or nationalization of mining operations; delays in obtaining or failure to obtain governmental permits, or non -
compliance with permits; as well as those factors disclosed in the Company’s publicly filed documents. Readers should not place
undue reliance on forward-looking information.
Sarama does not undertake to update any forward-looking information, except as required by applicable laws.
This announcement has been authorised by the Board of Sarama Resources.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.