Sarama Resources seeks justice

Sarama Resources (ASX:SRR) has started arbitration proceedings against Burkina Faso. The company aims to recover at least A$180 million for the expropriation of its Sanutura Project. Boies Schiller Flexner (UK) LLP will provide legal assistance. This follows failed resolution attempts with the Burkina Faso government.

Strategic overview of Sarama's arbitration

Sarama Resources is taking legal action against the Burkina Faso government for expropriating its Sanutura Project. The company seeks damages of at least A$180 million and is backed by a litigation funding facility worth A$6.7 million. The arbitration will occur under the ICSID framework, known for handling similar disputes. Sarama's legal representation is from Boies Schiller Flexner (UK) LLP, experienced in international arbitrations. The company's strategy is to secure compensation through arbitration after failed negotiations with the Burkina Faso government. The outcome remains subject to legal proceedings and potential risks.

Executive insights on arbitration decision

The formal request follows a Notice of Intent to Submit Claims issued on 30 November 2024. A 60-day consultation period was initiated to resolve the dispute, but the Burkina Faso government did not respond, leading to arbitration proceedings.