Sarama Resources litigation funding

Sarama Resources (ASX:SRR) has entered a Litigation Funding Agreement with Locke Capital II LLC. This agreement provides a US$4.4 million non-recourse loan to support arbitration against the Government of Burkina Faso. The dispute involves the withdrawal of rights to the Tankoro 2 Exploration Permit, a key element of Sarama's Sanutura Project.

Overview and future outlook

Sarama Resources has taken a decisive step to resolve a dispute with the Government of Burkina Faso by securing a US$4.4 million loan for arbitration proceedings. The Tankoro 2 Exploration Permit, essential to the Sanutura Project's gold resource, was allegedly withdrawn illegally. Sarama is seeking compensation for its loss through international arbitration. This strategic move underscores Sarama's commitment to protecting its investments and pursuing legal redress. The company is represented by Boies Schiller Flexner and plans to file a Request for Arbitration with ICSID. Sarama's forward-looking approach aims to navigate potential challenges while safeguarding shareholder interests.

Executive insights on arbitration funding

We are pleased to have secured this litigation funding which will enable us to prosecute the case to the fullest extent possible. We are committed to seeking full compensation for the value of the Tankoro 2 Exploration Permit and our historical investments in the Sanutura Project.