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After raising just shy of $7 million earlier this year to fund the arbitration, Sarama Resources (ASX:SRR) is now taking Burkina Faso’s government to court over notice it received from the mining Minister in September last year.
In short: Sarama believes it still has a legal right to develop its West African project; Burkina Faso’s government disagrees, and now, the company is taking that country to the International Centre for Settlement of Investment Disputes (ICSID).
The ICSID, for those playing at home, is a division of the World Bank; international law firm Boles Schiller Flexner will be assisting.
Sarama was trying to develop a gold project, and the timing couldn’t have been worse when one considers the rally gold staged this year.
Sarama is now, all cards in order, pursuing Burkina Faso for damages.
The last sixty days have seen Sarama preoccupied with negotiations with the Burkina Faso government but they’ve led nowhere, according to the company, and so now the long-winded process of an international lawsuit has kicked off.
Shareholders may be waiting for quite a while. ISCID cases are notoriously slow-paced.
SRR last traded at 3cps.
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