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Sarama Resources (ASX:SRR) has executed a deal with a litigation funding firm in its stoush with Burkina Faso’s government.
The dual ASX and TSX-listed miner will fund its lawsuit backed by support from Locke Capital II LLC, a specialised dispute resolution funder. The case is effectively backed on a no-win-no-fee system; finer details were left confidential.
Sarama will now take the government of Burkina Faso to the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) – seeking full compensation.
In Sarama’s eyes, the government of Burkina Faso acted illegally when it revoked the company’s Tankoro 2 exploration permit. Tankoro 2 was a gold project with a multi-million ounce gold resource.
The permit was revoked in September 2023; the government of Burkina Faso was changed when a successful coup installed another leader a year prior. The country extended military rule in the country for another five years back in May 2024.
It’s alleged the Burkina Faso mining minister described the permit as ‘up for sale’ at the Perth Africa Down Under conference in September 2023. Specialised mining lawyers Boies Schiller Flexner (BSF), a U.K.-based dispute resolution firm, has been hired since last year to help progress the case.
All in all, Locke has chucked Sarama US$4.4M (A$6.6M).
SRR last traded at 3.4cps.
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