Sarama Secures A$2.7M to Ignite Laverton Drilling and Arbitration Push
Sarama Resources has raised A$2.7 million through a well-supported equity placement to fund a maiden drilling campaign in Western Australia's Laverton Gold District and advance its arbitration claim against Burkina Faso.
- A$2.7 million equity placement oversubscribed with institutional and sophisticated investor support
- Funds to launch maiden drilling at Cosmo Gold Project in Laverton Gold District
- Ongoing arbitration claim against Burkina Faso seeking at least US$120 million damages
- Acquisition of Mt Venn Gold Project nearing completion pending final condition
- Powerhouse Group acts as lead manager and cornerstone investor
Strong Backing for Strategic Capital Raise
Sarama Resources Ltd (ASX – SRR) has successfully secured A$2.7 million through an upsized equity placement, reflecting robust support from both existing shareholders and new institutional investors. The raise, priced at A$0.03 per CDI with a modest discount to recent trading prices, underscores confidence in Sarama’s growth strategy focused on gold exploration in Western Australia.
Funding a Maiden Drilling Campaign in Laverton
The capital injection will primarily fund a maiden drilling campaign at the Cosmo Gold Project, located in the prolific Laverton Gold District. This campaign represents the first coordinated large-scale modern exploration effort across a 45-kilometre gold-in-soil trend, aiming to unlock the potential of this underexplored belt-scale landholding. The recent soil chemistry survey has provided a solid foundation for prioritising drill targets, setting the stage for a potentially transformative phase of exploration.
Parallel Legal Pursuits and Project Expansion
Alongside exploration, Sarama continues to advance its arbitration claim against the Government of Burkina Faso, seeking damages of no less than US$120 million for the expropriation of its Tankoro Gold Deposit. This legal pursuit is fully funded through a non-recourse loan and supported by renowned international arbitration counsel, highlighting the company’s commitment to protecting shareholder value.
Meanwhile, the acquisition of the Mt Venn Gold Project is progressing well, with only one final condition precedent remaining before completion. Once finalized, Sarama’s tenement portfolio in the Eastern Goldfields will expand to approximately 1,000 square kilometres, enhancing its strategic footprint near existing gold mills and underexplored greenstone belts.
Governance and Market Implications
The placement includes participation from Sarama’s board and management, aligning leadership interests with shareholder outcomes. Powerhouse Advisory Australia Pty Ltd acted as lead manager and cornerstone investor, introducing new institutional shareholders and reinforcing market confidence. The placement is structured in two tranches, with the second tranche and associated options subject to shareholder approval expected in September 2025.
Settlement of the initial tranche is anticipated in early July, with CDIs to be allotted shortly thereafter, positioning Sarama to rapidly deploy funds into exploration and legal activities.
Bottom Line?
Sarama’s capital raise and strategic initiatives set the stage for a pivotal year of exploration and legal resolution that could redefine its value proposition.
Questions in the middle?
- What early results can investors expect from the upcoming Laverton drilling campaign?
- How might the arbitration claim outcome influence Sarama’s financial position and investor sentiment?
- When will the Mt Venn acquisition complete, and how will it integrate with existing projects?
