Sarama Seeks US$120 Million in Arbitration After Permit Expropriation
Sarama Resources has taken a significant step in its international arbitration against Burkina Faso following the expropriation of its key gold exploration permit. The company seeks at least US$120 million in damages as proceedings move forward.
- Arbitral tribunal constituted with first procedural hearing completed
- Sarama files written Memorial by October 31, 2025
- Claim arises from retroactive rejection of Tankoro 2 Exploration Permit
- US$4.4 million non-recourse litigation funding secured
- Experienced legal counsel Boies Schiller Flexner engaged
Background to the Dispute
Sarama Resources Ltd. has provided a detailed update on its ongoing arbitration proceedings against the Government of Burkina Faso, stemming from the controversial expropriation of its Tankoro 2 Exploration Permit. This permit was central to Sarama’s Sanutura Project, a promising gold development in the Houndé Greenstone Belt, home to a multi-million-ounce gold resource. The permit’s retroactive rejection in August 2023 abruptly halted project activities just as Sarama was nearing completion of a Preliminary Economic Assessment.
Progress in Arbitration Proceedings
The International Centre for Settlement of Investment Disputes (ICSID) formally constituted the arbitral tribunal in June 2025. The panel includes Professor Albert Jan van den Berg as President, with Sarama and Burkina Faso each appointing a member. The first procedural hearing took place in late July, where key procedural issues and a preliminary timetable were discussed. Sarama is set to submit its written Memorial, comprising its full statement of case and supporting evidence, by the end of October.
Financial and Legal Support
To fund the arbitration, Sarama secured a non-recourse litigation funding agreement worth US$4.4 million from Locke Capital II LLC. This arrangement ensures that legal costs are covered without risking the company’s broader assets, with repayment contingent on a successful outcome. Sarama has also engaged Boies Schiller Flexner (UK) LLP, a law firm with a strong track record in mining-sector arbitration, underscoring the company’s commitment to a robust legal strategy.
Implications and Outlook
The claim seeks no less than US$120 million in damages, supported by an independent valuation from a qualified quantum expert. While the arbitration process is complex and potentially lengthy, Sarama’s update signals confidence in its position. The outcome will not only impact the company’s future in Burkina Faso but could also set a precedent for investor protections under bilateral treaties in the region.
Bottom Line?
Sarama’s arbitration journey is underway, with a high-stakes claim that could reshape its Burkina Faso ambitions.
Questions in the middle?
- How will Burkina Faso respond to Sarama’s detailed Memorial filing?
- What timeline can investors expect for the arbitration’s resolution?
- Could this case influence future foreign investment protections in West Africa?
