Sarama Resources Submits Request for Arbitration Against Burkina Faso
Rhea-AI Summary
Sarama Resources (TSX-V:SWA)(ASX:SRR) has formally initiated international arbitration proceedings against Burkina Faso through the International Centre for Investment Disputes (ICSID) regarding the expropriation of its Sanutura Project. The company is seeking damages of at least A$180 million, with the final amount to be determined by a quantum expert.
The arbitration is supported by a non-recourse litigation funding facility of A$6.7M and will be pursued under ICSID's legal framework, which has previously awarded favorable decisions in similar cases. The company filed the Request for Arbitration after Burkina Faso failed to respond during a 60-day consultation period. Sarama has engaged Boies Schiller Flexner (UK) LLP, a leading international law firm, to handle the legal proceedings.
Positive
- Secured A$6.7M non-recourse litigation funding facility to support arbitration costs
- Similar ICSID cases resulted in significant awards (A$180M and A$490M) for other companies
- Engaged prominent international law firm Boies Schiller Flexner for legal representation
Negative
- Loss of Sanutura Project through government expropriation
- Failed attempts to reach amicable settlement with Burkina Faso government
- Extended legal proceedings could impact company resources and timeline for resolution
News Market Reaction – SRMMF
On the day this news was published, SRMMF gained 4.17%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Formal Commencement of International Arbitration Proceedings for Significant Damages Claim
VANCOUVER, BC and PERTH, AUSTRALIA / ACCESSWIRE / December 11, 2024 / Sarama Resources Ltd. ("Sarama" or the "Company") (TSX-V:SWA)(ASX:SRR) announces that it has formally commenced arbitration proceedings against the State of Burkina Faso in relation to a dispute concerning the expropriation of the Company's Sanutura Project (refer to news release dated 5 September 2023).
The Company will seek full compensation for the loss and damages the Company has suffered as a result of certain acts and omissions by the Government of Burkina Faso. Based on a preliminary estimate, the Company will be seeking damages of no less than A
Following the establishment of a non-recourse litigation funding facility of A
The Company's arbitration claim will be pursued according to the established and enforceable legal framework of ICSID which has heard numerous investor-state disputes, including recent proceedings brought by Indiana Resources (IDA:ASX) and GreenX Metals (ASX:GRX) which resulted in awards in favour of the claimants of A
The submission of the RFA follows the prior issuance of a Notice of Intent to Submit Claims to Arbitration to the Government of Burkina Faso (refer to news release dated 30 November 2024) which initiated a 60-day consultation period between the parties to amicably resolve the dispute. Despite the Company's best efforts, the Government of Burkina Faso neglected to respond and no settlement was reached, leaving Sarama with no alternative but to initiate international arbitration proceedings.
The Company has engaged Boies Schiller Flexner (UK) LLP ("BSF"), a leading international law firm, to assist with legal matters pertaining to the dispute (refer to news release dated 17 October 2023). BSF is an internationally recognised dispute resolution law firm with extensive experience representing investors in international investment arbitrations in the mining and natural resources sectors worldwide.
For further information, please contact:
Andrew Dinning
Sarama Resources Ltd
e: info@saramaresources.com
t: +61 8 9363 7600
CAUTION REGARDING FORWARD LOOKING INFORMATION
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes, but is not limited to, the quantum and pursuit of compensation for the loss and damages; the intention to appoint a quantum expert and preparation of a professional damages assessment; and the pursuit and outcome of the arbitration claim. Actual results may vary from the forward-looking information due to known and unknown risks, uncertainties and other factors. Such factors include, among others, foreign country and political risks, including risks relating to foreign operations and expropriation or nationalization of mining operations; delays in obtaining or failure to obtain governmental permits, or non-compliance with permits; as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information.
Sarama does not undertake to update any forward-looking information, except as required by applicable laws.
This announcement has been authorised by the Board of Sarama Resources.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Sarama Resources Ltd.
View the original press release on accesswire.com
FAQ
How much compensation is Sarama Resources (SRMMF) seeking in the arbitration against Burkina Faso?
What is the funding arrangement for Sarama's (SRMMF) arbitration proceedings?
Which legal firm is representing Sarama Resources (SRMMF) in the arbitration case?
What was the outcome of Sarama's (SRMMF) 60-day consultation period with Burkina Faso?
What precedents support Sarama's (SRMMF) arbitration case against Burkina Faso?
