Highlights

  • Sarama Resources secured binding commitments for a private Placement to raise A$1.5 million before costs.
  • Funds will support copper-gold exploration projects in New South Wales and general Working Capital requirements.
  • The company continues progressing its US$242 million arbitration claim against the Government of Burkina Faso.
  • Arbitration proceedings have advanced with key procedural milestones achieved and a hearing scheduled for February 2027.
  • Placement pricing was set at A$0.035 per CDITop of Form

 

Sarama Resources Ltd (ASX:SRR) has announced a Private Equity placement aimed at supporting exploration activities across its Australian copper-gold projects while maintaining funding flexibility as arbitration proceedings against the Government of Burkina Faso continue to advance.

The company confirmed it had secured binding commitments to raise approximately A$1.5 million before costs through the issue of new Chess Depository Interests (CDIs). According to Sarama, proceeds from the capital raising will primarily be directed toward advancing its exploration portfolio in New South Wales, alongside general working capital purposes.

Sarama shares traded at AUD 0.034 during the afternoon session on 20 May 2026, down 5.56% for the day. Despite the decline, the stock remains approximately 13.33% higher over the past 12 months as investors continue monitoring the company’s exploration activities and international arbitration developments.

Management stated that the placement received support from existing institutional, professional and sophisticated investors.

The latest funding initiative comes as Sarama continues progressing both its exploration strategy in Australia and its legal claim relating to the Sanutura Gold Project in Burkina Faso.

Funds to Advance NSW Copper-Gold Exploration

Sarama indicated that a key portion of the placement proceeds will be allocated toward advancing its copper-gold exploration projects located in New South Wales.

The company currently holds three early-stage exploration projects within the Lachlan Fold Belt, a region regarded as prospective for copper and gold mineralisation.

By securing additional capital, Sarama appears positioned to continue exploration-related activities across these projects while maintaining operational flexibility.

Management also highlighted that the funding would support broader working capital requirements during a period where the company is simultaneously advancing arbitration proceedings connected to Burkina Faso.

Executive Chairman Andrew Dinning stated that the placement provides Sarama with sufficient funding to progress its New South Wales exploration portfolio while continuing support for arbitration-related activities.

Arbitration Proceedings Continue Advancing

Alongside exploration work, Sarama continues pursuing arbitration proceedings against the Government of Burkina Faso through the International Centre for Settlement of Investment Disputes (ICSID), which forms part of The World Bank Group.

The company is seeking damages of at least US$242 million plus interest in relation to what it describes as the illegal expropriation of the Sanutura Gold Project.

Sarama noted that the arbitration claim is fully funded through a US$4.4 million non-recourse litigation funding Facility.

Legal representation for the proceedings is being provided by Boies Schiller Flexner (UK) LLP, an international law firm with experience in investor-state arbitration and Mining-sector disputes.

According to the company, several procedural milestones have already been achieved as the arbitration progresses. These include confirmation of the procedural timetable, receipt of memorials and scheduling of the merits hearing for February 2027.

Management stated that the arbitration process continues advancing broadly in line with expectations.

Placement Structure and Pricing Details

The placement will involve the issue of up to 42,857,715 new CDIs at an issue price of A$0.035 per CDI.

Sarama stated that the issue price represented a 1% discount to the company’s 15-day Volume weighted average price of A$0.0353 and a 2.8% discount to the last traded CDI price on the ASX recorded on 15 May 2026.

The pricing also represented a 10.6% discount to the company’s 15-day VWAP on the TSX Venture Exchange and a 16.6% discount to the last traded share price on the TSXV as of the same date.

Each CDI issued under the placement will represent a beneficial interest in one common share of the company and will rank equally with existing CDIs already on issue.

Sarama also confirmed that a 6% finder’s fee will be paid on equity directly procured by the relevant finder.

Directors and Management to Participate

Members of Sarama’s Board and management team have indicated their intention to participate in the placement.

The company noted that directors and officers participating in the raise are considered related parties under Canadian securities regulations. However, Sarama stated that exemptions from formal valuation and minority Shareholder approval requirements apply because the value of participation remains below the applicable threshold relative to the company’s Market Capitalisation.

Further details regarding participation by directors and officers are expected to be disclosed through a material change report to be filed by the company.

Placement to Be Completed in Two Tranches

Sarama confirmed that the placement will proceed in two separate tranches.

The first Tranche consists of approximately 40.52 million new CDIs and will utilise the company’s available placement capacity under ASX Listing Rule 7.1A.

The second tranche includes up to 2.34 million CDIs and remains subject to shareholder approval. Shareholder approval is expected to be sought at the company’s Annual General Meeting anticipated to take place in late August 2026.

The placement also remains subject to approval from the TSX Venture Exchange.

Settlement of the placement is expected to occur on 25 May 2026, with allotment of the CDIs anticipated on 27 May 2026.

Sarama Continues Portfolio Restructuring Efforts

Beyond its New South Wales projects and arbitration activities, Sarama has also been progressing portfolio restructuring initiatives.

The company recently agreed to sell its Western Australian gold Assets to Riedel Resources Ltd for consideration valued at approximately A$4.6 million in cash and shares.

Sarama stated that the transaction is intended to reduce shareholder dilution while allowing the company to retain exposure to exploration upside through an ongoing equity interest in Riedel.

Following completion of the transaction, Sarama expects to hold an initial interest of approximately 32% in Riedel, potentially increasing to up to 44% depending on performance rights vesting and exercise outcomes.

The transaction provides Sarama with continuing exposure to exploration assets in Western Australia and Arizona through Riedel’s expanded project portfolio.

Market Focus Remains on Exploration and Arbitration Outcomes

The latest placement reflects Sarama’s dual-track strategy involving both exploration growth in Australia and legal proceedings connected to Burkina Faso.

The company’s New South Wales copper-gold projects provide exposure to exploration opportunities within the Lachlan Fold Belt, while the ICSID arbitration claim remains a significant corporate development that investors continue monitoring.

With funding now secured through the placement, market attention is likely to remain focused on exploration progress, arbitration milestones and the broader execution of Sarama’s strategic priorities over the coming quarters.

What This Means for Investors?

Sarama Resources’ latest announcement centres on strengthening its funding position as the company advances both exploration activities in New South Wales and arbitration proceedings against the Government of Burkina Faso.

The placement provides additional capital to support exploration programs and working capital requirements while arbitration proceedings continue progressing toward a scheduled merits hearing in February 2027.

Investors are likely to continue monitoring developments relating to the company’s exploration portfolio, arbitration milestones and broader corporate strategy as Sarama advances multiple workstreams simultaneously.