Sarama Resources Issues Notice of Intent to Submit Claims to Arbitration
VANCOUVER, BC and PERTH, AUSTRALIA / ACCESSWIRE / November 30, 2023 / Sarama Resources Ltd. ("Sarama" or the "Company") (TSX-V:SWA)(ASX:SRR) advises that it has formally notified the Government of Burkina Faso (the "Government") of the existence of an investment dispute between the Company and Burkina Faso in relation to the Government's withdrawal of the Company's rights to the Tankoro 2 Exploration Permit (the "Tankoro 2 Permit") (refer to news release dated 5 September 2023).
Notice of Intent to Submit Claims
On 29 November 2023 the Company delivered to the Minister of Energy, Mines and Quarries of Burkina Faso (the "Minister"), a Notice of Intent to Submit Claims to Arbitration ("Notice of Intent") under the Agreement between the Government of Canada and the Government of Burkina Faso for the Promotion and Protection of Investments (the "BIT").
The dispute arises out of certain acts and omissions of the Government in breach of the BIT and international law, relating to Sarama's investment in the Sanutura Project (the "Project") located in Burkina Faso.
Permitting History of the Tankoro 2 Exploration Property
Sarama commenced exploration activities on the Project in 2010, conducting its initial activities on the Tankoro Exploration Permit (the "Original Permit"). The Original Permit was granted in November 2008 and the Company acquired, by commercial agreement, the rights to the Original Permit in January 2011. The Original Permit was subject to statutory renewals in 2011 and 2014, followed by an exceptional renewal in 2017. The Original Permit expired in December 2020, after which time it underwent a full re-issue process. On 24 November 2021 the Minister granted Sarama the Tankoro 2 Permit, which substantially covered the same area as the Original Permit and invited the Company to pay the grant fee. The Company paid the grant fee within the requisite timeframe and was issued a receipt for payment. The Company expected to receive the arrêté (or title certificate) from the Minister in due course, as was customary following payment of the grant fees.
Origin of Dispute
On 31 August 2023, the Company received notification (the "Notification") from the Minister that the Company's application for the Tankoro 2 Permit, received in August 2021 and approved in November 2021 (resulting in the granting of the Tankoro 2 Permit to Sarama), had been purportedly "rejected", which was inconsistent with, and contradictory to, prior formal correspondence from the Government. Sarama advised the Government that since the Permit had already been granted, it could not be rejected.
On 6 September 2023 during his public presentation at the Africa Down Under Mining Conference in Perth, the Minister, Simon-Pierre Boussim, stated that the Tankoro 2 Permit was available for purchase. Based on the notification from the Minister and his subsequent actions, the Company has been forced to interpret the Minister's letter of 25 August 2023 as withdrawing the Company's rights to the Tankoro 2 Permit. The Minister has not responded to subsequent correspondence from the Company on the matter.
Basis for Claims to Arbitration
The Tankoro 2 Permit pertains to the Tankoro Deposit which was the central component of the Project and contained 85% of the Project mineral resource. A preliminary economic assessment on the Project was in progress and due for imminent completion and release; however, following receipt of the Notification, this study and all work on the permit was suspended.
The unlawful withdrawal of the Tankoro 2 Permit by the Minister, resulting in the removal of the rights to the land conferred thereunder, has effectively rendered the Project valueless to Sarama, consequently destroying the value of the Company's investment in the Project.
Notice of Intent to Pursue Claim and Forward Process
The Notice of Intent is necessary to preserve Sarama's rights to initiate arbitration should a resolution with the Government not be reached. The filing of the Notice of Intent initiates a 60-day consultation period between the parties during which time they are to attempt to amicably settle the dispute. If no amicable settlement is reached in this period, then Sarama will have no alternative but to initiate international arbitration proceedings in accordance with the BIT between Canada and Burkina Faso.
The Company will seek full compensation for the loss suffered which may include, but will not be limited to, the value of the Tankoro 2 Permit, the value of the Company's historic investments in the Project, the value of the Project at the time the Tankoro 2 Permit was withdrawn and damages the Company has suffered as a result of the Government's actions.
The Company will file a material change report setting out the full text of the Notice of Intent, which will be available under Sarama's profile on SEDAR+ at www.sedarplus.ca and on ASX at www.asx.com.au.
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.
Bondi Deposit, Karankasso Project JV and Potential Opportunities
The Company retains 100% ownership of its remaining fully issued exploration permits which includes the Djarkadougou 2 Exploration Permit, granted 30 July 2021 followed by the receipt of the arrêté on 6 January 2023 and hosts the Bondi Deposit (0.5Moz Au Inferred Mineral Resource(1)). The Company also retains an 18 percent interest in the Karankasso Project JV (0.7Moz Au Inferred Mineral Resource(2)). The Company is still considering the full impact of the actions of the Government on the Company's investments in the Karankasso Project JV and the Koumandara Project.
Sarama is also advancing a number of potential opportunities outside Burkina Faso to leverage its infrastructure and geological knowledge and looks forward to providing further information in due course.
For further information, please contact:
Andrew Dinning
Sarama Resources Ltd
e: info@saramaresources.com
t: +61 8 9363 7600
This announcement has been authorised by the Board of Sarama Resources.
Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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, statements regarding the possibility of initiating international arbitration proceedings in accordance with the BIT between Canada and Burkina Faso; the impact, if any, of the actions of the Government on the Company's investments in the Karankasso Project JV and the Koumandara Project; the advancement of potential opportunities outside Burkina Faso; the filing of the material change report; and providing further information in due course. 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.
FOOTNOTES
Bondi Deposit component of the current mineral resource - 9.2Mt @ 1.5g/t Au for 0.5Moz Au (Inferred, reported at cut-off grades ranging 0.2-1.5g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the liklihood of the mineral resources to have reasonable prospects for eventual economic extraction. For further information regarding the Mineral Resource estimate refer to the technical report titled "NI 43-101 Independent Technical Report Sanutura Project, South-West Burkina Faso", dated 7 February 2022 and prepared by Paul Schmiede, Rindra Le Grange and Fred Kock, and the Company's ASX Prospectus dated 11 March 2022. Paul Schmiede is an employee of Sarama. Ms Le Grange and Mr Kock are employees of Cube Consulting Pty Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com and the ASX Prospectus is available under Sarama's profile on ASX at www.asx.com.au.
Mineral Resource estimate for Karankasso Project - 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019), disclosed on 24 February 2020 by Semafo Inc ("Semafo", since acquired by Endeavour Mining Corp. "Endeavour"). For further information regarding that Mineral Resource estimate, refer to the news release "Semafo: Bantou Project Inferred Resources Increase to 2.2Moz" dated 24 February 2020 and Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated 3 April 2020 and the Company's ASX Prospectus dated 11 March 2022. The news release and technical report are available under Semafo's and Endeavour's profile on SEDAR at www.sedar.com and the ASX Prospectus is available under Sarama's profile on ASX at www.asx.com.au. The Mineral Resource estimate was fully prepared by, or under the supervision of Semafo. Sarama has not independently verified Semafo's mineral Resource Estimate. Semafo, and now Endeavour, is the operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons' assurance of the validity of the Mineral Resource estimate. Additional technical work has been undertaken on the Karankasso Project since the effective date but Sarama is not in a position to quantify the impact of this additional work on the Mineral Resource estimate referred to above.
QUALIFIED PERSONS' STATEMENT
Scientific or technical information in this disclosure that relates to the preparation of the Mineral Resource estimate for the Bondi Deposit is based on information compiled or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Paul Schmiede consents to the inclusion in this news release of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project's Mineral Resource estimate and exploration activities is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Paul Schmiede consents to the inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified Semafo's (now Endeavour's) Mineral Resource estimate and take no responsibility for its accuracy.
COMPETENT PERSONS' STATEMENT
The Mineral Resource estimates referred to in this announcement were first disclosed in accordance with ASX Listing Rule 5.8 in the Company's ASX Prospectus dated 11 March 2022. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Prospectus and that all material assumptions and technical parameters underpinning the estimates in the ASX Prospectus continue to apply and have not materially changed.
SOURCE: Sarama Resources Ltd.
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