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Sarama Resources Advances Arbitration Against Burkina Faso Government

Story Highlights
  • Sarama Resources is pursuing arbitration against Burkina Faso over a revoked exploration permit.
  • The company seeks US$120 million in damages and has secured funding for legal costs.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sarama Resources Advances Arbitration Against Burkina Faso Government

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Sarama Resources ( (TSE:SWA) ) has issued an announcement.

Sarama Resources Ltd. has provided an update on its ongoing arbitration proceedings against the Government of Burkina Faso over the expropriation of its Tankoro 2 Exploration Permit. The company is seeking at least US$120 million in damages and has secured litigation funding to cover legal costs. The arbitration process is progressing with the constitution of an arbitral tribunal and the scheduling of procedural hearings. This development is crucial for Sarama as the expropriation has halted its project activities, impacting its operations and potential growth in the gold mining sector.

Spark’s Take on TSE:SWA Stock

According to Spark, TipRanks’ AI Analyst, TSE:SWA is a Neutral.

Sarama Resources faces significant financial hurdles, with no revenue and ongoing operational losses. Despite a negative equity position, the company remains debt-free. Technical analysis points to a neutral to bearish trend, while valuation metrics are unattractive due to losses. However, recent strategic acquisitions and exploration initiatives offer potential upside if successful, though substantial risks persist.

To see Spark’s full report on TSE:SWA stock, click here.

More about Sarama Resources

Sarama Resources Ltd. operates in the mining industry, focusing on gold exploration and development. The company is primarily engaged in the Sanutura Project, located in the Houndé Greenstone Belt in southwest Burkina Faso, which hosts a multi-million-ounce gold resource.

Average Trading Volume: 93,063

Technical Sentiment Signal: Hold

Current Market Cap: C$18.39M

Find detailed analytics on SWA stock on TipRanks’ Stock Analysis page.

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