UK-based Endeavour Mining has divested 90% stakes in its Boungou and Wahgnion mines in Burkina Faso to Lilium Capital’s subsidiary Lilium Mining for more than $300m (£236.79m).
The deal consideration comprises upfront and deferred cash considerations, as well as net smelter return royalties (NSR).
As per the deal, Endeavour Mining will receive $130m by 31 July 2023 via reimbursement of historical shareholder loans.
The company will also receive $25m in deferred cash consideration, which is payable in two instalments.
Furthermore, Endeavour Mining will receive NSR on the Boungou and Wahgnion mines, commencing immediately, for 4.0% of gold sold.
Endeavour Mining president and CEO Sébastien de Montessus said: “In line with our strategy of actively managing our portfolio to focus management efforts on higher quality assets, we are pleased to announce the sale of our non-core Boungou and Wahgnion mines to Lilium Mining.
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“We believe that Lilium Mining is well positioned to continue to unlock value at the Boungou and Wahgnion mines for the benefit of all stakeholders.”
Endeavour purchased the Boungou open-pit mine on the highly prospective Birimian Greenstone Belt in July 2020, as part of its acquisition of Canadian-based mining company SEMAFO.
The mine is 90% owned by Endeavour while the remaining 10% stake is owned by the State of Burkina Faso.
Endeavour acquired a 90% stake in the Wahgnion mine as part of its acquisition of Teranga Gold in 2021.
The State of Burkina Faso owns the remaining 10% stake in the Wahgnion mine, which comprises several open-pit operations on the Birimian Greenstone Belt.