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.

“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.