In a strategic move, UK-based Endeavour Mining has sold 90% stakes in its Boungou and Wahgnion mines in Burkina Faso to Lilium Mining, a subsidiary of Lilium Capital, for over $300 million. The deal includes upfront and deferred cash considerations, as well as net smelter return royalties (NSR).
As part of the agreement, Endeavour Mining will receive $130 million by July 31, 2023, through reimbursement of historical shareholder loans. Additionally, the company will receive $25 million in deferred cash consideration, payable in two instalments. Moreover, Endeavour Mining will be entitled to a 4.0% NSR on the gold sold from the Boungou and Wahgnion mines, starting immediately.
Endeavour Mining’s president and CEO, Sébastien de Montessus, expressed satisfaction with the transaction, stating that the sale aligns with their portfolio management strategy, allowing the company to focus on higher-quality assets. He believes that Lilium Mining is well-positioned to unlock further value from the Boungou and Wahgnion mines, benefiting all stakeholders.
Endeavour Mining’s acquisition of the Boungou mine occurred in July 2020, when it purchased the majority 90% stake as part of the acquisition of SEMAFO, a Canadian-based mining company. The Wahgnion mine, on the other hand, became 90% owned by Endeavour Mining after its acquisition of Teranga Gold in 2021. Both mines are situated on the Birimian Greenstone Belt, known for its high prospectivity in Burkina Faso.
This strategic divestment allows Endeavour Mining to streamline its portfolio and focus on core assets, while Lilium Mining gains a significant foothold in Burkina Faso’s mining sector. As the global mining industry continues to evolve, such transactions can drive growth and create opportunities for all stakeholders involved.