Endeavour Mining, Lilium Settle Dispute Over African Gold Mines
TLDR
- Legal dispute settled: Endeavour Mining Plc and Lilium Mining resolve conflict over gold mine sale in Burkina Faso
- Assets to be transferred: Wahgnion and Boungou projects ownership to be transferred to Burkina Faso government
- Settlement details: Lilium to pay Endeavour $60 million and 3% royalty on up to 400,000 ounces of gold from Wahgnion mine
Endeavour Mining Plc and Lilium Mining have settled a legal dispute concerning the sale of two gold mines in Burkina Faso, with the assets now set to be transferred to the Burkinabe government.
The conflict arose after Lilium acquired the Wahgnion and Boungou projects in June last year. Endeavour had accused Lilium of missing payments exceeding $100 million, while Lilium claimed that Endeavour misrepresented the financial and operational status of the mines.
As part of the settlement, Lilium will transfer ownership of the mines to the Burkina Faso government. In return, the government will pay Endeavour $60 million and a 3% royalty on up to 400,000 ounces of gold produced at the Wahgnion mine.
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Key Takeaways
Both companies have agreed to cease ongoing legal proceedings, including an arbitration case in London that began in March. For Endeavour, this settlement reinforces its focus on its remaining operations in Senegal, Ivory Coast, and Burkina Faso, while Lilium and its parent company, Lilium Capital, remain tight-lipped on the outcome. This development also underscores the complexities of mining transactions in Africa, where operational and financial disputes can have significant ramifications.
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