Endeavour Mining agrees settlement of Lilium dispute in Burkina Faso

(Alliance News) - Endeavour Mining PLC on Tuesday said it has reached a settlement agreement with ...

Alliance News 27 August, 2024 | 8:55AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Endeavour Mining PLC on Tuesday said it has reached a settlement agreement with Lilium Gold over the Boungou and Wahgnion mines, crediting mediation efforts by the government of Burkina Faso, where the mines are located.

Endeavour shares were down 0.3% to 1,645.00 pence early Thursday in London. The London-based gold miner operates in Burkina Faso, Ivory Coast, Senegal, and Mali and has its West Africa regional office in Abidjan.

The settlement settles a dispute between Endeavour and Lilium, which is a subsidiary of Lilium Capital, an investment vehicle led by West African entrepreneurs.

Back in June 2023, Endeavour agreed to sell its 90% interest in the two mines to Lilium for an initial USD130 million, plus deferred payments and royalties that Endeavour at the time said could bring the total sale value to more than USD300 million.

However, Endeavour filed legal claims after Lilium failed to make all the required payments.

On Tuesday, Endeavour said it signed a settlement agreement that will see Lilium transfer the two mines to the Burkina Faso government. Endeavour will receive USD60 million in cash by the end of calendar 2024. It also will receive a 3% royalty on up to 400,000 ounces of gold sold from the Wahgnion mine.

As a result, Endeavour and Lilium have agreed to end their legal proceedings against each other. "Both parties would like to thank the government of Burkina Faso for its mediation efforts," Endeavour said.

By Tom Waite, Alliance News editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Endeavour Mining PLC 4,288.00 GBX -1.54 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2025 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures