By Burkina Faso Nationalizes Its Gold Mines Over Legal Dispute
In a swift decision, Burkina Faso struck a deal to nationalize two of its gold mines for about 80 million US Dollars, that London-listed Endeavour Mining agreed last year to sell to Lilium Mining for more than 300 million US Dollars.
Prior to Tuesday 27th August 2024, the Boungou and Wahgnion Gold mines in the mineral rich state of Burkina Faso were owned by an African mining company. However, Ouagadougou has agreed on a deal to nationalize the mines for about an estimate of $80 million.
Endeavour Mining, a British Mining company that agreed to sell Boungou and Wahgnion to Lilium last year for over $300 million, had accused its rival of missing payments. Meanwhile, Lilium argued that London-listed Endeavour had misrepresented and hidden financial information about the mines.
However, considering the agreement reached on Tuesday, the companies are to abandon their legal cases.
Endeavour Mining said it would ‘like to appreciate the Government of Burkina Faso for its mediation efforts’; Lilium and Burkina Faso’s junta have not commented.
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