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 $130 million, plus deferred payments and royalties that Endeavour at the time said could bring the total sale value to more than $300 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 $60 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.

Copyright 2024 Alliance News Ltd. All Rights Reserved.