Endeavour Mining Plc and Lilium Mining have resolved their legal dispute concerning the sale of two gold mines in Africa, with both parties agreeing to transfer the assets to the Burkina Faso government.
The conflict began after Lilium acquired the Wahgnion and Boungou projects in Burkina Faso in June of the previous year, according to Bloomberg.
Endeavour had accused Lilium of failing to meet payment obligations exceeding $100 million. In response, Lilium alleged that Endeavour, a London-listed gold producer, had misrepresented the “financial position and operating capabilities” 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 provide a 3% royalty on up to 400,000 ounces of gold produced at the Wahgnion mine, according to a statement released on Tuesday.
Both companies have agreed to cease ongoing legal proceedings, including an arbitration case in London that has been active since March.
Endeavour expressed gratitude to the Burkina Faso government for its mediation efforts, while Lilium declined to comment.
Lilium Mining is a subsidiary of Lilium Capital, an investment firm founded by US-Burkinabe businessman Simon Tiemtore. Endeavour Mining continues to operate gold mines across Senegal, Ivory Coast, and Burkina Faso.
The transfer of the mines to the government of Burkina Faso is part of a broader trend in Africa, where governments, particularly those under military regimes, are increasingly asserting control over natural resources.
For example, in June, Niger’s military junta revoked the mining license of French state-owned company Orano at the Imouraren mine, one of the largest uranium mines in the world.
