Endeavour Mining Signs Settlement with Lilium Gold
Endeavour Mining's Settlement with Lilium Gold
Endeavour Mining plc (LSE:EDV, TSX:EDV, OTCQX:EDVMF) and Lilium Gold have entered into a significant settlement agreement regarding the divestment of the Boungou and Wahgnion mines, involving the State of Burkina Faso. This agreement marks a pivotal moment for both companies as they conclude ongoing legal proceedings and enhance their operational frameworks for the future.
Details of the Settlement Agreement
According to the settlement agreement, Lilium will transfer ownership of the Boungou and Wahgnion mines back to the State of Burkina Faso. This arrangement will result in Endeavour Mining receiving substantial financial compensation as part of the divestment process. The total cash consideration amounts to $60 million, structured as follows:
Cash Consideration Breakdown
The cash consideration includes:
- A $15 million upfront cash payment.
- An additional $15 million payable by the end of Q3 2024.
- A final $30 million installment due by the end of Q4 2024.
Royalty Agreement
In addition to the cash payments, Endeavour will receive a 3% royalty on up to 400,000 ounces of gold sold from the Wahgnion mine. This arrangement is designed to provide Endeavour with ongoing revenue linked to the mine's future performance.
Mutual Benefits and Collaboration
This agreement signifies not only the cessation of legal disputes between Endeavour and Lilium but also represents a collaborative effort that acknowledges the intervention of the Government of Burkina Faso, which played a crucial role in mediating the discussions between the two parties. Both Endeavour and Lilium expressed gratitude towards the government for its efforts in facilitating a positive outcome.
About Endeavour Mining
Endeavour Mining is recognized as one of the world’s leading gold producers, holding a prominent position as the largest operator in West Africa. The company boasts a diverse portfolio that spans across several countries, including Senegal, Côte d'Ivoire, and Burkina Faso. Endeavour is committed to sustainable mining practices and aims to deliver long-term value to its stakeholders and the communities surrounding its operations.
Responsible Mining Commitment
As a member of the World Gold Council, Endeavour adheres to the principles of responsible mining. The company strives to create sustainable impacts through its mining practices, ensuring that local communities benefit from its operations. Endeavour is publicly traded on the London and Toronto Stock Exchanges under the symbol EDV.
Contact Information
For more insights or inquiries regarding this settlement or Endeavour Mining's operations, stakeholders can reach:
Jack Garman
Vice President, Investor Relations
+44 203 011 2723
jack.garman@endeavourmining.com
Brunswick Group LLP in London
Carole Cable, Partner
+44 207 404 5959
ccable@brunswickgroup.com
Frequently Asked Questions
What is the nature of the settlement between Endeavour and Lilium Gold?
The settlement involves the transfer of ownership of the Boungou and Wahgnion mines from Lilium to the State of Burkina Faso, with Endeavour Mining receiving financial compensation and a royalty agreement.
How much is Endeavour Mining receiving in the settlement?
Endeavour Mining is set to receive a total of $60 million in cash as part of the settlement, plus a 3% royalty on gold sold from the Wahgnion mine.
What role did the Government of Burkina Faso play in this agreement?
The Government acted as a mediator between Endeavour Mining and Lilium, facilitating discussions that led to the successful resolution of their legal proceedings.
What is Endeavour Mining's position in the gold industry?
Endeavour Mining is one of the largest gold producers in West Africa and is committed to responsible mining and sustainability in its operations, contributing positively to local communities.
How can I get more information about Endeavour Mining?
For additional details about Endeavour Mining and its operations, interested parties can contact Jack Garman or Carole Cable using the information provided above.
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