- Because of the level of production and the lifespan of the mines
- Lilium Mining, the buyer is a junior gold producer in Africa
- No major staff changes planned for the time being
- Endeavour commits to 12-month transition
- Endeavour stays in Burkina Faso with the Houndé and Mana mines
- A sale announced since March 2023
On 30 June 2023, Endeavour Mining announced the sale of Boungou and Wahgnion, two of its four mines in Burkina Faso. The 02 mines have been acquired by Lilium Mining, a junior gold producer founded by the Lilium Group and run by experienced natural resources professionals.
The Wahgnion mine is located in the Cascades region and the Boungou mine is located in the Eastern region. These sales are “part of Endeavour’s active portfolio management strategy to focus management efforts on key assets”, according to a press release issued by Endeavour mining. This management strategy takes into account criteria such as production levels and mine life. As part of this strategy, it is trying to sell its mines to national investors from the host countries. “The Waghnion and Boungou mines will have a more solid future as part of an Africa-focused junior gold producer capable of providing targeted management. The new owners are Lilium Mining, an African gold mining company,” said Endeavour Mining’s management.
According to Endeavour CEO Sebastien de Montessus, “We are delighted to be selling our Wahgnion and Boungou mines to an African gold mining company that shares our commitment to operating these mines in the best interests of employees and local stakeholders. Furthermore, we believe that Lilium Mining is well placed to continue to create value in the Boungou and Wahgnion mines for the benefit of all stakeholders. We are confident that Burkina Faso will continue to benefit from the potential of these two mines now owned by Lilium Mining“.
As part of the transaction, Endeavour has entered into a transitional services agreement for up to 12 months, which means that Endeavour will remain in close partnership with Lilium Mining while they begin to operate Wahgnion and Boungou. Endeavour remains in Burkina Faso with its other 02 mines, namely Houndé and Mana, as well as these exploration projects. The company will continue to support the socio-economic development of the regions where its mines are located.
The management of Endeavour Mining today, 30 June 2023, reassured all employees of the quality and experience of the new owners. The assets have been handed over to a partner they believe is capable of operating in the current environment. In this sale, they are confident that Lilium Mining’s experienced management team will continue to exploit the potential of Boungou and Wahgnion to the benefit of all stakeholders. No major personnel changes are planned at this time.
The sale of these mines was announced in March 2023 by Sébastien de Montessus, Chairman and CEO of Endeavour Mining, at the company’s 2022 results presentation last week.
In this presentation, he referred to the deterioration in national security. As a result of this situation, Endeavour suffered a depreciation which resulted in an overall loss of 1.04 dollars per share. These depreciations concerned Wahgnion and Boungou, which recorded a net reduction in their reserves. As their assets were considered “non-core”, the decision was taken to dispose of these 2 mines in order to maintain the quality of the Group’s portfolio and increase geographical diversification.
Endeavour Mining is a gold producer in West Africa, with operating assets in Senegal, Côte d’Ivoire and Burkina Faso. The company has a strong portfolio of advanced development projects and exploration assets in the Birimian formations of West Africa’s highly prospective greenstone belt. Endeavour is listed on the London and Toronto stock exchanges.
Elie KABORE
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