ENDEAVOUR Mining said on Tuesday it had ended legal proceedings with Lilium Gold, a Burkina Faso company with which it had agreed in 2023 to sell its Boungou and Wahgnion mines.
In April Lilium alleged Endeavour has misled it about the “financial position and operating capabilities” of the mines. Lilium Mining is a subsidiary of Lilium Capital which is owned by West African entrepreneurs.
That followed a case filed in March by Endeavour before the London Court of International Arbitration. According to a report by Bloomberg News, the London-listed mining company said Lilium had missed payments totaling $107m in relation to a deal that it expected to eventually exceed $300m.
Endeavour announced today a settlement agreement had been signed in which it would receive a cash consideration of $60m comprising of $15m in an upfront cash payment, $15m payable by the end of the third quarter and a further $30m payable by the close of the fourth quarter.
A 3% royalty on up to 400,000 ounces of gold sold from the Wahgnion mine would also be paid to Endeavour.
In return Boungou and Wahgnion would be transferred by Lilium Gold to the State of Burkina Faso.
“On this basis, Endeavour and Lilium have agreed to cease the current legal proceedings against each other,” said Endeavour Mining. “Both parties would like to thank the Government of Burkina Faso for its mediation efforts,” it said.
