Fortuna exits Burkina Faso with $130m sale of Yaramoko mine
Canadian precious metals company Fortuna Mining has agreed to sell its Burkina Faso assets, including the Yaramoko gold mine, to privately held Soleil Resources International for a total consideration of about $130-million, marking a "prudent" exit from the West African country amid operational and geopolitical headwinds.
Under the terms of the definitive share purchase agreement announced on Friday, Soleil will acquire all issued and outstanding shares of Roxgold Sanu, which owns and operates the Yaramoko mine, as well as Fortuna’s three other subsidiaries holding exploration permits in Burkina Faso.
“Considering the limited remaining life of mineral reserves at Yaramoko (approximately one year), the cessation of our exploration activities in-country, and the increasingly challenging business climate in Burkina Faso, the transaction represents a prudent exit that optimises value, avoids approximately $20-million in future mine closure liabilities, and provides Fortuna with additional liquidity as we pursue opportunities more closely aligned with our strategic objectives,” said Fortuna president and CEO Jorge Ganoza.
“We believe that Soleil, as a private local company, is well positioned to continue operations at the Yaramoko mine to the benefit of employees and local stakeholders," he added.
The transaction includes a $70-million payment on closing and $57.5-million in cash dividends to be paid to Fortuna by Roxgold. Fortuna will also retain the right to receive up to $53-million in VAT receivables, contingent on certain conditions being met. Closing is expected in the second quarter of 2025, subject to customary approvals including consent from Burkina Faso’s Minister of Mines.
Soleil, based in Mauritius, operates three mines and holds multiple exploration permits in Burkina Faso, along with ownership of a drilling company.
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