Endeavour Mining PLC on Friday said it has the closed the sale of its majority stakes in two ‘non-core’ projects in Burkina Faso, netting over $300 million.

The gold miner sold its 90% stakes in the Boungou and Wahgnion mines to Lilium Mining, part of African and frontier markets-focused investor Lilium Capital. Lilium is led by entrepreneurs in west Africa. The state of Burkina Faso owns the remaining 10%.

‘The total consideration is expected to exceed $300 million and is comprised of upfront and deferred cash considerations and net smelter return royalties,’ Endeavour added.

Endeavour explained that $130 million will be received by the end of the July, in the form of a reimbursement of old shareholder loans. It added that $25 million will be paid in two instalments as part of a deferred cash consideration.

There is also another deferred cash consideration, calculated at 50% of net free cash flow generated by Boungou, until $55 million has been paid. Endeavour expects that threshold to be crossed in the fourth quarter of 2024.

There also will be net smelter royalties at Boungou and Wahgnion, netting the FTSE 100 listing $52 million and $41 million, respectively.

Endeavour altered annual guidance following the sale. It 2023 output guidance has been cut to a range of 1.06 million to 1.14 million ounces of gold. It had previously predicted yearly production between 1.33 million to 1.43 million gold ounces.

Shares in the company fell 1.7% to 1,832.00 pence each in London on Friday morning.

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