West African slides after accepting new mining code in Burkina Faso
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More news: West African Resources was the worst performing ASX 200 company in early trading after the gold miner said it will align with Burkina Faso's new mining code. The move will see Burkina Faso's government increase its equity interest in the company's local projects from 10% to 15%.
West African shares were down 3.5% to $2.73 at 10:50am AEST, having surged more than 90% since the turn of the year.
West African, which holds three licences under Burkina Faso's previous mining code, said last year that the new code could threaten to cut short two of its mining permits in the country.
West African Resources agrees to lift Burkina Faso's stake, reiterates guidance
The news: West African Resources said it will align with Burkina Faso's new mining code, which will see the country's government increase its equity interest in the gold miner's local projects to 15%.
The numbers: Burkina Faso's interest in the miner's three operating projects Sanbrado, Kiaka and Toega will increase from 10% to 15%. West African said it is planning to implement the equity ownership changes this calendar year.
The company also reiterated its full-year production guidance of 190,000 to 210,000 ounces of gold at an all-in sustaining cost of below USD1,350 per ounce.
The context: West African said the decision followed extensive discussions with Burkina Faso's Ministry of Mines, as well as other mining industry stakeholders in the country.
The source: ASX
