West African Resources engages with Burkina Faso Government on equity stake
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The news: West African Resources (WAF) is talks with the government of Burkina Faso to discuss the government’s request to acquire an additional stake in WAF subsidiary Kiaka SA.
The context: The gold miner said it has proposed increasing national participation and government revenues from the development of new and previously closed mining projects in the country, as an alternative to purchasing a further equity interest in the Kiaka project.
WAF was suspended from trading on 28 August pending an announcement relating to a request from the Burkina Faso government to acquire “for valuable paid consideration” another 35% interest in Kiaka SA on top of its existing 10% stake.
WAF shares were meant to resume trading on 1 September but the ASX has suspended trading until “it is satisfied that [West African] is in compliance” with continuous disclosure obligations.
WAF said that the current discussions with the Burkina Faso government aim to promote “long-term sustainable growth in the country’s gold mining industry”, with a focus on national participation, job creation, and social benefits.
WAF said its operations across the Sanbrado and Kiaka projects remain unaffected and that following the announcement it aims to lift the suspension of WAF’s securities from trading.
