(Bloomberg) -- Endeavour Mining Plc and Lilium Mining settled legal proceedings over the sale of two African gold mines, with the assets to be transferred to the Burkina Faso government.
The two companies were in dispute following Lilium’s purchase of the Wahgnion and Boungou projects in the West African country in June of last year.
Endeavour previously said Lilium missed payments totaling more than $100 million. Lilium accused the London-listed gold producer of misrepresenting the “financial position and operating capabilities” of the mines.
Under the settlement, Lilium will transfer ownership of the mines to Burkina Faso, Endeavour said in a statement Tuesday. The government will pay $60 million to Endeavour and a 3% royalty on up to 400,000 ounces of gold produced at the Wahgnion mine.
Endeavour and Lilium “have agreed to cease the current legal proceedings against each other,” the statement said. The firms have been involved in an arbitration case in London since March.
Lilium declined to comment. The company is a subsidiary of Lilium Capital, an investment firm founded by US-Burkinabe businessman Simon Tiemtore. Endeavour operates gold mines across Senegal, Ivory Coast and Burkina Faso.
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