Discussions continue over Burkina Faso government’s interest in Kiaka
West African Resources has acknowledged recent media reports following the publication of the minutes of the meeting of the Council of Ministers of the Burkina Faso government, held on February 19.
These minutes record the consideration given by the Council of Ministers to a draft decree to authorise the government to acquire an additional 25% equity stake in the capital of West African’s local subsidiary Kiaka SA.
Kiaka SA owns the recently completed Kiaka gold project in the country’s south-east.
The law in Burkina Faso requires an authorisation by decree, before the government may acquire an additional paid equity stake in the capital of an existing industrial mining company such as Kiaka SA.
Consideration of the draft decree comes in the context of West African’s continuing discussions with the government on its interest in increasing its shareholding in Kiaka SA on terms that respect the legitimate interests of all parties, including the financial interests of existing shareholders and lenders, the company points out.
The government has been represented in these discussions by its legal entity Société de Participation Minière du Burkina Faso (SOPAMIB).
In the course of these discussions, SOPAMIB has also reaffirmed the government’s interest in cooperating with West African on the development of new mining projects in Burkina Faso, which have the potential to increase national participation in the mining sector, create new jobs, deliver greater social benefits and unlock more value from Burkina Faso’s mineral resources, West African highlights.
The company says it will continue to engage constructively with SOPAMIB on these matters.
It points out that the Sanbrado and Toega operations have not been part of the discussions between the two entities.
“We appreciate the constructive engagement and continued support of the government of Burkina Faso. Our discussions with the government regarding the ownership structure of Kiaka and the potential for cooperation on new projects have reflected a shared vision to develop a strong and sustainable mining industry that benefits the Burkinabé people and delivers long-term value for all stakeholders,” West African executive chairperson and CEO Richard Hyde says.
He informs that operations at Sanbrado and Kiaka have continued unaffected throughout this engagement.