Fortuna Mining has signed a deal worth around $130m to sell its stake in Roxgold Sanu, the owner and operator of the Yaramoko gold mine in Burkina Faso, to Mauritius-based Soleil Resources International (SRI).
This transaction effectively ends Fortuna Mining’s operational presence in the West African nation.
Under the definitive share purchase agreement, SRI will acquire all outstanding shares of Roxgold Sanu and other wholly-owned subsidiaries in Burkina Faso that hold exploration permits.
The financial arrangement involves an initial cash payment of $70m upon closing and an additional $57.5m from cash dividends distributed by Roxgold Sanu to Fortuna Mining.
Furthermore, Fortuna Mining might secure up to $53m from value-added tax receivables, contingent on certain conditions being satisfied.
The successful closure of this transaction is dependent on several conditions. These include the disbursement of the cash dividend by Roxgold Sanu to Fortuna, approval from Burkina Faso’s Minister of Mines, and standard closing conditions for transactions of this nature.
Completion of the transaction is anticipated in Q2 2025.
INFOR Financial provided financial advisory services to Fortuna Mining during this deal.
Fortuna Mining, which is a Canadian company, operates four mines and conducts exploration in Argentina, Côte d’Ivoire, Mexico, and Peru, including participation in the Diamba Sud Gold Project in Senegal.
The Yaramoko Mine is located within the Houndé greenstone belt in southwestern Burkina Faso and produced 116,206 ounces of gold in 2024. It comprises two underground mines, which are 55 Zone and Bagassi South.
These mines are characterised by high-grade orogenic gold deposits found within greenstone-hosted formations. As of 31 December 2024, reserves indicate that the mine has a remaining life span of approximately one and a half years.
Fortuna Mining president and CEO Jorge Ganoza said: “Considering the limited remaining life of mineral reserves at Yaramoko (approximately one year), the cessation of our exploration activities in-country, and the increasingly challenging business climate in Burkina Faso, the Transaction represents a prudent exit that optimizes value, avoids approximately $20m in future mine closure liabilities, and provides Fortuna with additional liquidity as we pursue opportunities more closely aligned with our strategic objectives.
“We believe that Soleil, as a private local company, is well positioned to continue operations at the Yaramoko Mine to the benefit of employees and local stakeholders”.
