The West African Resources Ltd (ASX: WAF) share price is in focus today as the company clarified recent government moves regarding its Kiaka gold project in Burkina Faso. WAF reported that Burkina Faso's government is considering acquiring an additional 25% stake in Kiaka SA, but stressed that current operations remain unaffected and engagement with the government is ongoing.
Image source: Getty Images
What did West African Resources report?
- The Burkina Faso government is considering a draft decree to authorise acquisition of a further 25% equity in Kiaka SA.
- Talks are underway to ensure any changes respect WAF shareholders' and lenders' financial interests.
- Cooperation discussions continue between WAF and government-owned SOPAMIB for new mining projects.
- Operations at Sanbrado and Kiaka mines have continued as normal throughout these engagements.
What else do investors need to know?
WAF confirmed that while the government's interest in Kiaka SA has attracted media attention, there has been no final decision and talks are continuing in a constructive manner. Importantly, the ongoing discussions are focused only on Kiaka SA and do not affect WAF's other projects, like Sanbrado and Toega.
The company highlighted that, through SOPAMIB, the Burkina Faso government is interested in expanding national involvement in mining projects that can create jobs, spur economic benefits, and unlock greater value from the country's resources.
What did West African Resources management say?
Executive Chairman and CEO Richard Hyde said:
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. Operations at Sanbrado and Kiaka have continued unaffected throughout this engagement with the Government.
What's next for West African Resources?
West African Resources intends to maintain its collaborative approach in dealings with the Burkina Faso government and SOPAMIB. The main objective is to reach an agreement that balances government interests and provides value for WAF's shareholders and lenders.
Looking ahead, WAF remains committed to growing its mining operations in Burkina Faso. The company also sees opportunities for new joint mining projects with the government, focusing on sustainable industry development and local community benefits.
West African Resources share price snapshot
Over the past 12 months, the West African Resources shares have risen 109%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
