By: Creamer media

Kiaka SA owns the recently completed Kiaka gold project in the country’s south-east.

The decree details that additional shareholding by Sopamib in the share capital of Kiaka SA is set at 25%, with a value of CFAfr70-billion, or about A$175-million.

It also indicates that the Ministers of Economy and Finance, and Energy, Mines and Quarries are responsible, each within their jurisdiction, for the implementation of the decree.

The publication of this decree follows extensive discissions with West African Resources regarding the ownership structure of its Kiaka gold operations.

On April 16, the government published the decree, following a meeting of the Council of Ministers held on February 19 that considered a draft decree to authorise its acquisition of an additional 25% equity interest in Kiaka SA.

The company says it will work cooperatively with the government to finalise the terms of Sopamib’s acquisition of a 25% shareholding in Kiaka SA.

It aims to have this completed by the end of this year.

West African Resources plans to distribute the cash proceeds received from the sale of the 25% interest in Kiaka back to shareholders by way of a special dividend.

The company’s Sanbrado and Toega operations are not the subject of a request for additional participation by the Burkina Faso government and are not referred to in the decree.

“Publication of the decree removes uncertainty regarding the government’s interest in Kiaka.

“Our discussions with Sopamib have been extensive and robust. During these discussions, we have also explored opportunities for a mutually beneficial long-term partnership on advanced gold projects within Sopamib’s current portfolio,” West African Resources executive chairperson and CEO Richard Hyde says.