West African’s gold mine stake dispute with Burkina Faso’s rulers unresolved despite flagged ASX return

West African Resources wants to return to the trading boards after “constructive” talks with Burkina Faso’s leaders, but the elephant in the room remains.

The Subiaco-based gold miner on Tuesday stated Burkina Faso’s junta has “shown its support” by committing to an “outcome that respects the legitimate interests of all parties”.

The military dictatorship in late August proclaimed its desire for an extra 35 per cent stake in the Kiaka gold mine for what is very likely to be a price below market value. It had already upped its free carry stake in the mine from 10 to 15 per cent just two months prior.

“WAF submitted a proposal to the government to increase both national participation and government revenue from the development of new and previously closed mining projects in Burkina Faso, as an alternative to purchasing a further equity interest in the Kiaka project,” the company stated on Tuesday.

But it appears Burkina Faso’s rulers are still hungry for a bigger slice of Kiaka.

“WAF will also work cooperatively with (Burkina Faso’s government) regarding (its) request to acquire an additional equity interest Kiaka, in a manner that respects the financial interests of existing shareholders and lenders.”

Kiaka is WAF’s key avenue for growth given the Sanbrado mine — also in Burkina Faso — is reaching maturity.

The September quarter marked Kiaka’s first in production, with 32,869 ounces of gold produced but only 18,254 ounces sold. Sanbrado produced 59,852oz and sold 57,638oz.

Share in WAF have been in a trading suspension since the start of September.

The company’s statement on Tuesday “is intended to lift the suspension”.