Gold mining in Burkina Faso – Merger and Acquisition Activity

It may be hard to believe, considering Burkina Faso is now one of the fastest-growing gold producers in Africa, but back in early 2007 Burkina Faso had not seen any commercial gold production for several years. Since that point production has exploded with six mines coming into production – vaulting Burkina into its current position of fourth largest gold producer and third largest region for exploration in Africa.

These new gold mines contain impressive resources but are just the tip of the iceberg when you consider that a further 14 discoveries (including ours) have been made during this time.

Unsurprisingly, with all this exploration and development activity has come a considerable amount of M&A activity as well.  Here’s a sample of the activity in Burkina Faso in 2012

  • Nord Gold NV purchased the remaining 25% of High River Gold Mines Ltd. at  $1.40 per share in a deal that valued High River at $1.17 billion
  • Amera Mining Plc. purchased the Sega deposit from Orezone Gold Corp. for $26.5 M
  • A division of Newmont Mining Corporation was the successful bidder on the sale  of the formerly producing Poura Gold mine by the government of Burkina Faso (a consortium of Goldrush Resources Ltd. and Ampella Mining were second in this competition)
  • ROXGOLD Inc. underwent a change in management
  • Riverstone Resources Ltd. and Blue Gold Mining merged to fund continued advancement of the Karma gold project in an all share deal valued at $30.3M
  • Endeavour Mining Corp. acquired Avion Gold Corp. in a deal worth $389MWhat’s very clear from this activity is that mid and upper-tier mining companies have a keen interest in Burkina Faso gold assets….

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