West African gold producer Perseus Mining has executed a settlement agreement with BCM International and its subsidiaries in relation to a dispute between BCM and members of the Amara Mining Group. Amara was acquired by Perseus earlier this year.
The dispute related to claims made by BCM for contract mining services provided by the company at Amara’s now closed Kalsaka and Seguenega mines in Burkina Faso.
In terms of the settlement, Perseus Mining has agreed to pay BCM US$20 million, with $5 million payable immediately. The balance will be paid when various seizure orders in Cote d’Ivoire are lifted and court processes are withdrawn.
Perseus MD, Jeff Quartermaine commented: “We are pleased that this legacy issue from the Amara transaction has now been brought to a close and we can get on with implementing our growth strategy to transform Perseus Mining into a mid-tier gold producer.
“We are looking forward to start drilling at the Yaouré gold project in Côte d’Ivoire later this month and delivering a definitive feasibility study for it around the middle of 2017.”
ASX-listed Perseus Mining has established a business strategy that paves the way towards more than doubling its annual gold production over the next four years.
The company’s production journey since its primary asset Edikan started generating gold at the end of 2011 has had its fair share of ‘highs and lows’. However, Perseus Mining has conquered its operational challenges and is not only set to deliver on its annual production targets moving forward but is also now in a position to start implementing its well thought-out business strategy aimed at lifting its gold output to about 500 000 oz.
To reach this milestone target, Perseus Mining needs to bed down a number of smaller goals in the next few years, starting by driving productivity improvements at Edikan in order to maximise its business efficiency. With its primary operation delivering to expectation, the company can focus on elevating its status beyond a single mine, single country-focused gold junior.
“Changing our position to a multi-country focus company mitigates the associated geopolitical risks that exist in West Africa,” Quatermaine said.
Perseus Mining brought two new Côte d’Ivoire-based assets, Sissingué and Yaouré, into its portfolio when it acquired Amara this year. The company will execute its growth strategy by bringing them into production quickly and efficiently.