West African Resources Navigates Burkina Faso Government’s Push for Bigger Kiaka Stake
West African Resources confirms ongoing talks with Burkina Faso’s government over a proposed 25% equity increase in Kiaka SA, while maintaining steady operations at its key sites.
- Burkina Faso government seeks additional 25% stake in Kiaka SA
- Discussions involve government entity SOPAMIB and West African Resources
- Government interested in collaboration on new mining projects
- Sanbrado and Toega operations remain unaffected
- No financial terms or timelines disclosed yet
Government Moves to Increase Kiaka Stake
West African Resources Limited (ASX: WAF) has addressed recent media reports concerning the Burkina Faso Government’s intention to acquire an additional 25% equity stake in Kiaka SA, the company’s key gold mining asset. This move follows the publication of the Council of Ministers’ meeting minutes from 19 February 2026, which referenced a draft decree authorising the government’s increased ownership. Under Burkina Faso law, such acquisitions require formal government decree approval.
Ongoing Negotiations with SOPAMIB
The discussions are being conducted with the government’s legal entity, Société de Participation Minière du Burkina Faso (SOPAMIB), highlighting a cooperative approach. West African Resources emphasises that these talks aim to respect the financial interests of all stakeholders, including existing shareholders and lenders. The company also notes that the government has expressed a broader interest in partnering on new mining ventures within Burkina Faso, signalling potential growth opportunities beyond Kiaka.
Operational Stability Amidst Talks
Importantly, West African Resources reassures investors that operations at its Sanbrado and Kiaka sites continue unaffected during these negotiations. The company also clarifies that the Toega project has not been part of the current discussions, suggesting a focused dialogue on Kiaka’s ownership structure. Executive Chairman and CEO Richard Hyde highlighted the shared vision between the company and the government to build a sustainable mining industry that benefits the Burkinabé people and delivers long-term value.
Uncertain Terms and Future Implications
While the government’s interest is clear, the terms of the proposed equity acquisition remain undisclosed, with no financial details or timelines provided. This leaves questions about potential shareholder dilution, funding arrangements, and the impact on West African Resources’ strategic plans. The company’s commitment to constructive engagement suggests a willingness to find a balanced outcome, but investors will be watching closely for further official decrees and detailed disclosures.
Bottom Line?
West African Resources’ next moves will be critical in defining its partnership with Burkina Faso’s government and shaping the future of Kiaka’s ownership.
Questions in the middle?
- What financial terms will be agreed upon for the government’s increased stake in Kiaka?
- How might this equity change affect existing shareholders and lenders?
- Will cooperation on new mining projects lead to expanded operations or new capital commitments?
