11:05 AM EDT, 08/27/2024 (MT Newswires) -- Endeavour Mining ( EDVMF ) said Tuesday it signed a settlement agreement with Lilium Gold involving Burkina Faso and related to the divestment of the Boungou and Wahgnion mines.

Under the agreement, Lilium will transfer the ownership of the Boungou and Wahgnion mines to Burkina Faso. Endeavour will receive $60 million in cash and a 3% royalty on up to 400,000 ounces of gold sold from the Wahgnion mine.

The cash consideration is composed of a $15-million upfront cash payment, $15 million payable by the end of the third quarter and $30 million payable by the end of the fourth quarter.

Endeavour and Lilium have agreed to cease legal proceedings against each other.

National Bank of Canada maintained its outperform rating and $50.75 price target on Endeavour following the news.

The bank said the consideration was below the $200-million carrying value by Endeavour, which is expected to write down $115 million in its third-quarter financial results.

National Bank said its thesis for Endeavour is supported by discounted valuation, stable production outlook from a diversified portfolio and multiple pipeline opportunities, tempered by jurisdiction risks.

Endeavour shares were last seen up $0.04 to $29.30 on the Toronto Stock Exchange.

Price: 29.33, Change: +0.07, Percent Change: +0.24