April 18, 2025 – Vancouver / Accra / Ouagadougou
Amid tightening government control and growing political uncertainty across West Africa, Fortuna Mining (TSX: FVI, NYSE: FSM) has announced its complete withdrawal from Burkina Faso, divesting its ownership in Roxgold Sanu – operator of the Yaramoko gold mine – to Mauritius-based Soleil Resources International in a transaction valued at $130 million. The deal underscores a regional recalibration of mining rights and national sovereignty, as Ghana simultaneously orders the closure of Gold Fields’ Damang mine following a rejected lease renewal application.
Fortuna’s Exit: Strategic and Symbolic
Under the terms of the agreement, Soleil Resources will acquire all outstanding shares of Roxgold Sanu and associated subsidiaries. Fortuna will receive $70 million upon closing, a $57.5 million dividend, and up to an additional $53 million in VAT receivables, subject to certain conditions. INFOR Financial acted as the exclusive financial advisor to Fortuna.
“This is a prudent exit aligned with our strategic objectives,” said Jorge A. Ganoza, Fortuna’s President and CEO. “With only one year of reserves remaining at Yaramoko and a deteriorating business environment in Burkina Faso, this transaction avoids $20 million in closure liabilities and enhances our liquidity for more favorable jurisdictions.”
The Yaramoko mine, located in the Houndé greenstone belt, produced 116,200 ounces of gold in 2024. Fortuna had acquired the asset through its $884 million acquisition of Roxgold in 2021. The Vancouver-based firm will now focus on its core operations in Argentina, Côte d’Ivoire, and Peru, following its earlier exits from non-core assets in Mexico and El Salvador.
The sale also reflects a broader regional pivot: “Exiting Burkina Faso improves Fortuna’s jurisdictional profile,” said Mohamed Sidibé, mining analyst at National Bank Financial. “It positions the company to pursue high-return assets in more stable markets like Côte d’Ivoire, Guyana, and Peru.”
Soleil’s Expansion in Burkina Faso
The acquiring company, Soleil Resources International, is a privately held Mauritian entity with three active mines and a drilling business in Burkina Faso. As a local operator, Soleil is considered well-positioned to continue operations at Yaramoko with less geopolitical friction.
“Soleil’s acquisition reflects a broader trend of governments and local companies seeking greater control over mineral wealth,” noted a senior West African mining consultant.
Ghana Blocks Gold Fields’ Lease Renewal at Damang
The news of Fortuna’s exit follows closely on the heels of Ghana’s decision to reject Gold Fields Limited’s application to renew its mining lease at the Damang Gold Mine. The Johannesburg-based miner, which had transitioned Damang to stockpile-only processing in 2023, was formally instructed by Ghana’s Ministry of Lands and Natural Resources to vacate the site by April 18, 2025.
Gold Fields had sought an extension to continue limited operations, but the government declined. The company stated it is preparing for a safe and responsible closure. Damang was already being evaluated for divestment as part of Gold Fields’ strategy to focus on longer-life assets such as the Salares Norte project in Chile and the Windfall Joint Venture in Canada.
Rising Resource Nationalism in West Africa
The synchronized developments in Burkina Faso and Ghana point to a broader shift in West African Mining Policy, as governments reassess foreign participation in extractive industries. Burkina Faso has experienced successive military coups in recent years, and new regimes have signaled intentions to revise mining codes and demand higher in-country value retention. Ghana, while politically stable, is also tightening control, with an emphasis on maximizing local content and economic benefits.
“These moves represent a fundamental shift in host-country expectations,” said Dr. Kwesi Ampofo, head of metals and mining at BloombergNEF. “We’re seeing a transition from permitting foreign investment to dictating its terms – sovereign resource management is back on the agenda.”
Outlook
Fortuna’s divestment and Gold Fields’ exit from Damang may accelerate a realignment of capital flows in African mining. Analysts expect increased M&A activity, particularly involving local or regional players with stronger political ties and greater adaptability to evolving regulatory landscapes.
The West African gold sector, once dominated by large-cap foreign producers, is entering a new phase – one defined not only by ore grades and operating margins, but by geopolitics, governance, and grassroots legitimacy. Consequently, industry analysts suggest that any potential litigation by Gold Fields has limited prospects, considering Ghana’s established legal framework governing mineral concessions.
