West African Resources (ASX:WAF) has responded to recent media reports regarding the Burkina Faso Government's intent to increase its stake in the Kiaka Gold Project.
The company confirmed that a draft decree is under consideration by the Council of Ministers to authorise the state to acquire an additional 25% equity interest in Kiaka SA, the entity managing the project.
WAF clarified that the developments are part of ongoing, constructive negotiations with the government’s legal mining entity, SOPAMIB.
The company emphasised that any final agreement must respect the interests of existing shareholders and lenders while aiming to enhance national participation in the mining sector.
WAF noted that its other key assets, Sanbrado and Toega, are not part of these specific equity discussions.
WAF Executive Chairman and CEO Richard Hyde expressed support for the government's vision, stating that the dialogue reflects a shared commitment to creating long-term value for the Burkinabé people.
He further reassured investors that operations at both Sanbrado and Kiaka have remained unaffected throughout this engagement process.
At the time of reporting, West African Resources' share price was $3.50.