Avocet Mining entered into an agreement with Balaji Group to sell all of its assets to Burkina Faso, including the Inata gold mine.
Balaji Group, which already owns the Kalsaka mine in the north of Burkina Faso, will pay $2.5 million at the closing of the transaction slated for January 11, 2018.
The remainder of the money from the sale, which is $2.5 million, will be paid by installments.
Balaji Group plans to invest $26 million to revive the Inata mine and develop the Souma gold deposit.
The Inata mine produced 74,755 ounces of gold in 2015.
With more than 600 workers, who have been technically unemployed since May 2017, supplier debts of CFA35 billion, and over CFA2 billion due to the state, the Inata mine was in dire financial straits.
For nearly two years, Inata had been struggling with successive wildcat strikes by its staff, cash crisis and work stoppages.
Inata’s crisis has been discussed at a council of ministers meeting where the decision to find a buyer was made.
With the parent company in London, the government decided to target potential buyers in order to save the mine and preserve its jobs.