Burkina Faso’s Commercial Court of Ouagadougou has ruled against Toronto‑based Franco‑Nevada, nullifying its 2014 gold‑purchase agreement with Riverstone Karma and ordering the company to pay CFA 5.2 billion (about US$9.3 million), signalling the end of a decade‑long dispute — though Franco-Nevada says it will challenge the ruling.
In Sept. 2025, Riverstone launched a lawsuit against Franco‑Nevada and International Royal Corporation (formerly Sandstorm Gold Bank) in the Burkinabe courts. Riverstone said the 2014 gold‑purchase agreement should not be legally binding. Franco‑Nevada objected, arguing the court held no authority over the dispute — a position the court rejected.
In a news release issued on June 16, Riverstone announced that a judgment, ruling in its favour, had been issued earlier in the week. The company added that written reasons from the court are expected to follow soon.
Hours later, Franco-Nevada released its own statement, saying it was “aware of a news release issued by Riverstone announcing a local court decision in Burkina Faso purporting to nullify the stream agreement.” The company said it does not consider the Burkinabe ruling valid, arguing the agreement is governed by Ontario law. “Franco-Nevada is also pursuing its own legal remedies in Ontario and elsewhere,” the company concluded.
Riverstone operates the Karma Gold project, an open-pit gold mine located in northern Burkina Faso. The now-voided agreement involved up to US$120 million in a funding package from Franco-Nevada and Sandstorm in return for fixed annual gold deliveries and a perpetual percentage of gold production at a discounted price.
The ruling is yet another example of a mineral-rich African nation pushing back against foreign mining companies. It follows recent efforts across the continent — from Niger to Namibia and Zimbabwe — of nations using their courts and government regulations to assert control over natural resources.
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