5th Nov 2024 12:29
(Alliance News) - Kodal Minerals PLC on Tuesday saw its shares lose a quarter of their value as its revealed a tax dispute with Hainan Mining Co Ltd.
The West Africa-focused mineral explorer and developer responded to an announcement made by its partner Hainan Mining today which stated that the USD15 million in taxes owed to the Mali government by Kodal Mining UK Ltd and its subsidiaries is now Kodal's sole responsibility.
Shares in Kodal fell 19% to 0.32 pence on Tuesday afternoon in London.
Kodal Mining UK is owned 51% by Hainan and its subsidiary, Xinmao Investment Co Ltd, and 49% by Kodal Minerals.
Kodal stated that it was not consulted by Hainan on its announcement today, and its position is not consistent with previous discussions or correspondence between the parties and the Mali government.
It added that its understanding of the position reached "is that all parties acknowledged that the USD15 million payment would be borne by KMUK".
Kodal noted that further announcements will be made as necessary.
By Christopher Ward, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.