18th Nov 2024 11:17
(Alliance News) - Resolute Mining on Monday said it has executed a memorandum of understanding with the Mali government amid a tax row and employee safety concerns.
Perth, Australia-based Resolute said the memorandum, expressed as a signed protocol, sets the framework for the firm's future operations in the country, with regard to both maintaining the safety of its employees and the migration of its assets in Mali to the 2023 Mining Code.
Last week Resolute revealed that three of its employees had been detained in Mali, including Chief Executive Officer Terence Holohan, over a tax dispute.
The government claims that Resolute, which owns the Syama gold mine in southwest Mali, owes the state XOF100 billion - approximately USD162 million - to settle the dispute over allegedly unpaid taxes.
Resolute said that pursuant to the protocol, it has utilised its cash reserves to pay an initial settlement fee of approximately USD80 million to the Mali government, adding that future payments of USD80 million will be paid in the coming months from existing liquidity sources.
Shares in Resolute were down 1.4% at 20.50 pence each in London on Monday morning. Shares closed 5.5% lower at AUD0.38 each in Sydney.
It added that the protocol provides that all outstanding claims by the government against the firm are settled, with more details on its nature and impact to be provided in due course.
Resolute noted that all three employees remain safe and that it is working with the Mali government to secure their release.
The firm confirmed its shares are no longer suspended on the Australia Securities Exchange following a halt initiated in connection with the dispute and added that its ground operations have not been impacted by the events.
By Christopher Ward, Alliance News reporter
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