Australia’s Resolute Mining (RSG.AX) says it would pay $160 million to help the Malian government resolve tax issues after it detained CEO Terence Holohan and two employees in U.S. dollars this month as part of the deal.
Resolute is making an initial payment of $80 million from available cash and will raise about $8,000 from available resources next month.
Resolute shares fell 14.3 per cent to A$0.345 in early trading on Monday, their lowest level since March 1.
The company said last week that the jailed workers were negotiating with miners and tax authorities in Bamako, Mali, about the company’s overall operations.
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Resolute said in a statement that it was working with the Malian government to secure the release of the jailed workers, who were “safe and sound”, and that British and international organisations and agencies supported it.
In Mali, one of Africa’s biggest gold producers, a lockout of mining company employees, including some senior employees at Canada’s Barrick Gold Corp ABX.TO, has become part of a pattern in which the government is seeking to extract large sums of money from gold mining.
Resolute’s Syama gold mine in Mali is one of two gold mines it operates and is expected to generate nearly two-thirds of its annual sales through 2023, with 329,061 ounces.
“The Company notes that operations on site continue as normal and have not been impacted,” Resolute said in its statement.
