Resolute Mining Ltd on Friday said it has made a further payment to the government of Mali as part of its dispute resolution.
Perth, Australia-based Resolute said the second payment of $50 million has been made from existing cash reserves, as part of a $160 million settlement.
The remaining payment of $30 million is anticipated to be paid by the end of 2024 from existing liquidity sources, the firm added. An initial $80 million payment was made last week.
The settlement is part of a deal struck with Mali authorities regarding the long-term future of Resolute’s operations in the country.
This includes migration of the company’s assets in Mali to the 2023 Mining Code alongside maintaining the safety of all employees.
Earlier this month, Resolute Chief Executive Officer Terence Holohan and two of his colleagues were ‘unexpectedly detained’ over a tax dispute with the government.
The three executives were in the Malian capital Bamako for discussions with mining and taxation authorities, after which they were arrested and taken to the military junta’s specialised unit for corruption and financial crimes.
The government claimed that Resolute, which owns the Syama gold mine in southwest Mali, owes the state XOF100 billion - around $162 million - to settle the dispute over allegedly unpaid taxes.
Resolute holds 80% of a subsidiary that owns the Syama mine, with Mali holding the other 20%.
The executives were subsequently released.
The agreement also provides that all outstanding claims against the company, including those related to tax, customs levies, maintenance and management of offshore accounts are settled.
Discussions with the government of Mali are ongoing, Resolute said.
Resolute said it remains focused on securing the long-term future of, and creating certainty for, the Syama gold mine and its expansion plans.
Operations at Syamam continue as normal and have not been impacted, it added.
Shares in Resolute Mining rose 7.8% to 23.50 pence each in London on Friday morning.
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