Resolute Mining has inked an agreement to hand over more than $247 million to ensure the release of its chief executive and two staff members being held by Mali’s military junta.
In a statement to the ASX on Monday, the gold miner confirmed it had executed the agreement as part of its ongoing discussions with the Mali’s military-led government about the future of its operations in the African country.
Resolute Mining chief executive Terry Holohan is detained in a hotel in Bamako.Credit: Resolute website
The deal, set out as a “protocol”, stipulates the migration of the company’s assets to Mali’s new mining code and provides that outstanding claims against the company are settled — including tax, custom levies and maintenance of offshore accounts.
The Australian-headquartered miner confirmed it had already handed over about US$80 million (AUD$123 million) to the government from existing cash reserves and would make a further US$80 million payment in coming months.
The company did not reveal how soon it expected the three to be released.
Resolute insisted the trio — including the miner’s chief executive Terence Holohan — were safe and well and receiving support from international embassies.
The news comes one week after it confirmed the three employees had been detained in Bamako after a meeting with mining and tax authorities regarding claims made against the company.
It also follows the introduction of a new mining code by the military-led government, a bid to increase local ownership in an industry dominated by foreign companies and increase royalty revenue.
The company entered a trading halt on Thursday ahead of the announcement, which caused the miner’s share price to dip 10 per cent from 40 cents to 36 cents.
The miner’s stock has almost halved since the trio’s detention, wiping more than $570 million off the value of the $1.4 billion company.
Resolute holds an 80 per cent stake in Syama, the large-scale underground gold mine it operates in the country’s south-west.
The remaining 20 per cent is held by the Mali government, with the commodity accounting for almost three-quarters of the nation’s export revenue.
It comes after employees from fellow gold miner Barrick Gold were detained for several days back in September as a result of a dispute with Mali authorities.
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