A Perth-headquartered gold mining company has agreed to give $247 million — more than its entire cash reserves — to the government of Mali after its chief executive and two other employees were detained by authorities in the West African country.
Resolute Mining CEO Terence Holohan and the other two employees were unexpectedly detained on November 8 in Mali’s capital of Bamako, at the conclusion of a meeting with government mining and tax officials.
The meeting was to progress what Resolute described as unsubstantiated open claims against the company regarding taxes, custom levies, maintenance and management of offshore accounts.
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To resolve the matter, Resolute said on Monday it had paid Mali $US80 million ($123 million) out of its $US157 million ($242 million) in cash reserves, and promised to pay another $US80 more in coming months.
As of October 31, Resolute had total cash and bullion of $US196 million, ($302 million), with a net cash balance of $US157 million ($242 million).
Resolute said it was working with the government on the remaining procedural steps to secure the release of Holohan and the other employees, all British citizens.
Resolute said last week they had been treated well and were receiving support from the UK and international embassies and consulates.
Resolute holds an 80 per cent stake in a subsidiary that owns the Syama Gold Mine in southwest Mali, with the government owning the other 20 per cent stake.
Mali has been ruled by a military junta since a 2020 coup, its third in 10 years.
Resolute shares on Monday were down 5.6 per cent to 38.25 cents, having lost 43 per cent of their value since the CEO’s detention.