Resolute Mining shares lower on $250m settlement with Mali government
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Resolute Mining fell on the ASX after the mining group said it would pay the Malian government nearly $250 million as part of ongoing discussions around the future of its operations in the country.
Resolute shares were down 3.7% by 12:20pm AEDT, having shed more than 40% since Malian authorities detained the miner's chief executive Terence Holohan and two other employees last week.
Resolute Mining to pay Mali govt $250m as CEO remains detained
The news: Resolute Mining said it is continuing to negotiate the release of three detained employees, including CEO Terence Holohan, after signing a protocol with the Malian government for further discussions over the future of the mining group's operations in Mali.
The numbers: As part of the protocol, Resolute has made an initial settlement payment of USD80 million ($123.8 million) to the Malian government from existing cash reserves, with future payments of USD80 million to be made in the coming months from existing liquidity sources.
The context: ASX-listed Resolute said it is working with the Malian government on the remaining procedural steps for the release of its employees, who were detained by government officials last week.
The company said they remain safe and well and continue to receive support on the ground from the UK and international embassies and consulates.
Resolute noted that the new protocol lays the foundation for discussions over the migration of its assets in Mali to the 2023 mining code and maintaining the safety of the company's employees.
The protocol also provides that all outstanding claims by the government against the company, including relating to tax, customs levies, maintenance and management of offshore accounts, are settled.
Resolute, listed on the ASX and the London Stock Exchange and is valued at under $1.5 billion, and holds an 80% stake in the Syama gold mine, with the Malian government owning 20%.
The source: ASX announcement
