RESOLUTE Mining said on Thursday its CEO Terry Holohan and two other employees had been released from the Economic and Financial Centre of Bamako, in Mali.
This ends a 10-day ordeal for Holohan and his colleagues who were detained by Mali government officials on November 10 following negotiations around tax claims Resolute said at the time were unsubstantiated.
On November 18, Resolute agreed to pay the Mali government $160m in terms of a “protocol” which also provides other claims related to customs levies, maintenance and management of offshore accounts.
The amount is more than Resolute’s cash on hand as of end-September which stood at $145.6m. The company has a total $250m in liquidity.
“All three employees are safe and well and have departed the country,” said Resolute in its statement today. “Resolute will provide further updates as and when appropriate,” it said.
Shares in Resolute traded nearly 6% lower on the Australian Securities Exchange on Thursday, taking losses for the month to nearly 54%.
The agreement between Resolute and Mali, termed a “protocol”, will not go down well with investors who have watched an increasingly heavy-handed approach by the country’s military junta.
After legislating the 2023 Mining Code, Mali set about negotiations with mining companies. Some agreed terms in Mali relatively quickly, such as Allied Gold and B2Gold.
Barrick Gold, however, had employees detained as it worked on its negotiations with the Mali government. They were released but the Toronto-listed company continues to negotiate a payment amid claims of $300m to $500m is owed in alleged unpaid taxes. Barrick paid $85m in early October to Mali “in the context of the ongoing negotiations”.
Barrick CEO Mark Bristow said on November 7 that he was prepared to cut a new economic deal with Mali. “We have been there for 20 years so it makes sense for Mali to get more than 50% of the economic benefits of mining,” he said. “We recognise the merit in that but it needs to be done in the proper way.”
He said that in return Barrick was seeking a stabilisation agreement related to mining licence renewals. A licence is due to be renewed at the firm’s 510,000 to 560,000 ounce a year Loulo-Gounkoto mine in Mali in 2026.
