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Australia's Resolute Mining drops after Mali detains CEO, two other staff members

Shares of Australian gold miner Resolute Mining Ltd plunged 32% on Monday in their worst day in 16 years, after 3 of its staff members consisting of CEO Terence Holohan were detained by federal government authorities in Mali.

Holohan and two other company executives remained in Bamako, the West African nation's capital, to hold talks with the local mining and tax authorities concerning their operations however were suddenly detained on Friday, the company stated.

Shares of the gold miner slumped as much as 32% to A$ 0.455,. their worst day because October 2008 on Monday. The stock was down. 30.6% at A$ 0.465, as of 0242 GMT.

More than 38.5 million shares have been exchanged so far,. more than twice the monthly average volume of 14.8 million. shares.

The executives' detainment follows Malian authorities likewise. arresting top gold miner Barrick Gold's 4 workers. in late September, and highlights growing stress in between the. military-led authorities and the international miners.

Mali is one of Africa's biggest gold manufacturers and the. government led by junta, which staged a coup in 2020, is looking for. to transport a greater share of gold income to state coffers. consisting of by means of a new mining code that allows the government to. increase its stake in gold jobs.

Resolute's gold mine in Syama, Mali - one of its only two. operational mines - contributed nearly two-thirds of its annual. sales of 329,061 ounces in 2023. Resolute owns 80% stake in the. project, while the Federal government of Mali holds the rest.

Resolute has actually followed all official procedures with respect. to its affairs and has provided the authorities with in-depth. actions to all the claims made, the gold miner stated in an. exchange filing.

(source: Reuters)