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Resolute CEO still held in Mali, diplomatic sources say, as shares suspended

Resolute Mining CEO Terence Holohan and 2 other employees of the Australian company were still being detained in Mali on Thursday, 2 diplomatic sources there informed Reuters.

Resolute stated on Sunday that Holohan and the two other staff members had been temporarily detained by federal government authorities in the military-led West African country.

It has not supplied any further update on the circumstance.

The executives were in Mali's capital Bamako to hold conversations with mining and tax authorities relating to basic activities associated with the company's service practices.

Resolute's shares fell as much as 8.1% to A$ 0.395 on Thursday, their most affordable level given that late March, after Bloomberg reported that the Malian military junta was seeking at least $ 161 million from the company to settle a disagreement mainly concerning alleged back taxes.

Trading in Resolute shares was halted on the Australian Stock market and the company stated in a filing it will offer even more updates as and when proper.

It did not respond to a Reuters ask for comment.

In its declaration on Sunday, Resolute stated that the 3 executives had actually been going over dubious claims made versus the company throughout their meeting with the authorities.

Mali's junta adopted a brand-new mining code in August 2023 permitting the country to increase its ownership of gold concessions and recoup what it stated is a significant shortage in production incomes.

The relocation has strained relations with significant gold mining conglomerates running in Mali, which in addition to Resolute consist of Barrick Gold, the world's 2nd gold miner, and Canadian rival B2Gold.

Authorities in September briefly detained 4 Malian staff working for Barrick and have actually required at least $500 million in impressive taxes and dividends. The two celebrations are in talks.

(source: Reuters)