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Resolute Mining consents to pay $160 mln to Mali as CEO, workers stay apprehended

Australia's Resolute Mining stated on Monday that it would pay $160 million to Mali's. federal government to assist deal with a tax dispute after the West African. nation apprehended its CEO Terence Holohan and two other staff members. this month.

Resolute has actually made an initial payment of $80 million as part. of the settlement from existing cash reserves and will make. future payments of about $80 million in the coming months from. existing liquidity sources, it stated in a declaration.

Undaunted shares were down as much as 14.3% in early. trading on Monday to A$ 0.345, the lowest given that March 1.

The detained workers remained in Mali's capital Bamako to hold. discussions with mining and tax authorities relating to general. activities associated with the company's company practices, the. company stated last week.

Resolute is currently dealing with the Mali federal government to. launch the detained employees, who remain safe and well and. are getting support from the UK and global embassies. and consulates, the miner stated on Monday.

Mali is among Africa's leading gold producers and the detention. of mining business employees, which have likewise included some. senior local personnel at Canada's Barrick Gold, is. entering into a pattern as the federal government looks for to extract. more income from the sector.

Resolute's cash cow in Syama, Mali - one of its 2. operational mines - contributed nearly two-thirds of its yearly. sales of 329,061 ounces in 2023. Resolute owns an 80% stake in. the task, while Mali's federal government holds the rest.

The Business notes that operations on site continue as. typical and have actually not been impacted, Resolute said in its. statement.

(source: Reuters)