AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- N60bn Dispute: Osun State is demanding over N60 billion from Thor Explorations UK and its subsidiary Segilola Resources for uncompensated loss of its stake in Tropical Mines Limited.
- Tax Compliance Issues: The state raised concerns over Segilola’s non-compliance with Nigerian tax laws, including PITA and CITA.
- Unsettled Negotiations: Despite multiple meetings, the company has not fulfilled its promises, complicating the resolution of the dispute.
The Osun State Government has demanded over N60 billion from Thor Explorations UK and its Nigerian subsidiary, Segilola Resources Operating Limited (SROL). The claim arises from what the state described as a lack of financial consideration for its stake in Tropical Mines Limited (TML) during the 2016 commercial transaction that saw Thor Explorations acquire control of the company.
According to Dr. Wale Bolorunduro, Financial Consultant to the Office of Mining and Mineral Resources in Osun State, Segilola Resources took strategic actions that led to Osun State losing its interest in TML without due compensation. While other legacy shareholders received shares and other financial benefits during the acquisition, Osun State reportedly received nothing from the deal. The state has been pursuing financial redress since early 2023, claiming that Segilola has failed to honor commitments to settle its dues.
The dispute centers on a transformational acquisition made between 2016 and 2019, where Osun State's stake in Tropical Mines Ltd. was absorbed by Segilola, now a subsidiary of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange. Despite several meetings between Osun State Governor Ademola Adeleke and Segilola’s CEO, Segun Lawson, no payment plan has been implemented. Bolorunduro highlighted that a proposed two-year repayment plan suggested by the Osun State Government was also disregarded.
Professor Lukman Jimoda, Special Adviser to the Governor on Mining and Mineral Resources, raised additional concerns regarding Segilola’s compliance with Nigerian tax laws. Jimoda pointed out that despite the significant production at the Segilola Gold Project since 2019, the company has failed to comply with key legislations such as the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA).
The Osun State Government expressed frustration over the company's non-compliance, asserting that Segilola’s actions undermine the state’s mining and investment efforts. Four meetings have been held between the state and Segilola, including discussions involving the Governor and top executives of the mining firm, but no resolution has been reached. The state government has accused the company of misrepresenting its stance in official discussions with the Federal Ministry of Solid Minerals in Abuja.
