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Highlights:
- Second Instalment Paid: Resolute Mining has paid the Mali government $50 million as part of a $160 million tax settlement.
- CEO and Executives Released: The settlement follows the release of detained executives, including CEO Terence Holohan.
- Operations Uninterrupted: Mining activities at the Syama Gold Mine have continued unaffected during the dispute.
Resolute Mining Ltd (ASX:RSG, LSE:RSG) confirmed its second payment of $50 million to the Mali government, marking continued progress in resolving a $160 million tax settlement. This follows negotiations held earlier this month in Mali’s capital, Bamako, after the detention of the company's CEO Terence Holohan and two other senior executives.
Settlement Background and Progress
The tax dispute emerged over the company’s business practices in Mali, prompting Resolute to engage in high-stakes negotiations. As part of the agreement, Resolute committed to three instalments, having already paid $80 million earlier. The remaining $30 million is expected to be settled by the end of 2024.
The release of the executives a week ago signaled progress in the negotiations, allowing the company to move forward with its commitments under the settlement.
Syama Gold Mine Operations Unaffected
Resolute's flagship Syama Gold Mine, responsible for nearly two-thirds of the company’s annual gold sales, has maintained uninterrupted operations throughout the dispute. The mine, located in southern Mali, is a critical asset for the company and the region’s economy, emphasizing Resolute's ability to sustain production amid challenging circumstances.
Market Reaction and Future Prospects
Shares in Resolute Mining opened 8% higher, reflecting positive sentiment following the announcement. The stock rose by 1.76p to 23.56p in early trading, buoyed by investor confidence in the company’s ability to manage its obligations while maintaining operational stability.
Resolute’s focus remains on meeting the final installment of the settlement while ensuring smooth operations at Syama. This resolution marks a significant milestone in stabilizing the company’s relationship with the Mali government and strengthening its position as a key player in the West African mining sector.
