Resolute Mining makes second payment to Mali militia under terms of deal that freed CEO, staff from detention

Resolute Mining has almost cleared a nearly $250 million tax debt deal that was thrashed out with Mali’s ruling militia to secure the release of three of its workers, including chief executive Terry Holohan.

The Perth-based African gold miner was forced to hand over $US80 million last Thursday as a condition of release for Mr Holohan and two staff who were detained in the capital Bamako on November 8 while visiting the country for talks with mining and tax authorities

Resolute revealed on Friday that it has now paid the second tranche of $US50 million ($123m).

As part of a deal to buy the trio’s freedom, Resolute had initially said it would be forced to make two payments of $US80m.

It now says the final $US30m will be settled by the end of the year. Payments to date of been made from existing cash reserves. the third will come from existing liquidity sources.

Resolute was just the latest in a string miners to be caught up in the impoverished West African nation’s attempts to milk more money from foreign players by pressuring them to renegotiate agreements under threat of losing their operating licences.

The dual-listed precious metals miner operates the Syama gold operation and had previously negotiated a so-called convention for the site that runs until 2029. It holds an 80 per cent stake in the mine in southwest Mali, with the government owning the rest.

“Resolute remains focused on securing the long-term future of, and creating certainty for, the Syama gold mine and its expansion plans,” the statement said.

“The company also remains committed to working collaboratively with the Malian government together with all its stakeholders.

“Operations at Syama continue as normal and have not been impacted.”

Mr Holohan and the two workers left Mali after their release but the latest statement from Resolute does not mention their current wellbeing.

Resolute’s shares have failed to recoup loses of more than 30 per cent since the drama unfolded earlier this month.

They opened trade on Friday at 41.5¢, well off the 67¢ they were fetching before the detention of its staff. They were up 3.6 per cent to 43¢ at 8..30am