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Resolute Mining (ASX:RSG) has become wrapped up in the latest surprise resources policy shift from an African junta government, that of Guinea’s.
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This is yet another blow for Resolute in relatively recent history, seeing as the company was thrust into the spotlight last year when it effectively had to pay the nation of Mali a ransom to get its CEO back.
(Mali’s junta government wanted US$160 million.)
The company’s share price still hasn’t recovered from that debacle, and now it has a new headache in Guinea.
Three permits the company holds in that jurisdiction (Niagassola, Doko and Siguiri-Kouroussa) are believed to have wrapped up in a wide-sweeping withdrawal of exploration licences throughout the country.
Yesterday, Predictive Discovery reported exploration permits it held were among 129 permits revoked by Guinea’s government earlier this week with no fanfare and, reportedly, no notice to companies holding those permits.
Now, Resolute has confirmed it has similar assets in Guinea – currently halfway transferred to AngloGold – which have also been subject to the move.
But the company was keen to acknowledge it hadn’t actually heard anything from any representative of Guinea’s government.
“Resolute Mining has been made aware of media reports relating to the possibility of a large number of exploration permits being revoked in Guinea,” Resolute wrote on Thursday.
“Details of these were mentioned earlier this week during a local Guinean television report, including those permits held by Resolute.”
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“The company, however, has not received any formal confirmation or communication from the Government of Guinea on the matter. The company is seeking further information and clarification from the government.”
RSG last traded at 61cps.
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