Resolute Mining down 10% on first US$80M payment to Mali’s government

Resolute Mining (ASX:RSG) – the miner whose CEO was recently detained in Mali by its junta government – has paid up its first US$80 million.

According to Cboe Live pricing at 10.30am Sydney time, the stock was down 10%, to 36cps, in the first half hour of today’s trades.

The government was confirmed late last week to be asking Resolute for US$160M; to that end, the company has now paid the first half the owed sum.

(For those playing at home, that’s A$123M.)

Interestingly, Resolute reported it’s inked an MOU with Mali’s junta government outlining it intends to play ball with the latter’s demands.

The company on Monday wrote its MOU – “expressed as a protocol,” whatever that means – sets the field for “further detailed discussions” around its long-term operations in Mali, the safety of employees, and that all outstanding claims by the government are settled.

Talk about an unfamiliar use of an MOU.

“Resolute confirms it is working with the government on the remaining procedural steps for the release of the three employees, including the Company’s CEO Terence Holohan,” Resolute wrote on Monday.

“They remain safe and well and continue to receive support on the ground from the UK [embassy].”

RSG last traded at 36cps. It was worth 82cps on October 31.

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