Resolute Mining (ASX:RSG) has confirmed reports from over the weekend its CEO has been detained by the country’s junta government.
The reasons for why, exactly, aren’t clear. Reports indicate the CEO, Terrence Holohan, was arrested in the capital city of Bamako along with other two executives.
“The executives were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to Resolute’s in-country business practices, and to progress open claims made against Resolute, which the Company maintains are unsubstantiated,” Resolute wrote on Monday.
It was at the end of that meeting the three men were detained by surprise. Resolute oversees its Syama Gold Mine in the country which has an underground component.
Some reports allege Mali’s government has concerns regarding proper payment of taxes in the country.
Mali is currently under the authority of a government that came to power in 2020 by way of a coup and which, unfortunately typical of West Africa, runs itself as a military government.
This hasn’t happened in a vacuum. Just recently, the same government also detained executives of Barrick Gold Corporation, based in Canada. Mali’s junta government has recently been ramping up rhetoric to the tune of nationalising its mining sector – something not entirely unfamiliar for the Sahel region.
“The Company is in regular communication with the three detained employees who remain held at the Economic and Financial Centre of Bamako (Pôle Économique et Financier de Bamako),” the company further elaborated.
The pain for Resolute’s share price has been palpable.
As of late morning trade on Thursday shares are down -27.25% to 48cps. Shares closed at 67cps on Friday afternoon.
That brings the company’s market cap just hovering above A$1B.
RSG last traded at 47.5cps.
Join the discussion: See what HotCopper users are saying about Resolute Mining and be part of the conversations that move the markets.