Resolute CEO still held in Mali, diplomatic sources say, as shares suspended

It has not provided any further update on the situation.

The executives were in Mali’s capital Bamako to hold discussions with mining and tax authorities regarding general activities related to the company’s business practices.

Resolute’s shares fell as much as 8.1% to A$0.395 on Thursday, their lowest level since late March, after Bloomberg reported that the Malian military junta was seeking at least $161 million from the company to settle a dispute mainly concerning alleged back taxes.

Trading in Resolute shares was halted on the Australian Stock Exchange and the company said in a filing it “will provide further updates as and when appropriate”.

It did not respond to a Reuters request for comment.

In its statement on Sunday, Resolute said that the three executives had been discussing “unsubstantiated” claims made against the company during their meeting with the authorities.

Mali’s junta adopted a new mining code in August 2023 allowing the country to increase its ownership of gold concessions and recoup what it said is a major shortfall in production revenues.

The move has strained relations with major gold mining conglomerates operating in Mali, which in addition to Resolute include Barrick Gold, the world’s second gold miner, and Canadian rival B2Gold.

Authorities in September briefly detained four Malian staff working for Barrick and have demanded at least $500 million in outstanding taxes and dividends. The two parties are in talks.

($1 = 618.0000 CFA francs)

(By Tiemoko Diallo, David Lewis, Alessandra Prentice, Jessica Donati, Felix Njini and Sofia Christensen; Editing by Alexander Smith)