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Thor Explorations (TSXV: THX) (AIM: THX) has denied the veracity of press reports alleging business malpractice at its Nigerian subsidiary that holds the 100% owned Segilola gold project in Osun state.
The Osun state government is alleging that Segilola Resources Operating Ltd. (SROL), the subsidiary, has been evading taxes and conducting business unethically, which the Canadian gold miner says contain “gross inaccuracies and false claims.”
In response to these reports, Thor Explorations has written to the Nigeria’s mining ministry to review the statements made and will seek dialogue with the state governor regarding the allegations.
According to Thor, the state’s claim that the company has dodged over 3.25 billion Nigerian naira (approximately $1.9 million) in taxes is “incorrect and unsubstantiated”, and the Osun State Internal Revenue Service (OSIRS) has not even provided a detailed breakdown of how this amount was determined.
The company also says SROL recently received a letter from the OSIRS after a review of the records presented by the company revising the initial tax liability from the aforementioned amount to roughly 99.35 million naira (approximately $62,500) for the five-year period from 2019-2024. The company is reviewing this figure as part of its normal course of business, it adds.
Thor Explorations represents one of the leading mining companies in Nigeria, having successfully brought the Segilola gold project into production in 2021. The mine produced an annual average of 91,000 ounces of gold during its first two full years of production, and is expected to hit 95,000-100,000 ounces this calendar year.
Shares of Thor Explorations traded 4.8% lower at C$0.30 apiece by 12:15 p.m. ET Monday, giving the company a market capitalization of C$207.2 million. The stock ranged between C$0.17 and C$0.35 over the past 52 weeks.
