Resolute Mining CEO Terry Holohan and two execs released by Mali junta after $250m tax deal buys their freedom

Resolute Mining has confirmed three workers — including chief executive Terry Holohan — have been freed by the ruling military junta in Mali after the gold producer agreed to stump up a tax demand of almost $250 million. Mr Holohan and two executives were detained on November 8 while visiting the capital Bamako for talks with mining and tax authorities. The miner on Thursday afternoon confirmed their release in a brief statement to the market following foreign media outlet reports. “Resolute Mining confirms that the company’s CEO, Terence Holohan, and the two other employees, have been released from the Economic and Financial Centre of Bamako, in Mali,” the statement read. “All three employees are safe and well and have departed the country. “Resolute will provide further updates as and when appropriate.” Resolute shares closed down 5.8 per cent to 40.5¢ on Thursday. Resolute is not the first miner to be stung by authorities of the impoverished West African nation, which is attempting to squeeze more money from foreign miners by pressuring them to renegotiate agreements at the risk of losing their operating licences. The Perth-based company on Monday said it hoped a first payment of $US80 million ($124m) was moving it closer to a deal that would secure the trio’s freedom. Under a “memorandum of understanding expressed as a protocol”, it will be forced to cough up another $US80m in coming months. The first has been paid through existing cash reserves. The second will be paid in “coming months from existing liquidity sources”. The deal will settle all outstanding claims by the government against the company — including those related to tax, customs levies, maintenance and management of offshore accounts. The company noted in its September quarter update released at the end of last month that it held net cash of $145.6m. Resolute operates the Syama gold mine and had previously negotiated a so-called convention for the site that runs until 2029. It holds an 80 per cent stake in the mine in southwest Mali, with the government owning the rest. “The signing of the protocol sets the framework for further detailed discussions with the government regarding the long-term future of the operations in Mali, including migration of the company’s assets in Mali to the 2023 Mining Code and maintaining the safety of the company’s employees,” Resolute said on Monday. Over the past few months, Mali’s authorities have also threatened to reclaim Barrick Gold’s Loulo mine permit when it expires in 2026. CEO Mark Bristow has said his company is discussing a “mutually acceptable outcome” with Mali’s leaders. Allied Gold and B2Gold have also recently announced agreements that will govern the future operations of their Sadiola and Fekola projects in the country. They will pay about $US116 million and $US204 million, respectively, to the state under the deals.