Hummingbird agrees to pay Mali $16.4m in back taxes

HUMMINGBIRD Resources said it had agreed to pay Mali $16.4m and waived VAT claims worth another $16m in return for the renewal of “key” exploration permits on the Yanfolila gold mine.The state, which has been run by an unelected military junta since 2020, has also exercised its right to increase its shareholding to 20% from a previously held 10% holding. Mali updated its mining code last year to enact this ownership right.Hummingbird, which is in the process of being taken private after running into severe financial problems, said it was in negotiations with its main lender CIG SA to help it finance the payment $16m to Mali of which half must be paid in five working days. The balance is due to the government by June 30 this year, it said.Mali’s demands already compound a difficult situation for Hummingbird which announced last year a change in management and then a takeover offer from its majority shareholder, Nioko, totalling of 2.6777 pence per share in cash.Hummingbird had struggled to ramp up its newly built Kouroussa mine in Guinea whilst also running into operating problems at Yanfolila.“This agreement represents a significant milestone in our relationship with the Government of Mali and provides a stable framework for our continued operation and development of the Yanfolila Gold Mine,” said Geoffrey Eyre, drafted in to run Hummingbird on an interim basis while its operations are stabilised.Mali is currently embroiled in a standoff with Barrick Gold, one of its largest investors, over tax claims. While Barrick is seeking to negotiate, the junta has instead seized gold stock at the Loulo-Gounkoto mine and issued a warrant of arrest for the group’s CEO Mark Bristow.Barrick confirmed eariler this week that it had suspended production at Loulo-Gounkoto, a a 510,000 to 560,000 ounce a year operation which accounts for around 14% of its 2025 estimated gold output.After meeting with authorities on tax claims for its Mali operations, Resolute Mining’s CEO Terry Holohan was detained for 10 days, along with two colleagues. After their release, Resolute agreed to pay Mali $160m.The post Hummingbird agrees to pay Mali $16.4m in back taxes appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com