Hummingbird Resources has successfully negotiated a settlement with the Mali government regarding tax matters and secured operational agreements for its Yanfolila gold mine. Meanwhile, Barrick Gold has halted all operations in the country after the government seized its gold stocks.
Hummingbird Resources has reached an agreement with the Government of Mali regarding the application of the 2023 Mining Code to the company's Yanfolila gold mine. The agreement includes a settlement totaling $16.4 million payable in two equal installments, with the first due within five working days of signing and the second by June 30, 2025. Additionally, the company has agreed to waive historical VAT credit claims in the sum of $16.
4 million, collectively settling all tax and customs matters prior to December 31, 2023. Hummingbird, via its Malian subsidiary, Société des Mines de Komana SA (SMK), also commits to providing a comprehensive operating plan that addresses capital investments to maximize production and extend the life of the mine. The government has confirmed its commitment to renew key exploration permits and extend the Komana Mining Permit parameter, supporting the company's broader strategy in Mali. The government has also exercised its option to increase its ownership in SMK to 20% from 10%, effective immediately. 'Hummingbird is in advanced discussions with CIG SA to secure additional funding to meet the company's financial obligations for the first payment to the government pursuant to the agreement,' it said on Wednesday. 'Through constructive dialogue with the government, we have addressed historical matters while securing important operational agreements that support our long-term investment in the country.' 'The renewal of exploration permits and extension of our mining permit perimeter demonstrates Mali's commitment to our partnership,' interim chief executive Geoff Eyre said. It's not all smooth sailing for miners in Mali. Yesterday, Barrick Gold confirmed that it will suspend all operations in the country after the government seized around $245 million in gold stocks from the Loulo-Gounkoto complex over the weekend. Barrick confirmed that the Mali government had moved 'the existing gold stock from to a custodial bank,' further preventing it from shipping and selling its gold. On Monday, Hummingbird released a recommendation that shareholders accept the takeover by its creditors in a debt-for-equity swap to avoid insolvency. Following the takeover by Nioko, Hummingbird will be delisted from London's Aim market
MINING MALI HUMMINGBIRD RESOURCES BARRICK GOLD TAX SETTLEMENT GOLD STOCKS OPERATIONAL AGREEMENT TAKEOVER
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