Resolute Mining Ltd (ASX:RSG, LSE:RSG) has agreed to pay the Mali government US$160 million to resolve a dispute about tax and offshore accounts that has seen its chief executive and two other senior managers detained in the capital Bamako.
The agreement sets out a framework for further detailed discussions with the Mali government over the future of its operations in Mali, the adoption of a new mining code brought in last year and maintaining the safety of the employees.
An initial settlement payment of approximately US$80 million has been made to the government from existing cash reserves, with future payments of approximately US$80 million to be made in the coming months from existing liquidity sources.
Resolute added it is it is working with the government on the release of the three employees, including the company's CEO, Terence Holohan.
They remain safe and well and continue to receive support on the ground from the UK and international embassies and consulates, it said.
Operations on site continue as normal and have not been impacted while trading on the Australian Stock Exchange has resumed.
Shares fell 3% to 20.2p.