Thor Explorations denies tax evasion allegations from the Osun state government regarding its subsidiary, Segilola Resources Operating Ltd. The company claims that assertions of owing over 3.25 billion naira are incorrect and based on a lack of substantiation. A revised tax liability is suggested to be much lower. Thor is a major mining entity in Nigeria, operating the Segilola gold project, which has seen significant production since 2021.
Thor Explorations (TSXV: THX) (AIM: THX) has firmly rejected claims of tax evasion linked to its Nigerian subsidiary, Segilola Resources Operating Ltd. (SROL), which oversees the Segilola gold project in Osun state. The Osun state government recently accused SROL of significant tax dodging, specifically alleging that it owes over 3.25 billion Nigerian naira (approximately $1.9 million). Thor has labelled these accusations as “gross inaccuracies and false claims.” In light of these allegations, Thor Explorations has reached out to Nigeria’s mining ministry for a review of the statements made and aims to engage in discussions with the state governor. The company disputes the state’s tax claims, pointing out that the Osun State Internal Revenue Service has not provided a coherent breakdown of its assertions. Notably, Thor indicated that a letter from the OSIRS had adjusted the company’s tax liability from the initial claim to around 99.35 million naira (approximately $62,500) for the 2019-2024 period, which is under review. Established as a prominent mining entity in Nigeria, Thor brought the Segilola gold project into production in 2021, with an average output of 91,000 ounces of gold annually over its first two years, now expected to reach between 95,000 and 100,000 ounces in 2023. After these developments, Thor’s shares fell by 4.8% to C$0.30, resulting in a market capitalisation of C$207.2 million, with stock prices fluctuating between C$0.17 and C$0.35 over the past year.
Thor Explorations is a Canadian mining company that operates the Segilola gold mine in Osun state, Nigeria. The company has encountered allegations of tax evasion from the Osun state government, which claims that the subsidiary responsible for the mine has failed to meet its tax obligations. This controversy comes amid the company’s successful operational history, including significant gold production since the mine’s launch.
Thor Explorations has categorically denied the allegations of tax evasion made by the Osun state government, asserting that they are unfounded and unsupported by evidence. The company is proactively seeking to clarify these claims through communication with government authorities. Despite the controversy, Thor remains a key player in Nigeria’s mining sector, with strong production figures from its Segilola project.
Original Source: www.mining.com