Thor Explorations’ shares surged after a Nigerian committee cleared its subsidiary of any wrongdoing related to the Segilola gold mine, labelling the allegations “unfounded.” The committee also challenged tax claims and confirmed SROL’s compliance with legal obligations, resulting in a rise in market capitalisation.
Thor Explorations experienced a significant increase in share prices following the rejection of fraud claims by a Nigerian committee regarding its operations. The report confirmed that Segilola Resources Operating Ltd. (SROL) had adhered to all legal requirements related to the Segilola gold mine, deeming the allegations against it “unfounded.” Following this news, shares rose to C$0.48 before settling at C$0.46, up from C$0.30 at the time of the allegations. Currently, the company’s market cap stands at around C$314 million ($220 million).
Previously, Osun state’s government accused SROL of tax evasion and unethical practices, claims that have now been dismissed. The committee found the original tax bill of 3.25 million naira ($2.1 million) “not valid,” and suggested a reconciliation process for a newly issued amount of 98.35 million naira ($64,100). Furthermore, SROL was cleared of allegations regarding environmental pollution.
The Segilola mine, acquired in 2016, is Thor’s primary project, producing an average of 88,000 ounces of gold annually since its operation began in 2021, signalling its critical role in the company’s revenue stream.
The dismissal of allegations against Thor Explorations has positively impacted its stock performance and validated SROL’s compliance with legal standards. The favourable findings suggest a promising future for Thor’s operations in Nigeria, particularly at the Segilola mine, which continues to be a key asset for the company.
Original Source: www.mining.com