Thor Explorations has paid a US$61,900 tax bill related to its Segilola gold mine in Nigeria amidst allegations of tax evasion totalling US$1.9 million, which the company denies as unfounded. Changes by the OSIRS reduced the initial tax estimate to align with the settled amount. The mine’s production remains unaffected with plans for increased output this year.
Thor Explorations (TSXV: THX; AIM: THX) has settled a US$61,900 tax bill linked to its Segilola gold mine in Nigeria’s Osun state, amidst allegations of tax evasion amounting to US$1.9 million from local press. The company refutes these claims, asserting they are inaccurate and unfounded, and highlights that it paid the tax debt despite having a 30-day review period. Thor has reached out to Nigeria’s mining ministry for clarification on the press statements and plans to engage with the state governor regarding the accusations. According to Thor, the Osun State Internal Revenue Service (OSIRS) had previously adjusted their tax estimate from US$1.9 million to approximately 99.4 million naira (around US$62,500) for the period from 2019-2024, aligning with the settled bill. Thor Explorations has been operational since 2021 and averages 91,000 oz. of gold production annually from the Segilola mine, aiming for an increase to 95,000-100,000 oz. this year. Recently, shares dropped 16%, trading at 29¢ and capitalising the company at $187 million, with the stock fluctuating between 17¢ and 35¢ over the past year.
Thor Explorations is a prominent mining operator in Nigeria with its Segilola gold project, which commenced production in 2021. The ongoing operations at Segilola aim for significant gold output, while the company also holds a majority stake in another project in Senegal. Taxation in the mining sector is crucial as it impacts operational costs and company relations with local governments. Allegations of tax evasion can affect investor confidence and market performance.
Thor Explorations has clarified its position regarding tax claims from the Osun state, asserting that the reported US$1.9 million tax evasion is unfounded. The company has settled its tax obligations for the period 2019-2024, contesting earlier estimates from local authorities. The mining operation continues unaffected, with future production projections remaining strong.
Original Source: www.northernminer.com