Aerial view of the Segilola gold mine. Credit: Thor Explorations Ltd.
Thor Explorations (TSXV: THX) (AIM: THX) rallied on Wednesday after an inter-ministerial committee in Nigeria dismissed allegations of business malpractice against the Canadian miner.
According to a report released by the fact-finding committee, the allegations of wrongdoing against Segilola Resources Operating Ltd. (SROL), Thor’s Nigerian unit, were “unfounded, and SROL has “complied with its legal and regulatory obligations” pertaining to the Segilola gold mine.
Shares of Thor Explorations hit a multi-year high of C$0.48 apiece on the dispute win, before settling to around C$0.46 by midday in Toronto. When news of the allegations first broke, the stock was trading at C$0.30 apiece. The company’s market capitalization is currently estimated at approximately C$314 million ($220 million).
The government of Osun state, where the mine is situated, previously accused SROL of evading millions of dollars in taxes and conducting business unethically, which the company denied.
In the report, the committee found that Osun state’s tax invoice to SROL, amounting to 3.25 million naira ($2.1 million), was “not valid and unsubstantiated.” Also, it recommended that the revised tax invoice of 98.35 million naira ($64,100) issued on Sept. 23, 2024, should be subject to a final reconciliation process “for an amicable resolution.”
In addition, the committee’s report also dismissed allegations of environmental pollution on the part of SROL.
Acquired in 2016, the Segilola mine represents Thor’s flagship project and sole producing asset. Since it came online in 2021, it has produced an average of 88,000 ounces of gold during the first three full years of operation.
