Sierra Rutile, an ASX-listed firm, confirmed on Thursday its ongoing negotiations with the Sierra Leone government. The discussions center around the potential renegotiation of the terms outlined in the Third Amended Agreement’s Area 1 fiscal regime.
Earlier this year, Sierra Rutile indicated that the Sierra Leone government had intentions to review these fiscal terms. However, any modifications would necessitate the company’s agreement.
These dialogues began in this year’s third quarter.
The Third Amendment Agreement plays a pivotal role in Sierra Rutile’s operations at Area 1, particularly preceding any development initiatives for its Sembehun project.
In the company’s semi-annual report concluding in June, Sierra Rutile informed its shareholders about uncertainties. Concerns over the continuation of the Third Amendment Agreement’s tax concessions for Area 1 influenced the decision to postpone the Mogbwemo Tails project. Coupled with adverse market conditions, these concerns prompted a deduction of A$28.8 million against Area 1’s tangible and intangible assets.
