KEY POINTS
- Thor Explorations denies accusations of tax evasion by Osun state.
- Thor plans to meet with state officials to resolve discrepancies.
- Revised tax liability is now significantly lower than the original claim.
Thor Explorations (TSXV: THX) (AIM: THX) has denied the accuracy of reports alleging business malpractice at its Nigerian subsidiary, which operates the 100 percent-owned Segilola gold project in Osun state.
The Osun state government has accused Segilola Resources Operating Ltd. (SROL), the subsidiary, of evading taxes and conducting unethical business practices—allegations the Canadian gold miner described as containing “gross inaccuracies and false claims.”
Company seeks meeting with Osun State over claims
According to a report by Mining.com, Thor Explorations has written to Nigeria’s mining ministry to review the statements made and plans to seek dialogue with the state governor regarding the allegations.
The state claims that the company has avoided more than 3.25 billion Nigerian naira (approximately $1.9 million) in taxes, which Thor called “incorrect and unsubstantiated.”
The company also noted that the Osun State Internal Revenue Service (OSIRS) has not provided a detailed breakdown of how this amount was calculated.
Thor Explorations said that SROL recently received a letter from OSIRS. The letter followed a review of the company’s records. It revised the initial tax liability to about 99.35 million naira ($62,500). This revised amount covers the five years from 2019 to 2024.
The company is currently reviewing this figure as part of its normal course of business.
Segilola Gold project remains in production despite controversy
Thor Explorations is one of the leading mining companies in Nigeria. The company brought the Segilola gold project into production in 2021. The mine produced an annual average of 91,000 ounces of gold in its first two full years. It is expected to produce between 95,000 and 100,000 ounces this year.
Shares of Thor Explorations were down 4.8% at C$0.30 by 12:15 p.m. ET Monday, giving the company a market capitalization of C$207.2 million. The stock has traded between C$0.17 and C$0.35 over the past 52 weeks.
