Resolute Mining Ltd (ASX: RSG) shares are crashing deep into the red on Monday morning.
At the time of writing, the ASX 300 gold stock's shares are down 32% to 45.5 cents.
What is going on with this ASX 300 stock?
Investors have been scrambling to the exits this morning following the release of a very worrying announcement out of the gold miner.
According to the release, the company has confirmed reports that its chief executive officer (CEO), Terence Holohan, and two other employees have been detained by Government Officials in Mali.
Resolute Mining is an African-focused gold miner. It notes that it has more than 30 years of experience as an explorer, developer and operator of ten gold mines which have produced more than 9 million ounces of gold and counting.
In Mali, it operates the Syama Gold Mine. It is a large-scale operation, comprising the established Syama Underground Mine, the Tabakoroni Complex, which comprises an open pit, and recently discovered underground Ore Reserve, along with several satellite oxide pits.
The company has previously noted that Syama is owned by local subsidiary Societe des Mines de Syama S.A. (SOMISY), in which the ASX 300 stock has an 80% interest and the Government of Mali holds the remaining 20%.
What happened?
Resolute Mining advised that the executives were in the West African country's capital, Bamako, for a meeting with the government. However, things went very wrong for unknown reasons and led to them being "unexpectedly detained." The release states:
The executives were in Bamako to hold discussions with the mining and tax authorities regarding general activities related to Resolute's in-country business practices, and to progress open claims made against Resolute, which the Company maintains are unsubstantiated. Following the conclusion of these meetings on Friday, 8 November 2024, the three employees were unexpectedly detained.
The good news is that the employees are being treated well and are receiving support. The ASX 300 stock adds:
Resolute's priority remains the safety and wellbeing of its employees. The Company is in regular communication with the three detained employees who remain held at the Economic and Financial Centre of Bamako (Pôle Économique et Financier de Bamako). The employees are being treated well and continue to receive support on the ground from the UK and International Embassies and Consulates. The Company is continuing to work with the Government on a resolution and will provide further updates on the situation as appropriate.
Judging by the way the Resolute Mining share price has crashed today, the market appears concerned what this could mean for the Syama operation.
The post Why is this ASX 300 stock crashing 32% on Monday? appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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