How Segilola Gold, Thor UK, Criminally Stripped Osun Of Its Gold Assets – Govt

Mining and mineral resources exploration firm, Segilola Resources Operating Limited strategically annihilated the interest of Osun State in the ownership of assets in the mining sector, the Osun State Government has alleged.

The government is also accusing the company of influencing the Federal Ministry of Solid Minerals to approve its defiance of the non-payment of its financial considerations in the ownership of Tropical Mines Limited (TML) and eventual transformational acquisition by Thor Explorations Limited (Thor) UK between 2016 and 2019.

Financial Consultant to the Office of Mining and Mineral Resources, Dr Wale Bolorunduro, and Special Adviser to the Governor on Mining and Mineral Resources, Professor Lukman Jimoda, stated this in a joint press conference on the state of the state’s mining sector, on Thursday.

Osun Defender reports that the Segilola Gold Project is Nigeria’s most advanced gold project with an indicated resource of 608,000 ounces grading at 4.7g/t, an inferred resource of 68,000 ounces grading at 4.8g/t and a probable reserve of 518,000 ounces grading at 4.02 g/t. It is one of the highest-grade open pit gold projects in West Africa.

Bolorunduro and Jimoda said the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange have also contravened legal requirements on the remittance of its Personal Income Tax and Company Tax to the coffers of Osun State.

According the duo, Governor Ademola Adeleke and Mr. Segun Lawson have met severally, but efforts and demands of the state to realise its claims to the tune of N60 billion have not been met due to Segilola’s actions of misrepresenting Osun in the Ministry of Solid Minerals.

“It was Segilola Resources Operating Limited that carried out strategic annihilation of Osun State‘s interest in the ownership of the Tropical Mines Limited (TML) in 2016 and the eventual Commercial transaction of Transformational Acquisition by Thor Explorations Limited (Thor) UK, without due financial considerations to Osun State.

READ: ANALYSIS: How Segilola Mining Company Contravened Environment, Tax Laws In Osun

Osun Govt Accuses Mining Company, Segilola Of Environmental Degradation, Tax Evasion, Others

“While other legacy co-shareholders of Tropical Mines Ltd got financial considerations for the Commercial Transaction, which includes Shares in Thor Explorations Ltd UK and other financial considerations; Osun state got nothing, based on our review of the transaction, which commenced in early 2023.

“For the past twenty months, the company, Segilola has refused to honour its commitment to commence payments on the accrued financial considerations due to Osun state on the Transformational acquisition of Osun interest between 2016 and 2019. Even, when a tenor repayment plan payable over two years was offered by Osun state Governor to them to preserve the need to encourage the national and the state investment drives in the mining sector.

“The efforts and demand of Osun state to realize our claims, which is over 60 billions Naira in monetary value and Redeemable shares as financial considerations for acquiring Osun state’s interest in Tropical Mines Ltd have always been rebuffed by Segilola Operating Resources Ltd. At least four (4) meeting had been held with the Executive Governor, H.E Governor Adeleke and the CEO of SROL, Mr Segun Lawson in attendance and with promises made to commence payment. Only for the company to renege on its Promises and chose to go and misrepresent the state in Abuja, Ministry of Solid Minerals.

“At the initial stage of our claims, in early 2023, Segilola said we were not entitled to any shares of Thor Explorations Ltd UK; it was after confronting them with facts and figures that they agreed that Osun state has bonus shares, which is 5.1million shares of Thor Uk. We have said, assuming we take that share allocation without conceding, what about other financial considerations given to other shareholders, Segilola has been evasive and whenever, they appear, they always direct Osun state to Tropical Mines Ltd (TML), a company, whose assets had been stripped by Segilola without “winding it down”.

“So how can TML take liability to pay Osun State, again?. Directing us to TML offends our collective sensibility as people with culture and dignity. It is the responsibility of Thor UK to return the values which ought to have been given to Osun State abinitio. As co-shareholder in Thor, UK. Osun deserves to treated with fairness, equity and without prejudice to our interest. Let no mischief makers, political oppositions especially Osun APC spin it, in their usual dirty way.

“Recovering Osun interest and encouraging a global company, (though a junior Miner) to treat its co-shareholder properly is proper under company law and in any jurisdiction. The fact that Thor has admitted a shareholding proportion, which is significant in the Legacy Company, Tropical Mines Ltd makes Osun state a significant shareholder,” Bolorunduro and Jimoda’s statements reads in part.

Stressing that it has contacted Thor Explorations Ltd UK to compel the Company Secretary and Segilola Resources Operating Ltd to resolve the issues, Osun State Government also warned the mining firm to stop contravening the state’s environmental and tax laws.

“We have escalated our claims on Osun state’s shareholding interest to Thor Explorations Ltd UK, a publicly quoted company in London and Toronto stock exchanges. Our Expectation is that the Chairman of Thor Explorations UK will compel the Company Secretary and Segilola Resources Operating Ltd or its “Alter Ego” on the board of Thor to resolve the issues with Osun state by delivering our due considerations to us.

“That is the best global corporate governance practice, asking Osun state, a shareholder to wait again to do a meeting in another 30 days with Thor Explorations UK Board is tantamount to unfair treatment in a manner that is prejudicial to our interest and rights as shareholder.

“We salute the courage of our finding fathers, who invested Osun’s money and kept faith with the developmental works that enabled it to become an investible asset class.

“As a responsible government, we shall continue to monitor the environmental impacts of Segilola exploration, drilling, developmental, and mining activities because Environment is under the concurrence list of the Constitution of the Federal Republic of Nigeria (FRN).

“We will allow the Federal agencies to monitor this in line with its guidelines, while we expect Segilola Gold Project Operators to comply with the Osun state protocol on environmental impacts also. We have concerns in the area of high level of particulates in the air, possible acid drains from the waste rocks, etc. We have claims on environmental levy and we will soon publish our inspectorate report, once access is granted to the site.”

Efforts to reach the Segilola Resources Operating Limited (SROL) for comments on the development proved abortive as enquiries sent to the company’s email was yet to be replied at the time of filing this report.