Osun To Get Its Shares In Segilola – Adeleke

Osun State Governor Ademola Adeleke has disclosed that Thor Explorations Limited had produced a written certificate of the state shares in the Segilola Gold Project.

The governor said this on Monday in a statement by his spokesperson,
Mallam Olawale Rasheed.

Osun Defender reports that the state government accused Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange of various unethical business practices, including alleged tax evasion.

The government raised serious concerns about the operations of the company.

However, the governor in the statement commended the progress so far in the dispute with Thor Limited.

Adeleke affirmed that mediation so far has confirmed the reality of most demands by the state government.

Responding after receiving preliminary report from the state team led by the Special Adviser to the Governor on Mining and Mineral Matters, Prof. Lukuman Adekilekun Jimoda, the State Governor said it is great news that Segilola, the operator of Thor Explorations had also accepted the responsibility of opening all its accounting records for examination on the 3.25Billion Naira tax assessment by Osun state, in line with Personal Income Tax Act section 58 (2).

The statement quoted the governor as saying, “We finally have an open and direct confirmation of Osun shareholding at five percent of what Tropical Mines Limited got. I look forward to hosting the federal mediation team for the formal presentation of the share certificate to the state government, although our demand is five (5) per cent of the value of the gold asset when it was acquired by Thor Explorations from its interest holders. We also have additional economic interest, coming from Thor’s partnership offering when it took 88 cadastral units out of Osun’s exploration license.

“Our decision not to do under the table deal with Thors Explorations has paid off. From the beginning, I said I didn’t want gold bars for myself or my family. I want Osun shares as an asset of the state and the taxes to be paid into her treasury.

“We know other interest holders got cash and smelter fees during the acquisition by Thor, we are also insistent on immediate payment to the state treasury of the full amount due to the state from her interest in the gold project. The financial implications of our holding must be redeemed without further delay.”

Giving an update on the payment of tax indebtedness to the state by Thors Exploration Limited which required further documentation from the state, the statement said the Governor directed his team to submit all required data and records, insisting that “Osun has legitimate PAYE tax demands which Thors firm must fulfil.

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“I commend the federal mediation team for acting to enforce compliance with local tax and environmental laws. We are opposed to companies operating with impunity by neglecting observance of state laws. We are only asking Thors to comply with state laws as much as the federal laws. There are other asset classes in Nigeria that are registered with the Corporate Affairs Commission. MTN and Airtel are telecom asset classes, and they are registered in Nigeria; let Segilola Gold Project be registered in Nigeria.

“We will submit our environmental inspection report. We will show the world that even a billion dollars cannot achieve the remediation and rehabilitation of our damaged environment. It is actually worrisome that an internationally quoted mining company will neglect and attempt to evade the care for the environment it violated”, the Governor lamented.

Earlier, Prof. Jimoda had submitted a report of the mediation meeting between Thors’s management and the state government under the supervision of the intervention team set up by the Federal Minister of Mines Development, Mr Dele Alake.

He told the Governor that the meeting achieved significant milestones for Osun state, especially on the issue of shareholding, payment of monetary implications, continuous discussion on the exact tax indebtedness, as well as consensus on the need for environmental remediation.