Brightstar Resources (BTR:AU) has announced AME: Supreme Court of Western Australia approves Scheme
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The ongoing disputes between the Malian government and international mining companies continue to intensify as Barrick Gold (NYSE:GOLD,TSX:ABX) recently confirmed four Malian employees from its Loulo-Gounkoto mining complex had been arrested.
Barrick reported on November 26 that the employees had again been detained and charged pending trial. The company stated it refutes the charges, and said it remains committed to engaging with the government to reach a resolution that ensures the long-term viability of its operations in Mali.
This marks the latest development in a series of confrontations centered around Mali’s lucrative gold mining sector.
The new arrests come just weeks after Mali demanded US$162 million in back taxes from Resolute Mining (ASX:RSG,LSE:RSG) and detained its CEO, Terence Holohan, along with two senior executives, on November 8.
The detentions were linked to a sector-wide audit conducted by the government. Resolute denied the claims and stated that it had followed all official processes in response to the audit. However, the company ultimately agreed to the payments, and the government released the executives on November 21.
As of November 28, Resolute has paid US$130 million to the government, and plans to pay the rest by the end of the year.
As for the conflict between Barrick and Malian authorities, it has been ongoing since late September, when the same four employees were detained for the first time. Barrick and the government reached a preliminary agreement on September 30 to establish a framework for resolving disputes and increasing the state’s share of benefits from the Loulo-Gounkoto complex, resulting in the employees’ release.
However, on October 8, the Malian government announced it wanted at least US$512 million from the company, claiming outstanding taxes and dividends. Then, in late October, the Malian government accused the company of breaching commitments under an agreement designed to ensure a fairer distribution of mining revenues.
Barrick disputed these claims and emphasized that it had made a US$85 million payment to the government as part of its efforts to resolve outstanding issues.
However, negotiations have stalled in recent weeks, culminating in the new detentions.
Mali government’s efforts to restructure mining agreements
Mali’s military-led government has been pushing for greater control over the mining sector since it revised its mining code. It seized power in the country through a coup in 2020.
The updated framework requires foreign companies to cede more financial benefits to the state, which heavily relies on gold mining as a primary source of revenue.
The detentions of employees from Barrick and Resolute reflect the government’s changed stance in asserting its authority over the sector. Officials argue that increased revenue from mining is essential for national development, but the confrontational approach has raised concerns among international investors.
Resolute and Barrick are among the largest mining operators in Mali, and their disputes with the government could have far-reaching implications for Mali’s mining sector, which accounts for a significant portion of the country’s GDP and export revenue.
The heightened tensions are creating instability in the sector, and industry observers warn that the government’s actions risk alienating foreign investors, potentially affecting production levels and slowing future investment.
Barrick has highlighted its 30 year history of cooperation with successive Malian governments, and its president and CEO, Mark Bristow, is calling for continued dialogue to resolve the current impasse.
“Our attempts to find a mutually acceptable resolution have so far been unsuccessful, but we remain committed to engage with the government in order to resolve all the claims levied against the company and its employees and secure the early release of our unjustly imprisoned colleagues,” Bristowe said in the company’s most recent update.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Shares in a little-known drone company soared Wednesday after it announced that Donald Trump Jr. had joined its advisory board.
Unusual Machines, an Orlando, Florida-based firm born just two years ago as it acquired a drone manufacturer and a separate drone retailing firm, announced the appointment in an early-morning news release.
“Don Jr. joining our board of advisors provides us unique expertise we need as we bring drone component manufacturing back to America,” CEO Allan Evans said in the release. “He brings a wealth of experience and I look forward to his advice and role within the Company as we continue to build our business.”
Trump Jr., in the statement, also put the move in the context of the America First economic agenda of his father, President-elect Donald Trump.
“The need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts,” Trump Jr. said. “I love what Unusual Machines is doing to bring drone manufacturing jobs back to the USA and am excited to take on a bigger role in the movement.”
After Unusual Machines announced Trump Jr.’s move, its stock nearly doubled to more than $10 on heavy trading volume before it gave back some of the gains. It closed at $9.89 a share Wednesday afternoon. In May, the stock fell to as low as 98 cents.
According to a share offering detailed in a securities filing Wednesday, Trump Jr. is listed as having owned 331,580 shares of Unusual Machines. Of those, 131,580 shares were held because of his participation in a private placement offering of shares at a purchase price of $1.52 per unit.
Trump Jr. holds the remaining 200,000 shares as the result of a restricted stock unit agreement and advisory agreement, the filing says. Half of those shares can be immediately sold when the company’s board approves the agreements, and the rest will vest on May 22. The filing says “the Selling Stockholders may sell all, some or none of the offered Shares in this offering.”
Brian Hoff, the chief financial officer, declined to comment when asked what Trump Jr.’s advisory agreement will require of him.
Wednesday’s stock surge demonstrates the extent to which an association with the Trump name can transform an entity’s fortunes, for better or worse. During Donald Trump’s first term as president, his social media posts mentioning a company or one of its executives could cause shares to slide or jump, creating material risks or gains for investors.
Unusual Machines already had some momentum this month, having posted large gains after Election Day. Still, even with the share increases, its market value stood at a relatively meager $69 million as of early Wednesday afternoon.
Unusual Machines also finds itself potentially in the crossfire if President-elect Trump launches a new trade war with China. The company notes in the securities filing its heavy reliance on Chinese imports, which Trump now says would face punitive tariffs once he takes office. “If there are increased tariffs imposed, it could materially and adversely affect our business and results of operations,” the company said in a regulatory filing, warning of potential price increases.
An Unusual Machines spokesperson didn’t immediately respond to a request for comment.
In February, Unusual Machines closed its initial public offering of 1.25 million shares of stock for net proceeds of $3.85 million, according to CNBC.
When the company completed its IPO, it also acquired the drone brands Fat Shark and Rotor Riot from Red Cat. Jeffrey Thompson, the founder and CEO of Red Cat, is the founder and previous CEO and current board member of Unusual Machines.
In a recent regulatory note, Unusual Machines said it changed its accounting firm in April and “terminated its engagement with their prior auditor.” The firm in question was BF Borgers CPA, which also had been the auditor for Trump Media, the Truth Social parent company whose majority owner is the president-elect.
The Securities and Exchange Commission charged BF Borgers in May with “massive fraud” for work that affected more than 1,500 SEC filings. The auditor and owner Benjamin Borgers agreed to be permanently suspended from practicing as accountants before the SEC and to pay a combined $14 million in penalties.
Trump Media soon after retained a new auditor to replace BF Borgers.
Unusual Machines in its recent quarterly report said that its own new accounting firm re-audited the company’s prior financial statements and found that various transactions and stock compensation expenses weren’t recorded.
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