Thor Explorations settles Nigerian tax bill, denies reports of tax evasion

Thor Explorations (TSXV: THX; AIM: THX) said Tuesday it immediately paid a US$61,900 bill for outstanding taxes presented yesterday by a state magistrate for its Segilola gold mine in Nigeria’s Osun state amid local press reports that the company has evaded taxed to the tune of US$1.9 million. Production at the mine has not been affected.

Local press have reported the state claims the company’s Segilola subsidiary has dodged around US$1.9 million in taxes and has been conducting business unethically — allegations the Canadian gold miner say contain “gross inaccuracies and false claims.” The company said it paid the tax bill it received yesterday even though it has a 30-day right to review it before paying.

Thor says it’s written to Nigeria’s mining ministry to review the statements made in the press and will seek dialogue with the state governor regarding the allegations.

Yesterday, Thor said the state’s claim that the company has dodged over 3.25 billion Nigerian naira (US$1.9 million) in taxes is “incorrect and unsubstantiated,” and the Osun State Internal Revenue Service has not provided a detailed breakdown of how this amount was determined.

It also said it recently received a letter from the OSIRS after a review of the records presented by the company revising the initial tax liability from US$1.9 million to roughly 99.4 million naira (around US$62,500) for the five-year period from 2019-2024. That amount is roughly the same as the tax bill it’s now settled.

Thor Explorations is one of the leading mining companies in Nigeria, having brought the Segilola gold project into production in 2021. The mine produced an annual average of 91,000 oz. of gold during its first two full years of production, and is expected to hit 95,000-100,000 oz. this calendar year.

The company also holds a 70% stake in the Douta gold project in Senegal.

Shares of Thor Explorations have lost 16% over the past five trading days. They traded at 29¢ in late morning in Toronto, giving the company a market capitalization of $187 million. The stock ranged between 17¢ and 35¢ over the past 52 weeks.