RE: Separate company23 Jul 2022 11:17
From the 2019 Code minier Mali (translated from french)
Article 65 : As soon as the Grande Mine Operating Permit is awarded, the holder begins the steps for the creation of a company under Malian law. The company may hold only the operating permit for which it was created.
The State participates in the newly created company up to 10% free of all charges. This participation may not be diluted even in the case of a capital increase; and related actions are considered as priority actions. The holder of the research permit is required to transfer the operating permit free of charge to the operating company as soon as it is created.
When, in respect of a year, an accounting net profit is recorded by the General Meeting of the operating company, the latter votes to pay a priority dividend to the State, equal to 10% of the said profit less only the amounts allocated in legal reserves in accordance with applicable law, in respect of its free participation provided for in the preceding paragraph.
The terms and conditions for the payment of this priority dividend are laid down in the decree implementing this Code.
The State has a right of option for an additional participation of up to 10% in cash, which will not be taken into account for the determination of the priority dividend rate. The amount, subscription price and date of exercise of this option will be determined by agreement of the parties on the basis of an evaluation of the project.
Notwithstanding the foregoing, the State may hold an unlimited contributory shareholding in the capital of the operating company of a deposit for which the State has invested from the research and identification phase of the deposit.
GLA and DYOR
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