Why is this ASX gold share jumping 7% on Friday?

Resolute Mining Ltd (ASX: RSG) shares are finishing the week on a positive note.

In morning trade, the ASX gold share is up 6% to 44.5 cents.

Why is this ASX gold share pushing higher?

This gold miner's shares are lifting today after it released another update on its operations in the West African nation of Mali.

As a reminder, earlier this month, the company's CEO, Terence Holohan, and two other employees, were detained in Mali by Government Officials. These executives were in the capital Bamako to hold discussions with the mining and tax authorities regarding general activities related to Resolute's in-country business practices, and to progress open claims made against Resolute.

Since then, the ASX gold share has come to an agreement, a rather costly agreement, to settle claims. Its employees have also been released safely.

In respect to the agreement, Resolute Mining executed a memorandum of understanding expressed as a protocol. This set the framework for further detailed discussions regarding the long-term future of the operations in Mali, including migration of the assets in Mali to the 2023 Mining Code and maintaining the safety of the company's employees.

In addition, the company agreed to settle all outstanding claims by the Mali Government, including those related to tax, customs levies, maintenance and management of offshore accounts.

This saw the ASX gold share agree to pay an initial settlement payment of approximately US$80 million to the Government, as well as future payments of approximately US$80 million to be made in the coming months from existing liquidity sources.

What's the latest?

This morning, Resolute Mining revealed that it has made the second settlement payment of approximately US$50 million to the Government of Mali.

The remaining payment of approximately US$30 million is anticipated to be paid by the end of 2024 from existing liquidity sources.

Resolute also advised that it remains focused on securing the long-term future of, and creating certainty for, the Syama Gold Mine and its expansion plans. Furthermore, the company remains committed to working collaboratively with the Mali Government together with all its stakeholders.

One positive during this difficult period is that operations at Syama continue as normal and have not been impacted.

Though, that is little consolation for shareholders who have experienced significant paper losses this month.

As things stand, the ASX gold share is on course to record a monthly decline of over 40% in November.

The post Why is this ASX gold share jumping 7% on Friday? appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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