Randgold looking to the future in Mali

JERSEY, CHANNEL ISLANDS--(Marketwired - Oct 26, 2016) -  Randgold Resources (LSE: RRS) (NASDAQ: GOLD)

RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
NASDAQ Trading Symbol: GOLD

RANDGOLD LOOKING TO THE FUTURE IN MALI

Bamako, Mali, 26 October 2016 - In the current climate of global economic and political stress, it is more important than ever for African governments to engage with their investors in a spirit of genuine partnership, Randgold Resources chief executive Mark Bristow said here today.

Speaking at a briefing for local media, Bristow said Randgold's contribution to the treasury and people of Mali, where it operates the Loulo, Gounkoto and Morila mines, was a striking example of the tangible benefits the country was enjoying from Randgold's continuing investment there.

"In the 20 years we have been in Mali, we have invested FCFA 1.5 trillion ($2.8 billion) here and contributed FCFA 2.5 trillion ($4.7 billion) to the country's economy in the form of taxes, royalties, salaries, payments to local suppliers and community initiatives. The scale of our involvement in Mali, and the fact that we are still actively looking for new opportunities here, testifies to our faith in the country, our belief in partnering with the government and our philosophy of sharing the value we create with the state and the people," Bristow said.

"Even the most successful partnerships are tested from time to time, and over the years we have had a number of disputes with the Malian tax authorities. Until now, we have always found solutions acceptable to both parties through constructive negotiation, although within our establishment conventions we have the right to settle any disputes that may arise through an international arbitration tribunal. We are still disputing the tax assessments for 2011, 2012 and 2013, however, and we were disappointed when in the midst of our efforts to settle this issue amicably, the government closed down our Bamako office and our Malian bank accounts, and demanded a further payment as a condition of their reopening. To demonstrate our good faith, and our sympathy with the financial difficulties the country is currently experiencing, we have agreed to an advance of FCFA 15 billion ($25 million) on the understanding that both parties will soon sit down to arrive at a final and global solution to all the Randgold group tax issues. Any overcharges in the disputed assessments will be returned to us at the end of this process."