A London-listed gold mining company has agreed to pay Mali’s military government $160m (￡126m) after its British boss was detained by authorities.

Resolute Mining has signed a deal to settle all claims linked to taxes and the operation of its Malian mine following a dispute with authorities in the West African country.

The settlement comes after Resolute’s chief executive, Terence Holohan, and two other employees were “unexpectedly detained” in Bamako, Mali’s capital, more than a week ago.

Resolute said it was still in negotiations with Mali’s government about the release of its executives. All three executives who were detained are British nationals.

Mr Holohan and the two other executives were apprehended after talks with authorities about taxes, custom levies, and the maintenance and management of offshore accounts.

Mali, which has been under military command since a 2020 coup, reportedly demanded that Resolute Mining pay back taxes and renegotiate terms over the Syama gold mine, the company’s largest asset.

It comes after Mali, one of Africa’s biggest gold producers, last year rewrote its mining code to extract higher revenues from companies by taking larger stakes in their mining projects.

Resolute Mining, which has shares listed in London and Australia, last week insisted that the Malian arguments were “unsubstantiated”. However, on Monday it said it had now agreed to pay $160m to settle all the claims.

The company has paid $80m to Mali’s government from its existing cash reserves and promised to pay a further $80m in the coming months from “existing liquidity sources”.

The company added: “Resolute further confirms that it is working with the government on the remaining procedural steps for the release of the three employees, including the Company’s CEO, Terence Holohan, who were recently detained in connection with these matters.

“They remain safe and well and continue to receive support on the ground from the UK and international embassies and consulates.”

Resolute Mining said it would hold further discussions with Mali’s government about the long-term future of its operations in the country. This includes aligning the company’s assets with Mali’s new mining code and maintaining the safety of its employees.

The company said it will share further details about the memorandum of understanding signed with Mali’s government following further legal and financial analysis.

Resolute Mining said that its operations in Mali will continue as normal and have not been impacted.

The company’s shares resumed trading in Sydney on Monday following a temporary suspension last week. Its Australian stock is down more than 40pc since the news of Mr Holohan’s detention.