• Pasofino's Dugbe gold project in Liberia holds an estimated 71 tonnes of gold.

• The company faces scrutiny for unpaid mining fees totaling $3.48 million since 2019.

• Liberian authorities have issued an ultimatum, threatening to revoke Pasofino's mining agreement.

Pasofino Gold Inc. has encountered significant challenges in Liberia regarding its Dugbe gold project. The company, which estimated its flagship project could yield 2.3 million ounces (71 tonnes) of gold, struggles to meet its fiscal obligations, jeopardizing its future in the West African nation.

 On September 23, Pasofino disclosed a $12 million (C$12 million; $8.6 million) fundraising effort. The announcement comes against a backdrop of local backlash in Liberia, where the company has faced scrutiny for not settling mining rights related to its Dugbe gold project.

The company operates on a 1400 km² concession. In 2022, the company published a definitive feasibility study estimating Dugbe mine's potential production at 2.3 million ounces of gold (71 tonnes) over 14 years. Currently in the exploration phase, Pasofino must pay concession fees and social contributions.

However, a September 20 statement from the Liberian caucus of the African Parliamentary Network (APNIFFT) revealed that Pasofino has not honored these obligations since 2019, accumulating an estimated debt of $3.48 million.

Senator Francis Saidy Dopoh II, who chairs the caucus, condemned the situation, saying it sets a dangerous precedent by allowing a foreign multinational to renegotiate tax obligations after six years of non-compliance, while ordinary Liberians are prosecuted for tax defaults; he called for sanctions that could include removing the project from Pasofino.

Prior to this statement, the Liberian House of Representatives issued a 20-day ultimatum to Pasofino in August 2025. This ultimatum demanded the company settle its arrears, threatening termination of the 2019 mining agreement with Monrovia. However, following discussions with company management, the commission reportedly recommended that the Liberia Revenue Authority accept a payment plan instead of imposing sanctions, FrontPageAfrica reported.

Oumar Toguyeni, Pasofino's president, did not respond to requests for comment from our editorial team. The company’s September 23 press release stated that a portion of the raised funds would serve to "repay certain amounts due to the Government of Liberia."

Pasofino plans to submit its environmental impact assessment and community resettlement plan for approval by the end of 2025. Subsequently, the company indicates it will apply for a mining permit in the first quarter of 2026.

Beyond regulatory hurdles, the financing of the Dugbe project remains a critical concern. While Pasofino prepares an updated definitive feasibility study, the 2022 version estimated the project's total cost at $435 million. Pasofino might leverage its primary shareholder, Hummingbird Resources, which a company linked to Burkinabè businessman Idrissa Nassa's Coris Invest Group acquired this year.

This article was initially published in French by Emiliano Tossou

Adapted in English by Ange Jason Quenum