An Australian mining company, Resolute Mining, says it will pay Mali's military government $160m (£126m) to settle a tax dispute, after the company's British boss and two other staff were unexpectedly detained 10 days ago.

The Australian miner agreed to settle a tax dispute as it seeks to secure the release of its chief executive and two other employees detained in the West African country.

Chief Executive Terence Holohan and two other employees have been detained by government officials in Mali, where the Australian company runs gold-mining operations.

Resolute Mining has reached a $160mn settlement with the Malian government to resolve a tax dispute that led to the detention of its chief executive in the African country. On Monday morning the Anglo-Australian gold miner said it had signed a memorandum of understanding with the government to settle claims related to tax,

Resolute Mining (ASX:RSG) – the miner whose CEO was recently detained in Mali by its junta government – has paid up its first US$80 million. According to Cboe Live pricing at 10.30am Sydney time, the stock was down 10%,