By: Ecofin agency

Pasofino Gold Inc. is facing significant challenges with its Dugbe gold project in Liberia. The company, which estimated its flagship project could yield 2.3 million ounces of gold, is struggling to meet its fiscal obligations, jeopardizing its future in the West African nation.

On September 23, Pasofino disclosed a $12 million fundraising effort. This announcement occurs amidst local backlash in Liberia, where the company has faced scrutiny for not settling fees related to its mining rights.

A 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, calling for sanctions that could include removing the project from Pasofino's control.

Prior to this, the Liberian House of Representatives had issued a 20-day ultimatum in August 2025, demanding the company settle its arrears under threat of terminating the mining agreement. Following discussions, a parliamentary commission reportedly recommended that the Liberia Revenue Authority accept a payment plan instead of imposing sanctions.

Pasofino's September 23 press release stated that a portion of the raised funds would be used to "repay certain amounts due to the Government of Liberia." The company plans to submit its environmental impact assessment by the end of 2025 and apply for a mining permit in early 2026.

Beyond regulatory hurdles, financing the Dugbe project remains a critical concern. The 2022 feasibility study estimated the project's total cost at $435 million. Pasofino might seek support from its primary shareholder, Hummingbird Resources, which was acquired this year by a company linked to Burkinabè businessman Idrissa Nassa's Coris Invest Group.