29th Apr 2019 13:55
LONDON (Alliance News) - Oriole Resources PLC said Monday that it has received a repayment of GBP522,000 from Her Majesty's Revenue & Customs following the positive resolution of its value added tax dispute in 2018.
In 2017, the UK tax department ruled that the company's activities of supporting its overseas exploration operations could not be classed as an economic activity for VAT purposes and subsequently demanded that the company pay-back the VAT reclaimed in the UK since 2011. This led to a provision of GBP557,000 in the 2017 and a payment to HMRC of GBP593,000 in June 2018.
Subsequently, a resolution to the dispute was reached by the company during 2018, with HMRC reversing its decision.
The exploration company said the funding will be used to progress on the new-frontier gold exploration programme in Cameroon, as well as pursue other opportunities it is reviewing in Africa and Europe.
Oriole Resources Chief Financial Officer Bob Smeeton: "We are delighted to be able to report the receipt of this money, and the end of this long running dispute, which has been a costly distraction for over two years. The end of the dispute allows us to reduce professional advisor fees and provides funds for our continued exploration operations."
Shares in Oriole Resources were trading 6.8% lower at 0.29 pence each.
Related Shares:
Oriole Resources