Aim-listed exploration company Oriole Resources has received a repayment of £522 000 from Her Majesty’s Revenue and Customs (HMRC), in the UK, following the positive resolution of a value-added tax (VAT) dispute.
“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,” Oriole CFO Bob Smeeton commented in a statement issued on Monday.
“The end of the dispute allows us to reduce professional adviser fees and provides funds for our continued exploration operations.”
In 2017, HMRC ruled that the group’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 £557 000 in Oriole’s 2017 financial statements and a payment to HMRC of £593 000 in June 2018.
A successful resolution to the dispute was reached by the company during 2018, with HMRC reversing its decision.
The company has now received £522 000, reflecting the final agreement with HMRC in respect of recoverable VAT.
The money will enable the company to progress its new-frontier gold exploration programme in Cameroon, as well as to pursue other possible opportunities in Africa and Europe.