Resolution of VAT Dispute to Deliver £0.5M

RNS Number : 6041O

Oriole Resources PLC

31 January 2019

 

Oriole Resources PLC 

('Oriole Resources' or 'the Company' or 'the Group')

Resolution of VAT Dispute to Deliver £0.5M

Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is delighted to announce that it expects to receive a repayment in the region of £500k from Her Majesty's Revenue and Customs ('HMRC') following the positive resolution of its VAT dispute last year (Announcement dated 13 November 2018).

Highlights

-      HMRC has agreed to adjust VAT assessments;

-      Company expects to receive in the region of £500k repayment;

-      Adjusted assessments will reflect a restriction in respect of the Group's Turkish activities;

-      Repayment is expected to be received in Q1-2019.

Oriole's CFO Bob Smeeton, said: "Reaching agreement with HMRC on our VAT status is excellent news as it removes a significant area of uncertainty around our operations, and brings a substantial amount of cash back to us. It has been a long process to reach this agreement and a significant and costly distraction that we can now put behind us, concentrating fully on our exciting exploration operations."

Further Information

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 £557k in the 2017 Financial Statements and a payment to HMRC of £593k in June 2018. A successful resolution to the dispute was reached by the Company during 2018, with HMRC reversing their decision. The Company expects final agreement to result in a repayment during Q1-2019 in the region of £500k.

The funding will enable the Company to progress it's new-frontier gold exploration programme in Cameroon, as well as pursue other opportunities it is reviewing in Africa and Europe.

** ENDS **

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources PLC Bob Smeeton / Tim Livesey /Claire Bay	Tel: [phone]
Camarco (IR/PR contact) Gordon Poole / Nick Hennis / Monique Perks	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / Ben Roberts / Niall McDonald	Tel: [phone]
Hannam & Partners Neil Passmore / Andrew Chubb	Tel: [phone]
Turner Pope Investments (TPI) Ltd Ben Turner / James Pope / Andy Thacker	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe. It is focused on early-stage exploration in Cameroon and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has a number of interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.

 

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