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Oriole Resources gets VAT rebate to spend on its gold programme in Cameroon

HMRC has switched back to its earlier view that supporting overseas exploration activity constitutes an economic activity as far as Oriole is concerned.
Tax change
The adjusted assessments will reflect a restriction in respect of the group's Turkish activities

Mineral resources exploration company Oriole Resources PLC (LON:ORR) is to receive a rebate of around £500,000 from the taxman.

Her Majesty's Revenue and Customs reversed its 2017 decision over value-added tax (VAT) rebates in November of last year.

WATCH: Boost for Oriole Resources with £500k VAT rebate

The company expects to receive the money in the first quarter of this year and intends to use it to progress it's new-frontier gold exploration programme in Cameroon, as well as pursue other opportunities it is reviewing in Africa and Europe.

"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," said Bob Smeeton, Oriole's chief financial officer.

Shares in Oriole were up 6.7% at 0.47p in early deals, giving the company a stock market valuation of £3.1mln.


 

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Oriole Resources PLC Timeline

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