Valor Resources Ltd (ASX:VAL) (OTCMKTS:VOYRF) (FRA:LFY) has boosted its cash balance through the receipt of Peruvian Value Added Tax (VAT) receivables covering the Berenguela Project, which was sold last year to SSR Mining Inc (NASDAQ:SSRM) (TSE:SSRM) (ASX:SSR).
In previous years Valor had impaired VAT receivables as the timing and quantum of receipt from the Peruvian government was uncertain.
Under the terms of the Berenguela sale agreement with SSR Mining, Valor held a contingent asset for the recovery of Peruvian VAT.
The company has now started receiving the VAT payments and has received cash refunds of US$39,745 (AU$50,955) to date.
It has also collected a further cheque refund of US$184,279 (AU$236,256) which is expected to be banked in the coming days.
Valor is reviewing the status of the remaining VAT claims for any further recoveries.
Berenguela sale agreement
During the December quarter, the company completed documentation to transfer the entities which hold rights to the Berenguela Project back to SSR Mining on terms where the consideration for the transfer is the release and discharge of Valor's acquisition obligations including the release of outstanding amounts of US$10.8 million owed to SSR and relevant security interests.
Settlement of the transfer has now been completed and Valor has no further interests in the Berenguela Project.
Peruvian projects
Valor continues to hold the rights to the Picha and Berenguela South projects in the Moquegua Department of Peru through its 100%-owned Peruvian subsidiary, Kiwanda SAC.
They are two copper-silver exploration projects comprising 14 granted mining concessions for a total of 6,900 hectares.
The company intends to continue its focus on developing the exploration potential of the projects when circumstances allow.