Sumatra hopes to execute VAT financing facility end September

By Romel S. Gurky

ASX-listed Sumatra Copper & Gold plc said on Monday that final documentation for a planned VAT financing facility from an Asian bank operating in Indonesia is substantially complete and is expected to be executed at the end of this month.

The company has previously announced it has signed an offer of a VAT financing facility of up to Rp 60 billion (or its equivalent in US dollars) from the bank. The financing facility is to supplement working capital while the company process its value added tax (VAT) refunds from the Indonesian government.

The company announced in June it has experienced delays in the expected timing of the VAT refunds.

Meanwhile, Sumatra Copper said that in order to provide interim funding to the company pending finalization and drawdown of the VAT financing facility, the company?s major shareholders, Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk, have agreed to extend the terms of the existing Working Capital Facility to create a long term loan and have provided a further US$1 million under the Working Capital Facility Agreement.

Editing by Reiner Simanjuntak