Sumatra?s VAT refund delayed
Thursday, June 16 2016 - 09:03 AM WIB
ASX-listed Sumatra Copper & Gold plc has experienced delays in the expected timing of Value Added Tax (VAT) refunds from the Indonesian Government.
The Company stated in a press release on Thursday that it is currently finalizing a facility with an Indonesian bank for the provision of up to US$5 million in VAT receivables funding (VAT Facility) to supplement working capital while VAT claims are processed.
The VAT Facility is expected to be drawn down during July 2016.
In the interim the Company has executed a working capital agreement with its major shareholders, Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk, to provide US$1.7 million of working capital, repayable at the earlier of drawdown of the VAT Facility or 3 months. Interest is payable upon repayment at an annual interest rate of 10 percent.
Editing by Benget Besalicto ST.