VAT refund of over £1 million received

In brief · summary, not quotable

CleanTech Lithium PLC has successfully received an advance recovery of VAT in Chile, amounting to approximately £1.01 million, which represents input VAT incurred on its Laguna Verde project. This successful application, approved by the Ministry of Economy, the Chilean Tax authority, and the Treasury, allows the company to recover VAT on costs incurred on the project on a timely basis, with reimbursements expected from future export sales. The company views this VAT refund and government support as a positive demonstration of commitment to the Laguna Verde project, strengthening its financial position as it progresses towards completing its Pre-Feasibility Study.

Full announcement

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CleanTech Lithium PLC ("CleanTech Lithium" or "CleanTech" or the "Company") (AIM: CTL, Frankfurt:T2N), an exploration and development company advancing sustainable lithium projects in Chile, announces that an application for an advance recovery of VAT in Chile has been successful and approximately £1.01 million has been received by the Company.

Highlights:

CleanTech Lithium's wholly owned subsidiary, Atacama Salt Lakes SpA ("ASL"), has received approximately CLP$1.25 billion (equivalent to approx. GBP £1.01 million) representing input VAT already incurred on the Laguna Verde project.
Ordinarily, recovery of input VAT requires VATable sales to be made, however in 2024 ASL applied to the Ministry of Economy for eligibility to recover VAT in advance of sales. This involved separate approvals from the Ministry of Economy, the Servicio de Impuestos Internos (Chile Tax authority) and the Treasury.
A substantial part of the VAT claim was paid and ASL should continue to recover VAT from costs incurred on the project on a timely basis. The VAT receipts will be reimbursed from future export sales from Laguna Verde.

Ignacio Mehech, Chief Executive Officer of CleanTech Lithium said: "To receive this VAT refund, along with support from the Ministry of Economy, demonstrates the Chilean Government's commitment to our Laguna Verde project. The team has worked diligently to achieve this outcome and the funds will strengthen our financial position as we continue to progress towards the completion of the PFS, following the recent agreement of the long term operating contract (CEOL) for Laguna Verde."

Notes

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.