Last checked at 11 Jan 2024 10:19
This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
11 January 2024
Eurasia Mining Plc
Supreme Court Tax Litigation Win
Eurasia Mining Plc ("Eurasia" or the "Company"), the palladium, platinum, rhodium, iridium and gold mining company, is delighted to announce that its subsidiary, Kosvinsky Kamen CJSC, has won litigation in relation to a mining tax claim against the tax authorities in the Supreme Court in Moscow.
Highlights:
· At the beginning of 2021, changes to the tax code came into force that were aimed at unifying the mining tax rate. This included increasing the tax rate for certain minerals from 1% to 3.5%.
· The tax authorities applied the adjusted 3.5 multiple increase to other minerals that were already taxed at rates of 6% or more. The subsidiary had been paying 6.5% and this increased the rate to 22.75%.
· The Company challenged this misinterpretation of the laws by the tax authorities and, via its subsidiary, started a litigation process against the tax authorities.
· Albeit initially unsuccessful in the lower court, Eurasia challenged the verdict and its subsidiary has now won the case in the Supreme Court.
· The overpayments of the mining tax made by the Company since the beginning of 2021 will now be returned by the tax authorities in full (with any relevant fines and other penalties that had been applied by the tax authorities) plus interest at the rate set by the Central Bank for the relevant periods (that is currently set at 16% per annum) covering the three-year period which ended December 2023. This will allow the Company to strengthen its cash position as explained below.
· The first tranche payment of approximately £480,000 from the tax authorities has been transferred, and the Company's cash position as of 31 December 2023 was approximately £989,000.
· Notwithstanding the previously notified unsold inventories of concentrates from the 2022 mining season, the Company now has sufficient working capital to meet ongoing obligations until early Q32024, and further repayments from the tax authorities, as yet unquantified, are expected to be transferred related to the reduction in the tax rates for the 3 year period.
· The Company's interests in the Supreme Court were represented by the Pepeliaev Group, a leading CIS tax advisory law firm.
Chairman, Christian Schaffalitzky, commented: "We are delighted to have successfully won the litigation at the top level of the Supreme Court and we are extremely grateful to our in-house team and our advisers from Pepeliaev Group who assisted us on this matter."
For further information, please contact:
Eurasia Mining Plc
Christian Schaffalitzky
+44 (0)207 932 0418
SP Angel Corporate Finance LLP (Nomad and Broker)
Jeff Keating / David Hignell / Adam Cowl
+44 (0)20 3470 0470
Yellow Jersey PR (Financial PR)
Charles Goodwin / Shivantha Thambirajah
+44 (0)207 932 0418
eurasia@yellowjerseypr.com