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(Sharecast News) - CleanTech Lithium said on Monday that it has received a VAT refund of about 1.01m in Chile, providing additional funding as it advanced its Laguna Verde lithium project.
The AIM-traded company confirmed that its wholly owned subsidiary, Atacama Salt Lakes SpA, received around CLP 1.25bn, representing input VAT already incurred on the Laguna Verde project.
It said the payment followed a successful application to recover VAT in advance of generating sales, which required approvals from Chile's Ministry of Economy, tax authority and Treasury.
CleanTech said that while VAT recovery would typically depend on taxable sales, the approval allowed it to reclaim VAT on project costs at an earlier stage.
The refunded amounts would ultimately be reimbursed from future export revenues from Laguna Verde.
"To receive this VAT refund, along with support from the Ministry of Economy, demonstrates the Chilean government's commitment to our Laguna Verde project," said chief executive Ignacio Mehech.
"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 for Laguna Verde."
The company said it expected to continue recovering VAT on project expenditure on a timely basis as development progressed.
At 1536 GMT, shares in CleanTech Lithium were up 4.76% at 11p.
Reporting by Josh White for Sharecast.com.
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