INV Metals Comments on Recent Ecuadorian Tax Law Developments
TORONTO, ON — JANUARY 8, 2015 — INV Metals (“INV Metals” or “Company”) (TSX: INV) reports that the National Assembly of Ecuador has enacted, under the law titled “Organic Law for Production Incentives and Prevention of Tax Fraud”, which became effective on December 29, 2014 various amendments to Ecuador’s income tax code, including the introduction of the taxation of capital gains.
The Organic Law for Production Incentives and Prevention of Tax Fraud includes provisions for a capital gains tax on the profits derived from the direct or indirect sale of shares, ownership interests, other rights to capital representation, or other rights, that allow for exploration, exploitation, concession or similar activities by companies either domiciled or with permanent establishments in Ecuador.
The Company is in the process of analyzing the potential impact of the application of the new law and its regulations on the Company and its shareholders. INV Metals shareholders should consult their own tax advisors for advice on the applicability of the amendment to Ecuador’s income tax code having regard to their particular circumstances.
The Company is in the final stages of completing a pre-feasibility study to determine the economics and potential value of its Loma Larga project under Ecuador’s medium-scale mining category. All corporate and project expenditures continue to be minimized to the extent possible.
About INV™ Metals
INV™ Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Ecuador and Namibia. Currently, INV™ Metals’ primary assets are: (1) its 100% interest in the Loma Larga (formerly Quimsacocha) gold property in Ecuador, and (2) its 35% interest in the Kaoko property, located in Namibia.
This press release contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals and the economic impact of the sale of common shares of INV Metals to be materially different from future results, performance, achievements or economic impact expressed or implied by such forward-looking statements. Such factors include, among others, the details of the new amendments to Ecuador’s tax code, including further specifics regarding compliance and enforcement. For a more detailed discussion of potential risks impacting INV Metals, refer to INV Metals’ annual information form filed with Canadian securities regulators available on www.sedar.com.