Embattled Oxus Gold (LSE:OXS) rose this morning adding to an incredible recovery from a low of 10 pence last year. Today Oxus announced that its joint venture, Amantaytau Goldfields (AGF), had won a tax appeal against the Uzbek authorities. It was claimed by the Uzbeks that AGF owed taxes, custom duties, fines and penalties of approximately US$225 million. AGF appealed the ruling, and the Navoi Regional Economic Court upheld the appeal and lifted all restrictions imposed on AGF's operations. The court did however decide that AGF was responsible for the payment of certain revenue taxes and non-resident's income tax, totally approximately US$1 million.
CEO Bill Trew said: 'We are pleased to have confirmation from the Navoi Regional Economic Court that AGF is not liable to pay the $224 million in taxes and penalties. It has always been Oxus's policy to work within the framework of the legal and taxation regimes in all the countries where we have interests and we strongly believed that AGF had followed that practice. It is a relief to us to have this behind us so that we can focus our efforts on the efficient operation of the AGF oxide plant and the further development of the sulphide operations where there is significant upside potential.'