Kutcho Copper to Receive Approximately $800,000 Refund from CRA

Rhea-AI Summary

Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) has announced a favorable resolution to its ongoing audit with the Canada Revenue Agency (CRA). The audit involved the company's subsidiary, Kutcho Copper Holdings Inc. (KCH), for taxation years ending April 30, 2019, and 2020. Initially, the CRA had denied almost all expenses claimed by KCH related to work programs conducted in 2018 and 2019.

Following formal notices of objection filed by KCH, the CRA has now fully allowed the disputed amounts. As a result, Kutcho Copper expects to receive approximately $800,000 in refunds, comprising GST refunds that were previously withheld, mining exploration tax credits for the 2020 taxation year, and accrued interest on withheld amounts.

Positive

• Resolution of CRA audit dispute resulting in approximately $800,000 refund
• Full allowance of previously denied expense claims
• Recovery of withheld GST refunds and mining exploration tax credits

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - February 3, 2025) - Kutcho Copper Corp. (TSXV: KC) (OTCQX: KCCFF) ("Kutcho Copper" or the "Company") is pleased to provide an update regarding the ongoing audit with the Canada Revenue Agency ("CRA") involving the Company's subsidiary, Kutcho Copper Holdings Inc., ("KCH") for taxation years ended April 30, 2019 and 2020.

In summary, tax returns were filed for KCH for the years ended April 30, 2019 and April 30, 2020 in which expenses were claimed stemming from a work program undertaken on the Kutcho Copper's project in 2018 and 2019. An audit of the tax returns by CRA in 2021 resulted in a reassessment of both taxation years, in which CRA denied almost all the amounts claimed by KCH. (please see notes to the financial statements for the years April 2022 to current).

Vince Sorace, President & CEO of Kutcho Copper stated: "After an extended review process with the CRA spanning multiple years, resulting in KCH filing formal notices of objection to the reassessments by CRA, we have now received notice from the CRA confirming that the amounts disputed by KCH in the notices of objection were allowed in full. We are happy to conclude this process which results in the Company now expecting to receive approximately $800,000 from the CRA as a result of GST refunds withheld, mining exploration tax credits due for the 2020 taxation year and accrued interest on amounts withheld".

About Kutcho Copper

Kutcho Copper Corp. is a Canadian resource development company focused on expanding and developing the Kutcho high grade copper-zinc project in northern British Columbia. Committed to social responsibility and the highest environmental standards, the Company recently completed a feasibility study on the Kutcho project and is advancing permitting with the objective of getting to a positive construction decision.

Vince Sorace
President & CEO, Kutcho Copper Corp.

For further information regarding Kutcho Copper Corp., please email info@kutcho.ca or visit our website at www.kutcho.ca.

Cautionary Note Regarding Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain statements that may be deemed "forward-looking statements" with respect to the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "advance", "de-risk", "execute", "incorporate", "accretive", "plans", "compelling", "believes", "intends", "potential", "value opportunities", "upside", variations of these words and similar expressions, or that events or conditions "will", "may", "could", "should" or "would" occur. Although Kutcho Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, statements and information related to the Feasibility Study; the funding, timing and results of planned exploration programs; the ability of the Company to upgrade inferred mineral resources to higher categories and, subsequently, to mineral reserves; the outcome of potential optimizations and opportunities identified in the Feasibility Study and subsequently; the Company's ability to raise sufficient capital to fund its obligations under its property agreements going forward, to maintain its mineral tenures and concessions in good standing, to explore and develop the Kutcho project and for general working capital purposes; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations, future prices of copper and other metals, changes in general economic conditions, accuracy of mineral resource and reserve estimates, the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the Kutcho project and if obtained, to obtain such permits and consents in a timely fashion relative to the Company's plans and business objectives for the projects, including the environmental assessment process; the ability of the Company to conclude agreements with First Nations; the general ability of the Company to monetize its mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company's operations, compliance with environmental laws and regulations, aboriginal title claims and rights to consultation and accommodation, dependence on key management personnel and general competition in the mining industry. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239163

FAQ

How much money will Kutcho Copper (KCCFF) receive from the CRA tax refund?

Kutcho Copper will receive approximately $800,000 from the CRA, which includes GST refunds, mining exploration tax credits for 2020, and accrued interest on withheld amounts.

What tax years were involved in Kutcho Copper's (KCCFF) CRA audit dispute?

The CRA audit involved Kutcho Copper Holdings Inc.'s taxation years ended April 30, 2019, and April 30, 2020.

What expenses did the CRA initially deny for Kutcho Copper (KCCFF)?

The CRA initially denied almost all expenses claimed by Kutcho Copper Holdings Inc. related to work programs conducted in 2018 and 2019.

What components make up the $800,000 refund for Kutcho Copper (KCCFF)?

The refund consists of previously withheld GST refunds, mining exploration tax credits for the 2020 taxation year, and accrued interest on withheld amounts.