Bear Creek Mining Signs Contract with Peru for Accelerated Recovery of IGV Tax

Bear Creek Mining (TSX Venture: BCM) (“Bear Creek” or the “Company”) has signed an agreement (the “IGV Contract”) with the Peru Ministry of Energy and Mines (“MEM”) and ProInversion (an agent for the Government of Peru) that allows the Company to recover, at its discretion and on an accelerated basis, the 18% IGV taxes applied to engineering and construction costs associated with future development of the proposed Corani silver-lead-zinc mine in Puno, Peru.
The IGV Contract applies to Corani Initial CapEx costs and covers an approximately three-year development period during which detailed engineering, permitting, construction, commissioning and project ramp-up is expected to occur. The IGV Contract is retroactively applicable to costs incurred as of the application date of November 2016, and allows the Company to request modifications with respect to both expenditure amounts and timelines.
Andrew Swarthout, President and CEO of the Company, commented:

 “We are very pleased to be working in cooperation with the Peruvian government and we appreciate the confidence shown in Bear Creek and the Corani Project by the Ministries of Finance, the MEM and ProInversion in approving the IGV Contract.
The IGV Contract will streamline anticipated cash flow and capital requirements as the Corani operation is developed by allowing the Company to periodically recoup IGV taxes payable on capital expenditures as they are made rather than after construction is completed.”

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