Value Added Tax Receivable, Net

12 Months Ended

Dec. 31, 2016

Value added tax receivable, net

Value added tax receivable

7.Value added tax receivable

The Company has recorded value added tax (“VAT”) paid in Mexico and related to the Velardeña Properties as a recoverable asset. Mexico law allows for certain VAT payments to be recovered through ongoing applications for refunds. At December 31, 2016 the Company had recorded only a nominal VAT receivable which it expects to recover within a one-year period. The VAT receivable at December 31, 2015 was fully recovered during 2016.

The Company has also paid VAT in Mexico as well as other countries, primarily related to exploration projects, which has been charged to expense as incurred because of the uncertainty of recoverability.