| Schedule
of amounts receivables | |
| | | |
| | |
| | |
May 31, 2026 | | |
August 31, 2025 | |
| Receivable from precious metal sales | |
$ | 600 | | |
$ | 20 | |
| Sales tax receivable(1) | |
| 15,071 | | |
| 7,246 | |
| Other | |
| 746 | | |
| 468 | |
| Other receivables | |
| 16,417 | | |
| 7,734 | |
| Less: Long-term portion | |
| (680 | ) | |
| (3,916 | ) |
| Total amounts receivable | |
$ | 15,737 | | |
$ | 3,818 | |
| (1) | Sales tax receivables consist of harmonized services tax and value added tax (“VAT”) due from
Canadian and Tanzanian tax authorities, respectively. |
| |
The Tanzania Revenue Authority ("TRA") operates a
tax offset program under which approved tax refund claims, including VAT refunds, may be applied against outstanding tax liabilities,
including corporate income tax. |
| |
|
| |
The process for confirming VAT refund claims involves a detailed
review by the TRA to verify the accuracy and eligibility of each claim. This review includes an examination of supporting documentation,
such as invoices and the underlying transactions giving rise to the VAT, to determine whether the amounts qualify for refund under the
applicable tax legislation. Upon approval of a VAT refund claim, the TRA applies any outstanding tax liabilities against the approved
refund balance before remitting any remaining amount to the taxpayer.
|
| |
As at May 31, 2026, the Company had recoverable Tanzanian VAT of US$15.0
million and current corporate income tax payable of US$15.9
million. The Company intends to utilize the TRA's tax offset program to offset a portion of its recoverable VAT against its current income
tax liability. |
|
Historically, the approval and settlement of VAT refund claims in Tanzania have been subject to
delays. To address this, the Finance Act, 2026 introduced provisions requiring the TRA to pay interest on approved VAT refunds that
remain unpaid for more than one month after the date of approval. Management expects that this legislative change will improve the
timeliness of VAT refund settlements and enhance the overall administration of the VAT refund process. |
The Company held no collateral for any receivables. During the three and
nine months ended May 31, 2026, the Company recovered VAT refunds from the TRA of $nil and $0.3 million, respectively (2025 – $nil
million and $1.8 million, respectively).
|