ASX-listed King River Resources has been buoyed by tax credits under the Federal Government’s exploration incentive scheme as it looks to rattle the tin for more than $10 million to bring forward gold exploration work.
The explorer has confirmed the Australian Taxation Office approved its application to participate in the Junior Minerals Exploration Incentive, or “JMEI”, program.
The Perth-based company has been allocated up to $975,000 in tax credits, which can be distributed to Australian resident shareholders who are issued new shares from its capital raisings in 2020-21.
Eligible shareholders who take part in King River’s share purchase plan to raise $8.2 million, together with sophisticated and professional investors in a share placement designed to raise an additional $2 million, will be entitled to participate in the JMEI tax credits for this financial year.
King River says it has received firm commitments from investors for the $2 million raise. These funds will go towards drilling and reconnaissance programs at the Mount Remarkable and Tennant Creek gold projects.
JMEI has been set up by the Government to encourage investment in junior minerals explorers who conduct greenfields minerals exploration in Australia. The tax credits may be distributed to eligible investors as a tax offset, helping reduce tax liability for individual shareholders or superannuation funds, or as franking credits for companies.
King River is gearing up to resume drilling at its high-grade Mount Remarkable project in Western Australia’s East Kimberley region next month, after delays caused by coronavirus pandemic restrictions.
The company has reported several bonanza near-surface gold grades from its previous drilling at Mount Remarkable, with best intersections of 4m grading 113.29 grams per tonne gold including 1m going more than 10 ounces per tonne.
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