Junior Minerals Exploration Incentive
Adelaide, April 24, 2018 AEST (ABN Newswire) - Core Exploration Ltd (
ASX:CXO) ("Core" or the "Company") is pleased to announce that it has been advised by the Australian Taxation Office ("ATO") that its application to participate in the JMEI scheme has been accepted and the Company has received an allocation of up to $750,000, which can be distributed to eligible shareholders.
HIGHLIGHTS
- Core has been successful in its application for participation in the Federal Government's Junior Minerals Exploration Incentive ("JMEI") scheme
- JMEI credits will be distributed to shareholders as tax credits for the 2017/18 tax year
- To be eligible, shareholders must have participated in Core's fundraising activity after the issue of JMEI credits on Monday, 23 April 2018
- Only new shares issued by Core are eligible for JMEI credits
- Successful SPP participants will be eligible for JMEI credits
- Recent share placement participants are eligible for JMEI credits
In March 2018, the Federal Parliament passed legislation introducing the JMEI scheme with effect from 1 July 2017 for a four-year period based on an annual application process. The ATO is the administrator of the scheme.
The JMEI scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on "greenfield" exploration.
Australian resident shareholders that are issued with JMEI credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies). Receiving a JMEI credit could have tax consequences and shareholders who are issued JMEI credits by the Company should obtain independent tax advice specific to their personal circumstances.
The Company's allocation of JMEI credits must be distributed to all eligible shareholders on a pro-rata basis. For shareholders to be eligible to receive a pro-rata distribution of JMEI credits from the Company, they must have applied for and be issued shares in the Company after Monday 23 April 2018 ("Record date") and no later than 30 June 2018.
The Company has recently announced a share placement to issue approximately 95.2 million shares as well an SPP to raise $2.0 million. Both the successful applicants under the placement and SPP will be eligible to receive a share of the Company's JMEI credit allocation. Core anticipates the Company will make a JMEI distribution of between approximately 0.5 cents and 0.8 cents per share depending on the participation in the SPP. The precise distribution per share will be determined after 30 June 2018 and will be impacted by the amount raised under the SPP and any other new shares issued prior to 30 June 2018.
The JMEI credits will apply to the 2017/18 tax year and can be issued by Core after lodgement of its 30 June 2018 tax return.
The Record Date to determine eligibility for JMEI credits is Monday 23 April 2018 and only those shareholders to whom shares were issued after this date and before 30 June 2018 will be eligible to receive a distribution of the JMEI credits allocated to the Company.
Shares issued prior to the Record Date will not be eligible for the credit.
Eligible shareholders are expected to be notified by the Company of their JMEI credit entitlement in the approved form by 30 September 2018, and the JMEI credits will apply to income tax assessed for the year ended 30 June 2018.
About Core Lithium Ltd
Core Lithium Ltd (ASX:CXO) is an emerging lithium producer focused on development of its Finniss Project near Darwin in the Northern Territory. Core owns 100% of Finniss, a major developing project that lies close to existing infrastructure such as the Darwin Port, grid power, gas and rail infrastructure.
The Finniss Project covers a 500km2 tenement holding and 25 historic pegmatite mines. The project area is about 80km from Darwin Port. Exploration work has generated a near term development timeline, with feasibility studies to be completed over the course of 2018 ahead of receipt of approvals in early 2019 and planned first production during 2019.
An aggressive exploration program is under way, which has confirmed the high quality prospectivity across much of the Finniss Project area. Core's stated ambition is to upgrade Finniss' resource base to fast-track commercialisation options.
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