EDI Tax Credits to be Distributed to Shareholders
Perth, May 13, 2016 AEST (ABN Newswire) - Venus Metals Corporation Limited (
ASX:VMC) has been advised by Australian Taxation Office (ATO) that its application to participate in the EDI has been accepted.
Highlights
- Venus Metals Corporation Limited (VMC) has been successful in its application for participation in the Federal Government's Exploration and Incentive Scheme (EDI).
- VMC to distribute $195,574 of EDI tax credits to shareholders.
- To be eligible Australian registered shareholders must be on the company's share register by 20 May 2016.
- EDI credits will be issued to shareholders by VMC on Wednesday 25 May 2016.
- The EDI credits will be applied by the ATO to income tax assessed for the year ended 30 June 2016
In March 2015, the Federal Parliament passed legislation introducing the EDI scheme and ATO is the administrator of the scheme.
The EDI scheme enables eligible exploration companies to create exploration credits to pass on to shareholders by forging a portion of the carried forward tax losses. The tax losses must have arisen from allowable expenditure on greenfield exploration.
Australia resident shareholders that are issued with exploration credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies). Non-residents receiving credits will not be able to use them.
The record date for shareholder eligibility under the EDI is Friday 20 May 2016. For shareholders to be eligible to receive a pro-rata distribution of tax credits from the company they must hold ordinary shares in the Company as at 5 pm (WST) on 20 May 2016. The EDI credit of $195,574 will be available for distribution to eligible shareholders on a pro-rata basis.
With 61,626,623 shares on issue, this equates to 0.31 cents per share.
About Venus Metals Corporation Limited
Venus Metals Corporation Limited (ASX:VMC) is a West Australian based Company with a focus on gold, base metals, vanadium and lithium exploration projects. The Company aims to increase shareholder value through targeted exploration success on its projects.
The Company's major gold project is the Youanmi Gold Mine, located 500km north-east of Perth. The Youanmi Gold Mine is now jointly owned by Venus Metals (30%) and Rox Resources Limited (70%); Indicated and Inferred Resource of the mine is in excess of 3 million ounces of gold.
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