Junior Minerals Exploration Incentive
Adelaide, May 18, 2018 AEST (ABN Newswire) - Mithril Resources Ltd (the "Company") (
ASX:MTH) is pleased to announce that it has been successful in its application to participate in the Federal Government's Junior Minerals Exploration Incentive ("JMEI") scheme and has been allocated credits of up to $227,796 which can be distributed to eligible shareholders.
- Mithril has been successful in its application to participate in the Federal Government's Junior Minerals Exploration Incentive ("JMEI") scheme
- JMEI credits up to $227,796 can be distributed as tax credits for the 2017 / 2018 Financial Year to eligible shareholders
- Shareholders and investors participating in the Company's Share Purchase Plan and Placement announced today will be eligible to receive JMEI credits
The Company's allocation of JMEI tax credits must be distributed to all eligible shareholders on a pro-rata basis. To be eligible to receive JMEI credits from the Company, shareholders and investors must have applied for and been issued new shares in the Company after Tuesday 8 May 2018 ("Record Date") and no later than 30 June 2018. Shares issued prior to the Record Date will not be eligible for the credit.
Shareholders and investors participating in the Company's Share Purchase Plan and Placement ("Capital Raising") announced today, will be eligible to receive JMEI credits. A participating shareholder's precise JMEI entitlement amount will be determined following completion of the Capital Raising and after the lodgement of the Company's Annual Tax Return for the 2017/18 Financial Year which the Company expects to lodge during the second half of the September 2018 Quarter.
Assuming that the maximum number of shares are issued under the Capital Raising then eligible shareholders' JMEI credit entitlement would be approximately 0.3 cents per share (see Note Specific below).
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 Australian Taxation Office 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.
Note Specific
The Company announced a Capital Raising on Friday 18 May 2018.
The estimated eligible shareholders' JMEI credit entitlement of 0.3 cents per share assumes that the Company issues the maximum number of shares (36,993,380) under the terms of the Share Purchase Plan, and the maximum number of shares (30,827,817) available under its current Placement Capacity (pursuant to ASX Listing Rules 7.1 and 7.1A), and a corporate tax rate of 27.5%.
This is also prepared on the basis no shares other than those issued under the Capital Raising will be issued by the Company prior to 30 June 2018. Should the company issue additional shares prior to 30 June 2018, this would impact eligible shareholders entitlement to JMEI credits.
About Mithril Silver and Gold Limited
Mithril Resources Limited (ASX:MTH) (CVE:MSG) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery of mineral deposits.
The Company and its exploration partners are actively exploring throughout the Kalgoorlie, West Kimberley and Murchison Districts of Western Australia for economic nickel, copper, zinc, and vanadium deposits.
In the Kalgoorlie District, Mithril is exploring for nickel on the Kurnalpi, Lignum Dam and North Scotia Projects which lie along strike from, or adjacent to previously mined high-grade nickel at the Silver Swan and Scotia Nickel Deposits.
In the West Kimberley, Mithril is exploring for zinc on the Billy Hills Project which lies adjacent to the previously mined Pillara Zinc Deposit.
In the Murchison, Mithril is exploring for copper, nickel and zinc mineralisation on the Nanadie Well Project and for copper, silver, zinc and lead on the Bangemall Base Metal Project. Mithril's exploration partner – Monax Mining Ltd is also exploring for vanadium on the Limestone Well tenements.
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