- Cauldron Energy’s (CXU) application to participate in the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme has been successful
- The scheme encourages investment in exploration companies, through the distribution of ‘exploration credits’ to investors
- Cauldron Energy has received an allocation of up to $600,000 in tax credits, which can be distributed to eligible investors
- The 2021 financial year JMEI credits can be issued by the company after lodgement of its 2021 tax return
- Cauldron Energy shares are steady today, trading for 2.1 cents per share
Cauldron Energy’s (CXU) application to participate in the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme has been successful.
The JMEI scheme encourages investment in exploration companies that are undertaking greenfields mineral exploration in Australia. This is achieved through the creation of exploration credits, using a portion of tax losses from eligible exploration expenditure.
The exploration credits are then distributed to investors who contribute new equity. The company’s carry forward losses are reduced proportionately, to reflect the number of exploration credits created.
This decision will be based on total capital raised during the year to June 30, 2020, plus the year’s amount of eligible exploration expenditure, and the company’s tax result.
JMEI credits are distributed to eligible investors on a pro-rata basis. For the 2021 financial year’s round, the exact number of JMEI credits per share issued will be determined after June 30, 2021.
As a result of its successful application, Cauldron Energy has received an allocation of up to $600,000 in tax credits. The company can distribute these credits to eligible investors after it lodges its June 30, 2021 tax return. Around this time, the eligible investors will be notified of their JMEI credit entitlement.
Eligible investors must be Australian resident shareholders who apply for and are issued new shares in the company’s capital-raising activities between July 9, 2020, and June 30, 2021.
Individual shareholders and superannuation fund shareholders issued with JMEI credits will be entitled to a refundable tax offset. Shareholders who are companies will be entitled to franking credits instead.
Cauldron Energy shares are steady today, trading for 2.1 cents per share at 10:44 am AEST.