Join our daily newsletter At The Bell to receive exclusive market insights
- Dreadnought Resources (DRE) receives approval to participate in the Federal Government’s Junior Mineral Exploration Incentive (JMEI) scheme
- Through the scheme, eligible exploration companies are able to generate tax credits for distribution to investors
- It includes an allocation of up to $750,000 in JMEI tax credits to Dreadnought
- The purpose of the initiative is to encourage investment in exploration companies that carry out greenfield mineral exploration in Australia
- Shares are up 2.4 per cent and trading at 4.2 cents at 10:02am AEST
Dreadnought Resources (DRE) has been approved to participate in the Federal Government’s Junior Mineral Exploration Incentive scheme.
Through the scheme, the chosen companies are able to give up a portion of their tax losses for potential distribution to eligible investors.
Specifically, it includes an allocation of up to $750,000 in JMEI tax credits to Dreadnought
Those investors are then entitled to a refundable tax offset or, if the shareholder is a corporate tax entity, additional franking credits.
The company’s carry forward losses will be reduced proportionately to reflect the amount of exploration credits issued to its shareholders.
The Australian Taxation Office explained that if any part of the annual exploration credit cap is unallocated for an income year, the amount that is unallocated will be carried over to the following income year.
The purpose of this process is to encourage investment in exploration companies that carry out greenfields mineral exploration in Australia.
DRE says it acknowledges the support of the Commonwealth of Australia in making the initiative available and also the Association of Mining and Exploration
companies for their championing of the initiative.
Shares were up 2.4 per cent and trading at 4.2 cents at 10:02am AEST.
