- Encounter Resources (ENR) has entered a trading halt ahead of a capital raise announcement
- At this stage, it is uncertain how much Encounter will raise and what the funds will be used for
- The upcoming capital raise follows Encounter recently announcing its application for the Federal Government Junior Mineral Exploration Incentive (JMEI) of up to $1.56 million of company tax losses, has been successful
- The JMEI allows eligible companies to generate tax credits by giving up a portion of their losses from exploration expenditure which can then be distributed to investors who purchase new shares
- Earlier this month, Encounter was forced to pause its 3000-metre drilling program at the Aileron Gold-Copper Project due to mechanical issues with the drill rig
- However, once the drill core has been analysed, the results will be used for future drilling
- Company shares last traded for 20.5 cents on Tuesday, October 20
Encounter Resources (ENR) has entered a trading halt ahead of a capital raise announcement.
The Australia-based explorer will remain in the trading halt until the earlier commencement of trading on Friday, October 23, unless details of the raise are announced beforehand.
At this stage, it is uncertain how much Encounter will raise and what the funds will be used for.
Today’s trading halt follows an announcement yesterday stating Encounter’s application for the Federal Government Junior Mineral Exploration Incentive (JMEI) of up to $1.56 million of 2020/2021 company tax losses that may be distributed to incoming shareholders regarding new shares issued between July 8 2020 and June 30 2021.
The JMEI encourages investment in small mineral exploration companies that conduct greenfields mineral exploration in Australia.
The JMEI enables eligible companies to generate tax credits by choosing to give up a portion of their losses from exploration expenditure. The tax credits can then be distributed to investors who purchase new shares during a certain period.
Earlier this month, Encounter announced starting a 3000-metre drilling program at the Aileron Gold-Copper Project in Western Australia. However, this came to a pause due to mechanical issues with the rig.
Drill core will be transported to Perth for analysis and results are expected between next month and December.
Once analysed, the results will be used in planning future drilling programs.
Company shares last traded for 20.5 cents on Tuesday, October 20.