- Northern Minerals (NTU) has received a research and development refund from from the Australian Tax Office (ATO) worth $8.64 million
- The refund pertains to a refundable tax offset for the 2017, 2018 and 2019 financial years
- It provides a strengthened balance sheet as the company moves forward with pilot plant test work at its Browns Range Project in Western Australia
- A portion of the refund will also be used to make an early debt repayment to JHY Investments
- Shares in Northern Minerals closed in the grey for 3.1 cents each
Northern Minerals (NTU) has received a research and development refund from from the Australian Tax Office (ATO) worth $8.64 million.
The refund comes as part of a settlement agreement between the Perth-based company and the ATO, and pertains to refundable research and development tax offset claims for the 2017, 2018 and 2019 financial years.
It also provides a framework for a 2020 financial year tax offset claim, which Northern Minerals expects to lodge shortly.
Mark Tory, CEO of Northern Minerals, said the refund provides a strengthened balance sheet, totalling approximately $11.9 million, which the company will use to move forward with its Pilot Plant test work at the Browns Range Project in Western Australia.
“Our strategy is to be debt free by the end of the 2020 calendar year and continuing to invest in the potential of Browns Range to support a full-scale, commercial operation in the future through ramping up our exploration program in the next six months,” he added.
In addition to the work at Browns Range, Northern Minerals also intends to make an early debt repayment to JHY Investments to the value of $2 million, according to a $4 million convertible note and option agreement that was signed in December 2018.
The original terms of the notes issued to JHY Investments had a maturity date of December 31, 2019, and an interest rate of 16 per cent per annum.
However, Northern Minerals has since then negotiated an extension of the maturity date to December 31, 2020, at a lower interest rate of 10 per cent.
On top of the amount owed to JHY Investments, Northern Minerals also owes $2.1 million to Sinosteel, payable on October 23, 2020, resulting in a total debt position of approximately $4.1 million.
Northern Minerals closed in the grey for 3.1 cents each.