Craig Brown ECR Chief Executive Officer: I am pleased to confirm the receipt of a significant cash refund by MGA our Australian subsidiary. This incoming cash augments existing cash resources & will be applied toward the Company active Gold exploration programmes in Australia.
Mercator Gold Australia Pty Limited – Tax Update
Mercator Gold, the Australian subsidiary of ECR Minerals PLC (LON:ECR), has received a A$319,000 (£171,000) research and development refund from the Australian government.
The refund relates to qualifying expenditure by Mercator in the year ended 30 June 2018.
Highlights:
- Mercator Gold Australia Pty Limited (“MGA”) ECR’s 100% owned Australian subsidiary has received a cash Research and Development refund of A$318,971.73 (approximately £171,000);
- The refund received relates to qualifying expenditure incurred by MGA in the year ended 30 June 2018;
- In addition, MGA is entitled to submit a further claim for the year ended 30 June 2019 and based on current estimated qualifying expenditure the amount of the claim for the period to date will be approximately A$370,000 (approximately £198,000) which the Company would expect to receive in around August 2019, although there can be no guarantee that this amount will be obtained;
- Finally, included within the MGA Tax Return for the year ended 30 June 2018, MGA has carried forward corporate income tax losses of A$66,203,862 (approximately £35.5million) in respect of historical losses which are available for carry forward.
Craig Brown, Chief Executive Officer commented: “I am pleased to confirm the receipt of a significant cash refund by MGA our Australian subsidiary. This incoming cash augments existing cash resources and will applied toward the Company’s active gold exploration programmes in Australia.
A further refund claim will be made for the year ended 30 June 2019 and based on current qualifying expenditure, we anticipate a claim of A$370,000 against which we would expect to receive cash payment around August 2019, based on our current planned financial accounts and tax reporting schedule although there can be no guarantee that this amount will be obtained.
We are grateful for the immense support offered by the Australian Government which we believe demonstrates the attractiveness of Australia as a destination for investment in exploration and development projects.
As a result of Government support, the Company’s cash resources are bolstered, enabling it to maintain a considerable and active exploration programme.”
ECR shares rose 22% to 1.04p on Tuesday afternoon.
