Indiana Resources nabs $1.25 million JMEI exploration credits
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Gold explorer Indiana Resources has been allocated up to $1.25 million exploration credits under the junior minerals exploration incentive (JMEI) scheme.
The scheme essentially enables eligible exploration companies to generate tax credits by choosing to give up a portion of their losses from greenfields mineral exploration expenditure.
In May, the Federal Government announced intentions to invest a further $100 million over four years to extend the JMEI to the end of June 2025.
The credits can be allocated to investors purchasing new Indiana Resources (ASX:IDA) shares from 1 September 2021, however shares purchased on-market do not qualify under the scheme.
Australian resident shareholders issued with an exploration credit are 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 shareholders.
Given Indiana’s plans to accelerate exploration activities at its gold projects in the Central Gawler Craton in South Australia, the tax credits should be utilised in this financial year, creating tax losses that can be used by new shareholders. Indiana’s most recent round of drilling results released in August identified a new target 1,500m along strike from the Ariadne Prospect with the encouraging intersection of 8m @1.20g/t Au from 36m including 4m @ 2.28g/t Au from 40m. The Ariadne Prospect sits within the Lake Labyrinth Shear Zone, which also hosts Indiana’s highly prospective Minos Prospect.
Indiana holds a strategic 5,090km² exploration portfolio in the Central Gawler Craton of South Australia and there are several additional high potential targets that have been identified within the tenement portfolio.
“We are very pleased to have received such a significant proportion of the exploration incentive package provided by the Federal Government. With our drilling programmes in 2021 in the Gawler Craton delivering exceptional results we are keen to accelerate our drilling activity over the next 12 months.
We are currently developing additional exploration and drilling programmes and actively progressing approvals for both heritage and regulatory requirements with the intention of expanding our exploration focus across additional high priority targets areas within our portfolio. Indiana is well positioned to continue its aggressive exploration strategy and our success with JMEI will provide a significant benefit to shareholders.”
This article was developed in collaboration with Indiana Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.