ABx Group (ASX:ABX) has received $437,185 via a research and development (R&D) tax offset from the Australian Tax Office (ATO) for activities conducted during the financial year 2023.
These activities include developing techniques for exploring, drilling, and processing ionic adsorption clay rare earths deposits, mainly related to the Deep Leads-Rubble Mounds Project in northern Tasmania.
ABx Group, which has a market capitalisation of $10.75 million, says the R&D offset follows a similar offset of $474,126, which was awarded to the company’s 83% owned subsidiary ALCORE.
The combined offset totals more than $900,000 and underpins ABx’s balance sheet, supporting further investment in the rare earths and ALCORE projects.
CEO Dr Mark Cooksey says the R&D tax rebate is a testament to the company’s ongoing commitment to innovation and advancing rare earths activities in Tasmania.
“This rebate not only underscores the importance of our work in developing sustainable and efficient rare earths extraction technologies, but also provides essential support as we continue to advance our project in this critical sector,” Cooksey says.
The company has recently taken an important step towards securing a deal with Nova Scotia-based Ucore Rare Metals (TSX-V:UCU) for the supply of mixed rare earth carbonates to the US.
Both companies have signed a memorandum of understanding to work towards a binding agreement for the supply of mixed rare earth carbonate from ABx’s Tasmanian project to Ucore.
ABx and Ucore will work towards agreeing on the annual volume of the intermediate rare earth product, which is anticipated to be a mixed rare earth carbonate, to be supplied.
As Mining.com.au previously reported, the US imports more than 70% of its rare earths from China. Statistics from the US Geological Survey reveals that the US imported $190 million worth of rare earth compounds and metals in 2023, which is a 7% reduction from $208 million in 2022.
ABx Group is a uniquely positioned Australian company focused on delivering materials for a cleaner future.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group
