Encounter Resources (ASX:ENR) has received a $1.25 million tax credit to be distributed to eligible incoming shareholders through the Federal Government’s Junior Mineral Exploration Incentive (JMEI) Scheme.
The $162.16-million-market-capitalisation company says thanks to the scheme, $1.25 million of its tax losses may be distributed to shareholders in respect of new shares issued by the company before 30 June 2024.
The JMEI entitles Australian resident investors in new shares issued by eligible minerals exploration companies to either a refundable tax offset or franking credits.
Encounter notes that the JMEI scheme encourages investment in exploration companies that conduct greenfields mineral exploration in Australia by allowing these companies to give up a portion of their tax losses for potential distribution to eligible investors.
Encounter Resources is an ASX-listed mineral exploration company primarily focusing on discovering ‘major’ copper-dominant deposits in Australia.
The company’s wholly-owned portfolio of assets includes the Aileron Copper-Critical Minerals and Lamil Copper-Gold projects in Western Australia, as well as the Sandover Copper and Junction Lithium projects in the Northern Territory.
As of the end of March 2023, Encounter Resources held $4.2 million in cash reserves, according to its latest quarterly report released on 28 April 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Encounter Resources Ltd