OD6 Metals (ASX:OD6) has received $962,697 in research and development (R&D) tax offsets for FY2023.
The $19.46 million market capitalisation company says the funds reflect a rebate on eligible Australian R&D activities for its Splinter Rock Rare Earth Element (REE) Project and Grass Patch REE Project in Western Australia.
OD6 plans to continue its R&D work and subsequently claim future tax offsets over the coming years.
Managing Director Brett Hazelden says the company’s R&D program is an ‘important’ scheme that supports OD6 — alongside its partners CSIRO, Murdoch University, the Australian Nuclear Science and Technology Organisation (ANSTO), and private research providers — in developing technology to uncover and extract REEs.
“Critical minerals exploration, discovery and development is crucial for a world in an energy industry transition. Considering there is only one operational rare earth mine in Australia, the Federal Government’s support of this critical minerals industry is highly important to the future development of the company and the resources industry.
We are a future-facing company rapidly advancing our identified prospects at Splinter Rock as we look to develop the necessary technology for a rare earth industry in the Esperance region of Western Australia.”
“We are a future-facing company rapidly advancing our identified prospects at Splinter Rock as we look to develop the necessary technology for a rare earth industry”
The R&D tax incentive helps companies innovate by offsetting some of the costs of eligible research and development.
OD6 Metals is a critical minerals and rare earths explorer and developer focused on its wholly owned Splinter Rock and Grass Patch projects in Western Australia. Both projects lie in the Esperance-Goldfields region — about 30 to 150km northeast of the major port and town of Esperance.
As of 30 September, the company had $2.03 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: OD6 Metals