Resolution Minerals Ltd (ASX: RML) has secured federal government approval for inclusion in its Junior Minerals Exploration Incentive (JMEI) scheme, receiving up to $1,250,000 in tax credits which are distributable to eligible shareholders.
The federal government’s JMEI program, which is administered by the ATO, was designed to incentivise investment in junior minerals exploration companies that focus on greenfields exploration within Australia by allowing the company to convert eligible carried-forward tax losses into a refundable tax credit that can be used to attract new investors.
Eligible shareholders must have participated in Resolution’s fundraising activities after the issue of JMEI credits on 1st September 2021 through 30th June 2022, with only new shares eligible for the credits.
Of particular relevance are Resolution’s two Northern Territory projects: Wollogorang and Benmara.
The 4,000km² Wollogorang copper-cobalt project is located within the McArthur Basin and is surrounded by projects owned by notable miners including BHP, Rio Tinto and Teck.
Wollogorang is the subject of a farm-in agreement with Oz Minerals (ASX:OZM), which will see OZM earn a 51% interest in the project via by spending $4.9m on exploration activities over a 5 year period.
In December 2020 Resolution executed a binding term sheet with Strategic Energy Resources Ltd (ASX: SER) to acquire the 663km² Benmara Project, which sits along strike from the Walford Creek copper-silver-lead-zinc-cobalt and Westmoreland uranium deposits on the Northern Territory’s Fish River Fault.
The company completed a VTEM MaxTM geophysical survey across the central zone of the project earlier in 2021, and is set to commence a 2,500m RC drill program in October to test targets identified by the VTEM survey.