The Australian Government's AusIndustry has awarded Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) an Advance and Overseas Finding Certificate enabling the company to take part in the research and development (R&D) incentive program.
Refundable tax offsets
The certificate allows the company to claim refundable tax offsets or cash rebates on 43.5% of eligible expenditure related to the development of the Great White Project (GWP) in South Australia over a three-year period.
Andromeda's acting CEO Sarah Clarke said: “We thank the Australian Government for the support this decision brings.
“Having the government refund almost half of the eligible expenditure is a great outcome for Andromeda’s shareholders, further supporting the development of the Great White Project.
“Our thanks also go to Andromeda’s technical and finance teams who have done a fantastic job, working studiously over many months on procuring this R&D Advance Finding.”
Eligible expenditure over three years
An Advance Finding is binding on the Australian Commissioner of Taxation for up to three income years from the start of the income year in which a company’s application was lodged.
This period of time provides Andromeda with certainty that its planned activities are covered under Australia’s R&D Tax Incentive program.
Eligible expenditures on the horizon include the Streaky Bay Pilot Plant design and operating costs, as well as mining tests and project administration – with an estimated eligible expenditure of up to A$26 million.
This support from the Australian Government further strengthens Andromeda's position as it progresses the development of the Great White Project.
Read more about Andromeda’s recent activities:
Andromeda Metals progressing Great White Project financing ahead of final investment decision
Andromeda Metals progresses development of HPA product from The Great White Project
Andromeda Metals raises A$3.4 million, plans additional A$3.1 million entitlement offer