Cadoux Ltd has added $686,761 to the war chest after receiving a research and development (R&D) tax incentive offset payment for expenditure related to the Minhub mineral sands and rare earth processing project (MSP) in Darwin, Northern Territory.
CCM is the 50% owner of Minihub Operations Pty Ltd (MOPL), which is developing the MSP with funding from Cadoux.
The offset payment has been applied to Cadoux’s bank account, obtained under an Australian Federal Government initiative under which eligible companies can receive cash refunds for up to 43.5% of all eligible expenditure on designated research and development projects.
Minihub Sands Processing Project
The R&D offset payment funds will be directed towards the ongoing development of Cadoux’s high-purity alumina (HPA) project, which boasts a projected net present value (NPV10) of US$1.01 billion after tax, and forecast average revenue per year of US$261 million.
The funds will also continue to support the MSP, where CCM intends to develop a mineral separation facility to produce valuable rare earth minerals from mineral sands feedstock.
Finished products from the project will include rare earth minerals monazite and xenotime as well as zircon and titanium products such as rutile and ilmenite.
The project will be constructed in Darwin, a deepwater port connected to extensive rail infrastructure and direct access for mineral sands concentrates from southern mines.