G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF) announced that the Superintendência do Desenvolvimento da Amazônia (SUDAM) has formally approved the Tocantinzinho gold mine, located in Pará State, Brazil, for inclusion in its regional development tax incentive program.
The mining company said with the approval, the Brazilian nominal corporate income tax rate applicable to Tocantinzinho will be reduced from 34% to about 15.25% for a period of 10 years, from fiscal year 2025.
It added that the incentive is renewable following the initial term and is expected to materially enhance the company’s after-tax earnings and free cash flow generation.
"The approval of this tax incentive further strengthens Tocantinzinho's already robust economics and affirms the value of our investment in the Amazon region," G Mining Ventures CEO Louis-Pierre Gignac said in a statement.
"By lowering our effective tax rate, we expand margins and increase free cash flow — reinforcing Tocantinzinho's role as the engine that funds our disciplined growth pipeline for our Oko West Gold Project in Guyana and our advanced exploration at Gurupi."