Alara Resources (ASX: AUQ) has received a $2.75 million tax refund under the Australian Government’s Research and Development Tax Incentive Scheme for eligible expenditure on the Khnaiguiyah Zinc-Copper project in Saudi Arabia.
Along with its existing cash of $3.38 million as of 31 August 2013, the company now has working capital for over 20 months as the Khnaiguiyah Project progresses through its finance phase.
The company is currently preparing to apply to the Saudi Industrial Development Fund to provide up to 75% local financing for the Khnaiguiyah Project.
It also expects to lodge a R&D claim for between $0.5 million and $0.9 million for the 2013 financial year at the end of this month.
The company added it is engaged in positive discussions with partner United Arabian Mining Company to transfer the Khnaiguiyah Mining Licence to joint venture company Khnaiguiyah Mining Company.
Separately, the company is considering various options from interested parties regarding the partial or full divestment of its assets in Oman.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.