Segue Resources Ltd (ASX:SEG) will be passing on tax credits to eligible shareholders as part of the federal government's exploration development incentive (EDI).
Exploration companies can give up a portion of their tax losses and distribute these EDI Credits to its shareholders.
Australian tax resident shareholders that are issued with an EDI Credit will be entitled to a refundable tax offset (for shareholders who are individuals or superannuation funds) or franking credits (for shareholders who are companies).
The company’s carry forward tax losses will be reduced by the amount of EDI Credits created.
Eligible shareholders entitlements to the EDI credits will be determined at the record date, which is this Friday 10 June, 2016.
Segue shareholders will receive a pro‐rata distribution of $413,373 of EDI credits, which equates to 0.0143¢ per share.
Australian tax resident shareholders that are issued with an EDI credit will be entitled to a refundable tax offset (individuals or superannuation funds) or franking credits (companies).
Segue recently entered the lithium sector by acquiring the Gascoyne Lithium exploration tenements and entering the Mortimer Hills Lithium joint venture with Zeus Resources Ltd (ASX:ZEU).
This gives Segue an interest in over 400 square kilometres of exploration licenses in the Gascoyne region making it the largest explorer in the area.
The tenements are highly prospective for tantalum‐lithium minerals and are adjacent to exploration licence applications held by Lithium Australia NL (ASX:LIT) and Venus Metals Corporation Ltd (ASX:VMC).
Field work and surface sampling has started in an attempt to identify pegmatites that host tantalum and lithium.
During April, Segue raised $250,000 through a placement and received a tax rebate of $337,000 cash.
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