St George Mining Ltd (ASX:SGQ) has confirmed that the company has been approved for participation in the Exploration Development Incentive (EDI) which will entitle eligible shareholders to a tax credit for the tax year ending 30 June 2016.
The EDI is a Federal Government initiative that allows Australian resident shareholders to obtain a refundable tax offset for greenfield exploration undertaken by Australian junior exploration companies that do not derive any taxable income.
St George will participate in the EDI for the 2015/2016 tax year with $379,830 of tax credits approved by the Federal Government for distribution to eligible shareholders of St George Mining.
Record date
For shareholders to receive an EDI tax credit, they must be registered as holding ordinary shares in the company as at 5pm (WST) on Tuesday, 31 May 2016.
The EDI tax credit is available only to Australian resident shareholders.
Eligible shareholders will be notified of the EDI tax credit applicable to them by Computershare, which operates the St George share register.
The tax credit will be available for use in the 2015/2016 tax year.
A total of $379,830 of EDI tax credits are available for distribution to eligible shareholders of St George Mining on a pro rata basis.
The company currently has 207,193,095 shares on issue, equating to an EDI
tax credit of approximately $0.0018 per share.
Any shares issued upon exercise of options prior to the Record Date will be eligible for the EDI tax credit, and will impact on the final amount of the EDI tax credit distributed per share.
John Prineas, executive chairman, commented:
“We are pleased to be able to provide a tax benefit to St George shareholders through the EDI scheme.
“Greenfields exploration is the lifeblood of the mining industry and the Federal Government is to be commended for the introduction of the EDI scheme and its continued support of junior exploration companies.”
Exploration program
St George is actively exploring three projects in Western Australia.
1. Mt Alexander Project – high grade nickel‐copper sulphides have already been discovered at Mt Alexander with further drilling of targets for massive nickel-copper sulphides, including strong electromagnetic conductors, due to commence in late June 2016;
2. East Laverton Project – multiple high quality nickel sulphide and gold targets have been identified at East Laverton, with a gold focused drill program planned to commence this week; and
3. Hawaii Project – an early stage project with recently recognised unexplored greenstones.
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