ECR Minerals PLC (LON:ECR) has announced that its wholly-owned Australian subsidiary Mercator Gold Australia (MGA) has received a cash refund for research and development (R&D) expenditure of A$555,212 (approximately £295,515) under the Australian government’s R&D Tax Incentive scheme.
In a statement, the precious metals exploration and development company said the qualifying activities pertain to research into turbidite-hosted gold deposits within MGA’s exploration licences in Victoria, Australia.
In addition, it said, as at 30 September 2019, MGA had carried forward corporate income tax losses of A$66,341,587 (approximately £35.3 million) which are expected to be available for offset against future taxable gains.
Craig Brown, ECR’s chief executive officer, commented: “I am very pleased to announce the receipt of this cash refund by MGA, which provides a significant boost to the group’s cash position.”
He added: “The gold price remains strong and we believe there is considerable and growing interest in respect of Australian gold exploration, and we have also observed strong interest in the Victorian goldfields where we have an active exploration portfolio.
“Overall, the board believes the additional cash creates exciting opportunities for an entrepreneurial gold-focused company like ECR.”