ECR Minerals receives 'significant' tax incentive in Australia

Precious metals exploration and development company ECR Minerals updated the market on a “significant” cash refund received by its wholly-owned Australian subsidiary, Mercator Gold Australia, under the Australian government’s research and development tax incentive scheme.

The AIM-traded firm said Mercator had received a cash refund AUD 555,212 (£295,515).

It said the qualifying activities pertained to research into turbidite-hosted gold deposits within its exploration licences in the state of Victoria.

In addition, as at 30 September, Mercator had carried forward corporate income tax losses of AUD 66.34m, which were expected to be available for offset against future taxable gains.

“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,” said chief executive officer Craig Brown.

“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.”

At 1007 GMT, shares in ECR Minerals were down 3.45% at 0.7p.