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Bryah Resources succeeds with Junior Minerals Exploration Incentive scheme application

The scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on greenfield exploration.

Bryah Resources Ltd - Bryah Resources receives Junior Minerals Exploration Incentive scheme for 2020 -2021 income year
Bryah will receive an allocation of up to $585,000 in tax credits

Bryah Resources Ltd’s (ASX:BYH) Junior Minerals Exploration Incentive (JMEI) scheme application for the 2020-2021 income year has been accepted by the Australian Taxation Office (ATO).

The company has been previously successful in applying to participate in the JMEI scheme for the 2018-2019 and 2019-2020 income years.

For the current income year Bryah has received an allocation of up to $585,000 in tax credits which can be distributed to shareholders who acquire new shares in the company between July 8, 2020, and June 30, 2021.

Australian resident participants in the second tranche of a placement, in which the company intends to issue up to 10,469,040 new shares at an issue price of 5 cents each, will qualify as eligible shareholders.

Introduction of JMEI scheme

In March 2018, the Federal Parliament passed legislation introducing the JMEI scheme with effect from July 1, 2017 for a four-year period based on an annual application process.

The ATO is the administrator of the scheme.

This scheme enables eligible exploration companies to create refundable tax credits to distribute to eligible shareholders by forgoing a portion of their carried forward tax losses that have arisen from allowable expenditure on greenfield exploration.

The JMEI applies to shareholders who acquire new shares in a greenfields minerals explorer before the end of an income year in which the Commissioner has made an exploration credits allocation.

The shares must be equity interests for the purposes of the debt and equity tax rules.

Receipt of credits

Investors should be aware that Bryah cannot guarantee eligible shareholders will receive the maximum number of JMEI credits available as the actual number of JMEI credits received by each eligible shareholder for the 2020-2021 income year will be dependent on a number of factors.

These factors include the number of new shares issued, the actual amount of allowable exploration incurred by Bryah and the company's tax losses for the 2020-2021 financial year.

Eligible shareholders are expected to be notified by the company of their JMEI credit entitlement in the approved form once Bryah has lodged its 2020-2021 tax return.

These JMEI credits will apply to their income tax assessment for the year ended June 30, 2021.

Quick facts: Bryah Resources Ltd

Price: 0.057 AUD

ASX:BYH
Market: ASX
Market Cap: $7.52 m
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