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Northern Minerals converts Lind debt into equity; settles R&D tax dispute with ATO

A net refund of $9,921,638 is payable by the Australian Taxation Office (ATO) to the company on or about September 18 2020.

Northern Minerals Ltd - Northern Minerals coverts Lind debt into equity; settles R&D tax dispute with ATO
The company will receive $1.08 million in cash from Lind

Northern Minerals Ltd (ASX:NTU) has issued 66,666,667 shares to a nominee of Lind Global Macro Fund, LP by converting $1.2 million worth of convertible security into ordinary shares.

Following this conversion there are no amounts outstanding under the replacement convertible security (which has now been redeemed in full).

Pursuant to the terms of the March 2020 funding agreement with Lind under which the replacement convertible security was issued, Lind has now elected to reduce the collateral shareholding from 60,000,000 shares to zero, by paying NTU $1.08 million in cash.

NTU expects to receive cleared funds shortly and intends to apply those funds towards the continued development of the company’s projects.

Continued support from Lind

CEO Mark Tory said: “This is the third funding arrangement over a number of years that the company has transacted with Lind.

“The company appreciates the continued support demonstrated by Jeff Easton and the team at Lind and the professional approach adopted by Lind over the years.”

R&D tax dispute settled

NTU has entered into a settlement agreement with the Australian Taxation Office (ATO) that settles all matters relating to the company’s refundable Research and Development (R&D) tax offset claims for the financial years ended June 30 2017 and 2018 which concludes the ATO’s review of those claims.

The settlement agreement also documents an agreed refundable R&D tax offset for the financial year ended June 30 2019 and a framework for reviewing the company’s refundable R&D tax offset claim for the financial year ended June 30 2020.

As part of the settlement process, NTU has adopted recommendations from the ATO for improving its internal policies and procedures with the aim of streamlining future R&D claims.

The settlement agreement reduces the original refundable R&D tax offsets claimed for the financial years ended June 30 2017 and 2018 by $21,309,237.

Noting that only half the original refundable R&D tax offset for the financial year ended June 30 2018 was previously refunded by the ATO, the net cashflow effect of the settlement agreement for the financial years ended June 30 2017, 2018 and 2019 is a net refund of $9,921,638 payable to the company on or about September 18 2020.

In light of the settlement agreement, NTU no longer has any amounts owing to the ATO in respect of the financial years ended June 30 2017 and 2018.

Except as set out above, the terms of the settlement agreement are confidential.

Mark Tory said: “Whilst a lengthy period of time has passed from the date of lodgement of the 2017 and 2018 returns, the company is pleased that this matter has come to a close and we would like to thank all involved including the ATO and AusIndustry in reaching an amicable settlement of this dispute.”

Quick facts: Northern Minerals Ltd

Price: 0.034 AUD

ASX:NTU
Market: ASX
Market Cap: $150.83 m
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