Successful Application for Allocation of JMEI Tax Credits
- White Cliff has received an allocation of $550,000 in JMEI credits
- Some or all of these JMEI credits may be distributed to all eligible White Cliff shareholders as a tax offset or franking credit against the Company's tax losses for allowable green fields exploration expenditure in the 2018/2019 financial year
- To be eligible, a shareholder must participate in the Company's fundraising activities during the 2018/19 financial year
- Only new shares issued by White Cliff will be subject to the JMEI scheme.
About the JMEI Scheme
During March 2018, the Federal Parliament passed legislation introducing the JMEI scheme with effect from 1 July 2017 for a four-year period based on an annual application process. The ATO is the administrator of the scheme.
The JMEI 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. These shares must be equity interests for the purposes of the debt and equity tax rules. Australian resident shareholders that are issued with JMEI credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies). Receiving a JMEI credit could have tax consequences and shareholders who are issued JMEI credits by the Company should obtain independent tax advice specific to their personal circumstances.
The Company's allocation of JMEI credits must be distributed to all eligible shareholders on a pro-rata basis. For shareholders to be eligible to receive a pro-rata distribution of JMEI credits from the Company, they must have applied for and been issued new shares in the Company during the 2018/19 financial year.
White Cliff's participation in the scheme
The ATO has confirmed that White Cliff's application to participate in the JMEI scheme for the 2018/2019 tax year has been accepted and that 100% of the exploration credits of $550,000 applied for has been allocated to the Company for distribution to shareholders who acquire new White Cliff shares ("Eligible Shareholders") after 1 July 2018 and prior to 30 June 2019.
White Cliff has not determined the timing of any future equity raising. The actual number of JMEI credits to be received by each Eligible Shareholder for the 2018/19 income year will depend on a number of factors including but not limited to:
- the actual amount of allowable "greenfields" exploration expenditure incurred by the Company during the 2018/19 financial year;
- the total number of White Cliff shares issued during the 2018/19 financial year; and
- White Cliff's tax losses for 2018/19 financial year following the lodgement of its 30 June 2019 tax return.
The JMEI scheme is new and therefore all Eligible Shareholders are encouraged to seek their own independent financial advice before participating in any future equity raising. The JMEI credits will apply to the 2018/19 tax year and may be issued by the Company after lodgement of its 30 June 2019 income tax return.
For further information about the JMEI refer to the ATO website at:
About White Cliff Minerals Ltd
White Cliff Minerals Ltd is a Gold, Copper, Cobalt, Nickel resources and mining company listed in Australia (ASX:WCN). The Company is focused on developing low cost high value mineral deposits that have near term cash flow potential.
Major projects include the Aucu gold deposit that contains 484,000 ounces of gold (3mt at 5.1 g/t) starting at surface and Chanach copper deposit that contains 64,000 tonnes of copper (17.2Mt at 0.37% copper). Both projects have substantial blue sky potential with drilling covering only 5% of the known structures. In Australia the company is developing the Coronation Dam cobalt–nickel deposit where a maiden resource will be announced in the late 2018.
White Cliff Minerals Ltd