- Great Southern Mining shall be allocated $525,000 in tax credits under the Junior Minerals Exploration Incentive Scheme (JMEI) of the Federal Government for the year ending 30 June 2021.
- JMEI credits can be allocated to qualified investors as a tax offset and shall aid in decreasing the tax liability for 30 June 2021 and/or 30 June 2022 of an investor.
- GSN expects to issue the JMEI tax credits in the quarter ending 31 September 2021, after lodging its tax return for 30 June 2021.
- GSN has been advancing its projects well with various drilling programs and identification of mineralisation at its projects.
Mineral exploration company, Great Southern Mining Limited (ASX:GSN) had applied for participating in the Junior Minerals Exploration Incentive Scheme (JMEI) of the Federal Government.
GSN won JMEI tax credits for up to $525,000 for the year ending 30 June 2021 through its application for the year ended 30 June 2021.
GSN Receives Tax Credits for Up To $525,000
JMEI promotes investment in small minerals exploration companies that carry out greenfields mineral exploration in Australia and is designed to boost investment in exploration companies by producing a tax credit in return of tax losses for potential distribution to qualified shareholders.
- For GSN, JMEI shall provide for up to $525,000 in JMEI tax credits for the year ending 30 June 2021.
- JMEI credits may be distributed to eligible investors as a tax offset and would serve to reduce the tax liability of eligible investors for 30 June 2021 and/or 30 June 2022.
- The JMEI tax credits would attach to any eligible shares issued by GSN between 8 July 2020 and 30 June 2021.
The credits are distributed to qualified investors on a pro-rata basis, who must be Australian resident shareholders and should hold new shares in any of GSN’s capital raising initiatives between the date of the allocation of credits by the ATO, 8 July 2020 and 30 June 2021.
GSN shall issue the JMEI tax credits subsequent to the lodgement of its 30 June 2021 tax return, expected in the quarter ending 31 September 2021. Regarding the receipt of JMEI tax credits prior to participation in future capital raisings, GSN advice that shareholders should obtain independent tax advice specific to their personal circumstances.
According to the Australian Taxation Office, carry forward losses of the exploration company shall be lowered proportionately to indicate the amount of exploration credits issued to its shareholders. Moreover, the JMEI pertains from the 2017-18 income year with exploration credits limited over a four-year period as given below:
- $15 million in the 2017-18 income year
- $25 million in the 2018-19 income year
- $30 million in the 2019-20 income year
- $35 million in the 2020-21 income year
GSN Progressing Well At Its Projects
Lately, GSN reported the discovery of a significant, large geochemical soil anomaly at Leichhardt Creek prospect, located in Edinburgh Park Project in north Queensland from recent mapping and geochemical sampling.
Further, at its Mon Ami Gold Project, located 12km south of Laverton, GSN reported the commencement of a drilling program in early July 2020 with a focus to find gold-bearing extensions along strike.
At its Cox’s Find Gold Project, GSN identified multiple occurrences of gold-bearing mineralisation within quartz veining in diamond drill core.
GSN aims to become a leading gold exploration Company in Australia and focuses on producing and securing wealth for shareholders by way of efficient exploration programs and strategic acquisitions of projects.
The success of GSN is backed by its significant land holdings in the world-renowned gold districts of Laverton in Western Australia and the Mt Carlton Region of North Queensland.
On 27 July 2020, GSN stock was trading at $0.170, with a market capitalisation of $65.46 million (AEST: 1:50PM). The stock has increased by 325% in the last three months till 25 July 2020.