Tax refund??2 Jan 2019 23:33
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When asked at the end of the interview for three good reasons potential investors should put ECR in their watchlist, Craig Brown mentions that ECR are currently being refunded 43% of their exploration costs by the Aus Govt!!
Could that be part of the estimated A$80m in tax losses `owned` by ECR?
After todays RNS, and with £1.2m currently in the bank, it seems like the plan is to extend licenses all over their target regions in Australia, and build an extensive portfolio which can all be drilled and tested at a cut price because of the use of the tax losses.
This from an RNS in Sept 17.......
Following receipt of the transfer of the Avoca licence to ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd, the Company’s four gold projects (Avoca, Baillieston, Timor and Moormbool) in Central Victoria, Australia are now 100% owned by ECR.
I presume they are doing that with all the new licenses awarded, putting everything under the Mercator Gold name...which was the Company which came back out of administration in 2014 with all those losses! (for those who didn`t know that already).
A large % of junior mining exploration companies are struggling to get funded, and ECR are not only funded to 2020 but can comfortably afford to explore because of the tax relief on the costs.
No wonder they`ve been applying for so many licenses.
This from the RNS update in Dec `17.....
`The study was carried out for MGA by the consultancy firm Terra Resources Ltd, and has identified a total of 47 targets for potential follow-up, including 15 high priority areas.`
All we need is for the already very positive results to keep coming in and could be a great 2019....and the rise in the price of gold should help sentiment going forward.
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