Cauldron Energy Ltd (ASX:CXU) (OTCMKTS:CAULF) has been successful in its application for participation in the Federal Governments Junior Minerals Exploration Incentive (JMEI) scheme for the 2021 income year.
As a result, the gold-focused explorer has received an allocation of $600,000 which will be available in tax credits for eligible investors.
The JMEI scheme encourages investment in exploration companies undertaking greenfields mineral exploration in Australia.
It does so by creating exploration credits using a portion of their tax losses from eligible exploration expenditure and distributing these exploration credits to investors who contribute new equity.
The exploration companys carry forward losses are then reduced proportionately to reflect the amount of exploration credits created.
Cauldron has a suite of highly prospective gold projects in the prolific Central Victorian Goldfields.
Eligible investors must be Australian resident shareholders who apply for and are issued new shares in the companys capital raising activities between July 9, 2020, and June 30, 2021.
JMEI credits will be distributed to all eligible investors on a pro-rata basis.
The precise amount of credit per share issued will be determined after June 30, 2021, and is based on total capital raised during the year to June 30, 2021, together with the amount of eligible exploration expenditure for the year, and the tax result of the company.
Applies to this income year
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