The cash position of OD6 Metals Ltd (ASX:OD6) has been given a boost with the company receiving its 2022/23 research and development (R&D) tax incentive claim of $962,697.
The funds reflect a rebate from the Federal Government on eligible Australian R&D activities undertaken for the Splinter Rock and Grass Patch clay-hosted rare earth elements (REE) projects near Esperance in Western Australia.
OD6 confirms it is fully committed to R&D as it continues to develop critical minerals technologies through relationships with the CSIRO, Murdoch University, ANSTO, private research providers and internally. As such, it anticipates being able to claim future tax offsets over the coming years.
The R&D rebate is a substantial addition to the $2.03 million the company held in cash as of September 30.
OD6 managing director Brett Hazelden said: “The R&D Tax Incentive program is an important scheme supporting OD6 and its partners like CSIRO, ANSTO and Murdoch University to develop the technology to discover and extract the rare earth elements associated with its clay-hosted rare earth projects.
“Critical minerals exploration, discovery and development is crucial for a world in an energy industry transition. Considering there is only one operational rare earth mine in Australia, the federal government’s support of this critical minerals industry is highly important to the future development of the company and the resources industry.
“We are a future-facing company rapidly advancing our identified prospects at Splinter Rock, as we look to develop the necessary technology for a rare earth industry in the Esperance region of Western Australia.