Premier1 Lithium Ltd (ASX:PLC) has successfully applied for a Research & Development (R&D) tax offset, receiving $889,546 from the Australian Taxation Office (ATO) for the 2023/24 financial year.
The R&D Tax Incentive, an Australian Government program, offers a 43.5% refundable tax offset to eligible companies with an annual turnover below $20 million for qualifying R&D expenditures. This refundable offset is calculated at the corporate tax rate plus an additional 18.5% premium.
The receipt stems from Premier1’s investment in R&D activities focused on artificial intelligence and machine learning technologies for mineral exploration across various commodities and geological settings, including field testing on identified targets. These activities were conducted prior to the company’s demerger.
The funding will bolster Premier1’s cash reserves and enhance its ability to pursue further exploration activities at its Yalgoo and Abbotts North projects.
Strong finish to 2024
The tax rebate comes a month after the company raised $1.5 million to advance exploration at the Yalgoo and Abbotts North projects.
Premier1 Lithium managing director Jason Froud said: “Both the placement and underwriting for the entitlement offer have been well supported demonstrating the strong backing for the company’s proposed exploration activities at Yalgoo and Abbotts North.
“The support received ensures that the company is well funded to continue its exploration program and to drill test a number of gold targets early next year."
A detailed geological interpretation is being prepared for data collected from the Yalgoo Project in Western Australia, after the recent completion of an airborne magnetic survey covering 700 line-kilometres.
Key targets in the survey include the Carlisle, Broken Mount, Consuelo and Cumberland prospects, identified as high-priority areas based on historical magnetic data from the 1980s and 1990s.
The survey is co-funded by neighbouring tenement holder Spartan Resources, extending coverage across the Crescent and Olive Queen deposits and into Spartan's tenure.