Torque Metals Ltd (ASX:TOR) has been successful with an application for the Australian Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme.
The Australian Taxation Office (ATO) has confirmed that JMEI credits worth $1,488,500, the maximum possible for the financial year 2024/25, have been allocated to Torque for potential distribution to eligible shareholders.
The JMEI scheme aims to stimulate investment in companies engaged in greenfield mineral exploration in Australia by allowing these companies to convert part of their tax losses into credits for eligible investors.
"Of great benefit"
Torque’s managing director Cristian Moreno noted the strategic benefit of converting tax losses into credits for eligible investors, highlighting that this allocation is a significant advantage for Torque and other junior explorers.
“Having the ability to convert what would otherwise be written off as tax losses, into a credit for possible distribution to investors who meet the eligibility criteria, is of great benefit to Torque Metals and other junior explorers who participate in the incentive.
"It is encouraging to have been allocated the maximum allowable credit for the current financial year.
“Torque’s voluntary decision to participate in the JMEI scheme was undertaken strategically to demonstrate additional upside for company investors.”
A good week for Torque
The grant comes as Torque resumes drilling at its Paris Gold Project in Western Australia.
Supported by a record-high gold price and an optimistic outlook for the precious metal, Torque resumed drilling activities at its Paris Project. The objective is to infill and extend existing gold lodes, contributing to the company's inaugural mineral resource estimate (MRE).
The drilling plan encompasses up to 9,000 metres, including approximately 1,000 metres of diamond drilling and 8,000 metres of reverse circulation (RC) drilling. This initiative aims to enhance and expand mineralisation at Paris West and a newly identified prospect, Eva.
Torque anticipates completing the drilling by late August, with assay results reported progressively from mid-August. This program is a crucial element of Torque's strategy to increase the quantity of shallow, high-grade gold ounces for its maiden and forthcoming MRE.