Trigg Minerals (ASX: TMG) has received a $1.31 million research and development tax incentive payment, which in culmination with its recent $576,000 placement and Underwriting of the $1.8 million Non-Renounceable Rights issue, bolsters the Company’s cash commitments to a significant $3.3 million.
Strategic Tax Offset
The Company has already received 80 per cent of the total Research and Development (R&D) Tax Offset, obtained through a $1.05 million upfront payment from Radium Capital, with the balance of ~$250,000 (before costs) anticipated in December this year.
The funds will be used for R&D work undertaken at the Company’s Lake Throssell Sulphate of Potash Project in Western Australia.
The tax incentive recognises the innovation required to develop a Sulphate of Potash Project in Australia, rewarding Trigg’s approach to determining the hydrogeological characteristics of the brine-hosted deposit.
Sulphate of Potash (SOP) is made up of potassium, sulphur and oxygen and represents elements from key groups including atmospheric, primary and intermediate nutrients, makeing SOP a highly efficient source of essential minerals for plant growth and crop yields.
Approximately 40 – 60 per cent of global food production relies on mineral fertilisers, underscoring the critical role of SOP in boosting food crop yields.
The funds target key processing flowsheet issues which are often encountered by the sector’s first-movers, addressing these, enabling Company’s like Trigg to claim a significant cash refund for this type of ground-breaking technical work.
Figure 1: Lake Throssell Trench Network in WA
The funding has significantly bolstered the Company’s cash commitments as it comes on the heels of Trigg’s recent successful $576,000 placement which brought its cash balance to approximately $2.3 million.
These funding initiatives take Trigg’s minimum estimated cash balance to $3.30 million by the end of October 2023, strengthening its balance sheet to drive gold and base metals exploration at the Drummond Basin Project in Queensland and to continue its Sulphate of Potash process innovation.
Lake Throssell Sulphate of Potash Project
The Company is committed to developing a new Sulphate of Potash hub on the doorstep of the Eastern Goldfields with its unique Lake Throssel Project, encapsulating an area of 1,085 square kilometres east of Laverton in Western Australia.
The Project contains a total drainable Mineral Resource Estimate of 14.4Mt of SOP, plus an additional Exploration Targets.
The October 2021 Scoping Study outlined an initial 21-year mine life with forecast production of 245,000tpa SOP in the lowest cost-quartile, which would position Trigg as a potential top-10 global SOP producer.
Figure 2: Lake Throssel Sulphate of Potash Project in WA
Trigg Minerals’ Chairman Mike Ralston commented on the research and development tax offset.
“This R&D rebate delivers Trigg a considerable source of additional non-dilutive funding which will greatly assist the Company as we look to deliver further shareholder value through the addition of the Drummond Basin gold and base metals project in Queensland,” he said.
“The Board’s strong commitment to reducing operational costs while focusing key strategic deliverables positions Trigg to drive shareholder value into 2024.”
TMG’s Australian Stock Exchange-listed share price has risen 9.09 per cent and is currently trading at $0.012 (11.45am UTC+ 8 hours).