22nd Jan 2016 08:27
LONDON (Alliance News) - Resources investment company Metal Tiger PLC on Friday said it has agreed a collaboration deal with AIM-listed ECR Minerals PLC to help the company realise value from the tax loss it holds in its Mercator Gold Australia Pty Ltd subsidiary.
Mercator, a wholly-owned ECR unit, has a AUD66.0 million tax loss on its books, Metal Tiger said, and it has struck a deal with ECR to help the company identify an opportunity to utilise this loss and generate a cash return.
Should Metal Tiger be able to identify an opportunity under the deal, it would get a conditional fee equal to 25% of the tax which would have been payable by Mercator.
"Within Metal Tiger's board we have experience in the handling of complex company tax structures with the Australian Tax Office and commensurate with that experience have access to leading local advisors to help identify and if possible facilitate the use of the losses held by Mercator Gold Australia," said Cameron Parry, Metal Tiger's chief executive.
"In addition to taxation experience and connections, Metal Tiger has the Australian network to provide a wide range of opportunities for tax loss utilisation, whether that is the identification of a suitable profit generating project that could consume the tax losses over time, or a transaction of another kind," Parry added.
Metal Tiger shares were up 0.7% on the news to 0.78 pence, while ECR shares were up 12% to 0.0237p.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
MTR.LECR Minerals