News: Elementos banks R&D refund, progresses Cleveland Project in Tasmania

Elementos (ASX:ELT) has received a Research and Development tax refund of $273,000 under the Federal Government’s R&D Tax Incentive Scheme.

Under this Scheme, companies with a turnover of less than $20 million per annum are entitled to a cash refund of 45% of all eligible R&D activities in Australia.

Elementos has a potentially fast track toward generating cash flow from reprocessing of tin, copper and tungsten tailings from the Cleveland Mine Redevelopment in Tasmania.

The company’s claim relates to R&D activities for the Cleveland Tailings, Hardrock and Underground Projects during the period 7 December 2013 to 30 June 2014.

The company is awaiting confirmation of a refund for the period 1 July 2013 to 6 December 2014.

The reprocessing of tailings is a fast way to generate cash for open pit mining, which will in turn provides the cash flow to redevelop the Cleveland underground mine.

The tailings resource is stored above ground on-site in two tailings dams. These contain a substantial quantity of recoverable tin and copper due in part to operational inefficiencies and technical limitations of tin processing whilst the mine was in operation between 1968 and 1986.

Capital expenditure and operating costs would be expected to be low in keeping with tailings reprocessing operations.

Cleveland plans to commence construction of the tailings reprocessing facility in 2016, with production to quickly follow.