TORONTO--(BUSINESS WIRE)--Aldridge Minerals Inc. (TSX-V: AGM) (“Aldridge” or the “Company”) is pleased to announce that the Company has been approved for and received both a Strategic Investment Incentive Certificate (“Strategic IIC”) and a Large-scale Investment Incentive Certificate (“Large-scale IIC”) from the Turkish Ministry of Economy for the development of the Company’s Yenipazar Project in central Turkey. As a result, the corporate income tax rate is reduced from 20% to a range of 2% to 4%. Using the Company’s Base Case economic assumptions as described in the Optimization Study, Aldridge estimates that it will benefit from this low 2% to 4% corporate income tax rate into Year 7 of the 12-Year mine life, upon which the tax rate is expected to revert to 20% for the remainder of the mine life. Obtaining the Strategic IIC approval increased the incentive contribution rate from 40% to 50% on the majority of qualifying capital expenditures, which will increase the life of mine tax savings benefit to US$76,000,000, or by US$14,000,000 from US$62,000,000 estimated in the Optimization Study.
The financial model contained in the Company’s most recent technical report, which has an effective date of April 15, 2014 and is titled “Technical Report on the Yenipazar Optimization Study, Yozgat Province, Turkey” (the “Optimization Study”), estimated the Yenipazar Project would qualify for only the Large-scale IIC, which limited the incentive contribution rate to 40% and reduced the corporate income tax rate from 20% to 6%. Achieving the Strategic IIC classification maximized the incentive contribution rate at 50% and decreased the corporate income tax rate previously estimated.
Aldridge’s Yenipazar Project, by achieving Turkey’s highest ranking as a Strategic Investment, will also receive interest rate support, in addition to benefits common to both Strategic IIC and Large-scale IIC, which include VAT, customs duty and social security premium exemptions. The investment incentives administrative regulations allow for the ongoing review of qualifying expenditures and changes in the approved contribution amounts to account for revisions to cost estimates and exchange rate fluctuations.
Han Ilhan, President and CEO of Aldridge commented, “The approval of the investment incentive qualification is a rigorous process in Turkey, which begins only after the approval of the Environmental Impact Assessment and other key permits. Our team worked diligently to maximize the taxation benefits available to the Yenipazar Project. I am very pleased that their efforts increased our taxation benefits beyond the amounts estimated in the Optimization Study.”
Aldridge is a development stage mining company focused on its wholly owned Yenipazar polymetallic Massive Sulfide Project (Au, Ag, Cu, Pb, Zn) in Turkey, a country that is committed to developing its natural resources. Aldridge completed the Yenipazar Optimization Study and filed the related technical report in May 2014, which updated the original May 2013 Feasibility Study. The Company is currently advancing the Yenipazar Project on key aspects including engineering, land acquisition and project financing.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws, including, but are not limited to the ability to accomplish remaining milestones, land acquisitions, securing project financing and commencing construction in 2016, advancing the Yenipazar Project to production in 2018, economic performance, future plans and objectives of the Company.
Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Such risks, uncertainties and factors including meeting conditions for advances under the Loan and the other factors discussed under the heading “Risk Factors” in the Company’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2014 and in other continuous disclosure filings made by the Company with Canadian securities regulatory authorities and available at www.sedar.com. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results.
Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of Aldridge and its subsidiaries as a going concern, general economic and market conditions, mineral prices, the accuracy of mineral resource estimates. Although Aldridge believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aldridge disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.