Key points:
- Oriole Resources shares rallied 8.6% on a £403K rebate from HMRC.
- Investors cheered the news since it is an income source for Oriole.
- The company’s projects are all in their early stages.
The Oriole Resources PLC (LON: ORR) share price rallied 8.6% after announcing that it had received a rebate worth £403,000 from Her Majesty's Revenue and Customs (‘HMRC’) regarding a Research and Development ‘'R&D’) tax relief claim.
Also read: The Best Gold and Gold Mining Stocks to Buy.
Investors cheered the news, as evidenced by the rally in ORR shares, but the stock had given up most of its gains by the time of writing. The claim was related to the geoscientific advances made by the Company via its exploration programmes.
The company qualified for the rebate after demonstrating that it had performed research on potential mineralisation areas to collect the geological data needed to assess the economic feasibility of future mining operations in its mining license areas.
Oriole Resources currently has three early-stage mining projects in Cameroon located in central Cameroon, the Bibemi project and the Wapouzé project, located 20km North of Bibemi.
The Bibemi project is the most advanced out of the three, as the company has identified an orogenic gold system stretching over a strike length of almost 12 km. Oriole Resources has completed three diamond drilling campaigns at Bibemi.
Oriole’s central Cameroon project has five license areas, including Tenekou, Niambaram, Pokor, Ndom and Mbe, located west of the regional capital, Ngaoundéré. The project also includes three more license areas, Mana, Dogon and Sanga, controlled by Reservoir Minerals Cameroon Sarl, a subsidiary of Oriole’s partner BEIG3.
Oriole Resources recently released its annual report for the financial year ending 31 December 2021 and is set to hold its annual general meeting on 26 April 2022.
Investors cheered today’s rebate, which forms an income stream for the company that is yet to start generating revenues from its mining activities since all its projects are still in the exploration phases.
Bob Smeeton, Oriole Resources CFO, said: “We made significant progress on our projects in Cameroon during 2021, with three phases of drilling at Bibemi and preliminary exploration work at our district-scale Central License Package. With £1.78 million of direct research investment into the projects in 2021, it is pleasing to receive an R&D rebate of this quantum within a few months of the year-end.”
Oriole Resources shares have risen 14.79% in the past month and are up 1.48% in 2022.
*This is not investment advice. Always do your due diligence before making investment decisions.
Oriole Resources share price.
Oriole Resources' share price rallied 8.57% to trade at 0.38p, rising from Monday’s closing price of 0.35p.