News out - DGAP-News: Millennial Lithium Corp. Announces Granting of Federal Fiscal Stability Certificate from the Government of Argentina
Press Release | 10/07/2019
DGAP-News: Millennial Lithium Corp. / Key word(s): Miscellaneous
Millennial Lithium Corp. Announces Granting of Federal Fiscal Stability Certificate from the Government of Argentina
07.10.2019 / 13:04
The issuer is solely responsible for the content of this announcement.
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2019) - Millennial Lithium Corp. (TSXV:Â ML) (FSE: A3N2) (OTCQX:Â MLNLF) ("Millennial" or the "Company") is pleased to announce that the National Mining Secretary of Argentina, part of the National Ministry of Work and Production, has signed and granted a Federal Fiscal Stability Certificate (the "Certificate") for the Company's Pastos Grandes Project. The Certificate outlines the tax regime and additional benefits bestowed upon its Pastos Grandes lithium project in the province of Salta for the next 30 years.
Farhad Abasov, President and CEO commented, "Millennial is pleased to announce another important milestone in the development of our Pastos Grandes Project has been achieved. The granting of the Federal Fiscal Stability Certificate by the Federal Government of Argentina assures the tax and benefit terms under which Proyecto Pastos Grandes S.A., the Millennial Argentine subsidiary, can operate a lithium carbonate production operation. The main aspect of the Federal Fiscal Stability Certificate is the confirmation of a reduction in the corporate tax rate to 25% as of January 1, 2020 and the Company will benefit from any further corporate income tax reductions. Millennial continues to advance our lithium project at Pastos Grandes with pilot plant construction underway and active pilot ponds and receipt of the Certificate continues to confirm our confidence that mining projects in Salta have the support of all levels of government."
The company, through its legal advisors, Arganaraz & Associates Law Firm, working with the Buenos Aires-based law firm Beretta Godoy, applied for the Certificate in November, 2018. The Certificate fixes the total tax burden as of the application date as the maximum applicable to the Pastos Grandes Project for 30 years. If the total tax burden decreases, the Company will benefit from that reduction, but any increase in federal taxation cannot increase the total tax liability as of the date of filing.
The main feature of Millennial's Federal Fiscal Stability Certificate is the incorporation of the reduction of the corporate income tax rate from 30% to 25% as of January 1, 2020 (Law 27.430, modified subsection A), Article 69 of the Income Tax Law). The Certificate applies to federal taxes, including Income Tax, Debits and Credits Tax and Diesel Tax among others. The protection applies to any other tax changes as provincial and municipal taxes are also subject to federal Mining Stability Laws intended to provide to mining companies certainty as to their future tax burdens. Certificates have been issued by the Municipality of Salta, as well as the Municipality of San Antonio de Los Cobres, the municipality within which the Pastos Grandes Project is located. The Provincial certificate from Salta Province is expected in October, 2019.
This news release has been reviewed by Iain Scarr, AIPG CPG., Chief Operating Officer of the Company and a Qualified Person as that term is defined in National Instrument 43-101.
To find out more about Millennial Lithium Corp. please contact Investor Relations at (604) 662-8184 or email info@millenniallithium.com.
MILLENNIAL LITHIUM CORP.
"Farhad Abasov"
President, CEO and Director
