Ann: R&D Tax Incentive Refund, page-38

I told them when they claimed the first amount in 2015. That's why I sold my shares.

If they never get audited then it will never be a problem. I am not sure of the statute of limits for audits, I think it is 7 years for a public company.

I have it on my checklist for investments now. If an exploration company has claimed more than 10% of its expenditure as R & D in the last 7 years it is likely they have claimed exploration expenditure as R & D and more investigation is required. If it is a large amount like MRD then a decision has to be made. If it is a compelling story and they have the resources to pay it back then happy days if not the skip it until they do or the statute of limits run out.

Also if MRD makes a discovery before they get an R & D audit then they will have the resources to cover it if required. But it is something to be aware of and monitor.

Another consideration the uncertainty could reduce its value as a shell considerable as well.