Today, the Utah Governor’s Office of Economic Opportunity awarded Tintic Consolidated Metals LLC a post-performance tax reduction for its expansion in Juab County. The corporate incentive is part of the state’s Rural Economic Development Tax Increment Financing (REDTIF) program.
As a condition to benefit from the REDTIF tax reduction, Tintic Consolidated Metals would be required to add over 150 new, high-paying jobs and invest over $150,000,000 in Utah over the next five years.
“We are continually thrilled to see business expansion in rural Utah,” said Ryan Starks, executive director of the Governor’s Office of Economic Opportunity. “The revival of Juab County’s historically successful mine will be able to connect the nostalgia of past generations with the promise of many high-quality jobs for future generations.”
Tintic Consolidated Metals LLC is a subsidiary of Osisko Development Corp. (NYSE: ODV, TSXV: ODV), a leading Canadian-based gold mining company focused on developing its 100%-owned Tintic project located in Utah County and Juab County, a historically dormant mine in rural Utah located 60 miles (95 km) south of Salt Lake City.
“We are very pleased to have been awarded the REDTIF tax credit,” said Sean Roosen, chairman and CEO of Osisko Development. “The meaningful tax relief it offers is a great incentive to push forward with our big plans for the Tintic Project. Since acquiring Tintic in May last year, we have been continually impressed with the strong support that the state of Utah has shown for mining companies. Utah has established itself as a world-class jurisdiction by creating an efficient, transparent, predictable, and informed mining regime that is highly favorable for exploration, development, and operation. It is also home to a deep pool of mining talent, from professional miners, drillers, engineers, lawyers, and accountants. It is no wonder why the state consistently ranks in the top-five places to mine globally.”
Tintic Consolidated Metals will, subject to meeting certain to-be-agreed investment and employment commitments, receive a credit of up to 50% of the state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year Tintic Consolidated Metals meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We are excited to hear of Tintic’s expansion in our state,” said Scott Cuthbertson, president and CEO of EDCUtah. “This project is a great win for rural Utah, bringing high-paying jobs and long-term positive impact to the local community.”
Tax Credit Projections
|New state tax revenue:
|REDTIF new state tax credit:
Learn more about the state’s post-performance REDTIF program here.