Alderan Resources Limited
ABN 55 165 079 201
Annual Consolidated Financial Report
30 June 2021
Contents
Page
Alderan Resources Limited
Corporate Information
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Corporate Governance
Additional Securities Information
Schedule of Tenements
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55
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70
73
2
CORPORATE INFORMATION
ABN 55 165 079 201
Directors
Mr Ernest Thomas Eadie
Mr Scott Caithness
Mr Frank ‘Bruno’ Hegner
Mr Peter Williams
Company Secretary
Mr. Mathew O’Hara
Registered Address
Suite 23, 513 Hay Street
Subiaco WA 6008
Telephone: 08 6143 6711
Fax: 08 9388 8824
Principal Place of Business
Suite 23, 513 Hay Street
Subiaco WA 6008
Telephone: 08 6143 6711
Fax: 08 9388 8824
Bankers
National Australia Bank
197 St Georges Terrace
Perth WA 6000
Auditors
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade
Perth WA 6000
Telephone: 08 9261 9100
Share Registry
Automic Registry Services
Level 5, 126 Phillip Street
Surrey Hills NSW 2000
Telephone: 1300 288 664 (within Australia)
+61 (0) 2 9698 5414 (outside Australia)
Alderan Resources Limited
3
DIRECTORS’ REPORT
Alderan Resources Limited
The Directors of Alderan Resources Limited (“the Company”) present their report on Alderan Resources Limited and its
subsidiaries (“the Group”) for the year ended 30 June 2021.
Directors and Officers
The names of the directors and officers who held office during or since the end of the year and until the date of this
report are as follows. The Directors held office for the full year unless specified below.
Position
Date appointed / resigned
Mr Ernest Thomas Eadie
Non-executive Chairman
Appointed on 23 January 2017
Mr Scott Caithness
Managing Director
Appointed on 6 April 2021
Mr Frank ‘Bruno’ Hegner
Executive Director
Appointed on 1 November 2017
Mr Peter Williams*
Non-executive Director
Appointed 13 May 2019
Mr Nicolaus Heinen
Non-executive Director
Appointed on 1 March 2015, Resigned 23 September
2020
Mr Mathew O’Hara
Company Secretary
Appointed 15 July 2020
Mr Brett William Tucker
Company Secretary
Appointed 19 October 2016, Resigned 15 July 2020
*Mr Williams held the role of Managing Director from 1 September 2019 to 6 April 2021, when he was appointed Non-executive
Director.
Current Directors and Officers
Mr Ernest Thomas Eadie: Non-executive Chairman
Qualifications: Bachelor of Science (Hons) in Geology and Geophysics from the University of British Columbia, a Master of
Science in Physics (Geophysics) from the University of Toronto and a Graduate Diploma in Applied Finance and Investment
from the Security Institute of Australia. He is a Fellow (and past board member) of the AusIMM.
Mr Eadie is a well-credentialed mineral industry leader and explorer with broad experience in both the big end and small
end of town. He was the founding Chairman of Syrah Resources, Copper Strike and Discovery Nickel as well as a founding
Director of Royalco Resources. At Syrah, he was at the helm during acquisition, discovery and early feasibility work of the
huge Balama graphite deposit in Mozambique which started production in early 2018. Copper Strike, where he was also
Managing Director for 10 years, made several significant copper/gold and lead/zinc/silver discoveries in North
Queensland, while Discovery Nickel (later to be renamed Discovery Metals), found and developed the Boseto copper
deposit in Botswana. Prior to this, Mr. Eadie was Executive General Manager of Exploration and Technology at Pasminco
Limited, at the time the largest zinc producer in the world. This came after technical and later management responsibilities
at Cominco and Aberfoyle in the 1980’s.
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Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Mr Scott Caithness: Managing Director
Qualifications: AUSIMM, AICD
Mr Caithness has more than 35 years’ experience in mineral exploration at senior management, executive committee and
board levels across Australia, Asia, Africa and the Pacific with roles in some of the world’s largest resources companies
including global diversified miner Vedanta Resources and its subsidiary Hindustan Zinc Limited, where he led group
exploration, and Rio Tinto, where he managed exploration programs across Australia, India, China, Papua New Guinea and
the Philippines. Mr Caithness also co-founded and was Managing Director of Indian Pacific Resources, which listed on the
ASX as Akora Resources (ASX: AKO) last year, and he was a Senior Trade Commissioner to Malaysia and Brunei for the
Australian Trade Commission for three years.
Mr Frank ‘Bruno’ Hegner: Executive Director
Qualifications: Bachelor of Arts in Russian History from Fort Lewis College; Juris Doctor from the University of Denver
College of Law
Mr Hegner has more than 25 years of experience as a corporate manager and executive. He was previously Managing
Director of Rio Tinto’s Copper Projects Group and Vice-President / General Manager of Resolution Copper Company in
Arizona USA. Mr Hegner has significant experience in management and development of major copper projects around
the world including land titles, permitting, acquisitions, governmental relations, cost management, project management
and operations. Mr. Hegner has also been a consultant to private equity groups on mineral development projects. He has
extensive experience serving on the Board of Directors of both non-profit and publicly-traded entities.
Mr Peter Williams: Non-executive Director
Qualifications: B Sc (Hons first class), M Sc, AUSIMM, AICD
Mr Williams was formerly Chief Geophysicist and Manager of Geoscience Technology for WMC Resources. He was one of
the founding members of Independence Group Limited and developed high powered 3 component 3D TEM applications
that led to the discovery of over 75,000t of nickel at the Victor Long Nickel Mine in Kambalda. Peter has extensive
experience in West Africa where he was the vendor of Gryphon Minerals’ Banfora Gold Project, was involved in the project
generation of Papillion’s Mali projects and was a founding director of Ampella Mining Ltd. Peter was a co-founder of the
International Resource Sector Intelligence company, Intierra, and was a co-founder of the first dedicated hard rock mineral
seismic company in the world, HiSeis.
Mr Mathew O’Hara: Company Secretary
Qualifications: Bachelor of Commerce, Accounting & Finance, Member of the Chartered Accountants in Australia & New
Zealand
Mr O’Hara is a Chartered Accountant and has over 15 years’ experience in corporate finance, accounting and governance.
He has been employed by, and acted as, Non-Executive Director, Company Secretary and Chief Financial Officer of several
companies in the resources sector. Prior to these roles Mr O’Hara spent several years with an international accounting
firm specialising in the Corporate Finance, Advisory and Audit divisions gaining significant experience with ASX, TSX and
AIM listed clients across a diverse range of industries.
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Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Directors’ Interests
The following relevant interests in shares, options and performance rights of the Company or a related body corporate
were held by the Directors as at the date of this report.
Directors
Ernest Thomas Eadie
Scott Caithness
Frank Hegner
Peter Williams
Nicolaus Heinen1
Total
Number of fully paid
ordinary shares
Number of options over
ordinary shares
Number of performance
rights
3,901,250
-
512,800
7,954,750
1,148,751
2,546,875
10,000,000
2,000,000
15,338,542
900,000
-
-
200,000
-
-
13,517,551
30,785,417
200,000
1 Resigned on 23 September 2020 and the 900,000 options expired on 22 February 2021 without being exercised.
Shares under option or issued on exercise of options
At the date of this report, unissued ordinary shares or interests of the Company under option are:
Date options issued
Tranche
Number of shares
under option
Exercise price of
option
$
Expiry date of option
KMP Options
19/07/2019
19/07/2019
30/06/2020
27/05/2021
27/05/2021
Broker Options
07/08/2019
07/08/2019
30/06/2020
Investor Options
07/08/2019
Tranche A
Tranche B
Tranche C
Tranche A
Tranche A
Tranche A
Tranche B
Tranche C
3,666,667
7,000,000
10,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
0.06
0.10
0.08
0.11
0.15
0.10
0.20
0.12
19/07/2022
19/07/2022
30/06/2023
27/05/2024
27/05/2024
07/08/2022
07/08/2022
31/12/2021
Tranche A
22,890,625
0.10
07/08/2022
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Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Shares under option or issued on exercise of options (continued)
Date options issued
Tranche
Number of shares
under option
Exercise price of
option
$
Expiry date of option
1.00
1.50
2.00
2.50
0.10
0.195
0.225
12/06/2022
12/06/2022
12/06/2022
12/06/2022
19/07/2022
03/08/2023
03/08/2023
Long-Term Incentive Plan
12/06/2018
12/06/2018
12/06/2018
12/06/2018
19/07/2019
04/08/2020
04/08/2020
Total
Tranche A
Tranche B
Tranche C
Tranche D
Tranche A
Tranche E
Tranche F
125,000
100,000
100,000
100,000
750,000
3,500,000
3,500,000
76,732,292
The following Options were exercised during the period:
•
833,333 options exercisable at $0.06, expiring on 19 July 2022.
The following Options lapsed or were cancelled during the period:
•
•
•
•
•
•
•
•
•
•
•
•
•
75,000 options exercisable at $2.50, expiring on 15 November 2021;
75,000 options exercisable at $3.00, expiring on 15 November 2021;
755,000 options exercisable at $0.20, expiring on 22 February 2021;
2,300,000 options exercisable at $0.30, expiring on 22 February 2021;
1,570,000 options exercisable at $0.40, expiring on 22 February 2021;
1,770,000 options exercisable at $0.60, expiring on 22 February 2021;
1,770,000 options exercisable at $0.80, expiring on 22 February 2021;
200,000 options exercisable at $1.00, expiring on 22 February 2021;
200,000 options exercisable at $1.20, expiring on 22 February 2021;
45,000 options exercisable at $0.30, expiring on 27 June 2021;
75,000 options exercisable at $0.40, expiring on 27 June 2021;
75,000 options exercisable at $0.60, expiring on 27 June 2021; and
75,000 options exercisable at $0.80, expiring on 27 June 2021.
Total shares, options and convertible securities of the Company on issue as at the date of this Report
Number of fully paid ordinary shares
Number of options over ordinary
shares
Performance rights
342,057,255
76,732,292
200,000
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Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Review of Operations
The principal activity of the Company and its controlled subsidiaries (Group) is mineral exploration for gold and copper in
Utah, USA. Detroit is Alderan’s flagship project and key focus, while exploration at Valley Crossroads and White Mountain
projects is at an early stage. Kennecott Exploration Limited (KEX), a subsidiary of Rio Tinto, is exploring to earn an interest
in the Frisco project.
Figure 1: Alderan Resources project location in western Utah, USA
Detroit Project, Utah
The Detroit Project lies within the Detroit Mining District, approximately 175km southeast of Salt Lake City in Utah and
contains numerous historical copper, gold and manganese mines. The district has been explored for copper and gold in
the past but no one company was able to build a significant contiguous land position to enable District wide modern
exploration.
Most of the historical exploration focussed on the near surface Basin Porphyry oxide copper and Mizpah oxide gold
deposits which lie on the eastern and south-eastern margin respectively of the Basin Complex porphyry. The Basin
Porphyry copper oxide deposit was drilled in the early 1960s and Mizpah in the mid-1980s. The geology of the area
consists primarily of moderately west to southwest-dipping, Cambrian age clastic and calcareous sediments that have
been intruded by an Eocene poly-phase quartz diorite to quartz monzonite porphyry which has undergone phyllic
alteration.
During the year, Alderan increased its tenement position to a 24.7km2 block of contiguous leases. Three new option
agreements executed with DMMP, the Miller/Myer companies and other small landowners enabled Alderan to carry out
district-wide exploration for the first time. Prior to the consolidation, Alderan completed reconnaissance rock sampling
and a ground magnetic survey over the area held at the time. It also carried out a seven-hole drilling programme focused
on the Mizpah oxide gold deposit.
Initial assessment
Alderan’s first-pass assessment of its consolidated Detroit project area included stream and rock sampling and a ground
magnetic survey. Alderan completed a high density, high sensitivity, bulk leach extraction gold (BLEG) stream sampling
survey over the entire consolidated area and collected 197 rock samples during reconnaissance geological mapping
(Figures 3 & 4).
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Alderan Resources Limited
Figure 2: Detroit tenement boundary and simplified geology.
The stream sediment survey identified highly anomalous catchments with gold assays up to 88ppb against an anomaly
threshold of 4ppb. Anomalous copper up to 99ppb was also detected. These results were strongly supported by rock
samples assays with 28 samples grading >1.0g/t gold (maximum 9.0g/t Au) and 17 grading greater than 0.5% copper
(maximum 3.2% Cu). The stream and rock results supported past exploration data in highlighting strong potential for a
copper-gold rich porphyry intrusive system and an extensive gold mineralising system.
Figure 3: Detroit copper in stream catchments and
+1% copper in rock samples
Figure 4: Detroit gold in stream catchments and
+2g/t gold in rock samples.
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Alderan Resources Limited
The ground magnetics clearly outlined the 1.6km diameter Basin Complex as a ‘classic’ porphyry signature. The complex
consists of the central Basin Main magnetic anomaly which is surrounded by a zone of low magnetics that is in turn ringed
by a zone of variable magnetics. Basin Main is interpreted to be the potassic altered core of the porphyry which is
surrounded by a pyritic phyllic altered zone characterised by low magnetics. The outer magnetic rim is thought to be a
mixture of variably altered intrusives and skarns developed on the margin of the intrusive complex.
Completion of 3D inversion modelling of the Basin Main anomaly (>0.03 SI units cutoff) indicated a 500m x 300m feature
which extends to a depth of over 500m from surface. Petrographic examination of drill core from hole DD20M-003, which
was drilled by Alderan towards the Basin Main anomaly prior to tenement consolidation in late 2020, confirmed potassic
altered porphyry with increasing alteration and copper +/- molybdenum mineralisation down the hole.
Induced Polarisation (IP) Geophysics
Alderan’s next step was to complete a high-quality IP geophysical survey over the Basin Complex and surrounding area
highlighted by the ground magnetics. The aim was to identify electrically chargeable and conductive bodies potentially
caused by mineralisation and altered host rocks containing copper and gold. The IP data were processed and 3-D inversion
modelled.
The IP highlighted a large 2km x 2.5km chargeability anomaly (>20milliseconds cut-off) which engulfs the Basin Complex
porphyry and wraps around the Basin Main magnetic anomaly. The highest chargeability occurs in the arcuate magnetic
low surrounding Basin Main. This reinforced the interpretation that a halo of pyrite-rich, magnetite destructive phyllic
alteration extends outward from a potassic altered core containing magnetite.
Figure 5: Resistivity cross section through the Basin Complex chargeability and magnetics inversion models
(chargeability @ >40milliseconds cut-off yellow iso-surface; magnetics @ >0.03 SI units cut-off red iso-surface). The
blue zones surrounding the Basin Complex anomaly are resistivity lows interpreted to be cause d by propylitic clay
alteration defining the limits of the complex. More resistive zones (red) can be seen on the eastern and western margins
of the section. Northwest view.
The 3D inversion modelling of the IP at a higher >40 milliseconds cut-off shown in Figure 5 indicates that the highly
chargeable zone is mushroom shaped, approximately 1km in diameter near surface and narrows to a stem diameter of
approximately 200m at 700m below surface. It also indicates that the Basin Main magnetic anomaly is less chargeable
than the non-magnetic arc which surrounds it. This suggests that the Basin Main magnetic anomaly may be associated
with less chargeable but interconnected copper sulphide minerals whereas the highly chargeable non-magnetic arc
surrounding it is more likely due to pyrite in phyllic alteration.
The IP also identified four new high chargeability anomalies on the margin of the Basin Complex - Southern, Copperhead,
Northern Extension and Mizpah. At the >20msec cut-off, these anomalies all have strike lengths ranging from 0.9-1.1km
and widths of 150-500m. High-grade gold occurs in rock samples collected at Copperhead, Mizpah and Northern
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Alderan Resources Limited
Extension with assays up to 9.1g/t, 6.9g/t and 1.2g/t respectively. They are all interpreted to have potential for distal
disseminated gold deposits.
Mizpah Prospect
The Mizpah oxide gold deposit, located on the south-eastern margin of the Basin Complex, was extensively drilled in the
mid-1980s. In late 2020 prior to tenement consolidation, Alderan completed a first-pass review of the available historical
data, ground magnetics and an initial seven hole (1,113m) diamond drilling programme to test the full thickness of
potentially mineralised stratigraphy below and down dip of the oxidised gold mineralisation and the mineralised intrusives
and skarns highlighted in the magnetics.
Encouraging gold assays were obtained from the holes submitted for analysis, with the best result in DD20M-006 which
intersected a broad sulphide altered zone which contained 6.9m @ 1.98g/t gold within 83m grading 0.41g/t gold. This
hole was drilled approximately 300m northwest of the focus of historical drilling. Holes DD20M-002 and DD20M-005
verified the results of historical drilling (hole DD20M-001 was abandoned) while hole DD20M-007 tested for an
interpreted down dip extension 500m to the west of the focus of historical drilling. Holes DD20M-003 and DD20M-004
were drilled to test separate targets, the first towards the Basin Main magnetic anomaly and the second below anomalous
gold in rock samples in a mineralised intrusive.
Intercepts included:
• DD20M-002: 13.3m at 0.42g/t Au from 51.2m
• DD20M-005: 15.4m at 0.38g/t Au from 19.9m and 9.2m at 0.37g/t Au from 42.1m
• DD20M-006: 83.0m at 0.41g/t Au from 35.8m including 6.9m at 1.98g/t Au from 84.6m
• DD20M-007: 11.75m at 0.17g/t Au from 172.25m.
Drill collar locations are shown in Figure 9.
In August 2021, Alderan announced the results of a detailed review of the historical drilling at Mizpah which was done to
delineate a near-surface oxide gold deposit. The review, which entailed assessing data from 197 holes drilled in the 1980s,
strongly supports the potential for a distal disseminated gold deposit.
The holes were drilled to an average depth of 28m and over an area of approximately 400m x 250m. Only one hole was
drilled to over 100m (ended at 103.7m) as the holes were typically terminated when they intersected fresh rock regardless
of whether there was mineralisation present. No quality assurance/quality control information is available for analytical
data hence the drill hole assays are regarded by Alderan as indicative of exploration potential only. Importantly however,
there were 40 holes which ended in highly anomalous grades of over 0.5g/t gold, and of these, 20 ended in +1.0g/t Au
(max assay 9.1g/t Au). The location of the drill holes is shown in Figure 6.
Figure 6: Mizpah 3D block model showing historical drill holes and section lines. The block model has been built using
a nominal 0.1g/t gold cutoff from the historical (1980s) drill hole data.
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Alderan Resources Limited
Alderan used the historical drill hole information and assays to develop a 3D block model of the gold distribution at Mizpah
which suggests:
-
-
-
-
-
The deposit is open along strike to the southeast and northwest and down dip to the southwest.
The deposit remains open at depth with 20% of the holes drilled ending in highly anomalous gold mineralisation.
There is potential for a second mineralised horizon at depth.
The 3D inversion model chargeability anomaly at Mizpah, which was identified after the historical and Alderan
drilling, is largely tested.
The historically defined near surface Mizpah oxide gold deposit has exploration potential for 3.0-4.0Mt at a grade
of 0.4-0.8g/t gold (40,000-100,000 ounces). It should be noted that this exploration potential quantity and grade
is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource and that it is
uncertain if further exploration will result in the estimation of a Mineral Resource.
The review concluded that there is significant potential for extensions to the historical oxide gold deposit at Mizpah.
The Southern, Copperhead and Northern Extension prospects are all regarded as analogous to Mizpah. They all have high
order chargeability anomalies which lie on the margins of the Basin Complex porphyry, associated anomalous gold and
copper in rock samples and occur in favourable stratigraphy and structural settings.
Figure 7: Mizpah long section (D-D’) which suggests that the mineralized horizon is stratigraphically controlled and that a
second deeper horizon is present (interpolated from holes drilled off the section line). It also highlights that the
mineralisation is open to both the north and south.
Figure 8: Mizpah cross section B-B’ suggests that the mineralisation is stratigraphic, dipping at approximately 20o to the
west and open down dip to the west. A second deeper horizon is present.
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Alderan Resources Limited
Next Steps
Alderan awaits assay results for 2,200 grid soil samples collected at Detroit. The samples were collected every 40m along
lines 200m apart over the prospective stratigraphy and intrusives. The soil assays will assist in prioritising drilling and
identifying new targets.
A 10-hole (3,000m) diamond drilling programme to test seven targets is scheduled to commence in September subject to
arrival of the contracted drill rig to site. The holes are planned to test a range of targets including the Basin Complex
porphyry (Cu-Au-Mo), the distal disseminated gold prospects at Southern, Copperhead, Northern Extension and Mizpah
plus the Martha Mine and Skarn (Au-Cu) prospects. This drilling programme is expected to be completed in the first
quarter of 2022.
Figure 9: Stage 1 proposed drill holes and historical holes on the Basin Complex 3D inversion model chargeability anomaly
(20-30 millisecond shell; yellow iso-surface) overlying the Basin Main magnetic anomaly (>0.03 SI units; red iso-surface).
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Alderan Resources Limited
Valley-Crossroads Project, Utah
Black Rock Prospect
Valley-Crossroads is located 300km south-southwest of Salt Lake City and adjacent to the Company’s Frisco Project in
Utah.
Alderan completed detailed geological mapping and first-pass rock sampling at the Black Rock Prospect to confirm
historical exploration results which were open in all directions. The rock sample assays were highly anomalous with
maximum grades up to 10.2% copper and 4.6g/t gold.
The identified mineralisation lies close to the contact of two intrusions and is at the intersection of major WNW, NE and
NNW structures. Calc-silicate skarn with magnetite and martite overprinted by hydrothermal dolomite-calcite-quartz that
hosts oxidised chalcopyrite-bornite-pyrite is developed along these intrusive contacts. Specular hematite is common.
During the March quarter, Alderan completed a three-hole diamond drilling programme to test the potential for
thickening of the magnetite skarn mineralisation interpreted from Alderan’s aeromagnetic data. No significant mineralised
zones were observed in the holes and analysis of core samples revealed no significant grades, with the best intersection
being 5.5m grading 0.31g/t gold from 96.5m in hole VC21B-001. The aeromagnetic anomaly was interpreted to be caused
by magnetite in intrusives.
Frisco Project, Utah
The Frisco copper-gold-silver project lies 300km south-southwest of Salt Lake City in Utah. The project is the subject of a
farm in agreement with Kennecott Exploration (KEX), a subsidiary of Rio Tinto, where KEX can earn up to a 70% interest
by spending US$30 million over 10 years. Frisco was explored historically, and more recently by Alderan, for copper and
gold prior to this agreement.
KEX exploration targets at Frisco are:
1) Porphyry copper-gold-molybdenum deposits: and
2) High-grade copper deposits associated with known breccias such as Cactus.
KEX completed nine holes at Frisco during the year to test a range of targets including the Cactus Breccia Zone, Accrington
and the previously undrilled Reciprocity chargeability anomaly. The results for holes SAWM0001-0004 were released by
Alderan in March 2021 and the remaining results for holes SAWM0005-0009 released in June 2021. Hole SAWM0007 was
abandoned due to difficult ground conditions and hole SAWM0009 was stopped short of its target depth.
Significant intersections were obtained in four drillholes:
-
-
-
-
SAWM0001: 41.0m @ 1.9% Cu, 0.62g/t Au, 7.1g/t Ag, 62.8ppm Mo
SAWM0002: 12.0m @ 0.23g/t Au
SAWM0004: 34.0m @ 0.99% Cu, 0.14g/t Au, 13.3g/t Ag
SAWM0005: 16.7m @ 0.29% Cu, 1.6g/t Au.
The Cactus drillholes confirmed the copper-rich pipe extends to a depth of more than 200m below surface, with hole
SAWM0001 intersecting 41m grading 1.9% Cu, 0.62g/t Au and 62.8ppm Mo from 252m downhole. Potentially significant
gold and copper mineralisation was intersected in extension drilling in hole SAWM0005 and shallow drilling in the zone
between the Cactus and Comet Breccia pipes also intersected moderate gold grades in hole SAWM0002, indicating that
potential still exists for mineralisation between these pipes. The highest grades of mineralisation intersected at Cactus
and Comet are associated with tourmaline breccias.
At Accrington, hole SAWM0004 highlighted the potential for significant mineralisation beyond previously defined ‘pods’
in an area of historical mining activity.
The Reciprocity holes, SAWM0003 and SAWM0009, were designed to test a large IP chargeability anomaly. Neither hole
intersected mineralisation to explain the source of the anomaly with hole SAWM0009 not reaching its target depth, hence
the result is inconclusive.
Following a review of the geophysical and drilling results, KEX is planning a high-resolution drone magnetic geophysical
survey (Figure 10) to improve the geological and structural understanding of the project area, to better define known
magnetic anomalies and to identify new targets for further exploration. This survey data will be processed and modelled
ahead of a decision on further drilling.
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Alderan Resources Limited
Figure 10: KEX drill holes and proposed drone aeromagnetic survey at Frisco.
Corporate Activities
In March, Alderan announced the appointment of experienced mining executive and geologist Scott Caithness as
Managing Director. Mr Caithness has more than 35 years’ experience in mineral exploration at senior management,
executive committee and board levels across Australia, Asia, Africa and the Pacific with roles in some of the world’s largest
resources companies including global diversified miner Vedanta Resources and its subsidiary Hindustan Zinc Limited,
where he led group exploration, and Rio Tinto, where he managed exploration programs across Australia, India, China,
Papua New Guinea and the Philippines.
Mr Caithness also co-founded and was Managing Director of Indian Pacific Resources, which listed on the ASX as Akora
Resources (ASX: AKO) last year, and he was a Senior Trade Commissioner to Malaysia and Brunei for the Australian Trade
Commission for three years. Mr Caithness replaced Peter Williams as Alderan’s Managing Director. Mr Williams remains
on the Board as a Non-Executive Director.
On 15 July 2020, Mathew O’Hara replaced Brett Tucker as the Company Secretary and the Company moved its registered
corporate office and principal place of business to Suite 23, 513 Hay Street, Subiaco. On 23 September 2020, Nicolaus
Heinen resigned as a Non-Executive Director.
In November 2020, Alderan completed a $3 million placement through the issue of approximately 35.3 million shares to
institutional and sophisticated investors at a price of $0.085 per share. Alderan is using funds raised to expand its
exploration programs at its advanced copper-gold projects in Utah, USA.
In August 2021, Alderan announced a $5 million placement through the issue of approximately 125 million new shares to
institutional, sophisticated and professional investors at a price of $0.04 per Share.
15
Corporate Activities (continued)
The Placement settled in two tranches, with Tranche 1 settling during August 2021 and Tranche 2, which was subject to
shareholder approval, expecting to settle on 1 October 2021. In addition, Alderan Directors participated in the Placement
for an additional $105,000 (approximately 2.63 million Shares). Alderan will use funds raised towards exploration at the
Company’s copper-gold projects in Utah, USA, specifically a diamond drilling program at the Detroit project, and for
working capital purposes. Canaccord Genuity (Australia) Limited acted as Sole Lead Manager to the Placement
Alderan Resources Limited
Competent Persons Statement
The information in this report that relates to historical exploration results were reported by the Company in accordance
with listing rule 5.7 on 22 September 2020, 6 October 2020, 18 November 2020, 19 November 2020, 12 January 2021, 22
February 2021, 8 March 2021, 11 May 2021, 9 June 2021, 11 June 2021, 21 July 2021 and 24 August 2021. The Company
confirms it is not aware of any new information or data that materially affects the information included in the previous
announcements.
Dividends
There were no dividends paid, recommended or declared during the year.
Operating results for the year
The comprehensive loss of the Group for the financial year ended 30 June 2021, after providing for income tax amounted
to $2,938,648 (2020: $1,484,319).
Review of financial conditions
The Group had a net bank balance of $791,510 as at 30 June 2021 (2020: $2,133,424).
Loss Per Share
30 June 2021
30 June 2020
$
$
Basic loss per share (cents per share)
(0.73)
(0.92)
Employees
The Company had 7 employees as at 30 June 2021 (2020: 7 employees).
Laws and Regulations
The Group’s operations are subject to various laws and regulations under the relevant government legislation. Full
compliance with these laws and regulations is regarded as a minimum standard for all operations to achieve the objectives
of the Group.
Instances of environmental non-compliance by an operation are identified either by internal investigations, external
compliance audits or inspections by relevant government agencies.
There have been no known breaches of laws and regulations by the Group during the year.
16
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED)
This report, which forms part of the Directors’ report, outlines the remuneration arrangements in place for the key
management personnel (KMP) of Alderan Resources Limited for the financial year ended 30 June 2021. The information
provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for KMP who are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company, directly or
indirectly, including any Director (whether executive or otherwise) of the Company.
Key Management Personnel
The KMP of the Company during or since the end of the financial year were as follows:
Directors
Mr Ernest Thomas Eadie
Mr Scott Caithness
Mr Frank D Hegner
Mr Peter Williams*
Mr Nicolaus Heinen
Position
Non-Executive Chairman
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
Period of Employment
Appointed on 23 January 2017
Appointed on 6 April 2021
Appointed on 1 November 2017
Appointed on 13 May 2019
Appointed 1 March 2015
Resigned 23 September 2020
*Mr Williams held the role of Managing Director from 1 September 2019 to 6 April 2021, when he was appointed Non-executive
Director.
Remuneration Policy
The Company’s remuneration policy for its KMP has been developed by the Board taking into account the size of the
Company, the size of the management team, the nature and stage of development of the Company’s current operations,
and market conditions and comparable salary levels for companies of a similar size and operating in similar sectors.
In addition to considering the above general factors, the Board has also placed emphasis on the following specific issues
in determining the remuneration policy for KMP:
-
-
Exploration results; and
The performance of the Company’s shares as quoted on the Australian Securities Exchange.
Remuneration Committee
Due to the current size of the Company, the Board did not implement a Remuneration Committee during the year, as such
the Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the
Directors and the executive team.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive Director and executive
remuneration is separate and distinct.
17
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
Non-executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time
to time by a general meeting. The Constitution states that the Company may pay to the Non-Executive Directors a
maximum total amount of director's fees, determined by the Company in general meeting, or until so determined, as the
Directors resolve. The Company intends to put to shareholders at the upcoming Annual General Meeting an aggregate
remuneration amount to approve.
Fees for the Non-Executive Directors’ are presently set at $250,000 per annum including superannuation. These fees cover
main board activities only. Non-Executive Directors may receive additional remuneration for other services provided to
the Company.
The Non-Executive salary remuneration became effective from the date of their appointment as Non-Executive Directors.
There were also Company Options issued to Non-Executive Directors in line with Company policy to attract suitable
candidates to the position.
Executive Remuneration
The Company’s remuneration policy is to provide a fixed remuneration component and a short and long term performance
based component. The Board believes that this remuneration policy is appropriate given the considerations discussed in
the section above and is appropriate in aligning executives’ objectives with shareholder and business objectives.
Fixed Remuneration
Fixed remuneration consists of base salaries, as well as employer contributions to superannuation funds and other non-
cash benefits. Fixed remuneration is reviewed annually by the Board. The process consists of a review of company and
individual performance, relevant comparative remuneration externally and internally and, where appropriate, external
advice on policies and practices.
Performance Based Remuneration – Short Term Incentive
The Board has not implemented a system where Executives are entitled to annual cash bonuses. No bonuses were paid
or are payable in relation to the financial year.
Performance Based Remuneration – Long Term Incentive
Company Options
The Board has previously chosen to issue Options (where appropriate) to some executives and employees as a key
component of the incentive portion of their remuneration, in order to attract and retain the services of the executives
and to provide an incentive linked to the performance of the Company.
The Board may grant Options to executives and key consultants with exercise prices at and/or above market share price
(at the time of agreement). As such, Incentive Options granted to executives will generally only be of benefit if the
executives perform to the level whereby the value of the Company increases sufficiently to warrant exercising the
Incentive Options granted. Other than service-based vesting conditions, there are no additional performance criteria on
the Incentive Options granted to executives, as given the speculative nature of the Company’s activities and the small
management team responsible for its running, it is considered the performance of the executives and the performance
and value of the Company are closely related. The Company prohibits executives entering into arrangements to limit their
exposure to Incentive Options granted as part of their remuneration package.
18
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
Long-Term Incentive Plan
Alderan Resources Limited
The Company has implemented a Long-Term Incentive Plan. Under the Plan, the Company may grant options to subscribe
for Shares or performance rights entitling the holder to be issued Shares on terms and conditions set by the Board at its
discretion. The material terms of the Plan are as follows:
a) The purpose of the Plan is to:
i.
ii.
iii.
iv.
assist in the reward, retention and motivation of eligible persons;
to align the interests of eligible persons more closely with the interests of shareholders, by providing an
opportunity;
for eligible persons receive an equity interest in the form of Awards; and
to provide eligible persons with the opportunity to share in any future growth in value of Alderan
Resources.
b) The following persons can participate in the Plan if the Board makes them an offer to do so:
i.
ii.
iii.
iv.
a director;
a full-time or part-time employee;
a contractor; or
a casual employee of the Company or an associated body corporate and includes a person who may
become an eligible person within (i) to (iv) above subject to accepting an offer of engagement for that
role.
c) Plan Options and Plan Rights (collectively Awards) issued under the Plan are subject to the terms and conditions
set out in the Rules, which include:
i.
ii.
iii.
Vesting Conditions – which are time-based criteria, requirements or conditions (as specified in the offer
and determined by the Board) which must be met prior to Awards vesting in a participant, which the
Board may throughout the course of the period between the grant of an Award and its vesting, waive
or accelerate as the Board considers reasonably appropriate;
Performance Conditions – which are conditions relating to the performance of the Group and its related
bodies corporate (and the manner in which those conditions will be tested) as specified in an offer and
determined by the Board; and
Exercise Conditions – which are criteria, requirements or conditions, as determined by the Board or
under the Plan, which must be met (notwithstanding the satisfaction of any Vesting Conditions and/or
Performance Conditions) prior to a Participant being entitled to exercise vested Awards in accordance
with clauses 8 and 9.
d)
In accordance with ASIC Class Order 14/1000, the total Awards that may be issued under the Plan will not exceed
5% of the total number of Shares on issue. In calculating this limit, Awards issued to participants under the Plan
other than in reliance upon this Class Order are discounted.
e) The Board has the unfettered and absolute discretion to administer the Plan.
f) Awards issued under the Plan are not transferable and will not be quoted on the ASX.
The Rules otherwise contain terms and conditions considered standard for long-term incentive plan rules of this nature.
There were 7,000,000 options issued under the Long-Term Incentive Plan during the year (2020: 8,500,000). There were
no shares issued under the Long-Term Incentive Plan during the year (2020: Nil).
19
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
Service Agreements
Managing Director Service Agreement – Mr Scott Caithness
The Company entered into an Executive Service Agreement with Mr Scott Caithness on 6 April 2021. Mr Caithness is
employed in the position of Managing Director. The material terms of the employment agreement with Mr Caithness are
as follows:
• Mr Caithness is employed in the position of Managing Director;
• Mr Caithness is to be paid an annual salary of $150,000 plus superannuation for three working days per week
(full time equivalent of $250,000 per annum). This salary is inclusive of director’s fees and is intended to cover
all the services that he may perform for the Company. He is also entitled to receive all reasonable expenses
incurred in the fulfilment of his duties; and
• Mr Caithness was issued 10 million unquoted options which expire three years from date of issue and which vest
following 12 month continuous service (5,000,000 exercisable at $0.11 and 5,000,000 exercisable at $0.15).
Executive Director Service Agreement – Mr Bruno Hegner
The Company entered into an Executive Service Agreement with Mr Bruno Hegner on 23 October 2017. Mr Hegner is
employed in the position of Executive Director and Vice President of the Company’s subsidiary, Volantis Resources Corp.
The material terms of the employment agreement with Mr Hegner are as follows:
• Mr Hegner will be paid an annual salary of US$129,600 plus superannuation for 60% full time equivalent work
hours plus a rate of US$930 per day for additional days worked in excess of the 60% full time equivalent work
hours. This salary is inclusive of director’s fees and is intended to cover all the services that he may perform for
the Company. He is also entitled to receive all reasonable expenses incurred in the fulfilment of his duties; and
Entitlement to severance and redundancy package payments shall continue to be calculated based on previous
annual salary of US$216,000.
•
Non-Executive Director Service Agreement – Mr Peter Williams
The Company entered into an Executive Service Agreement with Mr Peter Williams on 1 September 2019. Mr Williams
was employed in the position of Managing Director up until 6 April 2021. The material terms of the employment
agreement with Mr Williams up until 6 April 2021 were as follows:
• Mr Williams was employed in the position of Managing Director; and
• Mr Williams was paid an annual salary of $100,000 plus superannuation for between two to three working days
per week. This salary is inclusive of director’s fees and is intended to cover all the services that he may perform
for the Company. He is also entitled to receive all reasonable expenses incurred in the fulfilment of his duties.
Following the appointment of Mr Caithness in the role of Managing Director on 6 April 2021, the Company entered into a
Non-Executive Director Service Agreement with Mr Peter Williams, the material terms are as follows:
• Mr Williams is employed in the position of Non-Executive Director; and
• Mr Williams will be paid an annual salary of $50,000. This salary is inclusive of director’s fees and is intended to
cover all the services that he may perform for the Company. He is also entitled to receive all reasonable expenses
incurred in the fulfilment of his duties.
Non-Executive Chairman Service Agreement – Mr Tom Eadie
The Company entered into a Non-Executive Chairman Service Agreement with Mr Tom Eadie on 1 September 2019. Mr
Eadie is to provide services as a Non-Executive Director and Chairman. The material terms of the employment agreement
with Mr Eadie are as follows:
20
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
• Mr Eadie is employed in the position of Non-executive Chairman; and
• Mr Eadie will be paid an annual salary of $30,000 plus superannuation for between two to five working days per
week. This salary was increased to $50,000 (inclusive of superannuation) as of 1 May 2021. This salary is inclusive
of director’s fees and is intended to cover all the services that he may perform for the Company. He is also entitled
to receive all reasonable expenses incurred in the fulfilment of his duties.
Relationship between Remuneration of KMP and Shareholder Wealth and Earnings
The Board anticipates that the Company will retain earnings (if any) and other cash resources for the development of its
exploration projects. The Company does not currently have a policy with respect to the payment of dividends and returns
of capital however this will be reviewed on an annual basis. Therefore, there was no relationship between the Board’s
policy for determining, or in relation to, the nature and amount of remuneration of KMP and dividends paid and returns
of capital by the Company during the current and previous four financial years. The Company did not consider appreciation
of the Company’s shares when setting remuneration. The Board did issue Options to KMP and has implemented a Long-
Term Incentive Plan which will generally be of value if the Company’s shares appreciate over time.
Remuneration of Key Management Personnel
Details of the nature and amount of each element of the emoluments received by or payable to each of the KMP of
Alderan Resources Limited are as follows:
Short-term benefits
Super-
annuation
$
Salary &
fees
$
Share-based
payment
Shares
$
Share-based
payment
Perf rights
$
Share-
based
payment
Options
$
32,610
35,962
346,973
87,318
6,917
509,780
3,098
3,416
-
8,296
-
14,810
-
-
-
-
-
-
-
-
-
-
-
-
-
26,083
-
-
-
26,083
Total
$
35,708
65,461
346,973
95,614
6,917
550,673
2021
Directors
Ernest Thomas Eadie
Scott Caithness1
F.D. Hegner
Peter Williams
Nicolaus Heinen2
Total
1 Appointed as a Director on 6 April 2021.
2 Resigned as a Director on 23 September 2020.
Short-term benefits
Super-
annuation
$
Salary &
fees
$
Termination
payments
$
Share-based
payment
Perf rights
$
Share-
based
payment
Options
$
Total
$
30,000
94,934
53,117
326,508
45,000
549,559
-
8,392
2,612
-
4,275
15,279
-
-
3,000
7,692
-
10,692
-
-
-
-
-
-
-
77,457
76,419
30,567
30,567
215,010
30,000
180,783
135,148
364,767
79,842
790,540
2020
Directors
Nicolaus Heinen
Peter Williams
Marat Abzalov1
F.D. Hegner
Ernest Thomas Eadie
Total
1 Resigned as a Director on 5 June 2020.
21
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
Remuneration of Key Management Personnel (continued)
No member of KMP appointed during the period received a payment as part of his or her consideration for agreeing to hold
the position.
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Directors
Ernest Thomas Eadie
Scott Caithness1
F.D. Hegner
Peter Williams
Nicolaus Heinen2
Marat Abzalov3
1 Appointed as a Director on 6 April 2021.
2 Resigned as a Director on 23 September 2020.
2 Resigned as a Director on 5 June 2020.
-
Fixed remuneration
At risk - STI
At risk - LTI
2021
100%
60%
100%
100%
100%
2020
2021
2020
62%
-
90%
57%
100%
41%
-
-
-
-
-
-
-
-
-
-
-
2021
-
40%
-
-
-
-
2020
38%
-
10%
43%
-
59%
Cash bonuses granted as compensation for the current financial year.
No cash bonuses were granted during the year ended 2021 (2020: nil).
Other transactions with related parties
During the year ended 30 June 2021, the Company paid an amount of $6,717.20, and had an amount of $39,530.79,
payable to Portable PPB Pty Ltd for the use of geological tools. Portable PPB Pty Ltd is a related party of Non-Executive
Director, Peter Williams.
There were no other balances owed from/to key management personnel and or companies associated with the
shareholders and Directors (2020: nil)
Loans from key management personnel
As at 30 June 2021, there were no outstanding amounts due to KMP (2020: nil).
Use of remuneration consultants
During the financial year ended 30 June 2021, the Company did not engage the services of an independent remuneration
consultant to review its remuneration for Directors, KMP and other senior executives.
22
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
Alderan Resources Limited
Voting and comments made at the company's Annual General Meeting ('AGM')
The Company received 99.84% “for” votes on its Remuneration Report for the year ended 30 June 2020.
Incentive Securities granted to KMP
During the financial year, unquoted options were granted to the following key management personnel of the Company
and the entities they controlled as part of their remuneration.
KMP
Scott Caithness
Scott Caithness
Grant Date
27 May 2021
27 May 2021
Number
5,000,000
5,000,000
Exercise Price
$0.11
$0.15
Expiry Date
27 May 2024
27 May 2024
Vesting Date
27 May 2022
27 May 2022
KMP Equity Holdings
Fully Paid Ordinary Shares
Balance at
beginning
of year
Number
3,901,250
-
512,800
7,121,417
1,148,751
30 June 2021
Directors
Ernest Thomas Eadie
Scott Caithness1
F.D. Hegner
Peter Williams
Nicolaus Heinen2
Granted as
compensation
Number
Received on
exercise of
options
Number
Net change
other
Number
Balance at
end of year
Number
-
-
-
-
-
-
-
-
833,333
-
-
-
-
-
-
3,901,250
-
512,800
7,954,750
1,148,751
1 Balance on appointment at 6 April 2021.
2 Balance on resignation at 23 September 2020.
23
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT (AUDITED) (continued)
KMP Equity Holdings (continued)
Share Options
Balance at
beginning
of year
Number
3,146,875
-
2,000,000
16,171,875
900,000
Granted as
compensation
Number
-
10,000,000
-
-
-
30 June 2021
Directors
Ernest Thomas Eadie
Scott Caithness1
F.D. Hegner
Peter Williams
Nicolaus Heinen2
1 Balance on appointment at 6 April 2021.
2 Balance on resignation at 23 September 2020.
Performance Rights
Alderan Resources Limited
Exercised
Number
Expired
Number
-
-
-
(833,333)
-
(600,000)
-
-
-
-
Balance at
end of year
Number
2,546,875
10,000,000
2,000,000
15,338,542
900,000
Granted as
compensation
Number
Converted
Number
Expired
Number
-
-
-
-
-
-
-
-
-
-
-
-
(200,000)
-
-
Balance at
end of year
Number
-
-
400,000
-
-
Balance at
beginning
of year
Number
-
-
600,000
-
-
30 June 2021
Directors
Ernest Thomas Eadie
Scott Caithness1
F.D. Hegner
Peter Williams
Nicolaus Heinen2
1 Balance on appointment at 6 April 2021.
2 Balance on resignation at 23 September 2020.
END OF REMUNERATION REPORT
24
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Indemnification and insurance of Officers
The Constitution of the Company requires the Company, to the extent permitted by law, to indemnify any person who is
or has been a director or officer of the Company for any liability caused as such a director or officer and any legal costs
incurred by a director or officer in defending an action for any liability caused as such a director or officer.
During or since the end of the financial year, no amounts have been paid by the Company in relation to the above
indemnities.
During the financial year, insurance premiums were paid by the Company to insure against a liability incurred by a person
who is or has been a director or officer of the Company.
Indemnity and insurance of Auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
Directors’ meetings
The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the number
of meetings attended by each Director were as follows:
Directors’ meetings
2021
Ernest Thomas Eadie
Scott Caithness
F.D. Hegner
Peter Williams
Nicolaus Heinen
No. eligible to
attend
4
1
4
4
1
Proceedings on behalf of the Company
No. attended
4
1
4
4
1
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings.
Significant Events After the Reporting Date
• On 2 August 2021, the Company announced that it had received firm commitments to raise $5 million (before
costs) through the issue of approximately 125 million new shares to institutional, sophisticated and professional
investors at a price of $0.04 per share. The Placement is to settle in two Tranches, with Tranche 1 settling on 6
August 2021 through the issue of 44,116,163 shares and Tranche 2 expected to settle on 1 October 2021 through
the issue of 80,883,825 shares (following shareholder approval received on 23 September 2021). The Company
will also issue an additional 2,625,000 shares to Directors at a price of $0.04 per share on 1 October 2021
(following shareholder approval received on 23 September 2021) and 20 million unquoted options which expire
on 1 October 2024 (10 million exercisable at $0.11 and 10 million exercisable at $0.15) to the Lead Manager to
the placement; and
25
Alderan Resources Limited
DIRECTORS’ REPORT (continued)
Significant Events After the Reporting Date (continued)
•
The impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on
measures imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
Other than disclosed above, the directors are not aware of any matters or circumstances not otherwise dealt with in this
report or consolidated financial statements that have significantly affected or may significantly affect the operations of
the Group, the results of those operations or the state of affairs of the Group in subsequent financial periods.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in Note 20 to the financial statements. The directors are satisfied that the provision of non-audit
services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with
the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are of the opinion
that the services as disclosed in Note 20 to the financial statements do not compromise the external auditor's
independence requirements of the Corporations Act 2001 for the following reasons:
a) all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
b) none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,
including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for
the company, acting as advocate for the company or jointly sharing economic risks and rewards
Officers of the Company who are former partners of RSM Australia Partners
There are no officers of the Company who are former partners of RSM Australia Partners.
Auditor independence
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
Signed in accordance with a resolution of the Directors.
Mr Tom Eadie
Chairman
Dated this 29th day of September 2021
26
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Alderan Resources Limited for the year ended 30 June 2021,
I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 29 September 2021
TUTU PHONG
Partner
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Alderan Resources Limited
Interest income
Consulting and administration expenses
Depreciation and amortisation expense
Employee benefits expense
Foreign exchange (loss)/gain
Project expenditure
Share based payment expense
Finance costs
Write off of exploration expenditure on relinquishment of tenements
Notes
30 June 2021
30 June 2020
3
$
6,349
(530,920)
(57,567)
(292,519)
-
-
15
(633,084)
(1,816)
(539,878)
$
189
(454,148)
(86,120)
(707,434)
(63)
(227,426)
(214,779)
(12,480)
-
Loss before income tax expense
Income tax expense
Loss after income tax for the year
Other comprehensive income, net of income tax
Exchange differences on translation of foreign operations
Other comprehensive (loss)/gain for the year, net of income tax
Total comprehensive loss for the year
(2,049,435)
(1,702,261)
4
-
-
(2,049,435)
(1,702,261)
(889,213)
(889,213)
217,942
217,942
(2,938,648)
(1,484,319)
Loss attributable to members of the Company
(2,938,648)
(1,484,319)
Total comprehensive loss attributable to members the Company for
the year
(2,938,648)
(1,484,319)
Basic loss per share (cents per share)
Basic loss per share from continuing operations (cents per share)
5
5
(0.73)
(0.92)
(0.73)
(0.92)
The accompanying notes form part of these consolidated financial statements.
28
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Alderan Resources Limited
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration and evaluation expenditure
Total Non-current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Total Liabilities
Net Assets
Equity
Issued capital
Options reserve
Performance rights reserve
Foreign currency reserve
Accumulated losses
Net Equity
Note
30 June 2021
30 June 2020
$
$
6
7
8
9
10
791,510
131,603
923,113
209,056
11,587,899
11,796,955
12,720,068
2,133,424
221,516
2,354,940
288,334
9,417,490
9,705,824
12,060,764
262,888
262,888
348,044
348,044
12,457,180
11,712,720
11(a)
11(d)
11(b)
11(c)
22,157,574
6,877,314
101,420
(144,691)
19,027,550
6,324,230
101,420
744,522
(16,534,437)
(14,485,002)
12,457,180
11,712,720
The accompanying notes form part of these consolidated financial statements.
29
Alderan Resources Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Issued
capital
$
Options
reserve
Performance
rights
reserve
Foreign
currency
reserve
$
Accumulated
losses
Total equity
$
$
Balance at 1 July 2019
16,506,842
5,504,747
101,420
526,580
(12,782,741)
9,856,848
Loss for the year
Other comprehensive income
for the year, net of income tax
Total comprehensive loss for
the year
Contributions of equity, net of
transaction costs
Share based payments
Equity settled transactions
-
-
-
2,520,708
-
-
-
-
-
-
214,779
604,704
-
-
-
-
-
-
-
(1,702,261)
(1,702,261)
217,942
-
217,942
217,942
(1,702,261)
(1,484,319)
-
-
-
-
-
-
2,520,708
214,779
604,704
Balance at 30 June 2020
19,027,550
6,324,230
101,420
744,522
(14,485,002)
11,712,720
Balance at 1 July 2020
19,027,550 6,324,230
101,420
744,522
(14,485,002) 11,712,720
Loss for the year
Other comprehensive loss for
the year, net of income tax
Total comprehensive loss for
the year
Contributions of equity, net of
transaction costs
-
-
-
3,050,024
-
-
-
-
Share based payments
80,000
553,084
-
-
-
-
-
-
(2,049,435)
(2,049,435)
(889,213)
-
(889,213)
(889,213)
(2,049,435)
(2,938,648)
-
-
-
-
3,050,024
633,084
Balance at 30 June 2021
22,157,574 6,877,314
101,420
(144,691)
(16,534,437) 12,457,180
The accompanying notes form part of these consolidated financial statements.
30
Alderan Resources Limited
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation expenditures
Interest received
Interest paid
Note
30 June 2021
$
30 June 2020
$
(1,391,592)
(2,584,359)
6,972
(1,816)
(927,332)
(857,219)
681
(12,480)
Net cash (used in) operating activities
6
(3,970,795)
(1,796,350)
Cash flows from investing activities
Payments for property, plant and equipment
Payments to acquire tenements
Security deposit
Advance royalty payment and bond movement
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares (net of capital raising costs)
Proceeds from exercise of options
Net cash provided by financing activities
Net increase / (decrease) in cash held
Effect of foreign exchange
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
6
(3,025)
(468,693)
-
-
-
(10,000)
192,700
(279,018)
-
(10,000)
2,672,869
237,500
2,910,369
3,014,419
173,438
3,187,857
(1,339,444)
1,381,507
(2,470)
2,133,424
791,510
2,755
749,162
2,133,424
The accompanying notes form part of these consolidated financial statements.
31
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
These consolidated financial statements and notes represent those of Alderan Resources Limited (the Company or parent
entity) and Controlled Entities (the Group or consolidated entity). Alderan Resources Limited is a listed public company
incorporated and domiciled in Australia.
The separate financial statements of the parent entity, Alderan Resources Limited, have not been presented within this
financial report as permitted by the Corporations Act 2001. Supplementary information about the parent entity is
disclosed in Note 19. The financial statements were authorised for issue on 29th September 2021 by the Directors of the
Company.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The financial report is a general-purpose financial report that has been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes
under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has
concluded would result in a financial report containing relevant and reliable information about transactions, events and
conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards (IFRS). Except for cash flow information, the financial statements have
been prepared on an accruals basis. Material accounting policies adopted in preparation of this financial report are
presented below and have been consistently applied unless otherwise stated.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets at fair value through profit or loss.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements are disclosed within Note 1.
New and Amended Accounting Policies adopted by the Group
The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board that are mandatory for the current reporting period.
The adoption of these new and revised Accounting Standards and Interpretations has not resulted in a significant or
material change to the Group’s accounting policies.
The adoption of the new Conceptual Framework for Financial Reporting from 1 July 2020 has not led to any changes in
accounting or disclosure for the Group, but the new Conceptual Framework may be referred to if accounting matters arise
that are not addressed by accounting standards.
The adoption of the new definition of Material included in AASB 2018-7 Amendments to Australian Accounting Standards
– Definition of Material from 1 July 2020 provides a new definition of material, which now extends materiality
consideration to obscuration and clarifies that materiality now depends on the nature or magnitude of information.
Future effects of the implementation of these standards will depend on future details.
32
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
a) Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Alderan Resources
Limited) and all of the subsidiaries (including any structured entities). Subsidiaries are entities the parent controls. The
parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity. A list of controlled entities is contained in Note
16.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from
the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that
control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between Group
entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments
made where necessary to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-controlling
interests”. The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and
are entitled to a proportionate share of the subsidiary’s net assets on liquidation at either fair value or at the non-
controlling interests’ proportionate share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling
interests are attributed their share of profit or loss and each component of other comprehensive income. Non-controlling
interests are shown separately within the equity section of the statement of financial position and statement of profit or
loss and other comprehensive income.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss
and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses
incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group
recognises the fair value of the consideration received and the fair value of any investment retained together with any
gain or loss in profit or loss.
When the Group changes the proportion of ownership of a non-controlling interest, the difference between the fair value
of the consideration paid or received and the adjustment to the balance of the non-controlling interest, is recognised in
equity as an adjustment to retained earnings. Such an adjustment to retained earnings does not meet definitions of profit
and loss, or other comprehensive income, so is not disclosed in the statement of profit or loss and other comprehensive
income. Consideration paid or received for a non-controlling interest is valued as at the transaction date, not as at an
earlier authorisation or contract date, because it does not meet the definition of a share-based payment.
b) Operating Segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers (CODM). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
33
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c) Current and Non-Current Classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating cycle; it is
held primarily for the purpose of trading; it is expected to be realised within twelve months after the reporting period; or
the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period. All other assets are classified as non-current.
A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of
trading; it is due to be settled within twelve months after the reporting period; or there is no unconditional right to defer
the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as
non-current. Deferred tax assets and liabilities are always classified as non-current.
d) Cash and Cash Equivalents
Cash on hand and in banks and short-term deposits are stated at nominal value. For the purpose of the consolidated
statement of cash flows, cash includes cash on hand and in banks, and money market investments readily convertible to
cash within 90 days, net of outstanding bank overdrafts.
e) Foreign Currency Translation
The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of
the parent company.
Foreign currency transactions are translated into the functional currency of the parent company, using the exchange rates
prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the
settlement of such transactions and from the remeasurement of monetary items at year end exchange rates are
recognised in profit or loss.
Non-monetary items measured at historical cost are translated using the exchange rates at the date of the transaction
(not retranslated). Non-monetary items measured at fair value are translated using the exchange rates at the date when
fair value was determined.
In the Group's financial statements, all assets, liabilities and transactions of group entities with a functional currency other
than AUD (the Group's presentation currency) are translated into AUD upon consolidation. The functional currency of the
entities in the Group has remained unchanged during the reporting period.
On consolidation, assets and liabilities have been translated into AUD at the closing rate at the reporting date. Income
and expenses have been translated into the Group's presentation currency at the average rate over the reporting period.
Exchange differences are charged/credited to other comprehensive income and recognised in the currency translation
reserve in equity. On disposal of a foreign operation the cumulative translation differences recognised in equity are
reclassified to profit or loss and recognised as part of the gain or loss on disposal. Goodwill and fair value adjustments
arising on the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated
into AUD at the closing rate.
34
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
f)
Financial Instruments
Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold assets
in order to collect contractual cash flows which arise on specified dates and are solely principal and interest. All other
financial instrument assets are classified and measured at fair value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading)
in other comprehensive income. Financial assets may be impaired based on an expected credit loss model to recognise
an allowance. Such impairment is measured with a 12-month expected credit loss model unless the credit risk on a
financial instrument has increased significantly since initial recognition in which case the lifetime expected credit loss
model is adopted
For financial liabilities, the portion of the change in fair value that relates to the Group’s credit risk is presented in other
comprehensive income.
Hedge accounting requirements align the accounting treatment with the Group’s risk management activities. The Group
does not currently have any impaired financial assets, financial liabilities with changes in fair value due to credit risk
presented in other comprehensive income, or financial instruments requiring hedge accounting.
g) Trade and Other Payables
Trade payables and other accounts are recognised when the Group becomes obliged to make future payments resulting
from the purchase of goods and services.
h) Trade and Other Receivables
Trade and other receivable are amounts due from related parties and other receivables represent the principal amounts
due at balance date plus accrued interest less, where applicable, any unearned income and provision for expected credit
loss.
i)
Income Tax
The income tax expense or revenue for the year is the tax payable on the current year’s taxable income based on the
national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary difference at the tax rates expected to apply when the
assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for
each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary
differences to measure the deferred tax asset or liability is recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probably that
future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and
assets are not recognised for temporary differences between the carrying amount and tax bases of investments in
subsidiaries where the parent entity is able to control the timing of the reversal of the temporary differences and it is
probable that the difference will not reverse in the foreseeable future. Current and deferred tax balances attributable to
amounts recognised directly in equity are also recognised directly in equity.
35
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
j) Plant and Equipment
Plant and equipment has been stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a diminishing value basis to write off the net cost of each item of plant and equipment over
their expected useful lives as follows:
Office equipment
Motor vehicles
Exploration equipment
3-5 years
7 years
3-5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
k) Exploration and Evaluation Expenditure
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is
carried forward as an asset in the statement of financial position where it is expected that the expenditure will be
recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration
activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the
existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned,
the expenditure incurred thereon is written off in the year in which the decision is made.
l)
Leases
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss
as incurred.
m) Revenue and Other Income
Revenue from contracts with customers is recognised based on the transfer of promised goods or services to customers
with an amount that reflects the consideration to which the Group expects to be entitled to in exchange for those goods
or services.
Other revenue is recognised when it is probable that the economic benefit will flow to the Group and the revenue can be
reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Research and development tax offset income is recognised when it is received or when the right to receive payment is
established. Revenue is measured at the fair value of the consideration received or receivable.
Interest income is recognised using the effective interest rate methods, which, for floating rate financial assets, is the rate
inherent in the instrument.
All revenue is stated net of goods and services tax.
36
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
n) Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of GST, except:
– where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the
cost of acquisition of any asset or as part of an item of expense; or
–
for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
as operating cash flows.
o)
Impairment of Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which they
are separately identifiable cash flows (cash generating units).
p) Share-Based Payment Transactions
The Company provides benefits to KMP of the Group in the form of share-based payments, whereby the KMP render
services in exchange for shares or rights over shares (equity settled transactions). The Company does not provide cash
settled share-based payments.
The cost of equity settled transactions with KMP are measured by reference to the fair value of the equity instruments at
the date at which they are granted.
The cost of equity settled transactions are recognised, together with a corresponding increase in equity, over the period
in which the service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to
the award (the vesting period).
The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects the
extent to which the vesting period has expired, and the Company’s best estimate of the number of equity instruments
that will ultimately vest. The profit or loss charge or credit for a period represents the movement in cumulative expense
recognised for the period.
No cumulative expense is recognised for awards that ultimately do not vest (in respect of non-market vesting conditions).
q) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
r) Earnings per Share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Alderan Resources Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
37
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r) Earnings per Share (continued)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
s)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
t) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2020. The Group's
assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
Group, are set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and
early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new
guidance on measurement that affects several Accounting Standards. Where the Group has relied on the existing
framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with
under the Australian Accounting Standards, the Group may need to review such policies under the revised framework. At
this time, the application of the Conceptual Framework is not expected to have a material impact on the Group's financial
statements.
u) Critical Accounting Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates
and assumptions on historical experience and on other various factors, including expectations of future events,
management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will
seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Capitalised Exploration and Evaluation Expenditure
Exploration and evaluation costs have been capitalised on the basis that activities in the area have not yet reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves. Key judgements are applied
in considering costs to be capitalised which includes determining expenditures directly related to these activities and
allocating overheads between those that are expensed and capitalised.
Share based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
38
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2: SEGMENT REPORTING
AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that
are regularly reviewed by the Directors in order to allocate resources to the segment and to assess its performance.
Information regarding these segments is presented below. The accounting policies of the reportable segments are the
same as the Group’s accounting policies. The following tables are an analysis of the Group’s revenue and results by
reportable segment provided to the Directors for the years ended 30 June 2021 and 30 June 2020.
30 June 2021
Segment revenue
Intersegment revenue
Revenue from external
customers
Continuing Operations
United
States of
America
$
-
-
-
Australia
$
6,349
-
6,349
Segment result
(795,601)
(1,253,834)
Segment assets
11,393,459
1,326,609
Segment liabilities
134,266
128,622
30 June 2020
Segment revenue
Intersegment revenue
Revenue from external
customers
Continuing Operations
United
States of
America
$
-
-
-
Australia
$
189
-
189
Segment result
(1,050,273)
(651,988)
Segment assets
9,890,232
2,170,532
Segment liabilities
15,710
332,334
Unallocated
items
$
Consolidated
$
-
-
-
-
-
-
6,349
-
6,349
(2,049,435)
12,720,068
262,888
Unallocated
items
$
Consolidated
$
-
-
-
-
-
-
189
-
189
(1,702,261)
12,060,764
348,044
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Alderan Resources Limited
NOTE 3: EXPENSES
Consulting and administration expense
Accountancy fees
ASX fees
Rent
30 June 2021
$
30 June 2020
$
49,035
36,910
13,487
55,250
30,499
37,844
Administration and consultancy fees
236,064
217,391
Insurance
Legal fees
Exploration project related costs and others
Promotion and investor relations
Travel expenses
NOTE 4: INCOME TAX
(a) Income tax benefit
56,066
37,033
60,842
33,000
8,483
32,932
56,284
20,073
256
3,619
530,920
454,148
-
-
(b) Numerical reconciliation between tax-benefit and pre-tax net loss
Accounting (loss) before income tax
(2,049,435)
(1,702,261)
Income tax benefit using the Company’s domestic tax rate of 27.5% (2020: 27.5%)
(563,595)
Other non-deductible items
Unrecognised deferred tax asset attributable to tax losses and temporary
differences
Income tax attributable to entity
(c) Unrecognised deferred tax
Tax losses for which no deferred tax asset has been recognised
Losses available for offset against future taxable income
Total
Potential tax benefits at 27.5% (2020: 27.5%)
26,425
537,170
-
(468,122)
(68,990)
537,112
-
(7,844,487)
(7,844,487)
(5,891,143)
(5,891,143)
(2,157,234)
(1,620,064)
The benefit of deferred tax assets not brought to account will only be brought to account if:
•
•
•
future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
the conditions for deductibility imposed by tax legislation continue to be complied with; and
no changes in tax legislation adversely affect the Company in realising the benefit.
40
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5: LOSS PER SHARE
Basic loss per share
Basic loss per share from continuing operations
30 June 2021
30 June 2020
Cents per share Cents per share
(0.73)
(0.73)
(0.92)
(0.92)
Losses used in the calculation of basic and diluted loss per share is as follows:
$
$
Loss for the year
Loss from continuing operations
(2,049,435)
(1,702,261)
(2,049,435)
(1,702,261)
The weighted average number of ordinary shares used in the calculation of basic
and diluted loss per share is as follows:
Number
Number
Weighted average number of ordinary shares for the purpose of
basic loss per share
281,973,928
185,884,127
NOTE 6: CASH AND CASH EQUIVALENTS
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash and cash equivalents comprise cash on hand and at bank, net of
outstanding bank overdrafts. Cash and cash equivalents as shown in the statement of cash flows is reconciled to the related
items in the statement of financial position as follows:
Cash in bank and on hand
Reconciliation of loss after tax to net cash outflow from operating activities:
Loss for the year
Adjustment for non-cash income and expense items
Depreciation and amortisation
Share-based payment expense
Exploration expenditure written off
Exploration expenditure capitalised
Change in assets and liabilities
Trade and other receivables
Trade and other payables
Net cash (outflow) from operating activities
30 June
2021
$
791,510
791,510
30 June
2020
$
2,133,424
2,133,424
(2,049,435)
(1,702,261)
57,567
633,084
539,878
86,120
214,779
-
(3,098,831)
(411,750)
16,794
(69,852)
767
15,995
(3,970,795)
(1,796,350)
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: TRADE AND OTHER RECEIVABLES
Alderan Resources Limited
Bonds
GST receivable
Sundry debtors
Prepayment
Security deposit
NOTE 8: PLANT AND EQUIPMENT
Balance at 1 July 2019
Depreciation
Exchange differences
Balance at 1 July 2020
Additions
Depreciation
Exchange differences
Balance at 30 June 2021
30 June
2021
$
95,903
11,231
73
14,470
9,926
131,603
Office
Equipment
$
Motor Vehicle
$
Exploration
Equipment
$
4,232
(1,208)
417
3,441
3,025
(1,032)
(295)
5,139
78,190
(12,413)
7,080
72,857
-
(9,566)
(6,283)
57,008
30 June
2020
$
169,022
27,387
871
14,236
10,000
221,516
Total
$
341,412
(86,120)
33,042
288,334
3,025
(57,567)
(24,736)
209,056
30 June
2020
$
9,330,402
411,750
(552,862)
228,200
9,417,490
208,320
139,724
-
348,044
42
258,990
(72,499)
25,545
212,036
-
(46,969)
(18,158)
146,909
30 June
2021
$
9,417,490
3,098,831
(539,878)
(388,544)
11,587,899
14,540
115,334
133,014
262,888
NOTE 9: EXPLORATION AND EVALUATION EXPENDITURE
Carrying value at the beginning of the year
Expenditure incurred during the year
Expenditure written off
Exchange differences
Carrying value at the end of the year
NOTE 10: TRADE AND OTHER PAYABLES
Trade creditors
Accruals and other payables
Kennecott JV royalty payment
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: ISSUED CAPITAL
a) Ordinary shares
Year to 30 June 2021
Year to 30 June 2020
No.
$
No.
$
Fully paid ordinary shares
297,941,092
22,157,574
259,438,641
19,027,550
Movements in Ordinary Shares
Balance at 1 July 2020
Shares issued for services (i)
Shares issued on exercise of Options (ii)
Shares issued under a Placement (iii)
Shares issued on exercise of Options (iv)
Less: share issue costs
Balance at 30 June 2021
259,438,641
19,027,550
500,000
1,875,000
80,000
187,500
35,294,118
3,000,000
833,333
50,000
-
(187,476)
297,941,092
22,157,574
(i)
(ii)
(iii)
(iv)
500,000 fully paid ordinary shares issued as consideration for services provided for investor relations. The
deeded issue price was $0.16, being the share price on date of issue, 30 July 2020.
1,875,000 fully paid ordinary shares issued following exercise of 1,875,000 unquoted options with an
exercise price of $0.10 and an expiry date of 7 August 2022.
35,294,118 fully paid ordinary shares issued under a Placement to professional and sophisticated investors
in December 2020 at an issue price of $0.085 per share.
833,333 fully paid ordinary shares issued following exercise of 833,333 unquoted options with an exercise
price of $0.06 and an expiry date of 19 July 2022.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares
present at a meeting in person or proxy, is entitled to one vote, and upon a poll each share is entitled to one vote. Ordinary
shares have no par value and the Company does not have a limited amount of authorised capital.
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: ISSUED CAPITAL (CONTINUED)
Alderan Resources Limited
b) Performance rights reserve
Year to 30 June 2021
Year to 30 June 2020
No.
$
No.
$
Fully paid
Balance at beginning of year
Expiry of Class A Performance Rights
Balance at end of year
600,000
(200,000)
400,000
101,420
600,000
101,420
-
-
-
101,420
600,000
101,420
The performance rights on issue as at 30 June 2021 are as follows:
Class
B
C
Number
200,000
Expiry Date
24 August 2021
200,000
24 August 2022
Vesting Conditions
Converting into fully paid ordinary shares once the closing share
price as quoted on the ASX is greater than $1.50 for more than a total
of 120 trading days within 3 years from grant date.
Converting into fully paid ordinary shares once the closing share
price as quoted on the ASX is greater than $2.00 for more than a total
of 120 trading days within 4 years from grant date.
The conditions for conversion of the remaining performance rights (Class B and Class C) into fully paid ordinary shares
were not met by 30 June 2021 however on 24 August 2021 the Class B Performance Rights expired without the conditions
for conversion being met.
The Group measured the fair value of the performance rights issued at the grant date by using the Monte-Carlo pricing
model with the following inputs.
Class
Grant Date
Expiry Date
Spot Price
A
B
C
24 Aug-18
24 Aug-18
24 Aug-18
24 Aug-20
24 Aug-21
24 Aug-22
$0.34
$0.34
$0.34
Vesting
Hurdle
(120 days)
$1.00
$1.50
$2.00
Fair value
Expected
Volatility
Dividend
Yield
Interest
Rate
$0.15
$0.17
$0.19
100%
100%
100%
0%
0%
0%
1.98%
2.03%
2.21%
c) Foreign Currency Reserves
Balance at beginning of year
Movement during the year
Balance at the end of the year
30 June
2021
$
744,522
(889,213)
(144,691)
30 June
2020
$
526,580
217,942
744,522
44
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: ISSUED CAPITAL (CONTINUED)
d) Options
Options
76,732,292
6,877,314
71,425,625
6,324,230
30 June 2021
30 June 2020
No.
$
No.
$
Movements in Options
Balance at 1 July 2020
Exercise of Options (i)
Issue of Employee Options under ESIP (ii)
Exercise of Options (iii)
Expiry of Options (iv)
Issue of Options to Managing Director (v)
Expiry of Options (vi)
Balance at 30 June 2021
71,425,625
6,324,230
(1,875,000)
7,000,000
(833,333)
(8,715,000)
10,000,000
(270,000)
-
527,002
-
-
26,082
-
76,732,292
6,877,314
The weighted average exercise price of options outstanding at the end of the financial year was $0.13 (2020: $0.23).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.50 years
(2020: 1.96 years).
(i)
(ii)
(iii)
(iv)
(v)
On 30 July 2020, 1,875,000 unquoted options with an exercise price of $0.10 and an expiry of 7 August 2022
were exercised.
On 3 August 2020, 7,000,000 unquoted options were issued as follows:
o 3,500,000 unquoted options to employees under the Company’s Long Term Incentive Plan vesting
after 12 months continuous service exercisable at $0.195 on or before 3 August 2023 (Tranche A);
and
o 3,500,000 unquoted options to employees under the Company’s Long Term Incentive Plan vesting
after 12 months continuous service exercisable at $0.225 on or before 3 August 2023 (Tranche B).
On 22 December 2020, 833,333 unquoted options with an exercise price of $0.06 and an expiry of 19 July
2022 were exercised by Managing Director, Peter Williams;
On 22 February 2021 a total of 8,715,000 unquoted options (with various exercise prices) expired without
being exercised;
On 27 May 2021, 10,000,000 unquoted options were issued to Managing Director, Scott Caithness, as follows:
o 5,000,000 unquoted options, vesting after 12 months continuous service, exercisable at $0.11 on
or before 27 May 2024 (Tranche A); and
o 5,000,000 unquoted options, vesting after 12 months continuous service, exercisable at $0.15 on
or before 27 May 2024 (Tranche A); and
(vi)
On 28 June 2021 a total of 270,000 unquoted options (with various exercise prices) expired without being
exercised.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11: ISSUED CAPITAL (CONTINUED)
Alderan Resources Limited
Number
Grant date
Expiry
date
ESIP Tranche A
3,500,000
24-Jul-20
3-Aug-23
ESIP Tranche B
3,500,000
24-Jul-20
3-Aug-23
MD Tranche A
5,000,000
27-May-21
27-May-24
MD Tranche B
5,000,000
27-May-21
27-May-24
Exercise
Price
$
0.195
0.225
0.110
0.150
Fair value at
grant date
Vesting
date
$
Recognised
as expense
at 30-Jun-21
$
297,500
3-Aug-21
273,084
280,000
3-Aug-21
253,918
150,000
27-May-22
130,000
27-May-22
13,973
12,110
The Group has measured the fair value of the options issued during the year by using the Black-Scholes pricing model with
the following inputs.
Class
Grant Date
Expiry Date
Vesting
Date
ESIP (A)
ESIP (B)
MD (A)
MD (B)
24-Jul-20
24-Jul-20
27-May-21
27-May-21
3-Aug-23
3-Aug-23
27-May-24
27-May-24
3-Aug-21
3-Aug-21
27-May-22
27-May-22
Share
price at
Grant
Date
$0.15
$0.15
$0.06
$0.06
Exercise
Price
Expected
Volatility
Dividend
Yield
Interest
Rate
0.195
0.225
0.110
0.150
100%
100%
100%
100%
0%
0%
0%
0%
0.27%
0.27%
0.09%
0.09%
NOTE 12: CONTINGENT LIABILITIES
On 11 February 2021, the Company announced it had completed several strategic land deals whereby the Company
executed Option Agreements. If the Company decides to exercise the various Option Agreements, additional liabilities will
be incurred, as follows:
Option Agreement with Drum Mountain Mineral Properties LLC (DMMP):
$500,000 in exploration expenditures in Year 1;
55% interest for $3 million in exploration expenditure over 3 years;
•
•
• Upon Volantis (100% owned Alderan subsidiary) completing expenditures to earn 55%, DMMP will have a
one-time option to contribute at 45%. If the option is not exercised, Volantis may earn 70%;
70% interest for an additional $2 million over 5 years; and
1% Net Smelter Royalty (NSR) if a party’s interest is reduced to less than 10%.
•
•
Option Agreement with Hartshorn Claim Group:
• Annual payments from acquisition date of $15,000, $15,000 and $30,000; and
•
Purchase price $200,000 in 3 years plus a 2% NSR (with 1% purchasable for $200,000).
Option Agreement with George Miller / Ron Myers Patented claims:
•
Purchase price $4,550,000 in 12 months from agreement date (February 2022)
There were no contingent liabilities as at 30 June 2020.
46
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 13: SIGNIFICANT EVENTS AFTER THE REPORTING DATE
• On 2 August 2021, the Company announced that it had received firm commitments to raise $5 million (before
costs) through the issue of approximately 125 million new shares to institutional, sophisticated and professional
investors at a price of $0.04 per share. The Placement is to settle in two Tranches, with Tranche 1 settling on 6
August 2021 through the issue of 44,116,163 shares and Tranche 2 expected to settle on 1 October 2021 through
the issue of 80,883,825 shares (following shareholder approval received on 23 September 2021). The Company
will also issue an additional 2,625,000 shares to Directors at a price of $0.04 per share on 1 October 2021
(following shareholder approval received on 23 September 2021) and 20 million unquoted options which expire
on 1 October 2024 (10 million exercisable at $0.11 and 10 million exercisable at $0.15) to the Lead Manager to
the placement; and
The impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential
impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on
measures imposed by the Australian Government and other countries, such as maintaining social distancing
requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
•
Other than disclosed above, the directors are not aware of any matters or circumstances not otherwise dealt with in this
report or consolidated financial statements that have significantly affected or may significantly affect the operations of
the Group, the results of those operations or the state of affairs of the Group in subsequent financial periods.
NOTE 14: DIVIDENDS
The directors have not declared any dividend for the year ended 30 June 2021 (2020: nil).
NOTE 15: SHARE-BASED PAYMENTS
From time to time, the Company provides Incentive Options to officers, employees, consultants and other key advisors as
part of remuneration and incentive arrangements. The number of options granted, and the terms of the options granted
are determined by the Board. Shareholder approval is sought where required. During the past two years, the following
equity-settled share-based payments have been recognised:
Expense arising from option-settled share-based payment transactions
Expense arising from share-settled share-based payment transactions
Net share based payment expense recognised in the profit or loss
30 June
2021
$
553,084
80,000
633,084
30 June
2020
$
214,779
-
214,779
The share based payment expense consists of expensing a proportion of unquoted options which we issued during the
year and are being recognised as an expense on a straight-line basis over the vesting period. Options have been valued by
the Company using the Black-Scholes options pricing model based on the inputs shown at Note 11 (d).
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: RELATED PARTY TRANSACTIONS
a)
Key management personnel
Short-term employee benefits
Post-employment benefits
Share-based payments – shares
Share-based payments - options
b) Related party transactions
Alderan Resources Limited
30 June
30 June
2021
$
509,780
14,810
-
26,083
550,673
2020
$
564,838
-
10,692
215,010
790,540
During the year ended 30 June 2021, the Company paid an amount of $6,717, and had an amount of $39,531, payable to
Portable PPB Pty Ltd for the use of geological tools. Portable PPB Pty Ltd is a related party of Non-Executive Director, Peter
Williams.
There were no other balances owed from/to key management personnel and or companies associated with the
shareholders and Directors (2020: nil)
c)
Subsidiaries
The consolidated financial statements include the financial statements of Alderan Resources Limited and the following
subsidiaries:
Subsidiary
Country of
incorporation
Equity interest (%)
30 June 2021
30 June 2020
Volantis Resources Corp, Inc.
Valyrian Resources Corp.
Alderan US Holdings, Inc
Star Range US Holdings, Inc
Star Range Resources Limited
USA
USA
USA
USA
AUS
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Alderan Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
48
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS
a) Overview
The Group's principal financial instruments comprise receivables, payables, cash and cash equivalents. The main risks
arising from the Group's financial instruments are credit risk, liquidity risk, interest rate risk and foreign currency risk. This
note presents information about the Company's exposure to each of the above risks, its objectives, policies and processes
for measuring and managing risk, and the management of capital. Other than as disclosed, there have been no significant
changes since the previous financial year to the exposure or management of these risks.
The Group manages its exposure to key financial risks in accordance with the Company's risk management policy. Key
financial risks are identified and reviewed annually and policies are revised as required. The overall objective of the
Company's risk management policy is to recognise and manage risks that affect the Company and to provide a stable
financial platform to enable the Company to operate efficiently.
The Group does not enter into derivative transactions to mitigate the financial risks. In addition, the Company's policy is
that no trading in financial instruments shall be undertaken for the purposes of making speculative gains. As the Company's
operations change, the Directors will review this policy periodically going forward. The Directors have overall responsibility
for the establishment and oversight of the risk management framework. The Directors review and approve policies for
managing the Company's financial risks as summarised below.
Categories of financial instruments
Financial assets
Cash on hand and in bank
Trade and other receivables
Financial liabilities
Trade and other payables
30 June
2021
$
791,510
131,603
923,113
262,888
262,888
30 June
2020
$
2,133,424
221,516
2,354,940
348,044
348,044
49
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (continued)
b) Capital risk management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Company’s overall strategy remains
unchanged from prior years. The capital structure of the Company consists of debt, cash and cash equivalents and equity,
comprising issued capital, reserves and retained earnings (accumulated losses). Operating cash flows are used to maintain
and expand operations, as well as to make routine expenditures such as tax, dividends and general administrative
outgoings.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
c) Credit Risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company only transacts with entities that are rated the equivalent of investment grade and above. This information is
supplied by independent rating agencies where available and, if not available, the Company uses publicly available financial
information and its own trading record to rate its major customers.
The Company does not have any significant credit risk exposure to any single counterparty or any Company of
counterparties having similar characteristics.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations. This arises principally from cash and cash equivalents and trade and other receivables.
There are no significant concentrations of credit risk within the Company. The carrying amount of the Company's financial
assets represents the maximum credit risk exposure, as represented below:
Cash on hand and in bank
Trade and other receivables
Total
30 June
2021
$
791,510
131,603
923,113
30 June
2020
$
2,133,424
221,516
2,354,940
Trade and other receivables are comprised primarily of sundry receivables and GST refunds due. Where possible the
Company trades only with recognised, creditworthy third parties
With respect to credit risk arising from cash and cash equivalents, the Company's exposure to credit risk arises from default
of the counter party, with a maximum exposure equal to the carrying amount of these instruments.
d)
Interest Rate Risk
The Company's exposure to the risk of changes in market interest rates relates primarily to the bank deposits with floating
interest rate. These financial assets with variable rates expose the Company to cash flow interest rate risk. All other
financial assets and liabilities, in the form of receivables and payables are non-interest bearing.
50
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (continued)
At the reporting date, the interest rate profile of the Company's interest-bearing financial instruments was:
Interest-bearing financial instruments
Bank balances
30 June
2021
$
791,510
791,510
30 June
2020
$
2,133,424
2,133,424
The Company currently does not engage in any hedging or derivative transactions to manage interest rate risk.
Interest rate sensitivity
A sensitivity of 0.1% (10 basis points) has been selected as this is considered reasonable given the current level of both
short term and long term interest rates. A 1% (100 basis points) movement in interest rates at the reporting date would
have increased (decreased) equity and profit and loss by the amounts shown below. This analysis assumes that all other
variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for 2020.
30 June 2021 - Profit or loss
30 June 2020 - Profit or loss
100bp
Increase
100bp
Decrease
100bp
Increase
100bp
Decrease
7,915
(7,915)
21,334
(21,334)
e) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Board's
approach to managing liquidity is to ensure, as far as possible, that the Company will always have sufficient liquidity to
meet its liabilities when due by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities. The contractual maturities of financial liabilities, including estimated interest payments,
are provided below. There are no netting arrangements in respect of financial liabilities.
30 June 2021
Financial Liabilities
Trade and other payables
Total
30 June 2020
Financial Liabilities
Trade and other payables
Total
≤6 Months
$
6-12 Months
$
1-5 Years
$
≥5 Years
$
Total
$
262,888
262,888
-
-
-
-
-
-
262,888
262,888
≤6 Months
$
6-12 Months
$
1-5 Years
$
≥5 Years
$
Total
$
348,044
348,044
-
-
-
-
-
-
348,044
348,044
51
Alderan Resources Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (continued)
f)
Foreign Exchange Risk
The Company has an exposure to foreign exchange rates given that the Company operates in the United States of America.
A fluctuation in foreign exchange rates may affect the cost base of the costs and expenses of the Company. The carrying
amounts of the Company’s foreign currency denominated monetary liabilities as at the reporting date expressed in
Australian dollars are as follows:
US dollar denominated balances
Foreign currency sensitivity analysis
30 June 2021
$
30 June 2020
$
181,361
15,386
The sensitivity analysis below details the Company’s sensitivity to an increase/decrease in the Australian Dollar against the
United States Dollar. The sensitivity analysis includes only outstanding foreign currency denominated monetary items. A
100 basis point is the sensitivity rate used when reporting foreign currency risk internally to management and represents
management’s assessment of the possible change in foreign exchange rates.
At reporting date, if foreign exchange rates had been 100 basis points higher or lower and all other variables held constant,
the Company’s loss will increase/decrease by $1,813 (2020: $154); and net assets will increase/decrease by $1,813 (2020:
$154).
The Company’s sensitivity to foreign exchange rates has not changed significantly from prior year.
g) Fair values
The net fair value of financial assets and financial liabilities approximates their carrying value. The methods for estimating
fair value are outlined in the relevant notes to the financial statements.
NOTE 18: COMMITMENTS
Exploration expenditure and annual lease/claim payments
Committed at the reporting date but not recognised as liability:
Within one year
One to five years
30 June
2021
$
30 June
2020
$
1,205,143
-
930,105
121,287
1,205,143
1,051,392
Where the commitments are due in US Dollars, the Company has used the spot rate on 30 June 2021 as a conversion for
the commitments into Australian Dollars.
In order to maintain current rights of tenure to exploration tenements, the Company is required to outlay rentals and to
meet the minimum expenditure requirements by the Mineral Resources Authority. Minimum expenditure commitments
may be subject to renegotiation and with approval may otherwise be avoided by sale, farm out or relinquishment. These
obligations are not provided for in the financial statements.
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 19: PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Financial Position
Total Assets
Total Liabilities
Net Assets
Issue Capital
Reserves
Accumulated Losses
Total Equity
Alderan Resources Limited
30 June
2021
$
30 June
2020
$
(7,484,714)
(5,195,255)
(7,484,714)
(5,195,255)
12,522,333
12,045,054
(65,153)
(332,334)
12,457,180
11,712,720
22,157,574
19,027,550
6,978,734
6,425,650
(16,679,128)
(13,740,480)
12,457,180
11,712,720
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 and 30 June 2020.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020.
Capital commitments
There are no commitments which relate solely to the parent entity.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in Note 1,
except for the ‘Investments in Subsidiaries’ are accounted for at cost, less any impairment, in the parent entity.
NOTE 20: AUDITOR’S REMUNERATION
The auditor of the Group is RSM Australia Partners.
30 June
2021
$
30 June
2020
$
Audit or review of the financial statements
41,000
34,750
53
DIRECTORS’ DECLARATION
In the opinion of the Directors:
Alderan Resources Limited
1.
The consolidated financial statements and notes thereto are in accordance with the Corporations Act 2001
including:
a.
b.
giving a true and fair view of the Group’s financial position as at 30 June 2021 and its performance for the
year then ended; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
The consolidated financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
2.
3.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance with
Section 295A of the Corporations Act 2001.
This declaration is signed in accordance with a resolution of the Board of Directors.
Mr Tom Eadie
Chairman
Dated this 29th day of September 2021
54
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALDERAN RESOURCES LIMITED
Opinion
We have audited the financial report of Alderan Resources Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed this matter
Exploration and Evaluation Expenditure
Refer to Note 9 in the financial statements
The Group has capitalised exploration and
evaluation expenditure with a carrying value of
$11,587,899 as at 30 June 2021.
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the asset including:
finding
the basis on which
Determination of whether the expenditure can be
specific mineral
that
associated with
resources, and
expenditure is allocated to an area of interest;
Determination of whether exploration activities
have progressed to the stage at which the
existence of an economically
recoverable
mineral reserve may be assessed; and
Assessing whether any indicators of impairment
are present, and if so, judgments applied to
determine and quantify any impairment loss.
Our audit procedures included:
On a sample basis of the claims held by the Group,
to supporting
right of
tenure
agreed
documentation;
this
Agreeing a sample of additions to supporting
documentation and ensuring the amounts are
capital in nature and relate to the area of interest;
Assessing
and
evaluating management’s
assessment of whether indicators of impairment
existed as at 30 June 2021;
Assessing and recalculating the exploration and
evaluation expenditure that was written off during
the year;
Assessing management’s determination
that
exploration and evaluation activities have not yet
reached a stage where the existence or otherwise
of economically recoverable reserves may be
reasonably determined; and
Enquiring with management and reviewing budgets
and other supporting documentation as evidence
that active and significant operations in, or relation
to, the area of interest will be continued in the future.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporation Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Alderan Resources Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 29 September 2021
TUTU PHONG
Partner
CORPORATE GOVERNANCE
The Company has adopted comprehensive systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies
and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company's needs. In determining what those policies and procedures should
involve the Company has turned to the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition).
Unless disclosed below, all the principles and recommendations of the ASX Corporate Governance Council have been applied for the entire financial year ended 30 June 2021 (Reporting Period).
Alderan Resources Limited
PRINCIPLES AND RECOMMENDATIONS
(Summary)
LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
COMPLIES
COMMENT
No.
1.
1.1
Yes
A listed entity should have and disclose a board
charter setting out:
(a) The respective roles and responsibilities of
its board and management; and
(b) Those matters expressly reserved to the
board and those delegated to
management.
1.2
A listed entity should:
(a) undertake appropriate checks before
Yes
appointing a person, or putting forward to
security holders a candidate for election, as
a director; and
(b) provide security holders with all material
information in its possession relevant to a
decision on whether or not to elect or re-
elect a director.
A listed entity should have a written agreement
with each director and senior executive setting
out the terms of their appointment.
1.3
The Board is ultimately accountable for the performance of the Company and provides leadership and
sets the strategic objectives of the Company. It appoints all senior executives and assesses their
performance on at least an annual basis. It is responsible for overseeing all corporate reporting systems,
remuneration frameworks, governance issues, and stakeholder communications. Decisions reserved for
the Board relate to those that have a fundamental impact on the Company, such as material acquisitions
and takeovers, dividends and buybacks, material profits upgrades and downgrades, and significant
closures.
The Company has developed a Board Charter which sets out the roles and responsibilities of the Board, a
copy of which is available on the Company's website.
The Company undertakes comprehensive reference checks prior to appointing a director or putting that
person forward as a candidate to ensure that person is competent, experienced, and would not be
impaired in any way from undertaking the duties of a director.
In addition, the Company’s Nomination Committee Charter establishes accountability for requiring
appropriate checks of potential directors to be carried out before appointing that person or putting them
forward as a candidate for election, and this will be undertaken with respect to all future appointments.
Yes
The Company maintains written agreements with each of its Directors and senior executives setting out
their roles and responsibilities and the terms of their appointment.
58
1.4
1.5
The company secretary of a listed entity should
be accountable directly to the board, through
the chair, on all matters to do with the proper
functioning of the Board.
A listed entity should:
(a) Have and disclose a diversity policy;
(b) Through its board or a committee of the
board set measurable objectives for
achieving gender diversity in the
composition of its board, senior executives
and workforce generally; and
(c) Disclose in relation to each reporting
period:
1.
2.
the measurable objectives set for that
period to achieve gender diversity;
the entity’s progress towards achieving
those objectives; and
3.
either:
A. the respective proportions of men
and women on the board, in senior
executive positions and across the
whole organisation (including how
the entity has defined “senior
executive” for these purposes); or
B. if the entity is a “relevant
employer” under the Workplace
Gender Equality Act, the entity’s
most recent “Gender Equality
Indicators”, as defined in and
published under that Act.
If the entity was in the S&P / ASX 300 Index at
the commencement of the reporting period, the
measurable objective for achieving gender
Yes
The Company Secretary is engaged by the Company to manage the proper function of the Board. The
Company Secretary reports directly to the Chair and is accountable to the Board.
Alderan Resources Limited
Partial
The Company recognises the importance of equal employment opportunity. The Company's corporate
code of conduct provides a framework for undertaking ethical conduct in employment. Under the
corporate code of conduct, the Company will not tolerate any form of discrimination or harassment in
the workplace.
However, the Company has determined to not initially adopt a formal policy and establish measurable
objectives for achieving gender diversity (and accordingly, will not initially be in a position to report
against measurable objectives). The Board considers that its approach to gender diversity and
measurable objectives is justified by the current nature, size and scope of the business, but will consider
in the future, once the business operations of the Company mature, whether a more formal approach to
diversity is required.
The Company currently has no female board members or senior executives.
The Company was not in the S&P / ASX 300 Index at the commencement of the reporting period.
59
1.6
diversity in the composition of its board should
be 30% of its directors of each gender within a
specified period.
A listed entity should:
(a) have and disclose a process for
periodically evaluating the performance of
the board, its committees and individual
directors; and
(b) Disclose, in relation to each reporting
period, whether a performance evaluation
was undertaken in the reporting period in
accordance with that process.
Alderan Resources Limited
Yes
The Board reviews its performance annually, as well as the performance of individual Committees and
individual directors (including the performance of the Chairman as Chairman of the Board).
During the reporting period, the Board collectively assessed their respective roles and contributions to
the Company and determined they were appropriate.
1.7
A listed entity should:
Yes
The Board constantly assesses the performance of the Managing Director, the Company Secretary and
other Key Management Personnel during the course of the year.
(a) Have and disclose a process for periodically
evaluating the performance of its senior
executives; and
(b) Disclose, in relation to each reporting
period, whether a performance evaluation
was undertaken in the reporting period in
accordance with that process.
2.
2.1
STRUCTURE THE BOARD TO BE EFFECTIVE AND ADD VALUE
No
The board of a listed entity should:
(a) Have a nomination committee which:
1) has at least three members, a majority
of whom are independent directors;
and
2)
is chaired by an independent director;
and disclose:
3)
4)
the charter of the committee;
the members of the committee; and
5) as at the end of each reporting period,
the number of times the committee
The Board has not established a separate nomination committee. Given the scale of the Company’s
operations, it is anticipated that the full Board will be able to continue adequately discharge the
functions of a Nomination Committee for the short to medium term. The Board will consider establishing
a Nomination Committee when the size and complexity of the Company’s operations and management
warrant it. In the meantime, the Company has adopted a Nomination Committee Charter and
Remuneration Committee Charter, which includes specific responsibilities to be carried out by those
committees when they are established.
The Company’s Nomination Committee Charter and Remuneration Committee Charter are available on
the Company’s website.
60
met throughout the period, and the
individual attendances of the members
at those meetings; or
(b) If it does not have a nomination
committee, disclose the fact and the
processes it employs to address board
succession issues and to ensure the board
has the appropriate balance of skills,
knowledge, experience, independence and
diversity to enable it to discharge its duties
and responsibilities effectively.
A listed entity should have and disclose a board
skills matrix setting out the mix of skills and
diversity that the board currently has or is
looking to achieve in its membership.
A listed entity should disclose:
(a) the names of the directors considered by
the board to be independent directors;
(b) If a director has an interest, position,
association or relationship of the type
described in Box 2.3 but the board is of the
opinion that it does not compromise the
independence of the director, the nature of
the interest, position, association or
relationship in question and an explanation
of why the board is of that opinion; and
(c) the length of service for each director
A majority of the board of a listed entity should
be independent directors
2.2
2.3
2.4
2.5
The chair of the board of a listed entity should
be an independent director and, in particular,
No
Alderan Resources Limited
No
Yes
The Board has been specifically constituted with the mix of skills and experience that the Company
requires to move forward in implementing its business objectives. The composition of the Board and the
performance of each Director will be reviewed from time to time to ensure that the Board continues to
have a mix of skills and experience necessary for the conduct of the Company’s activities as the
Company’s business matures and evolves.
Details of the Directors and their independence status as at 30 June 2021 as follows:
-
-
-
-
Tom Eadie, Non-executive Chairman – Not independent
Scott Caithness, Managing Director – Not independent
Bruno Hegner, Executive Director - Not independent
Peter Williams, Non-Executive Director – Not independent
The independence of each Director has been determined in taking into account the relevant factors
suggested in The Corporate Governance Principles and Recommendations (4th Edition) as published by
ASX Corporate Governance Council (Recommendations) (Independence Factors).
The length of service for each director is disclosed in this Annual Report.
No
As disclosed in the response to Recommendation 2.3 above, none of the Directors are considered to be
independent.
However, the Company is confident that current composition of the Board is optimal for its current level
of operations, and is therefore in the best interests of the Company and its shareholders. The Board will
review the balance of independence on the Board on an on-going basis, and will implement changes at
its discretion having regard to the Company’s growth and changing management and operational
circumstances.
Mr Eadie is the Chairman and is not considered to be independent by virtue of him acting in the capacity
of an Executive Chairman between 11 February 2019 and 1 September 2019.
61
should not be the same person as the CEO of
the entity
A listed entity should have a program for
inducting new directors and provide
appropriate professional development
opportunities for directors to develop and
maintain the skills and knowledge needed to
perform their role as directors effectively.
Yes
Upon appointment to the Board new Directors are provided with Company policies and procedures and
are provided an opportunity to discuss the Company's operations with senior management and the
Board.
The Company encourages its Director’s to participate in professional development opportunities
presented to the Company and provides appropriate industry information to its Board members on a
regular basis.
Alderan Resources Limited
INSTIL A CULTURE OF ACTING LAWFULLY, ETHICALLY AND RESPONSIBLY
A listed entity should articulate and disclose its
values.
Yes
The Board has adopted a Board Charter, Securities Trading Policy, Whistleblower Policy, Continuous
Disclosure Policy and Shareholder Communication Policy which detail frameworks for acceptable
corporate behaviour.
2.6
3.
3.1
3.2
A listed entity should:
(a) Have and disclose a code of conduct for its
directors, senior executives and
employees; and
(b) Ensure that the board or a committee of
the board is informed of any material
breaches of that code.
3.3
A listed entity should:
(a) Have and disclose a whistleblower policy;
and
(b) Ensure that the board or a committee of
the board is informed of any material
incidents reported under that policy.
Yes
Yes
These are available at the Company’s website.
The Company has adopted a Code of Conduct, which provides a framework for decisions and actions in
relation to ethical conduct in business. All of the Company’s directors and employees are required to
comply with the standards of behaviour and business ethics in accordance with the law and the Code of
Conduct.
The Code of Conduct is disclosed on the Company’s website.
The Company’s Whistleblower Policy is available at the Company’s website.
It is a requirement of the Board that it is informed of any material breaches, none of which occurred
during the reporting period.
3.4
A listed entity should:
No
The Company has not yet adopted an anti-bribery and corruption policy, however the Company will look
to implement an appropriate policy in the near term.
(a) Have and disclose an anti-bribery and
corruption policy; and
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Alderan Resources Limited
No
The Board has not established a separate audit committee. Given the present size of the Company and
the scale of its operations, the Board has decided that the full Board can adequately discharge the
functions of an audit committee. The Board will establish an Audit Committee when the size and
complexity of the Company’s operations and management warrant it.
The Directors require that management report regularly on all financial and commercial aspects of the
Company to ensure that they are familiar with all aspects of corporate reporting and believe this to
mitigate the risk of not having an independent committee.
(b) Ensure that the board or a committee of
the board is informed of any material
breaches of that policy.
SAFEGUARD THE INTEGRITY OF CORPORATE REPORTS
The board of a listed entity should:
(a) Have an audit committee which:
4.
4.1
1) has at least three members, all of
whom are non-executive directors and
a majority of whom are independent
directors; and
2)
is chaired by an independent director,
who is not the chair of the board;
and disclose:
3)
4)
the charter of the committee;
the relevant qualifications and
experience of the members of the
committee; and
5) as at the end of each reporting period,
the number of times the committee
met throughout the period, and the
individual attendances of the members
at those meetings; or
(b) If it does not have an audit committee,
disclose the fact and the processes it
employs that independently verify and
safeguard the integrity of its corporate
reporting, including the processes for the
appointment and removal of the external
auditor and the rotation of the audit
engagement partner.
4.2
The board of a listed entity should, before it
approves the entity’s financial statements for a
Yes
The Board receives a section 295A declaration from the equivalent of the CEO and CFO for each
quarterly, half yearly and full year report in advance of approval of these reports.
63
financial period, receive from its CEO and CFO a
declaration that, in their opinion, the financial
records of the entity have been properly
maintained and that the financial statements
comply with the appropriate accounting
standards and give a true and fair view of the
financial position and performance of the entity
and that the opinion has been formed on the
basis of a sound system of risk management and
internal controls which is operating effectively.
A listed entity should disclose its process to
verify the integrity of any periodic corporate
report it releases to the market that is not
audited or reviewed by an external auditor.
MAKE TIMELY AND BALANCED DISCLOSURE
A listed entity should have a written policy for
complying with its continuous disclosure
obligations under Listing Rule 3.1.
A listed entity should ensure that its board
receives copies of all material market
announcements promptly after they have been
made.
A listed entity that gives a new and substantive
investor or analyst presentation should release
a copy of the presentation materials on the ASX
Market Announcements Platform ahead of the
presentation
RESPECTS THE RIGHTS OF SECURITY HOLDERS
A listed entity should provide information about
itself and its governance to investors via its
website.
A listed entity should design and implement an
investor relations program to facilitate effective
two-way communication with investors.
4.3
5.
5.1
5.2
5.3
6.
6.1
6.2
Alderan Resources Limited
Yes
Yes
Yes
As well as receiving management accounts and financial updates at each Board meeting, the Board
receives a section 295A declaration from the equivalent of the CEO and CFO for each quarterly in
advance of approval of these reports.
The Company has a Continuous Disclosure Policy which includes processes to ensure compliance with
ASX Listing Rule 3.1 disclosure and to ensure accountability at a senior executive level for compliance and
factual presentation of the Company’s financial position.
The Continuous Disclosure Policy is disclosed on the Company’s website.
The Board approves all material market announcements made by the Company prior to release to the
ASX and is notified once release has occurred.
Yes
The Company complies with this recommendation.
Yes
Yes
The Company has established a website on which it maintains information in relation to corporate
governance, directors and senior executives, Board and committee charters, annual reports, ASX
announcements and contact details.
The Company has adopted a Shareholder Communications Policy, which establishes principles to ensure
that the shareholders are informed of all major developments affecting the Company’s state of affairs.
The Shareholder Communications Policy is disclosed on the Company’s website.
64
Alderan Resources Limited
The Company encourages shareholders to participate in general meetings of the Company as a means by
which feedback can be given to the Company and allocates scheduled question time at meetings of
Shareholders to facilitate participation at those meetings.
The Company puts all resolutions that are subject to the Listing Rules to a poll. Further the Chair has
regard for the results of the proxy voting when deciding if a non-Listing Rule resolution should be put to a
poll instead of by show of hands.
The Board has not established a separate risk committee. Given the present size of the company, the
Board has decided that the full Board can adequately discharge the functions of a risk committee for the
time being. The Board will establish a Risk Committee when the size and complexity of the Company’s
operations and management warrant it.
In the meantime, the Company’s Audit and Risk Committee Charter includes principles to guide the
Board’s oversight of the Company’s risk function.
6.3
6.4
7.
7.1
A listed entity should disclose how it facilitates
and encourages participation at meetings of
security holders.
A listed entity should ensure that all substantive
resolutions at a meeting of security holders are
decided by poll rather than by a show of hands.
RECOGNISE AND MANAGE RISK
The board of a listed entity should:
(a) have a committee or committees to
oversee risk, each of which:
Yes
Yes
No
1) has at least three members, a majority
of whom are independent directors;
and
2)
is chaired by an independent director;
and disclose:
3)
4)
the charter of the committee;
the members of the committee; and
5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendances of the members
at those meetings: or
(b) if it does not have a risk committee or
committees that satisfy (a) above, disclose
that fact and the processes it employs for
overseeing the entity’s risk management
framework.
7.2
The board or a committee of the board should:
Yes
The Board currently reviews its risk management strategy on an annual basis at a minimum at a Board
level. The Board considers it to be sound.
(a) review the entity’s risk management
framework at least annually to satisfy
itself that it continues to be sound and
that the entity is operating with due
65
regard to the risk appetite set by the
Board; and
(b) disclose, in relation to each reporting
period, whether such a review has
taken place.
A listed entity should disclose:
(a) if it has an internal audit function, how the
function is structured and what role it
performs; or
(b) if it does not have an internal audit
function, that fact and the processes it
employs for evaluating and continually
improving the effectiveness of its risk
management and internal control
processes.
A listed entity should disclose whether it has
any material exposure to economic,
environmental and social sustainability risks
and, if it does, how it manages or intends to
manage those risks.
7.3
7.4
Alderan Resources Limited
Yes
The Company is not of the size or scale to warrant the cost of an internal audit function. This function is
undertaken by the Board as a whole via the regular and consistent reporting in all risk areas.
Yes
The Company provides its material risks below, including exposure to economic, environmental and
social sustainability risks. The Company will continue to disclose these material risks in the future in its
annual report or elsewhere as appropriate.
Liquidity risk
Certain securities are likely to be classified as restricted securities. To the extent that Shares are
classified as restricted securities, the liquidity of the market for Shares may be adversely affected.
Exploration and evaluation risks
Mineral exploration, development and mining activities are high-risk undertakings. There can be no
assurance that exploration on these Tenements, or any other claims or leases that may be acquired in
the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is
identified, there is no guarantee that it can be economically exploited.
Title risks
Mineral rights in the USA may be owned by private parties, local government, state government, federal
government, or indigenous groups. Verifying the chain of title for USA mineral rights can be complex
and may require that remedial steps be taken to correct any defect in title. Securing exploration and
extraction rights to federally-owned mineral rights requires strict adherence to claim staking and
maintenance requirements. The Company has taken reasonable steps to verify the title to the
Tenements in which it has, or has a right to acquire, an interest. Although these steps are in line with
market practice for exploration projects, they do not guarantee title to the Tenements nor guarantee
that the Tenements are free of any third party rights or claims.
Future capital requirements
66
Alderan Resources Limited
The Company's activities are likely to require substantial expenditure, in additional to the amounts raised
under the Offer. Any additional equity financing may be dilutive to Shareholders and any debt financing
if available may involve restrictive covenants, which may limit the Company's operations and business
strategy.
Although the Directors believe that additional capital can be obtained, there can be no assurance that
appropriate capital or funding, if and when needed, will be available on terms favourable to the
Company or at all. The Company's failure to raise capital if and when needed could delay or suspend the
Company's business strategy and could have a material adverse effect on the Company's activities.
Reliance on key personnel
The Company’s future depends, in part, on its ability to attract and retain key personnel. Its future also
depends on the continued contributions of its executive management team and other key management
and technical personnel, the loss of whose services would be difficult to replace. In addition, the inability
to continue to attract appropriately qualified personnel could have a material adverse effect on the
Company’s business.
Fluctuations in commodity prices
The Company’s business, prospects, financial condition and results of operations are heavily dependent
on prevailing metals prices, particularly copper. There can be no assurance that the existing level of
metals prices will be maintained in the future. Any future declines, even relatively modest ones, in
metals prices could adversely affect the Company's business, prospects, financial condition and results of
operations.
Exchange rate risks
The Company operates in multiple currencies and exchanges rates are constantly fluctuating.
International prices of various commodities, as well as the exploration expenditure of the Company are
denominated in United States dollars, whereas the Company will rely principally on funds raised and
accounted for in Australian currency, exposing the Company to the fluctuations and volatility of the rate
of exchange between the United States dollar and the Australian dollar as determined in international
markets.
Other industry specific risks
The Company’s activities are subject to a number of risks common to the conduct of mining exploration
and the financing of mining exploration activities, including but not limited to:
risks inherent in resource estimation;
a)
b) operation and technical risks;
c) environmental risks;
d)
e) contract counterparty risks; and
f)
competition risks.
tenure risks;
67
8.
8.1
REMUNERATE FAIRLY AND RESPONSIBLY
The board of a listed entity should:
No
(a) have a remuneration committee which:
1) has at least three members, a majority
of whom are independent directors;
and
2)
is chaired by an independent director;
and disclose:
3)
4)
the charter of the committee;
the members of the committee; and
5) as at the end of each reporting period,
the number of times the committee
met throughout the period and the
individual attendances of the members
at those meetings; or
(b) if it does not have a remuneration
committee, disclose that fact and the
processes it employs for setting the level
and composition of remuneration for
directors and senior executives and
ensuring that such remuneration is
appropriate and not excessive.
A listed entity should separately disclose its
policies and practises regarding the
remuneration of non-executive directors and
the remuneration of executive directors and
other senior executives.
A listed entity which has an equity-based
remuneration scheme should:
(a) have a policy on whether participants
are permitted to enter into
8.2
8.3
Alderan Resources Limited
The Board has not established a separate remuneration committee. Given the present size of the
company, the Board has decided that the full Board can adequately discharge the functions of a
remuneration committee for the time being. The Board will establish a Remuneration Committee when
the size and complexity of the Company’s operations and management warrant it.
In the meantime, the Board has adopted a Remuneration Committee Charter, which includes principles
for setting and reviewing the level and composition of remuneration for directors and senior executives
and ensuring that such remuneration is appropriate and not excessive, including if required, the ability to
obtain independent advice on the appropriateness of remuneration packages. Until such time as the
Remuneration Committee is established, the functions of this committee will continue to be carried out
by the full Board.
Yes
Yes
Each director has entered a separate employment or consultancy agreement with the Company.
The remuneration of directors and senior executives is generally reviewed annually. As discussed under
Recommendation 8.1 above, a Remuneration Committee Charter is in place, and the Board (in its
capacity as the Remuneration Committee) in will consider its approach to remuneration in due course
having regard to the Remuneration Committee Charter. Disclosure of the remuneration arrangements
for Directors and senior executives will be disclosed in the annual reports of the Company in the future.
The Company maintains a Securities Trading Policy which restricts the permission for employees and
directors to enter transactions which limit the economic risks associated with the participation in any of
the Company's equity based incentive schemes. A copy of the Securities Trading Policy is available on the
Company's website.
68
transactions (whether through the use
of derivatives or otherwise) which limit
the economic risk of participating in
the scheme; and
(b) disclose that policy or a summary of it.
The use of derivatives or other hedging arrangements for unvested securities of the Company or vested
securities of the Company which are subject to escrow arrangements is prohibited. Where a director or
other senior executive uses derivatives or other hedging arrangements over vested securities of the
Company, this will be disclosed.
Alderan Resources Limited
69
Alderan Resources Limited
Additional Securities Information
Class of Shares and Voting Rights
The voting rights attached to the Fully Paid Ordinary Shares of the Company are:
a)
b)
at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or by
attorney; and
on a show of hands every person present who is a member has one vote, and on a poll every person present in
person or by proxy or attorney has one vote for each ordinary share held.
Options do not carry any voting rights.
Distribution of Shareholders (as at 23 September 2021)
Spread of Holdings
Number of Holders
1-1,000
1,001-5,000
5,001 - 10,000
10,001 -100,000
Over 100,001
Total
95
170
212
510
281
1,268
Total Units
39,294
569,238
1,768,310
20,142,268
319,538,145
342,057,255
There are 394 holders of unmarketable parcels comprising a total of 1,546,842 ordinary shares.
There are currently no shares subject to voluntary escrow.
There is no current on-market buy back taking place.
Company Secretary
Mathew O’Hara
Registered Office
Suite 23, 513 Hay Street
Subiaco WA 6008
Telephone: (08) 6143 6711
Share Registry
Automic Registry Services
Level 3 50 Holt Street
Surry Hills NSW 2010
Ph: (02) 9698 5414
Substantial Shareholders (based on substantial shareholder notices lodged with ASX)
Name
Tolga Kumova
Number of Shares
%
61,813,059
18.07%
70
16
Jurkovic Family Superannuation Fund No 1 Pty Ltd
3,449,884
Twenty Largest Registered Shareholders (as at 23 September 2021)
Name
1 Kitara Investments Pty Ltd
2 HSBC Custody Nominees (Australia) Limited
3
Instant Expert Pty Limited
9 BNP Paribas Nominees Pty Ltd Six Sis Ltd
10 Kingslane Pty Ltd
11 Mr Mrat Abzalov & Mrs Svetlana Abzalov
12 Kingslane Pty Ltd
13 Buprestid Pty Ltd
14 Mr Carlo Chiodo
15 SISU International Pty Ltd
17 BNP Paribas Nominees Pty Ltd
18 Godwana Investment Group Pty Ltd
19 Mrs Kathleen Maree McVicar
20 Mr Peter Michael Gerhard Geerdts
TOTAL
Unquoted Securities (as at 23 September 2021)
Class
Performance Rights:
Performance rights vest on price of $2.00 for 120 days expiring 11-Sept-22
Unquoted Options:
Unquoted options exercisable at $1.00 each on or before 12-Jun-22
Unquoted options exercisable at $1.50 each on or before 12-Jun-22
Unquoted options exercisable at $2.00 each on or before 12-Jun-22
Unquoted options exercisable at $2.50 each on or before 12-Jun-22
Unquoted options exercisable at $0.06 each on or before 19-Jul-22
Unquoted options exercisable at $0.10 each on or before 19-Jul-22
Unquoted options exercisable at $0.10 each on or before 7-Aug-22
Unquoted options exercisable at $0.20 each on or before 7-Aug-21
Alderan Resources Limited
Number of
Shares
%
53,341,905
15.59%
39,841,144
11.65%
18,333,333
13,128,642
11,764,706
7,338,337
5,174,986
4,924,496
4,557,050
4,476,652
4,233,333
4,000,000
3,824,979
3,667,504
3,529,293
3,244,211
3,078,334
3,000,001
3,000,000
5.36%
3.84%
3.44%
2.15%
1.51%
1.44%
1.33%
1.31%
1.24%
1.17%
1.12%
1.07%
1.03%
1.01%
0.95%
0.90%
0.88%
0.88%
197,908,790
57.86%
Number
200,000
125,000
100,000
100,000
100,000
3,666,667
7,750,000
27,890,625
5,000,000
71
Unquoted options exercisable at $0.08 each on or before 30-Jun-23
Unquoted options exercisable at $0.12 each on or before 30-Dec-21
Unquoted options exercisable at $0.195 each on or before 3-Aug-23
Unquoted options exercisable at $0.225 each on or before 3-Aug-23
Unquoted options exercisable at $0.11 each on or before 27-May-24
Unquoted options exercisable at $0.15 each on or before 27-May-24
Alderan Resources Limited
10,000,000
5,000,000
3,500,000
3,500,000
5,000,000
5,000,000
Unquoted Securities >20% Holders (as at 23 September 2021)
Frank ‘Bruno’ Hegner holds 100% of the unquoted performance rights on issue as at 16 September 2021. There were no
substantial holders of unquote options as at 23 September 2021.
72
Schedule of Tenements
Unpatented Mining Claims - Volantis Resources Corp
Claim Name
Serial No.
Beaver Co Document No.
Alderan Resources Limited
AW 1
AW 2
AW 3
AW 4
AW 5
AW 6
AW 7
AW 8
AW 9
AW 10
AW 11
AW 12
AW 13
AW 14
AW 15
AW 16
AW 17
AW 18
AW 19
AW 20
AW 21
AW 22
AW 23
AW 24
AW 25
AW 26
AW 27
AW 28
AW 29
AW 30
AW 31
CT 1
CT 2
CT 3
CT 4
CT 5
CT 6
CT 7
CT 8
CT 9
437250
437251
437252
437253
437254
437255
437256
437257
437258
437259
437260
437261
437262
437263
437264
437265
437266
437267
437268
437269
437270
437271
437272
437273
437274
437275
437276
437277
437278
437279
437280
426677
426678
426679
426680
426681
426682
426683
426684
426685
264029
264030
264031
264032
264033
264034
264035
264036
264037
264038
264039
264040
264041
264042
264043
264044
264045
264046
264047
264048
264049
264050
264051
264052
264053
264054
264055
264056
264057
264058
264059
258648
258649
258650
258651
258652
258653
258654
258655
258656
73
Alderan Resources Limited
CT 10
CT 11
CT 12
CT 13
CT 14
CT 15
CT 16
CT 17
CT 18
CT 19
CT 20
CT 21
CT 22
CT 23
CT 24
CT 25
CT 26
CT 27
CT 28
CT 29
CT 30
CT 33
CT 34
CT 35
CT 36
CT 37
CT 38
CT 39
CT 40
CT 41
CT 42
CT 43
CT 44
CT 45
CT 46
SF 82
CT 47
CT 48
CT 49
CT 50
CT 51
CT 52
CT 53
CT 54
CT 55
426686
426687
426688
426689
426690
426691
426692
426693
426694
426695
426696
426697
426698
426699
426700
426701
426702
426703
426704
426705
426706
426709
426710
426711
426712
426713
426714
426715
426716
426717
426718
426719
426720
426721
426722
426723
426967
426968
426969
426970
426971
426972
426973
426974
426975
258657
258658
258659
258660
258661
258662
258663
258664
258665
258666
258667
258668
258669
258670
258671
258672
258673
258674
258675
258676
258677
258680
258681
258682
258683
258684
258685
258686
258687
258688
258689
258690
258691
258692
258693
258694
258845
258846
258847
258848
258849
258850
258851
258852
258853
74
Alderan Resources Limited
CT 56
CT 57
CT 58
CT 59
CT 60
CT 61
CT 62
CT 63
CT 64
CT 65
CT 66
CT 67
CT 68
CT 69
CT 70
CT 71
CT 72
CT 73
CT 74
CT 75
CT 76
CT 77
CT 101
CT 102
CT 103
CT 104
CT 105
CT 106
CT 107
CT 108
CT 109
CT 110
CT 111
CT 112
CT 113
CT 114
CT 115
CT 116
CT 117
CT 118
CT 119
CT 120
CT 121
CT 122
CT 123
426976
426977
426978
426979
426980
426981
426982
426983
426984
426985
426986
426987
426988
426989
426990
426991
426992
426993
426994
426995
426996
426997
434804
434805
434806
434807
434808
434809
434810
434811
434812
434813
434814
434815
434816
434817
434818
434819
434820
434821
434822
434823
434824
434825
434826
258854
258855
258856
258857
258858
258859
258860
258861
258862
258863
258864
258865
258866
258867
258868
258869
258870
258871
258872
258873
258874
258875
261072
261073
261074
261075
261076
261077
261078
261079
261080
261081
261082
261083
261084
261085
261086
261087
261088
261089
261090
261091
261092
261093
261094
75
Alderan Resources Limited
CT 124
CT 125
CT 126
CT 127
CT 128
CT 129
CT 130
CT 131
CT 132
NW 101
NW 102
NW 103
NW 104
NW 105
NW 106
NW 107
NW 108
NW 109
NW 110
NW 111
NW 112
NW 113
NW 114
NW 115
NW 116
NW 117
NW 118
NW 119
NW 120
NW 121
NW 122
NW 123
NW 124
NW 125
NW 126
NW 127
NW 128
NW 129
NW 130
NW 131
NW 132
NW 133
NW 134
NW 135
NW 136
434827
434828
434829
434830
434831
434832
434833
434834
434835
434836
434837
434838
434839
434840
434841
434842
434843
434844
434845
434846
434847
434848
434849
434850
434851
434852
434853
434854
434855
434856
434857
434858
434859
434860
434861
434862
434863
434864
434865
434866
434867
434868
434869
434870
434871
261095
261096
261097
261098
261099
261100
261101
261102
261103
261104
261105
261106
261107
261108
261109
261110
261111
261112
261113
261114
261115
261116
261117
261118
261119
261120
261121
261122
261123
261124
261125
261126
261127
261128
261129
261130
261131
261132
261133
261134
261135
261136
261137
261138
261139
76
Alderan Resources Limited
NW 137
NW 138
NW 139
NW 141
NW 142
LIR 31
NW 1
NW 2
NW 3
NW 4
NW 5
NW 6
NW 7
NW 8
NW 9
NW 10
NW 11
NW 12
NW 13
NW 14
NW 15
NW 16
CT 78
SF 82
SF 83
SF 84
SF 85
NW 17
NW 18
SF 1
SF 2
SF 3
SF 4
SF 5
SF 6
SF 7
SF 8
SF 9
SF 10
SF 11
SF 12
SF 13
SF 14
SF 15
SF 16
434872
434873
434874
434875
434876
434877
428552
428553
428554
428555
428556
428557
428558
428559
428560
428561
428562
428563
428564
428565
428566
428567
428568
428569
428570
428571
428572
435319
435320
426435
426436
426437
426438
426439
426440
426441
426442
426443
426444
426445
426446
426447
426448
426449
426450
261140
261141
261142
261143
261144
261145
259870
259871
259872
259873
259874
259875
259876
259877
259878
259879
259880
259881
259882
259883
259884
259885
259886
259887
259888
259889
259890
261331
261332
258176
258177
258178
258179
258180
258181
258182
258183
258184
258185
258186
258187
258188
258189
258190
258191
77
Alderan Resources Limited
SF 17
SF 18
SF 19
SF 20
SF 21
SF 22
SF 23
SF 24
SF 25
SF 26
SF 27
SF 28
SF 29
SF 30
SF 31
SF 32
SF 33
SF 34
SF 35
SF 36
SF 37
SF 38
SF 39
SF 40
SF 41
SF 42
SF 43
SF 44
SF 45
SF 46
SF 47
SF 48
SF 49
SF 50
SF 51
SF 52
SF 53
SF 54
SF 55
SF 56
SF 57
SF 58
SF 59
SF 60
SF 61
426451
426452
426453
426454
426455
426456
426457
426458
426459
426460
426461
426463
426464
426465
426466
426467
426468
426469
426470
426471
426472
426473
426474
426475
426476
426477
426478
426479
426480
426481
426482
426483
426484
426485
426486
426487
426488
426489
426490
426491
426492
426493
426494
426495
426496
258192
258193
258194
258195
258196
258197
258198
258199
258200
258201
258202
258269
258270
258271
258272
258273
258274
258275
258276
258277
258278
258279
258280
258281
258282
258283
258284
258285
258286
258287
258288
258289
258290
258291
258292
258293
258294
258295
258296
258297
258298
258299
258300
258301
258302
78
Alderan Resources Limited
SF 62
SF 63
SF 64
SF 65
SF 66
SF 67
SF 69
SF 70
SF 71
SF 72
SF 73
SF 74
SF 75
SF 76
SF 77
SF 78
SF 79
SF 80
SF 81
WC 1
WC 2
WC 3
WC 4
WC 5
WC 6
WC 7
WC 8
WC 9
WC 10
WC 11
WC 12
WC 13
WC 14
WC 15
WC 16
WC 17
WC 18
WC 19
WC 20
WC 21
WC 22
WC 23
WC 24
WC 25
WC 26
426497
426498
426499
426500
426501
426502
426503
426504
426505
426506
426507
426508
426509
426510
426511
426512
426513
426514
426515
437525
437526
437527
437528
437529
437530
437531
437532
437533
437534
437535
437536
437537
437538
437539
437540
437541
437542
437543
437544
437545
437546
437547
437548
437549
437550
258303
258304
258305
258306
258307
258308
258309
258310
258311
258312
258313
258314
258315
258316
258317
258318
258319
258320
258321
264251
264252
264253
264254
264255
264256
264257
264258
264259
264260
264261
264262
264263
264264
264265
264266
264267
264268
264269
264270
264271
264272
264273
264274
264275
264276
79
Alderan Resources Limited
WC 27
WC 28
WC 29
WC 30
WC 31
WC 32
WC 33
WC 34
WC 35
WC 36
WC 37
WC 38
WC 39
WC 40
WC 41
WC 42
WC 43
WC 44
WC 45
WC 46
WC 47
WC 48
WC 49
WC 50
WC 51
WC 52
WC 53
WC 54
WC 55
WC 56
WC 57
WC 58
437551
437552
437553
437554
437555
437556
437557
437558
437559
437560
437561
437562
437563
437564
437565
437566
437567
437568
437569
437570
437571
437572
437573
437574
437575
437576
437577
437578
437579
437580
437581
437582
264277
264278
264279
264280
264281
264282
264283
264284
264285
264286
264287
264288
264289
264290
264291
264292
264293
264294
264295
264296
264297
264298
264299
264300
264301
264302
264303
264304
264305
264306
264307
264308
White Mountain Group
Claim Name
WM 1
WM 2
WM 3
WM 4
WM 5
WM 6
WM 7
WM 8
WM 9
Serial No.
UMC 442729
UMC 442730
UMC 442731
UMC 442732
UMC 442733
UMC 442734
UMC 442735
UMC 442736
UMC 442737
Beaver Co. Document No.
267521
267522
267523
267524
267525
267526
267527
267528
267529
80
Alderan Resources Limited
WM 10
WM 11
WM 12
WM 13
WM 14
WM 15
WM 16
WM 17
WM 18
WM 19
WM 20
WM 21
WM 22
WM 23
WM 24
WM 25
WM 26
WM 27
WM 28
WM 29
WM 30
WM 31
WM 32
WM 33
WM 34
WM 35
WM 36
WM 37
WM 38
WM 39
WM 40
WM 41
WM 42
WM 43
WM 44
WM 45
WM 46
WM 47
WM 48
WM 49
WM 50
WM 51
WM 52
WM 53
WM 54
UMC 442738
UMC 442739
UMC 442740
UMC 442741
UMC 442742
UMC 442743
UMC 442744
UMC 442745
UMC 442746
UMC 442747
UMC 442748
UMC 442749
UMC 442750
UMC 443915
UMC 443916
UMC 443917
UMC 443918
UMC 443919
UMC 443920
UMC 443921
UMC 443922
UMC 443923
UMC 443924
UMC 443925
UMC 443926
UMC 443927
UMC 443928
UMC 443929
UMC 443930
UMC 443931
UMC 443932
UMC 443933
UMC 443934
UMC 443935
UMC 443936
UMC 443937
UMC 443938
UMC 443939
UMC 443940
UMC 443941
UMC 443942
UMC 443943
UMC 443944
UMC 443945
UMC 443946
267530
267531
267532
267533
267534
267535
267536
267537
267538
267539
267540
267541
267542
267930
267931
267932
267933
267934
267935
267936
267937
267938
267939
267940
267941
267942
267943
267944
267945
267946
267947
267948
267949
267950
267951
267952
267953
267954
267955
267956
267957
267958
267959
267960
267961
81
Alderan Resources Limited
WM 55
WM 56
WM 57
WM 58
WM 59
WM 60
WM 61
WM 62
WM 63
WM 64
WM 65
WM 66
WM 67
WM 68
WM 69
WM 70
WM 71
WM 72
WM 73
WM 74
WM 75
WM 76
WM 77
WM 78
WM 79
WM 80
WM 81
WM 82
WM 83
WM 84
WM 85
WM 86
WM 87
WM 88
WM 89
WM 90
WM 91
WM 92
WM 93
WM 94
WM 95
UMC 443947
UMC 443948
UMC 443949
UMC 443950
UMC 443951
UMC 443952
UMC 443953
UMC 443954
UMC 443955
UMC 443956
UMC 443957
UMC 443958
UMC 443959
UMC 443960
UMC 443961
UMC 443962
UMC 443963
UMC 443964
UMC 443965
UMC 443966
UMC 443967
UMC 443968
UMC 443969
UMC 443970
UMC 443971
UMC 443972
UMC 443973
UMC 443974
UMC 443975
UMC 443976
UMC 443977
UMC 443978
UMC 443979
UMC 443980
UMC 443981
UMC 443982
UMC 443983
UMC 443984
UMC 443985
UMC 443986
UMC 443987
267962
267963
267964
267965
267966
267967
267968
267969
267970
267971
267972
267973
267974
267975
267976
267977
267978
267979
267980
267981
267982
267983
267984
267985
267986
267987
267988
267989
267990
267991
267992
267993
267994
267995
267996
267997
267998
267999
276800
276801
276802
82
Unpatented Mining Claims - Valyrian Resources Corp
Claim Name
Serial No.
Beaver Co Document No.
Alderan Resources Limited
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Alderan Resources Limited
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Alderan Resources Limited
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85
Alderan Resources Limited
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86
Alderan Resources Limited
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Alderan Resources Limited
Utah State Lease for Metalliferous Minerals (ML53495)
Lessee
Effective
Date
Term
Rent
Premises
Valyrian
Resources Corp.
1 November
2017
10
USD$1
per acre
T28S, R11W, SLB&M
Sec. 27: E2NE4
Acres
817.08
T28S, R12W, SLB&M
Sec. 2: Lots 1(24.31), 2 (24.28), 3 (24.26), 4
(24.23), 5 (40.00), 6 (40.00), 7 (40.00), 8 (40.00),
S2N2, S2 (ALL)
Lessee
Effective
Date
Term
Rent
Premises
Acres
Valyrian
Resources Corp.
1 March
2021
10
USD$1
per acre
per year
Sec 32: T14S, R10W,
640.00
88