ABN 90 141 196 545
al
ABN 81 149 126 858
Annual Report
2015
A L I C A N T OM I N E R A L S L I M I T E D
2015 Annual Report
2
Contents
Corporate Directory
Chairman’s Letter to Shareholders
Directors’ Report
Auditor’s Independence Declaration
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
Schedule of Mineral Tenements
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3
4
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Corporate Directory
Non-Executive Chairman
Didier Murcia AM
Managing Director
Travis Schwertfeger (appointed 15 September 2014)
Non-Executive Directors
Matthew Bowles
Michael McKevitt (resigned 15 September 2014)
Company Secretary
Brett Dunnachie
Principal & Registered Office
288 Churchill Avenue
SUBIACO WA 6008
Telephone: (08) 6489 0700
Facsimile: (08) 6489 0710
Share Registry
Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153
Auditors
Stantons International
Level 2, 1 Walker Avenue
WEST PERTH WA 6005
Bankers
National Australia Bank
50 St Georges Terrace
PERTH WA 6000
Solicitors
Steinepreis Paganin
16 Milligan Street
PERTH WA 6000
Stock Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: AQI
Website Address
www.alicantominerals.com.au
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Chairman’s Letter to Shareholders
Dear fellow shareholders,
On behalf of the Directors of Alicanto Minerals Ltd (‘Alicanto’) I am pleased to present to shareholders the Company’s Annual Report
for the year ending 30 June 2015.
The past twelve months has been a period of significant achievement for Alicanto. Having completed the acquisition of StrataGold
Guyana Inc in April 2013, Alicanto completed its second drill program and further exploration programmes consisting of soil
geochemical sampling, rock chipping and geological mapping. Results of the exploration programme have confirmed the geological
model and prospectivity for significant gold mineralisation on the project.
The Board and management team remain focused on advancing the exciting Guyana gold projects which we are confident will deliver
shareholders long term value creation.
I would like to thank our shareholders who have remained with us through the year for your continued support and welcome our more
recent shareholders.
The team at Alicanto Minerals Ltd has worked hard and diligently these past twelve months and I look forward to the coming year with
enthusiasm. It promises to be an exciting and busy year for the Company as the Guyana Gold Projects are advanced through focussed
exploration.
I look forward to meeting with you at the forthcoming Annual General Meeting.
Didier Murcia AM
Non-Executive Chairman
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Directors’ Report
The Directors of Alicanto Minerals Ltd submit herewith the financial statements of the Company for the year ended 30 June 2015 in
order to comply with the provisions of the Corporations Act 2001.
Directors
1.
The following persons were Directors of Alicanto Minerals Ltd during the whole of the financial year and up to the date of this report,
unless otherwise stated:
Mr Didier Murcia
Mr Matthew Bowles
Non-Executive Chairman
Non-Executive Director
Mr Michael McKevitt was a Non-Executive Director from the beginning of the year until his resignation on 15 September 2014.
Mr Travis Schwertfeger was appointed Non-Executive Director on 15 September 2014 and subsequently appointed to the position of
Managing Director effective 24 November 2014 and continues in office at the date of this report.
Principal Activities
2.
The principal activity of the entity during the financial year was mineral exploration. There were no significant changes in the nature of
the entity’s principal activities during the financial year.
Operating Results
3.
The loss attributable to owners of the entity after providing for income tax amounted to $2,357,202 (2014: $2,079,379).
Dividends Paid or Recommended
4.
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date
of this report.
Financial Position
5.
The entity has $810,126 in cash and cash equivalents as at 30 June 2015 (2014: $348,155). The Directors believe the cash at year end
puts the entity in a sound financial position with sufficient capital to effectively explore its current landholdings.
Business Strategies & Prospects for the Forthcoming Year
6.
Alicanto Minerals Ltd is currently focused upon an aggressive exploration program for gold mineralisation on its current portfolio of
projects in Guyana with the object of identifying commercial resources.
Alicanto Minerals Ltd will also continue to consider and evaluate new mineral exploration opportunities within Guyana and throughout
the rest of the world for further potential acquisitions which may offer value enhancing opportunities for shareholders.
Material business risks that may impact the results of future operations include further exploration results, future commodity prices and
funding.
Significant Changes in the State of Affairs
7.
The following significant changes in the state of affairs of the entity occurred during the financial period:
On 5 August 2014 the Company issued 3.97 million shares at $0.15 raising $595,500.
On 29 August 2014 the Company issued 4.22 million shares at $0.15 under a Share Purchase Plan raising $632,700.
On 10 September 2014 the Company issued 6.03 million shares at $0.15 raising $904,500.
On 24 June 2015 the Company issued 8.51 million shares at $0.042 raising $357,462.
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Review of Operations
Directors’ Report
8.
During the financial year ended 30 June 2015 Alicanto Minerals Limited (“Alicanto” or the “Company”) completed exploration work
on its Arakaka Project in Guyana focused on a number of Targets with the Project assessed to have significant resource potential.
Exploration results advanced the geological and geochemical understanding of those targets with the underpinning objective to bring
forward each to a drill ready status and prioritise those targets for efficient and effective drill testing.
Exploration activity included varying combinations of RC drilling, geological mapping, soil geochemistry, auger sampling and rock
chipping on multiple target areas across the larger Arakaka Gold Project
Arakaka Main Trend, a 12km long trend of gold anomalism, host of over 1 million ounce of gold production near surface,
where over 40 active and historical saprolite open pit gold workings of significance have been mapped. Within this corridor
of extensive historical mining activity, six target areas have been identified and significant work completed on the 14-Mile,
Purple Heart, Powis, and Goat Hill target areas (Refer to Figures 3 & 4).
Gomes Trend, a major, transfer structure/fault that potentially acts as a control on mineralisation within the Main Arakaka
Trend, is a conjugate mineralised corridor itself hosting an open-ended >11km of surface gold anomalism, with mineralisation
confirmed in drilling at the Gomes Hill Prospect, with extensive and coherent gold anomalism persisting into the undrilled
Xenopsaris target area to the southeast.
Eyelash Area is a 5km long, +100ppb Au soil anomaly situated at the upstream extent of more than 20 kilometres of alluvial
workings. The target area is host to significant historical gold production within the >5km of +100ppb gold anomalism from
historical soil sampling programs, with multiple peak soil values exceeding 1g/t Au including 9.93g/t and 6.9g/t Au results.
Macaw Area, is located on a major flexure on a regional scale shear zone and rheological contact with >4.6km extent of
+100ppb Au soil anomalism and historical trench results of up to 20.5m @ 2.96g/t Au.
Figure 1 | Location Map – Arakaka Gold Project
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Directors’ Report
8.
Arakaka Gold Project
Review of Operations (continued)
The Arakaka Gold Project is made up of a number of permits, subject to underlying agreements, that cover a total area of over 300km2
within the Northern Guyana Shield. These projects cover volcano-sedimentary Paleoproterozoic greenstone rocks of the Barama-
Mazaruni supergroup which are highly prospective for large tonnage, orogenic gold deposits as demonstrated along trend in the
+27Moz Brisas/Las Christinas deposits located to the southwest in neighbouring Venezuela.
Figure 2 | Arakaka Trend – Target Area and Prospect locations within the Arakaka Project land position
Guyana’s northwest gold district is one of the most under-explored greenstone belts in the world, and among the last of the Birimian
aged greenstone belts to not host large tonnage gold resources or bulk mineable gold production. To date less than 5% of the current
known gold anomalism has been drilled at this early stage of exploration.
The primary emphasis on 2014-15 exploration activity has been geologic mapping and improving geologic understanding. Geologic
work has ranged in scale, including among other work;
multiple regional scale traverses utilised to refine stratigraphy, improve knowledge of crustal scale structural features, and
better define belt scale thrusting and folding events,
regolith and geomorphological features mapping and re-interpreting surface geochemical results in context of these important
near surface controls and effects on the mineralising systems
detail geological prospect scale mapping to define deposit specific controls on various styles of gold mineralisation
encountered.
All additional exploration activity reported has been in support of defining mineralisation controls and geological setting of
mineralisation in this project wide, belt scale approach to exploration for the purpose of progressing exploration on only the highest
prospectivity target areas in the district.
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Directors’ Report
8.
Figures 3 & 4 | Arakaka Gold Project – Arakaka Main Trend Soil Results
Review of Operations (continued)
The Arakaka Main Trend is host to pervasive alluvial workings with >1 million ounces of gold production along the northeast flowing
Arakaka drainage, where near surface artisanal mining activity has extended below the transported alluvial horizon and significant
amounts of gold have been mined from the in-situ weathered profile (saprolite) beneath, and extends onto the low lying hills on the
margins of the drainage, where over 40 active and historical saprolite open pit gold workings of significance have been mapped along
12km extent of surface geochemistry. Within this corridor of extensive historical mining activity, six target areas have been identified
and significant geological work has been completed during the reporting period on the 14-Mile, Purple Heart/Rodriquez, Powis, and
Goat Hill target areas.
14-Mile Area
14-Mile is located 22km (~14 miles) southwest of Port Kaituma, and is comprised of seven
distinct mineralised trends including the coherent and open-ended >3.2km long Gold Hill
prospect anomaly. The surface anomalism from soils include a peak value of 2,309ppb Au
and the multiple anomalies identified host more than 10 artisanal pits in saprolite associated
with several kilometres of alluvial workings. Follow-up surface geochemistry work has also
returned peak auger results up to 6.52g/t Au and peak rock chips including 31.1g/t Au at the
Conrad pit and 20g/t Au at the Khan prospect.
Alicanto exploration work on the 14-Mile target area (see Figure 2 for location) includes
1,417m of limited reconnaissance drilling in 14 holes ranging 58 to 139m in depth designed to
assess the character and style of mineralisation of a select few prospects within the target area.
Better drill results include (refer to ASX release dated 17 September 2014);
4m @ 21.08g/t Au from 48m
9m @ 1.89g/t Au from 76m
7m @ 1.81g/t Au from 33m
2m @ 4.17g/t Au end of hole - 113m
The latest drill assay results have confirmed high grade zones occur with shears on margins of pervasively altered diorite intrusions,
with the diorite intrusions themselves hosting broad, disseminated gold mineralisation at the 14-Mile prospect. Broad widths of
disseminated mineralisation associated with high grade zones within diorite intrusions have confirmed geological interpretations and
the potential for bulk tonnage gold mineralisation in the 14-Mile area.
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Directors’ Report
8.
Figure 5 | 14 Mile Target Area overview
Review of Operations (continued)
Continued field work at 14-Mile for the reporting period includes geological mapping, auger sampling and rock chip sampling designed
to follow up on significant soil anomalies and rock chip results from Alicanto’s previous field programs to follow-up on favourable
soils and high grade rock chip results up to 31.31g/t at the Conrad Prospect and 20.01g/t at the Khan prospect (refer to ASX release
dated 17 September 2014), both of which remain undrilled.
Purple Heart Target Area
The Purple Heart target area is comprised of multiple zones of coherent surface anomalism
across more than 1.5km of width and >2.4km of strike extent of +100ppb Au anomalism
located central to the 12km long Main Arakaka Trend. The anomalous zone includes several
mineralised lodes identified in artisanal workings in saprolite and confirmed in diamond drilling.
The Purple Heart and Rodriguez artisanal pits are two of the more extensive shallow artisanal
pits on the main Arakaka Trend. Located 750m apart, each pit hosts only a single section of
first pass drilling by previous explorers that confirms the potential of the Purple Heart area to
host a bulk tonnage gold deposit. Detailed mapping and surface geochemistry strongly suggest
potential for continuity of the mineralised system between the pits and extending beyond the
open-ended drilling.
Recent geological work, including re-logging of historical diamond core holes in the context of revised stratigraphy for the region, has
highlighted further mineralisation potential on parallel zones of anomalous Au geochemistry where un-drilled anomalies inclusive of
peak soil results of up to 8.1g/t, 6.45g/t, and 3.55g/t Au are associated with favourable geological settings defined in limited
historical drilling and surface mapping (refer to Figure 6).
All zones of gold anomalism are focused on shear zones located in and around diorite intrusions of various composition.
Mineralisation ranges from bonanza style gold intercepts of visible gold in quartz veins to broad zones of disseminated mineralisation
associated with arsenian-pyrite and pyrrhotite. Encouragingly both types of mineralisation are found within the same geological setting
and so exhibit significant potential for bulk tonnage targets.
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Directors’ Report
8.
Purple Heart Significant historical drill results show a series of at least three parallel lodes in limited drilling with visible gold
encountered in many of the holes, with better drill intercepts including;
Review of Operations (continued)
13.5m @ 7.36g/t gold from 87m – PHD0801
1.9m @ 30.66g/t gold from 86m – PHD0802
10.8m @ 1.66g/t gold from 17m – PHD0805
10m @ 3.10 g/t gold from surface – ARD04
48m @ 1.84g/t gold from surface; - ARD05
20.5m @ 1.43g/t gold from 65m – ROD0803
Refer to ASX release dated 26 August 2015 for complete listing of drill results.
Figure 6 | Plan map of the Purple Heart Area showing outlines of anomalous soil
geochemistry, existing drill collars, interpreted geology and defined Prospect Area’s
including the newly identified Green Heart and Brazo Camp drill targets.
During the reporting period, the Purple Heart target Area has been incorporated into an extensive, detailed mapping campaign of the
entire Arakaka Main Trend at 1:2,000 scale geology which, integrated with an assessment of historical gradient array IP datasets has
resulted in a revised geological and structural interpretation for the prospects. This updated geological work, integrated with a re-
assessment of historical surface geochemical datasets in context of regolith and landform mapping has resulted in the identification of
numerous untested targets across more than 1.5km of width and >2.4km of strike within the Purple Heart area.
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Directors’ Report
8.
Review of Operations (continued)
Powis Target Area
The Powis target is located 750m north of the main Arakaka trend shear zone (Refer to Figure 1)
with sub-parallel surface anomalism extending approximately 1.5km along a SW-NE orientation
(Refer to Figure 2), where the main Arakaka trend is host to a more prolific zone of mineralised
shears with anomalism at surface extending over 12 km.
Recent mapping has identified multiple high angle shear zones hosting quartz veins and
disseminated mineralisation. Due to the high angle of the shear zones identified from mapping it
is thought that nearly all of the vertical to sub-vertical diamond holes drilled by the previous
operator were ineffective and missed the targeted mineralisation.
An initial drill test by Alicanto completed in the first half of 2014 was designed to follow up on
mapping and rock chipping by Alicanto geologists including rock chip results of up to 84.2g/t
Au. The drilling successfully pierced the target vein over a 3m interval in hole ARRC003 and follow-up screen fire analysis work (refer
to ASX release dated 17 September 2014) returned a value of 1m @ 9.3g/t Au from 64m depth, confirming the geological
interpretation of high angle mineralised zones. Given the coarse nature of gold in the target zone, further drilling is necessary to
determine the significance of this result.
Figure 7 | Updated geological mapping for the Powis Target Area (Powis and 18-mile
prospects) where resolution of key intrusion related controls on mineralisation is improved
and potential importance of thrusting and observations of possible duplex thrust stacking
observed
Alicanto has also acquired archived whole and cut core material drilled by the previous operator and in December 2014 relocated all
the core to the Company’s Monosse camp for logging, geological compilation work and to secure material for audit and review work
related to future resource estimation studies. Historical drilling by the previous operator at the Powis Prospect is comprised of 35
vertical to sub-vertical holes totalling 5,780m of NQ diamond core, and much of this core was never assayed.
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Review of Operations (continued)
Directors’ Report
8.
The additional assay analysis of previously un-sampled core was initiated due to the identification of an interval containing visible gold
identified during re-logging, along with several un-sampled intervals of strongly altered material from the archived core. Assay results
of historical drilling, from recent analysis work by Alicanto includes better intercepts of;
4.6m @ 1.7g/t Au from 7.7m in M19DH001
2.4m @ 3.24g/t Au from 5.6m in M19DH008
2.4m @ 8.5g/t Au from 46.6m in M19DH011
Refer to ASX release dated 27 January 2015 for complete listing of drill results.
Figure 8 | Plan map of the Powis Prospect showing existing drill collar location, reported significant drill results, rock chip
locations, and 2014 interpreted geology results
2014-15 rock chip results coincident with mapping efforts on the Powis Prospect include peak values of 84.16g/t Au and 10g/t Au
with historical rock chips returning up to 41g/t & 33g/t (Refer to Figure 2). The mapping and sampling work completed when
integrated with structural measurements from diamond core re-logging work support the interpretation of multiple high angle
mineralised lodes which are to date untested due to the orientation of historical drilling.
Xenopsaris Area
Gold Anomalism extended by 20% to >6km of +100ppb Au anomalism including
numerous +1,000ppb Au soil results and auger drilling demonstrates potential sources to
broad and extensive zones of mineralisation for better focused drill targeting
Located on the southern extensions of the >11km long Gomes Trend gold anomalism (Refer to
Figure 2), Xenopsaris is host to over 6km of +100ppb soil anomalism extending away from the
Gomes Hill Prospect drilled mineralisation. The Xenopsaris un-drilled extension of anomalism
includes multiple +1g/t Au results with peak values of 6.0g/t Au, 2.84g/t Au, and 1.65g/t Au
(Refer to ASX release dated 11 March 2015, and Figure 3 for overview of all exploration results).
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Directors’ Report
8.
Initial regolith and landform interpretation along with limited in-fill and extension soil sampling work has been completed on the
Xenopsaris Area target.
Review of Operations (continued)
The exploration activity completed at Xenopsaris has highlighted numerous zones of +0.5g/t Au soils along strike from drilled
mineralisation at the Gomes Hill Prospect, including better drill intercepts of 19.19m @ 3.4g/t Au from 65m, incl. 6m @ 6.25g/t Au
in hole MD008, 17m @ 2.11g/t Au from 46m, incl. 4.25m @ 6.12g/t Au in hole MD002 and 11.0m @ 3.43g/t Au from 62m in
TAK9717 (Refer to ASX release dated 9 February 2015).
Figure 9 | Plan map of the Gomes Hill Prospect and Xenopsaris Area targets showing
existing drill collars, significant reported drill results, drilling locations, updated soil
anomaly outlines, and interpreted geology. (*Refer to ASX release dated 9 February 2015
for full table of Gomes Hill drill results)
The location of the anomalous samples is predominantly on ridges and slopes throughout the anomalous corridor, which suggests the
source of mineralisation is beneath and in close proximity to the surface anomalism. The discontinuous zones of +0.5g/t Au
anomalism is located within a halo of anomalism with stronger continuity at a +100ppb Au cut-off grade.
Mineralisation has been identified in soil and confirmed in auger drill sampling along the interpreted Temberlin Shear Zone, with
anomalism continuing along the projection of the Temberlin Shear to the extent of current sampling to the southeast. Anomalism also
continues beyond the limit of mineralisation to the northwest, wrapping around an interpreted fold closure following the Eveready
carbonaceous shale unit located at the contact between the Mafic Volcanics of the Eyelash Formation and the overlying volcanoclastic
and greywacke lithology’s of the Tenapu Formation.
Exploration activity includes follow-up work Recent exploration activity focuses on several well defined zones of +500ppb Au
anomalism within the mineralised corridor, where on numerous zones of +500ppb Au soils highlighted in previously reported results
including multiple +1g/t Au results with peak values of 6.0g/t, 2.84g/t, and 1.65g/t Au (refer to ASX release dated 11 March 2015).
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Review of Operations (continued)
Directors’ Report
8.
It is on these prioritised targets that auger sampling has been utilised to refine the location for the source of mineralisation for drill
testing. Assays from auger sampling include peak values of 10g/t and 3.7g/t Au (refer to ASX release dated 26 May 2015), with
better auger results closely associated with higher grade soil assays on each line, improving confidence in quality of results from soil
sampling vectoring to mineralisation (Refer to Figure 9).
Gomes Hill Prospect
Re-logging and JORC Compliant Verification of historical diamond drilling and assay of
Alicanto maiden drilling completed
The central prospect on an extensive and open-ended 11km long corridor of mineralisation, the
Gomes Hill Prospect is host to the only drill testing on the Gomes Trend with open-ended
mineralisation drilled for approximately 500m strike extent. Historical drilling indicates
mineralisation is diorite hosted and associated with strong silicification with phyrrhotite and
arsenopyrite (no graphite). Significant drilled mineralisation includes better intercepts of 19.19m
@ 3.4g/t Au from 65m, incl. 6m @ 6.25g/t Au in hole MD008, 17m @ 2.11g/t Au from 46m,
incl. 4.25m @ 6.12g/t Au in hole MD002 and 11.0m @ 3.43g/t Au from 62m in TAK9717
(Refer to ASX release dated 9 February 2015).
Initial drilling by Alicanto was completed during the reporting period, designed to test an updated geological interpretation for the
Gomes Hill Prospect area generated from detailed surface mapping and surface geochemistry work. The revised model, supported by
recent auger drilling, interprets additional stacked mineralised bodies dipping 60 degrees to the southwest as opposed to a single
shallowly dipping mineralised body as modelled by previous operators. The change in interpreted geometry for the mineralisation
results in an increase in the number of mineralised horizons intersected in drilling and an increase in tonnage potential for the Gomes
Hill Prospect.
Figure 10 | Section of the Gomes Hill Prospect showing existing drill collars, significant reported drill results and
interpreted geology.
The exploration results for the four RC holes totalling 458m completed by Alicanto were all successful in their objectives (Refer to
ASX release dated 9 February 2015 for table of drill results). Drill holes GORC001 through 003 each target separate anomalies
identified in soil sampling, testing new mineralisation confirmed with offsets in auger drilling. Each hole intersected zones of strong
alteration associated with anomalous gold values, with drill hole GORC003 returning 6m @ 1.13g/t Au below newly defined surface
anomalism in the recent auger drilling, where the single hole was designed to verify a source to the surface anomalism. The additional
surface anomalism extends for over 1.2km in strike length and requires additional drilling to test the continuity of mineralisation.
The fourth hole, GORC004 was designed to test the updated geological interpretation for the Gomes area targeting multiple stacked
mineralised bodies interpreted to dip 60 degrees to the southwest as opposed to a single shallowly dipping mineralised body as
previously modelled (refer to Figure 10). RC hole GORC004 was a key test on an existing fence of drilling, and was successful in
intercepting multiple zones of mineralisation with a better intercept of 8m @ 0.88g/t Au, including 2m @ 1.34g/t Au.
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Directors’ Report
8.
Review of Operations (continued)
Eyelash Area
Eyelash Prospect Area results from geological mapping and surface geochemical
sampling identified multiple new prospects
The Eyelash Corridor is located in the Southwest portion of Alicanto’s extensive landholding in
northwestern Guyana (Refer to Figure 2), situated at the upstream extent of more than 20
kilometres of alluvial workings. The target area is host to significant historical gold production
within the >5km of +100ppb gold anomalism from historical soil sampling programs (refer to
Figure 5) with multiple peak soil values exceeding 1g/t Au including 9.93g/t Au soil at the Devi
Prospect and 6.9g/t Au Soil at the Kelly Prospect.
Exploration activity during the year is comprised of geological mapping, auger sampling, and
surface rock chip sampling, including channel and shaft sampling work.
Geological Mapping and the resulting updated geological interpretation for the area has highlighted the significance of previously
unidentified northeast striking mineralised structures that spur off of the previously identified dominant north-south structural control
to mineralisation, with coincident ankerite-sericite-pyrite alteration.
Figure 11 | Plan map of the Eyelash Area showing existing drill collars, significant reported drill results,
interpreted geology and defined Prospect Area’s.
This brings the total number of drill ready targets in the Eyelash area to nine, with two new prospect areas, Kid and Devi Prospects,
defined subsequent to the reporting period for potential follow-up drilling all displaying consistent soil anomalism exceeding 100ppb
Au within the >5km long anomalous corridor (refer to ASX release dated 14 July 2015).
Surface rock chip sampling returned peak values of 142g/t, 97.3g/t (Pancho Prospect), 68.38g/t (Turpin Prospect), 41.8g/t, 2m @
33.4g/t (Lampio Prospect), 32.8g/t (Bonnie Prospect) and 27.1g/t Au (Refer to Figure 11) and reported work expands the footprint
of high grade gold mineralisation at the Eyelash Area (refer to ASX releases dated 25 February 2015 and 14 July 2015). Concurrent
auger sampling work also refines drill targeting on multiple discrete targets within the Eyelash Corridor.
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Review of Operations (continued)
Directors’ Report
8.
Chip channel sampling work at the Kelly prospect, containing a >500m long artisanal mining pit and multiple shallow underground
workings, returned assays collected along the walls of a 29.2m deep adit at the northeastern extent of the historical workings at the
prospect. From a total of 32.5m of sampling in the adit, 15.7m yielded results over 0.5g/t Au, returning intervals measured from the
portal of:
5.4m @ 2.74g/t Au from 0 to 5.4m
10m @ 2.58g/t Au from 12 to 22m
2m @ 8.16g/t Au from 26 to 28m
Within the adit, mineralisation is associated with laminated quartz veins of up to 60cm width, mostly oriented North South within
moderately foliated basalts, foliation dipping 70 degrees to the West. This indicates that the adit did not extend as far as the main NE
target zone, a conclusion supported by the lack of ankerite-sericite-pyrite alteration.
The reported exploration results support Alicanto’s geological and structural model for the Eyelash area where new targets for drill
testing are being generated and emphasize the significance of previously unidentified northeast striking mineralised structures
coincident with ankerite-sericite-pyrite alteration at Eyelash, which spur off of the previously mapped dominant north-south structural
control to mineralisation as defined in the Alicanto release dated 25 February 2015.
Limited historical drilling totalling 837m in six holes completed in 2009 was focused on north-south trending soil anomalies. The
newly identified northeast trending zones have not been effectively drill tested, nor are the highly prospective zones where the two
controls on mineralisation are projected to intersect.
Tassawini Gold Project
Tassawini is located approximately 45km to the east of Arakaka. The Tassawini Gold Project is partially located on an Amerindian
Reservation and is required to have an impact benefit agreement in place with the local Amerindian Community prior to a commercial
mining licence being granted. During the period the Company continued the review of previous resource estimations and regional
datasets to generate targets for further exploration. No further evaluation and/or exploration work to verify resource estimations by
previous operators has been completed in the reporting period, or planned for the next quarter.
Mineral Resource Estimation
As at 30 June 2015, Alicanto has not completed sufficient work to warrant mineral resource estimation and has no Mineral Resource
holdings for its project areas located in Guyana, resulting in a 0% increase over the previous years reported resource holdings.
Alicanto has adopted the following governance arrangements and internal controls for the preparation of mineral resource estimations
for the Company to ensure any Mineral Resource or Ore Reserve estimations prepared by Alicanto are reported in accordance with the
principles of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 edition (JORC
Code) and ASX Listing Rules.
Exploration activity and material results acquired in support of Mineral Resource estimation is subject to regular internal review to
confirm and compile exploration results on a continuous basis for disclosure to shareholders in accordance with ASX listing rule 5.7
and in accordance with requirements of the JORC Code. Compilation of exploration results is completed or overseen by Alicanto
personnel that meet the requirements of a Competent Person in accordance with the principles of the JORC Code.
Any documentation for the estimation of Mineral Resources or Ore Reserve must be prepared or overseen by a Competent Person in
accordance with the principles of the JORC Code involving either Company personnel or an Independent Competent Person as
deemed appropriate by Company management, with reporting of final documentation prepared in accordance with ASX listing rule(s)
5.8 and/or 5.9 as relevant to the consideration of modifying factors used in the estimation process.
Dispute over B22 and B23 Permits
The Company continues to advance negotiations to resolve the dispute over the ownership of B-22 and B-23 permits. These
discussions are well advanced but at this time remain confidential and incomplete.
Alicanto Minerals Limited | 15
A L I C A N T OM I N E R A L S L I M I T E D
Review of Operations (continued)
Directors’ Report
8.
Corporate
Alicanto is an emerging mineral exploration company focused on the exploration and development of a portfolio of precious and base
metals projects in Guyana, South America.
The Company’s primary focus in the 2015 financial year has been advancing the Arakaka Gold Project located in Guyana’s northwest,
which has been host to small and medium scale gold production for more than 100 years, with recorded near surface gold production
in the Arakaka region exceeding one million ounces. Since acquiring the Arakaka Project in April 2013, Alicanto has completed
extensive reconnaissance level drilling, geological, and geochemical exploration activities, that have confirmed geological models and
increased prospectivity and resource potential on numerous targets.
Early in the 2015 financial year, the Company announced a $2.1 million equity raising consisting of a two tranche placement and a
Share Purchase Plan (“SPP”). Despite the extremely difficult market conditions, the equity raising and SPP was oversubscribed by new
and existing shareholders. In June 2015, the Company completed an additional equity raising of $357,000 by way of a private
placement.
With the funds raised, the company has advanced the level of geologic understanding on the project to now prioritise up to ten drill
ready prospect areas with demonstrable gold resource potential based on prospectivity and potential economic viability considerations,
and continues to advance exploration activity with cost efficient exploration methods to best target and prioritise areas with resource
potential and define the most effective work programs to assess mineralisation of each area and realise resource potential for economic
assessment.
The Company also continuously evaluates additional projects within Guyana for potential joint venture or acquisition. In addition the
Company also continues to evaluate projects in Australia and overseas, in gold, copper and other commodities to grow shareholder
value.
Appointment of Managing Director
The Company announced the appointment of Mr Travis Schwertfeger to the role of Managing Director, effective 24 November 2014.
Mr Schwertfeger has over 18 years global industry experience as a geologist with positions in exploration, production, geology, business
development and project valuation. He previously held senior technical roles with Newmont Mining Corporation and has worked on
projects in located in South America, West Africa and Australia with similar deposit style as the highly prospective Arakaka Gold
Project. Mr Schwertfeger also has extensive corporate and management experience in both ASX and TSX-V listed mineral resource
companies through previous Managing Director/CEO and corporate VP roles.
The appointment of Mr Schwertfeger to the role of Managing Director reflects the Board’s confidence in his ability to lead the
Company through the next significant steps of exploration following his recent appointment to the Board on 15 September 2014.
Matters Subsequent to the End of the Financial Year
9.
On 31 July 2015 6,350,000 options expired with exercise prices of $0.20 and $0.30.
There are no further material events subsequent to balance date.
Likely Developments and Expected Results of Operations
10.
The Consolidated Entity will continue its mineral exploration activity at and around its exploration projects with the object of
identifying commercial resources. Material business risks that may impact the results of future operations include further exploration
results, future commodity prices and funding.
Further information on likely developments in the operations of the Company and the expected results of operations have not been
included in the Annual Report because the Directors believe it would be likely to result in unreasonable prejudice to the Group.
Environmental Regulation
11.
The Company is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all
appropriate regulations when carrying out any exploration work.
Alicanto Minerals Limited | 16
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
12.
Information on Directors and Company Secretary
Didier Murcia AM
Qualifications
Non-Executive Chairman
LLB, BJuris
Experience
Mr Murcia holds a Bachelor of Jurisprudence and Bachelor of Laws from the University of Western
Australia, and has over twenty five years’ experience in corporate, commercial and resource law. Mr Murcia
is a Non-Executive Director of Gryphon Minerals Limited, Cradle Resources Limited and Strandline
Resources Limited and Chairman of Centaurus Metals Limited, all of which are listed on the Australian
Securities Exchange. He is also Chairman of Perth law firm Murcia Pestell Hillard and the Honorary
Consul for the United Republic of Tanzania.
In January 2014, Mr Murcia was made a Member of the Order of Australia in recognition of his significant
service to the international community.
Interest in Securities
Fully Paid Ordinary Shares 530,000
500,000
20 cent Options expiring 31 May 2016
750,000
23 cent Options expiring 7 September 2018
Other Directorships
Gryphon Minerals Limited (since 28 July 2006)
Centaurus Metals Limited (since 16 April 2009)
Cradle Resources Limited (since 13 August 2013)
Strandline Resources Limited (since 23 October 2014)
Rift Valley Resources Limited (since 22 November 2010 to 4 June 2013)
Matthew Bowles
Qualifications
Non-Executive Director
B.Com, CPA, ASA
Experience
Mr Bowles has extensive commercial, corporate finance and capital markets experience within the resource
sector particularly in strategy development, domestic and cross border corporate M&A transactions and
capital raising initiatives. He was previously an Executive Director, Mergers and Acquisitions with global
advisory firm Ernst & Young and prior to joining in 2004, spent eight years with Rio Tinto Limited and
four years in investment banking in London. Mr Bowles is a Member of the Australian Society of Certified
Practising Accountants and the Financial Services Institute of Australia.
Interest in Securities
20 cent Options expiring 31 May 2016
23 cent Options expiring 7 September 2018
500,000
1,500,000
Other Directorships
Tawana Resources NL (since 30 May 2011 to 1 January 2015)
Travis Schwertfeger Managing Director
Qualifications
BSc Geological Engineering, MSc Ore Deposit Geology and Evaluation, AusIMM
Experience
Mr Schwertfeger has over 18 years global industry experience as a geologist with positions in exploration,
production, geology, business development and project valuation. He previously held senior technical
roles with Newmont Mining Corporation and has worked on projects in located in South America, West
Africa and Australia with similar deposit style as the highly prospective Arakaka Gold Project. Mr
Schwertfeger also has extensive corporate and management experience in both ASX and TSX-V listed
mineral resource companies through previous Managing Director/CEO and corporate VP roles.
Interest in Securities
Fully Paid Ordinary Shares
23 cent Options expiring 7 September 2018
200,000
1,500,000
Other Directorships
International Goldfields Limited (since 3 May 2013)
Magnolia Resources Limited (since 7 June 2012)
Company Secretary
Brett Dunnachie - BCom, CA. Mr Dunnachie is a Chartered Accountant with over 14 years’ experience in corporate, audit and
company secretarial matters. Mr Dunnachie acts as the Chief Financial Officer of the Company and was appointed Company Secretary
on 3 February 2011. Previously Mr Dunnachie was an audit manager at a major chartered accounting practice and is also experienced in
IPO management, company secretarial services, financial accounting/reporting and ASX/ASIC compliance management. Mr
Dunnachie is also currently Company Secretary for Venture Minerals Limited and Renaissance Minerals Limited.
Alicanto Minerals Limited | 17
A L I C A N T OM I N E R A L S L I M I T E D
Audited Remuneration Report
Directors’ Report
13.
The Directors are pleased to present your Company’s 2015 remuneration report which sets out remunerations information for Alicanto
Minerals Ltd’s non-executive directors, executive directors and other key management personnel.
The remuneration report is set out under the following headings:
A. Key management personnel disclosed in this report
B. Remuneration governance
C. Use of remuneration consultants
D. Executive remuneration policy and framework
E. Relationships between remuneration and Alicanto Minerals Ltd’s performance
F. Non-Executive Director remuneration
G. Voting and comments made at the Company’s 2014 Annual General Meeting
H. Details of remuneration
I. Details of share based compensation and bonuses
J.
K. Equity instruments held by key management personnel
L. Loans to key management personnel
M. Other transaction with key management personnel
Service agreements
Key management personnel disclosed in this report
A.
This report details the nature and amount of remuneration for all key management personnel of Alicanto Minerals Ltd and its
subsidiaries. The information provided within this remuneration report has been audited as required by section 308(C) of the
Corporations Act 2001. The Individuals included in this report are:
Non-Executive Directors
Mr D Murcia
Mr T Schwertfeger
Mr M Bowles
Mr M McKevitt
Non-Executive Chairman
Managing Director (appointed 15 September 2014)
Non-Executive Director
Non-Executive Director (until 15 September 2014)
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
Chief Geologist
Company Secretary
Changes since the end of the reporting period
None
Remuneration governance
B.
The role of a Remuneration Committee is to assist the Board in fulfilling its responsibilities in respect of establishing appropriate
remuneration levels and incentive policies for employees.
As the whole Board only consists of three (3) members, the Company does not have a remuneration committee and therefore the full
board acts as the remuneration committee. The Board has established a broad remuneration policy which is consistent with the
Company’s business objectives and designed to attract and retain high calibre individuals, align key management personnel
remuneration with the creation of shareholder value and motivate executives to achieve challenging performance levels.
The business and operational environment of the Company is dynamic and ever changing and so too is the remuneration policies. As
such the broader remuneration policies, whilst currently under specific and detailed review, are by nature, always under consideration
by the Board.
Further information relating to the role of the Board and its responsibilities in relation to remuneration policies can be found within
the Corporate Governance Statement which is available for inspection on the Company’s website
http://www.alicantominerals.com.au/index.php/corporate-profile/corporate-governance.
Use of remuneration consultants
C.
The Company has not engaged or contracted remuneration consultants during the financial year.
Alicanto Minerals Limited | 18
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
13. Audited Remuneration Report (continued)
D. Executive remuneration policy and framework
Remuneration Policy
The remuneration policy of Alicanto Minerals Ltd has been designed to align executives’ objectives with shareholder and business
objectives by providing both fixed and discretionary remuneration components which are assessed on an annual basis in line with
market rates. By providing components of remuneration that are indirectly linked to share price appreciation (in the form of options),
executive, business and shareholder objectives are indirectly aligned. The board of Alicanto Minerals Ltd believes the remuneration
policy to be appropriate and effective in its ability to attract and retain the best directors to run and manage the Company, as well as
create goal congruence between Directors and Shareholders.
In determining competitive remuneration rates, the Board review local and international trends among comparative companies and
industry generally. It examines terms and conditions for employee incentive schemes, benefit plans and share plans. Independent data
is sourced to ensure that the company’s remuneration levels fall within the 50th to 75th percentile of companies in a similar industry
group and with a similar market capitalisation. These ongoing reviews are performed to confirm that executive remuneration is in line
with market practice and is reasonable in the context of Australian executive reward practices.
The Board also ensures that the mix of executive compensation between fixed, variable, long-term, short-term and cash versus equity is
appropriate. The Company endeavours to reduce cash expenditure by providing a greater proportion of compensation in the form of
equity instruments. This allows cash-flows to be directed towards exploration programs with a view to improving the quality of our
projects.
There has been a salary freeze on all executive’s base salaries since 2013. Further, the Managing Director has taken a voluntary
reduction of 50% in his executive portion of his salary. These measures form part of broader cost reducing measures to ensure that the
Company conserves cash reserves in order to maintain exploration activities whilst initially working through volatile market conditions.
Executive Remuneration Mix
Fixed Remuneration
All executives receive a base cash salary which is based on factors such as length of service and experience as well as other fringe
benefits. All applicable executives also receive a superannuation guarantee contribution required by the government, which is currently
9.5% and do not receive any other retirement benefits.
Short-term Incentives (STI)
Under the Company’s current remuneration policy, executives can from time to time receive short-term incentives in the form of cash
bonuses. The Board can use its discretion when paying bonuses, however they have currently determined relevant industry key
performance targets such as, definition and growth of existing resources, targets and on-going Executive loyalty to the Company. The
Board believes that the criteria of eligibility for short-term incentives appropriately aligns shareholder wealth and executive
remuneration as the completion of key performance targets have the potential to increase share price growth.
There were no cash bonuses paid out in the current financial year.
Long-term Incentives (LTI)
Executives are encouraged by the Board to hold shares in the Company and it is therefore the objective of the Company’s option
scheme to provide an incentive for participants to partake in the future growth of the company and, upon becoming shareholders in
the Company, to participate in the Company’s profits and dividends that may be realised in future years.
The Board considers that this equity performance linked remuneration structure is effective in aligning the long-term interests of group
executives and shareholders as there exists a direct correlation between shareholder wealth and executive remuneration.
Alicanto Minerals Limited | 19
A L I C A N T OM I N E R A L S L I M I T E D
Relationship between remuneration and Alicanto Minerals Limited’s performance
Directors’ Report
13. Audited Remuneration Report (continued)
E.
The remuneration policy has been tailored to increase goal congruence between shareholders and executives. This has been achieved
by the payment of short-term incentives should relevant milestones be achieved and the issue of long-term incentive options. This
structure rewards executives for both short-term and long-term shareholder wealth development.
Non-Executive Director remuneration policy
F.
The Boards policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. Fees for non-executive directors are not linked to the performance of the group.
In determining competitive remuneration rates, the Board review local and international trends among comparative companies and
industry generally.
Typically the Company will compare non-executive remuneration to companies with similar market capitalisations in the exploration
and resource development business group. These ongoing reviews are performed to confirm that non-executive remuneration is in line
with market practice and is reasonable in the context of Australian executive reward practices.
Further to ongoing reviews, the maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval
by shareholders at the Annual General Meeting. In addition to director fees, the Directors were issued options during the current
financial year, which were approved by shareholders at the shareholder meetings held during the period. Options were issued to non-
executives as they provide an indirect mechanism of aligning shareholder wealth and non-executive director remuneration.
The remuneration policy, setting the terms and conditions for the executive directors and other senior staff members, was developed
and approved by the Board. In determining competitive remuneration rates, the Board reviews local and international trends among
comparative companies and industry generally. It examines terms and conditions for employee incentive schemes, benefit plans and
share plans. Reviews are performed to confirm that executive remuneration is in line with market practice and is reasonable in the
context of Australian executive reward practices.
There has been a salary freeze on all Non-Executive’s fees since 2013 which form part of broader cost reducing measures to ensure
that the Company conserves cash reserves in order to maintain exploration activities whilst initially working through volatile market
conditions
G. Voting and comments made at the company’s 2014 Annual General Meeting
The company received 100% of “Yes” votes on its remuneration report for the 2014 financial year. The Company did not receive any
specific feedback at the AGM or throughout the year on its remuneration practices.
H. Details of Remuneration
The Key Management Personnel of Alicanto Minerals Ltd for the year ending 30 June 2015 are set out in the table below. There have
been no changes to the below named key management personnel since the end of the reporting period unless noted.
Short-Term Employee Benefits
Post
Employment
Securities
Total
Cash Salary
& Fees
Incentives
Other
Amounts
Super-
annuation
Options3
$
32,850
31,154
6,843
91,668
207,692
36,000
-
-
-
-
-
-
2,392
2,392
498
-
2,960
-
53,338
106,677
-
88,580
143,183
7,341
1,894
8,708
25,938
128,208
-
2,392
-
-
50,992
16,997
258,684
55,389
2015
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt1
Executive Directors
Mr T Schwertfeger2
Other Key Management
Personnel
Mr M Harden
Mr B Dunnachie
Total Remuneration
1: Mr M McKevitt resigned as Non-Executive Director on 15 September 2014
2: Mr T Schwertfeger was appointed as a Director on 15 September 2014.
3: The fair value of the options is calculated at the date of grant using a Black-Scholes model.
406,207
9,568
11,668
-
253,942
681,385
Alicanto Minerals Limited | 20
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
13. Audited Remuneration Report (continued)
H. Details of Remuneration (continued)
Short-Term Employee Benefits
Post
Employment
Securities
Total
Cash Salary
& Fees
Incentives
Other
Amounts
Super-
annuation
Options3
$
2014
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt1
Mr A Cooper2
Other Key Management
Personnel
Mr M Harden
Mr B Dunnachie
32,775
30,000
27,313
5,462
200,000
36,000
-
-
-
-
-
-
1,523
1,523
29,469
254
-
1,523
-
2,775
-
-
-
-
55,221
-
34,298
34,298
112,003
5,716
-
-
-
-
200,000
37,523
Total Remuneration
1: Mr M McKevitt was appointed as Non-Executive Director on 28 August 2013
2: Mr A Cooper resigned as Non-Executive Director on 28 August 2013
3: The fair value of the options is calculated at the date of grant using a Black-Scholes model.
331,550
34,292
2,775
-
55,221
423,838
No retirement benefits or equity securities were issued to any Director or other key management personnel of the entity during the
financial year.
I. Details of share-based compensation and bonuses
Options are issued to directors and executives as part of their remuneration. The options are not issued based on performance criteria,
but are issued to the majority of directors and executives of Alicanto Minerals Ltd to increase goal congruence between executives,
directors and shareholders.
Granted No. Options Granted
as Part of
Remuneration
$
Total
Remuneration
Represented by
Options
Exercised No. Other changes
No.
Lapsed
No.
30 June 2015
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt
Executive Director
Mr T Schwertfeger
750,000
1,500,000
-
53,338
106,677
-
1,500,000
25,938
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
750,000
250,000
50,992
16,997
30 June 2014
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt
Mr A Cooper
-
-
500,000
-
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
-
-
-
-
55,221
-
-
-
60%
75%
-
20%
20%
31%
-
-
49%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Alicanto Minerals Limited | 21
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
13. Audited Remuneration Report (continued)
I. Details of share-based compensation and bonuses (continued)
During the financial year and up to the date of this report the Company issued options as part of remuneration to key management
personnel as follows:
Issue Date
Expiry Date
% Vested in Year
Exercise Price
Number of
Options
30 June 2015
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt
Executive Director
Mr T Schwertfeger
08 Sept 14
08 Sept 14
-
07 Sept 18
07 Sept 18
-
100%
100%
-
$0.23
$0.23
-
750,000
1,500,000
-
27 Nov 14
07 Sept 18
0%
$0.23
1,500,000
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
12 Sept 14
12 Sept 14
07 Sept 18
07 Sept 18
30 June 2014
Non-Executive Directors
Mr D Murcia
Mr M Bowles
Mr M McKevitt
Mr A Cooper
-
-
22 Nov 13
-
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
-
-
-
-
21 Nov 17
-
-
-
100%
100%
-
-
100%
-
-
-
$0.23
$0.23
-
-
$0.32
-
-
-
750,000
250,000
-
-
500,000
-
-
-
The value at grant date is calculated in accordance with AASB2 Share Based Payments utilising the Black Scholes Methodology. The
following factors and assumptions were used in determining the fair value of options issued to key management personnel on grant
date:
Grant
Date
Expiry
Date
Exercise
Price
Fair Value
Per Option
Price of
Shares on
Grant Date
Estimated
Volatility
Risk Free
Interest Rate
Dividend
Yield
30 June 2015
08 Sept 14
12 Sept 14
27 Nov 14
30 June 2014
22 Nov 13
07 Sept 18
07 Sept 18
07 Sept 18
$0.23
$0.23
$0.23
$0.07
$0.07
$0.03
$0.16
$0.16
$0.09
85%
85%
85%
2.98%
2.98%
2.31%
21 Nov 17
$0.32
$0.11
$0.24
85%
3.51%
0%
0%
0%
0%
Historical volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future
tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate in the future.
Alicanto Minerals Limited | 22
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
13. Audited Remuneration Report (continued)
J.
Remuneration and other key terms of employment for the Executives, Non-Executives and Other Executives of Alicanto Minerals Ltd
are formalised in executive service agreements. Major provisions of the agreements relating to remuneration are set out below:
Services Agreements
Mr D Murcia, Non-executive Chairman
Term of Agreement – unspecified.
Base fee of $30,000 exclusive of superannuation.
Eligible to participate in the Company’s Employee Incentive Scheme.
No termination benefit under any circumstances.
Mr T Schwertfeger, Managing Director
Term of Agreement – 12 months.
Base fee of $240,000* inclusive of superannuation.
Payment of a termination benefit on early termination by the Company, other than for gross misconduct, equal to 3 months base
fee, being payment in lieu of the specified termination notice period.
Eligible to participate in the Company’s Employee Incentive Scheme.
*Note that given the current market conditions, Mr Schwertfeger has agreed to a voluntary reduction of 50% of his executive base
salary in order for the company to conserve funds.
Mr M Bowles, Non-executive Director
Term of Agreement – unspecified.
Base fee of $30,000 exclusive of superannuation.
Eligible to participate in the Company’s Employee Incentive Scheme.
No termination benefit under any circumstances.
Mr M Harden, Chief Geologist
Term of Agreement – unspecified.
Base salary of $200,000 gross.
Payment of a termination benefit on early termination by the company, other than for gross misconduct, equal to 12 weeks base
fee, being payment in lieu of the specified termination notice period.
Eligible to participate in the Company’s Employee Incentive Scheme.
Mr B Dunnachie, Company Secretary
Term of Agreement – unspecified.
Base fee of $36,000.
Payment of a termination benefit on early termination by the company, other than for gross misconduct, equal to 3 months base
fee, being payment in lieu of the specified termination notice period.
Eligible to participate in the Company’s Employee Incentive Scheme.
K. Equity instruments held by key management personal
The tables on following page show the number of:
(i) Shares in the company
(ii) Options over ordinary shares in the Company
That were held during the financial year by key management personnel of the group, including their close family members and entities
that relate to them. There were no shares granted during the reporting period as compensation.
Other changes
Balance
at the start of the year
Received on exercise
of options
Balance at the end of the
year
2015
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwerertfeger1
Mr M Bowles
Mr M McKevitt2
Other key management personnel
Mr M Harden
Mr B Dunnachie
530,000
-
2,375,001
10,000
350,000
140,000
-
-
-
-
-
-
-
-
-
(10,000)
-
-
530,000
-
2,375,001
-
350,000
140,000
1: Mr T Schwertfeger was appointed as a Director on 15 September 2014.
2: Mr M McKevitt resigned as Non-Executive Director on 15 September 2014.
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A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
13. Audited Remuneration Report (continued)
K.
Equity instruments held by key management personal (continued)
Balance
at the start of the year
Received on exercise
of options
Other changes
Balance at the end of
the year
2014
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr M Bowles
Mr M McKevitt1
Mr A Cooper2
Other key management personnel
Mr M Harden
Mr B Dunnachie
530,000
2,375,001
-
200,000
350,000
140,000
-
-
-
-
-
-
-
-
10,000
(200,000)
-
-
530,000
2,375,001
10,000
-
350,000
140,000
1: Mr M McKevitt was appointed as Non-Executive Director on 28 August 2013.
2: Mr A Cooper resigned as Non-Executive Director on 28 August 2013.
Balance
at start of the
year
Granted as
remuneration
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable
2015
Directors of Alicanto Minerals Limited
500,000
-
2,000,000
500,000
Mr D Murcia
Mr T Schwertfeger1
Mr M Bowles
Mr M McKevitt2
750,000
1,500,000
1,500,000
-
Other key management personnel
Mr M Harden
Mr B Dunnachie
1,000,000
200,000
750,000
250,000
2014
Directors of Alicanto Minerals Limited
500,000
2,000,000
-
100,000
Mr D Murcia
Mr M Bowles
Mr M McKevitt2
Mr A Cooper3
Other key management personnel
Mr M Harden
Mr B Dunnachie
1,000,000
200,000
-
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(500,000)
1,250,000
1,500,000
3,500,000
-
1,250,000
-
3,500,000
-
-
-
1,750,000
450,000
1,750,000
450,000
-
-
-
(100,000)
500,000
2,000,000
500,000
-
500,000
2,000,000
500,000
-
-
-
1,000,000
200,000
1,000,000
200,000
1: Mr T Schwertfeger was appointed as a Director on 15 September 2014.
2: Mr M McKevitt was appointed as Non-Executive Director on 28 August 2014 and resigned on 15 September 2014.
3: Mr A Cooper resigned as Non-Executive Director on 28 August 2013.
Loans to key management personnel
L.
There were no loans made to directors of Alicanto Minerals Ltd and other key management personnel of the group, including their
close family members or entities related to them.
Alicanto Minerals Limited | 24
A L I C A N T OM I N E R A L S L I M I T E D
Other transactions with key management personnel
Directors’ Report
13. Audited Remuneration Report (continued)
M.
A Director, Mr D Murcia, is a Non-Executive Director of Gryphon Minerals Limited which shares office and administration service
costs on normal commercial terms and conditions.
A Director, Mr D Murcia, is a Director of Murcia Pestell Hililard a company which provides legal services on normal commercial terms
and conditions.
Recharges from Director related entities:
Recharge of costs by Gryphon Minerals Limited
Purchases from Director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
2015
$
16,035
Consolidated
2014
$
34,276
28,087
7,227
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
4,251
-
End of Remuneration Report.
Shares under Option
14.
Unissued ordinary shares of Alicanto Minerals Ltd under option at the date of this report are as follows:
Date Options Granted
Expiry Date
Exercise Price
Number under Option
30 May 12
22 Nov 13
12 Sep 14
27 Nov 14
02 Apr 15
31 May 16
21 Nov 17
07 Sept 18
07 Sept 18
25 Mar 19
$0.200
$0.320
$0.230
$0.230
$0.065
3,550,000
1,250,000
6,800,000
1,500,000
2,000,000
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
Alicanto Minerals Limited | 25
A L I C A N T OM I N E R A L S L I M I T E D
Proceedings on behalf of the Company
Directors’ Report
15.
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 these proceedings. The
Company was not a party to any such proceedings during the year.
16. Meetings of Directors
The number of Directors' meetings held during the financial year that each Director who held office during the financial year was
eligible to attend and the number of meetings attended by each Director were:
Director
Mr D Murcia
Mr T Schwertfeger – appointed 15 Sep 14
Mr M Bowles
Mr M McKevitt – resigned 15 Sep 14
Directors Meetings
Number Eligible
to Attend
7
5
7
2
Meetings
Attended
7
5
7
1
Insurance of Officers
17.
Subsequent to the financial year end, Alicanto Minerals Ltd has paid a premium of $9,568 (2014: $6,094) to insure the directors and
secretary of the Company and its controlled entities. The liabilities insured are legal costs that may be incurred in defending civil or
criminal proceedings that may be brought against the officers in their capacity as officers of entities in the group, and any other
payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities
that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of
information to gain advantage for themselves or someone else or to cause detriment to the company. It is not possible to apportion
the premium between amounts relating to the insurance against legal costs and those relating to other liabilities.
Auditors Independent Declaration & Non-Audit Services
18.
The lead auditor’s independence declaration for the year ended 30 June 2015 has been received and can be found on page 27 of the
Directors’ report. No fees were paid or payable to the auditors for non-audit services performed during the year ended 30 June 2015.
Signed in accordance with a resolution of the Board of Directors.
Travis Schwertfeger
Managing Director
Perth, 11 September 2015
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Travis Schwertfeger, a Competent Person who is a Member of
The Australian Institute of Geoscientists. Mr Schwertfeger is a part time employee as Managing Director for the company. Mr Schwertfeger has sufficient experience that
is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Schwertfeger consents to their inclusion in the
report of the matters based on his information in the form and context in which it appears.
Alicanto Minerals Limited | 26
A L I C A N T OM I N E R A L S L I M I T E D
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
11 September 2015
Board of Directors
Alicanto Minerals Limited
288 Churchill Avenue
SUBIACO WA 6008
Dear Sirs
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
RE:
ALICANTO MINERALS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Alicanto Minerals Limited.
As Audit Director for the audit of the financial statements of Alicanto Minerals Limited for the year
ended 30 June 2015, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Financial Statements
Contents
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 Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
29
30
31
32
33
48
49
These financial statements are the consolidated financial statements of the consolidated entity consisting of Alicanto Minerals
Ltd and its subsidiaries. The financial statements are presented in the Australian currency.
Alicanto Minerals Ltd is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Alicanto Minerals Limited
288 Churchill Avenue
Subiaco WA 6008
A description of the nature of the consolidated entity's operations and its principal activities is included in the review of
operations and activities on pages 5 to 16 in the Directors’ report, both of which is not part of these financial statements.
The financial statements were authorised for issue by the directors on 11 September 2015. The Company has the power to
amend and reissue the financial statements.
Through the use of the internet, the Company has ensured that its corporate reporting is timely, complete, and available globally
at minimum cost to the Company. All press releases, financial statements and other information are available on our website:
www.alicantominerals.com.au.
Alicanto Minerals Limited | 28
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2015
Revenue from continuing operations
Other income
Administrative costs
Consultancy expense
Employee benefits expense
Share based payment expenses
Occupancy expense
Compliance and regulatory expenses
Insurance expenses
Depreciation expense
Finance costs
Exploration expensed
(Loss) before income tax
Income tax (expense)/benefit
(Loss) attributable to owners
Other comprehensive income:
Items that may be reclassified to profit or loss
- Exchange differences on translation of foreign operations
Items that will not be classified to profit or loss
Total comprehensive (loss) attributable to owners
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
Note
3(a)
3(b)
4(a)
23
4(b)
4(c)
10
6(a)
15(b)
17
17
Consolidated
2015
$
21,819
-
(117,525)
(45,433)
(136,402)
(540,562)
(12,027)
(41,185)
(27,168)
(3,207)
(3,238)
(1,452,274)
2014
$
18,264
123,176
(41,660)
(43,947)
(102,938)
(138,052)
(2,110)
(44,048)
(20,359)
(2,119)
(2,580)
(1,823,006)
(2,357,202)
(2,079,379)
-
-
(2,357,202)
(2,079,379)
1,347
-
23,694
-
(2,355,855)
(2,055,685)
(5.0)
N/A
(6.7)
N/A
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
Alicanto Minerals Limited | 29
Consolidated Statement of Financial Position
As at 30 June 2015
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Property, plant and equipment
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
7
8
9
10
11
12
13(a)
15(c)
Consolidated
2015
$
810,126
117,989
928,115
53,412
611,288
664,700
2014
$
348,155
31,103
379,258
9,518
611,288
620,806
1,592,815
1,000,064
56,509
17,612
74,121
74,121
43,071
17,536
60,607
60,607
1,518,694
939,457
6,537,079
1,110,952
(6,129,337)
4,142,549
569,043
(3,772,135)
1,518,694
939,457
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 30
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2015
Consolidated
Balance at 1 July 2013
Total comprehensive income for the year:
Loss for the year
Foreign exchange differences
Transactions with owners in their capacity as
owners:
Contributions of equity (net of transaction costs)
Share based payment transactions
Contributed
Equity
Accumulated
Losses
$
$
Foreign
Currency
Translation
Reserve
$
Option
Reserve
Total
$
$
2,650,789
(1,692,756)
(5,866)
413,163
1,365,330
-
-
-
(2,079,379)
-
(2,079,379)
-
23,694
23,694
-
-
-
(2,079,379)
23,694
(2,055,685)
1,491,760
-
1,491,760
-
-
-
-
-
-
-
138,052
138,052
1,491,760
138,052
1,629,812
Balance at 30 June 2014
4,142,549
(3,772,135)
17,828
551,215
939,457
Balance at 1 July 2014
Total comprehensive income for the year:
Loss for the year
Foreign exchange differences
4,142,549
(3,772,135)
17,828
551,215
939,457
-
-
-
(2,357,202)
-
(2,357,202)
-
1,347
1,347
-
-
-
(2,357,202)
1,347
(2,355,855)
Transactions with owners in their capacity as
owners:
Contributions of equity (net of transaction costs)
Share based payment transactions
2,394,530
-
2,394,530
-
-
-
-
-
-
-
540,562
540,562
2,394,530
540,562
2,935,092
Balance at 30 June 2015
6,537,079
(6,129,337)
19,175
1,091,777
1,518,694
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 31
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2015
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation
Note
Consolidated
2015
$
2014
$
(372,263)
21,819
(1,532,204)
(264,804)
18,264
(1,564,696)
Net cash (outflow) from operating activities
18
(1,882,648)
(1,811,236)
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash (outflow)/inflow from investing activities
Cash Flows from Financing Activities
Proceeds from issue of shares
Share issue transaction costs
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the start of the year
Cash and cash equivalents at the end of the year
7
(49,911)
-
(49,911)
(8,652)
66,046
57,394
2,490,162
(95,632)
1,326,000
(71,840)
2,394,530
1,254,160
461,971
348,155
810,126
(499,682)
847,837
348,155
Amounts relating to payments to suppliers and employees as set out above are inclusive of goods and services tax. The above
consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 32
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Summary of Significant Accounting Policies
1.
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These
policies have been consistently applied to the financial years presented, unless otherwise stated. These financial statements cover
Alicanto Minerals Limited as a consolidated entity consisting of Alicanto Minerals Limited and its subsidiaries (‘the consolidated entity’
or ‘the group’).
Basis of preparation
(a)
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements and the Corporations Act 2001.
(i)
(ii)
Compliance with IFRS
The financial statements of Alicanto Minerals Limited also comply with Australian Equivalents to International Financial
Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements and notes as presented comply
with International Financial Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available
for sale financial assets.
(iii) Going concern
The financial statements have been prepared on the going concern basis of accounting which assumes that the Group will be
able to meet its commitments, realise its assets, discharge its liabilities in the ordinary course of business and meet exploration
budgets and have sufficient working capital. In arriving at this position, the Directors recognise the Group is dependent on
various funding and corporate alternatives to meet these commitments including share placements and/or corporate activity in
relation to its exploration assets.
The Directors believe that at the date of signing the financial statements there are reasonable grounds to believe that having
regard to matters set out above, the Group will be able to raise sufficient funds to meet its obligations as and when they fall due.
In the event that the Group does not achieve the matters set out above there is significant uncertainty whether the Group will
continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of
business and at amounts stated in the financial statements.
(b)
(i)
Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alicanto Minerals Limited as at
30 June 2015 and the results of all subsidiaries for the year then ended.
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 subsidiaries is provided in Note 25.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statement 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 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 comprehensive income.
(ii)
Joint arrangements
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures.
The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint
arrangement. Alicanto Minerals Limited is not involved in any joint arrangements.
(iii)
Jointly operations
Alicanto Minerals Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its
share of any jointly held or incurred assets, liabilities, revenues and expenses.
Alicanto Minerals Limited is not involved in any joint operations.
Alicanto Minerals Limited | 33
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Summary of Significant Accounting Policies (continued)
Segment reporting
1.
(c)
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments,
has been identified as the board of directors.
Revenue recognition
(d)
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns,
trade allowances and amounts collected on behalf of third parties. Revenue is recognised for the business activities as follows:
(i)
Interest income
Interest income is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial
asset.
Income tax
(e)
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 differences 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. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No
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 probable that future taxable
amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to
amounts recognised directly in equity are also recognised directly in equity.
Leases
(f)
Leases of property, plant and equipment where the group has substantially all the risks and rewards of ownership are classified as
finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present
value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long-term
payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit
or loss and other comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter
of the asset’s useful life and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of profit or loss
and other comprehensive income on a straight-line basis over the period of the lease.
Impairment of assets
(g)
At each reporting date the Board assesses whether there is any indication that an asset may be impaired. 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 there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at each reporting date.
(h) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Alicanto Minerals Limited | 34
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Summary of Significant Accounting Policies (continued)
Trade and other receivables
1.
(i)
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
method, less provision for impairment. Trade and other receivables are generally due for settlement within 30 days. Collectability of
trade receivables is reviewed on an ongoing basis. Amounts that are known to be uncollectible are written off by reducing the carrying
amount directly.
Exploration and evaluation expenditure
(j)
Exploration, evaluation and development expenditure is expensed as incurred other than for the capitalisation of acquisition costs.
Property, plant and equipment
(k)
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other
comprehensive income during the financial year in which they are incurred.
Depreciation on assets is calculated using the reducing balance method to allocate their cost, net of their residual values, over their
estimated useful lives, as follows:
Plant and equipment - office
Furniture and equipment - office
Plant and equipment - field
Motor vehicles
40.0%
20.0%
20.0%
22.5%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying
amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount (note 1(g)). Gains and losses on disposals are determined by comparing proceeds received with the carrying amount. These are
included in the statement of profit or loss and other comprehensive income.
(l)
Intangibles
Acquired minerals rights
Acquired minerals rights comprise exploration and evaluation assets including ore reserves and minerals resources which are acquired
as part of:
-
-
business combinations recognised at fair value at the date of acquisition; and
asset acquisitions recognised at cost.
Acquired minerals rights are carried forward only if they relate to an area of interest for which rights of tenure are current and in
respect of which:
-
-
such costs are expected to be recouped through successful development and exploitation or from sale of the area: or
exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active operations in, or relating to, the area
are continuing.
Acquired minerals rights in respect of areas of interest which are abandoned are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
For acquired minerals rights in an area of interest that are developed, costs are classified as mine property and development from
commencement of development and amortised when commercial production commences on a unit of production basis over the
estimated economic reserves of the mine.
(m)
(i)
(ii)
Investments and other financial assets
Classification
The company classifies its financial assets as available-for-sale financial assets. The classification depends on the purpose for
which the investments were acquired. Management determines the classification of its investments at initial recognition and
re-evaluates this designation at the end of each reporting date.
Available-for-sale financial assets
Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either
designated in this category or not classified in any of the other categories. They are included in non-current assets unless the
investment matures or management intends to dispose of the investment within 12 months of the end of the reporting period.
Investments are designated as available-for-sale if they do not have fixed maturities and fixed or determinable payments and
management intends to hold them for the medium to long term.
Alicanto Minerals Limited | 35
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Summary of Significant Accounting Policies (continued)
Investments and other financial assets (continued)
1.
(m)
(iii) Measurement
Changes in the fair value of monetary securities denominated in a foreign currency and classified as available-for-sale are
analysed between translation differences resulting from changes in amortised cost of the security and other changes in the
carrying amount of the security. The translation differences related to changes in the amortised cost are recognised in profit or
loss, and other changes in carrying amount are recognised in other comprehensive income. Changes in the fair value of other
monetary and non-monetary securities classified as available-for-sale are recognised in other comprehensive income.
(iv)
Impairment
The company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of
financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if
there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset
(a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
If there is objective evidence of impairment of available-for-sale financial assets, the cumulative loss – measured as the
difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously
recognised in profit or loss – is removed from equity and recognised in profit or loss. Impairment losses on equity instruments
that were recognised in profit or loss are not reversed through profit or loss in a subsequent period.
Trade and other payables
(n)
These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid.
The amounts are unsecured and are usually paid within 30 days of recognition.
Provisions
(o)
Provisions are recognised when; the company has a present legal or constructive obligation as a result of past events; it is probable that
an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not
recognised for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the balance sheet date. The discount rate used to determine the present value reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of
time is recognised as interest expense.
(p)
(i)
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees services up
to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations
are presented in payables.
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual which is not expected to be settled within 12 months after the end of the period
in which the employees render the related service is recognised in the provision for employee benefits and measured as present
value of expected future wage payments to be made. Consideration is given to expected future wage and salary levels,
experience of employee departures and periods of service. Expected future payments are discounted using market yields at the
end of the reporting period. The obligations are presented as current liabilities in the balance sheet if the entity does not have
an unconditional right to defer settlement for at least twelve months after the reporting regardless of when the actual settlement
is expected to occur.
(iii)
Share-based payments
The company provides benefits to employees (including directors) of the company in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). The
cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are
granted. The fair value is determined using a Black-Scholes option pricing model that takes into account the exercise price, the
term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option. In valuing equity-settled transactions, no
account is taken of any performance conditions, other than conditions linked to the price of shares of Alicanto Minerals
Limited (‘market conditions’).
Alicanto Minerals Limited | 36
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Summary of Significant Accounting Policies (continued)
Contributed equity
1.
(q)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares for the acquisition of a
business are not included in the cost of the acquisition as part of the purchase consideration.
(r)
(i)
(ii)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company 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 year.
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
tax effect of interest and other financing costs associated with the 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.
Goods and services tax (‘GST’)
(s)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from
the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from,
or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to the taxation authority, are presented as operating cash flow.
(t)
(i)
(ii)
Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in Australian dollars, which is Alicanto Minerals Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of
monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or
loss. They are deferred in equity if they relate to qualifying cash flow hedges, qualifying net investment hedges or are attributable
to part of the net investment in a foreign operation.
Translation differences on financial assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss
are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets
such as equities classified as available for sale financial assets are included in the fair value reserve in equity.
(iii) Group companies
The results and financial position of foreign operations that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
Income and expenses for the statement of profit or loss and other comprehensive income are translated at average exchange
rates, and
All resulting exchange differences are recognised in other comprehensive income.
(u) New accounting standards and interpretations
There are no new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 July
2014 that affected any of the amounts recognised in the current period or any prior period, although it may have caused minor changes
to the Group’s disclosures.
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liability.
The standard is not applicable until 1 January 2017 but is available for early adoption. The group has not yet decided when to adopt
AASB 9. The directors anticipate that the adoption of AASB 9 will not have a material impact on the Group’s financial instruments.
Alicanto Minerals Limited | 37
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Critical accounting estimates and judgements
2.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of
future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The
company makes estimates and assumptions concerning the future. The resulting accounting estimates and judgements may differ from
the related actual results and may have a significant effect on the carrying amount of assets and liabilities within the next financial year
and on the amounts recognised in the financial statements. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a)
(b)
Capitalisation of acquisition costs on exploration projects
Acquisition costs incurred in acquiring exploration assets are carried forward where right of tenure of the area of interest is
current. These costs are carried forward in respect of an area that has not at balance sheet date reached a stage that permits
reasonable assessment of the existence of economically recoverable reserves.
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 an internal valuation using a Black-Scholes
option pricing model, using the assumptions detailed in note 23.
3. Revenue
(a)
Revenue from continuing operations
Interest received
Total revenue from continuing operations
(b) Other income
Profit on sale of plant and equipment
Total other income
4. Expenses
(a) Employee benefits expense
Salaries and wages expense
Defined contribution superannuation expense
Total employee benefits expense
(b) Depreciation expense
Plant and equipment – office
Total depreciation expense
(c)
Finance costs
Interest and finance charges paid or payable
Total finance costs
5. Auditor’s Remuneration
Remuneration of the auditor of the group
Auditing or reviewing the financial statements
Other assurance services
Non-assurance services
Total auditor remuneration
2015
$
21,819
21,819
-
-
128,220
8,182
136,402
3,207
3,207
3,238
3,238
2015
$
23,558
-
-
23,558
Consolidated
2014
$
18,264
18,264
123,176
123,176
100,338
2,600
102,938
Consolidated
2,119
2,119
2,580
2,580
2014
$
18,038
-
-
18,038
Alicanto Minerals Limited | 38
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
6.
(a)
Income Tax Expense
Income tax expense
Current tax
Deferred tax
Total income tax expense
Deferred income tax expense included in income tax expense comprises:
- (Increase) in deferred tax assets (note 6(c))
- Increase in deferred tax liabilities (note 6(d))
Consolidated
2015
$
2014
$
-
-
-
-
-
-
-
-
-
-
-
-
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit from continuing operations before income tax expense
Tax (tax benefit) at the tax rate of 30%
(2,357,202)
(707,161)
(2,079,379)
(623,814)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
- Share based payments
- Other non-deductible amounts
- Unrecognised tax losses
162,169
85,377
459,615
-
249,878
373,936
Income tax benefit
(c) Deferred tax assets
Tax lossesA
Employee benefits
Other accruals
Set-off deferred tax liabilities (note 6(d))
Net deferred tax assets
(d) Deferred tax liabilities
Exploration expenditure
Other
Set-off deferred tax assets (note 6(c))
Net deferred tax liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(e)
Tax losses
Unused tax losses for which no deferred tax asset has been recognized
Potential tax benefit at 30%
(f)
Unrecognised temporary differences
Unrecognised deferred tax asset relating to capital raising costs
4,270,208
1,281,062
2,362,033
708,610
98,929
70,192
A: The deferred tax asset attributable to tax losses does not exceed taxable amounts arising from the reversal of existing assessable
temporary differences.
Alicanto Minerals Limited | 39
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
Cash & Cash Equivalents
Total cash and cash equivalents
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Consolidated
2015
$
310,126
500,000
810,126
2014
$
348,155
-
348,155
Cash at bank and on hand
Cash on hand is non-interest bearing. Cash at bank bears interest rates between 0.00% and 1.50% (2014: 0.00% and 2.35%).
7.
(a)
(b)
(c)
8.
(a)
Cash at bank and on hand
Deposits at call are bearing interest rates at 2.25%.
Trade & Other Receivables
Current
Other receivables
Prepayments
Total current trade and other receivables
(b)
Past due and impaired receivables
As at 30 June 2015, there were no other receivables that were past due or impaired (2014: nil).
9. Property, Plant and Equipment
Year ended 30 June 2014
Opening net book amount
Additions
Disposals/write-offs
Depreciation charge
Effect of exchange rates
Closing net book amount
At 30 June 2014
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2015
Opening net book amount
Additions
Disposals/write-offs
Depreciation charge
Effect of exchange rates
Closing net book amount
At 30 June 2015
Cost or fair value
Accumulated depreciation
Net book amount
Plant &
Equipment
Office
$
Plant &
Equipment
Field
$
2,985
4,691
-
(2,119)
-
5,557
7,886
(2,329)
5,557
5,557
4,100
-
(3,207)
-
6,450
11,986
(5,536)
6,450
-
3,961
-
-
-
3,961
3,961
-
3,961
3,961
13,351
-
(3,775)
598
14,135
18,240
(4,105)
14,135
31,032
86,957
117,989
31,103
-
31,103
Consolidated
Motor
Total
Vehicles
$
-
-
-
-
-
-
-
-
-
-
39,961
-
(6,562)
(572)
32,827
39,961
(7,134)
32,827
$
2,985
8,652
-
(2,119)
-
9,518
11,847
(2,329)
9,518
9,518
57,412
-
(13,544)
26
53,412
70,187
(16,775)
53,412
Alicanto Minerals Limited | 40
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
10.
(a)
Exploration & Evaluation Expenditure
Non-current
Opening balance
Exploration and evaluation costs
Write-offs/provisions
Total non-current exploration and evaluation expenditure
(b)
Recoverability of capitalised costs
Exploration expenditure is expensed as incurred.
Consolidated
2015
$
611,288
1,452,274
(1,452,274)
611,288
2014
$
611,288
1,823,006
(1,823,006)
611,288
Acquired minerals rights are carried forward only if they relate to an area of interest for which rights of tenure are current
and in respect of which:
-
Such costs are expected to be recouped through successful development and exploitation or from sale of the area: or
- Exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active operations in, or relating to,
the area are continuing.
Acquired minerals rights in respect of areas of interest which are abandoned are written off in full against profit or loss in
the year in which the decision to abandon the area is made.
11. Trade & Other Payables
Current
Trade payables
Total current trade & other payables
No trade or other payables are considered past due.
12. Provisions
Current
Employee entitlements
Total current provisions
Consolidated
2015
$
56,509
56,509
2014
$
43,071
43,071
17,612
17,612
17,536
17,536
Alicanto Minerals Limited | 41
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
13.
(a)
Contributed Equity
Issued capital
Ordinary shares (fully paid)
Total contributed equity
(b) Ordinary Shares
Consolidated
Consolidated
2015
Shares
2014
Shares
2015
$
$
2014
$
$
57,629,001
57,629,001
34,900,001
34,900,001
6,537,079
6,537,079
4,142,549
4,142,549
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of
shares held and in proportion to the amount paid up on the shares held. At shareholders meetings each ordinary share is
entitled to one vote in proportion to the paid up amount of the share when a poll is called, otherwise each shareholder has
one vote on a show of hands.
Options
Information relating to options including details of options issued, exercised and lapsed during the financial year and options
outstanding at the end of the financial year, is set out in note 14.
(c)
Date
Shares
Issue Price
Total $
Contributed Equity
13.
(d) Movements in issued capital
Opening Balance 1 July 2013
Share issue
Share issue
Share issue – Drilling agreement
Share issue – Drilling agreement
Share issue – Drilling agreement
Less: Transaction costs
Closing Balance at 30 June 2014
-
Opening Balance 1 July 2014
Share issue
Share issue
Share issue
Share issue
Less: Transaction costs
Closing Balance at 30 June 2015
16 Oct 13
29 Nov 13
26 Feb 14
25 Jun 14
25 Jun 14
-
05 Aug 14
29 Aug 14
10 Sep 14
24 Jun 15
26,000,001
3,900,000
3,900,000
440,000
440,000
220,000
34,900,001
34,900,001
3,970,000
4,218,000
6,030,000
8,511,000
57,629,001
$0.170
$0.170
$0.225
$0.225
$0.180
$0.150
$0.150
$0.150
$0.042
2,650,789
663,000
663,000
99,000
99,000
39,600
(71,840)
4,142,549
4,142,549
595,500
632,700
904,500
357,462
(95,632)
6,537,079
Expiry date
Exercise
price
Balance at
start of year
Granted
during the
year
Exercised
during the
year
Cancelled/
lapsed during
the year
Balance at
end of the
year
14.
(a)
Share Options
2015 unlisted share option details
31 Jul 15
31 Jul 15
31 May 16
21 Nov 17
07 Sept 18
25 Mar 19
$0.200
$0.300
$0.200
$0.320
$0.230
$0.065
Weighted average exercise price
2014 unlisted share option details
31 Jul 15
31 Jul 15
31 May 16
21 Nov 17
$0.200
$0.300
$0.200
$0.320
Weighted average exercise price
5,850,000
500,000
3,550,000
1,250,000
-
-
11,150,000
$0.218
5,850,000
500,000
3,550,000
-
9,900,000
$0.200
-
-
-
-
8,300,000
2,000,000
10,300,000
$0.198
-
-
-
1,250,000
1,250,000
$0.320
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,850,000
500,000
3,550,000
1,250,000
8,300,000
2,000,000
21,450,000
$0.208
5,850,000
500,000
3,550,000
1,250,000
11,150,000
$0.218
Alicanto Minerals Limited | 42
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
15. Reserves
(a) Unlisted option reserve
Opening balance
Unlisted options issued as remuneration during the year
Closing balance
2015
$
551,215
540,562
1,091,777
Consolidated
2014
$
413,163
138,052
551,215
The unlisted option reserve records items recognised on valuation of director, employee and contractor share options.
Information relating to options issued, exercised and lapsed during the financial year and options outstanding at the end of
the financial year, is set out in note 14.
(b) Functional currency translation reserve
Opening balance
Exchange differences arising on translation of foreign operations
Closing balance
17,828
1,347
19,175
(5,866)
23,694
17,828
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation
reserve. The reserve is recognised in the statement of profit or loss when the net investment is disposed of.
(c) Total reserves
Unlisted option reserve
Exchange differences arising on translation of foreign operations
Closing balance
1,091,777
19,175
1,110,952
551,215
17,828
569,043
Financial Instruments, Risk Management Objectives and Policies
16.
The Consolidated Entity’s principal financial instruments comprise cash and cash equivalents. The main purpose of the financial
instruments is to earn the maximum amount of interest at a low risk to the group. The Consolidated Entity also has other financial
instruments such as trade and other receivables and trade and other payables which arise directly from its operations. For the year
under review, it has been the Consolidated Entity’s policy not to trade in financial instruments.
The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk and credit risk. The board reviews and
agrees policies for managing each of these risks and they are summarised below:
(a)
Interest Rate Risk
The Groups exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rate for each class of financial assets and financial
liabilities comprises:
Consolidated
2015
Financial assets
Cash and cash equivalents
Trade & other receivables (current)
Financial Liabilities
Trade and other payables (current)
1.78
0.00
0.00
Weighted
Average
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
$
500,000
-
500,000
Non-
interest
Bearing
$
99,196
31,032
130,228
2015 Total
$
810,126
31,032
841,158
210,930
-
210,930
-
-
-
-
56,509
56,509
56,509
56,509
Alicanto Minerals Limited | 43
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
16.
Financial Instruments, Risk Management Objectives and Policies (continued)
Consolidated
2014
Financial assets
Cash and cash equivalents
Trade & other receivables (current)
Financial Liabilities
Trade and other payables (current)
Weighted
Average
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
$
Non-
interest
Bearing
$
1.86
0.00
0.00
275,897
-
275,897
-
-
-
-
-
-
-
2014 Total
$
348,155
31,103
379,258
72,258
31,103
103,361
43,071
43,071
43,071
43,071
The maturity date for all cash, trade & other receivable and trade and payable financial instruments included in the above tables
is one year or less from balance date. The maturity for the non-current trade and other receivables is between 1 and 3 years
from balance date.
Sensitivity analysis
The Consolidated Entity’s main interest rate risk arises from cash and cash equivalents with variable and fixed interest rates. At
30 June 2015 the group’s exposure to interest rate risk is not considered material.
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group.
The group has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other
security where appropriate, as a means of mitigating the risk of financial loss from defaults.
The group does not have any significant credit risk exposure to any single counterparty or any company of counterparties
having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any provisions
for losses, represents the company’s maximum exposure to credit risk.
(c)
Liquidity risk
The group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles
of financial assets and liabilities. Due to the dynamic nature of the underlying businesses, the group aims at ensuring flexibility
in its liquidity profile by maintaining the ability to undertake capital raisings. Funds in excess of short term operational cash
requirements are generally only invested in short term bank bills.
17. Earnings per Share
(a)
Earnings/(Loss)
Earnings/(loss) used in the calculation of basic EPS
(b) Weighted average number of ordinary shares (‘WANOS’)
WANOS used in the calculation of basic earnings per share:
18. Cash Flow Information
Consolidated
2015
$
2014
$
(2,357,202)
(2,079,379)
46,986,454
31,198,223
Reconciliation of cash flows from operating activities with loss from ordinary activities after tax:
Profit/(loss) from ordinary activities after income tax
Depreciation
Share based payments
Net gain on disposal of fixed assets
Net exchange differences
Changes in assets and liabilities:
- Increase in operating receivables & prepayments
- Increase/(Decrease) in trade and other payables
Net cash (outflows) from Operating Activities
(2,357,202)
13,544
540,562
-
(6,180)
(86,886)
13,514
(1,882,648)
(2,079,379)
2,119
375,652
(66,046)
23,694
(19,869)
(47,407)
(1,811,236)
Alicanto Minerals Limited | 44
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
19. Commitments
Exploration commitments
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
Total exploration commitments
2015
$
653,595
2,614,380
-
3,267,975
Consolidated
2014
$
537,634
2,150,536
-
2,688,170
In order to maintain rights of tenure to mining tenements subject to these agreements, the group would have the above
discretionary exploration expenditure requirements up until expiry of leases. These obligations, which are subject to
renegotiation upon expiry of the leases, are not provided for in the financial statements and are payable per the above
maturities. If the group decides to relinquish certain leases and/or does not meet these obligations, assets recognised in the
balance sheet may require review to determine the appropriateness of carrying values. The sale, transfer or farm-out of
exploration rights to third parties will reduce or extinguish these obligations.
20.
(a)
Segment Information
Description of segments
Management has determined the operating segments based on the reports reviewed by the chief operating decision maker that
are used to make strategic decisions. For the purposes of segment reporting the chief operating decision maker has been
determined as the board of directors. The board monitors the entity primarily from a geographical perspective, and has
identified two operating segments, being exploration for mineral reserves and the corporate/head office function in Australia.
(b)
Segment information provided to the board of directors
The segment information provided to the board of directors for the reportable segments for the year ended 30 June 2015 is as
follows:
Exploration
Guyana
$
Australia
$
2015
Total segment revenue
Interest revenue
Depreciation and amortisation expense
-
-
-
Total segment (loss) before income tax
(1,452,274)
Total segment assets
Total segment liabilities
2014
Total segment revenue
Interest revenue
Depreciation and amortisation expense
712,537
19,239
-
-
-
-
-
-
-
-
-
-
-
-
Corporate
$
-
21,819
(3,207)
Total
$
-
21,819
(3,207)
(904,928)
(2,357,202)
880,278
1,592,815
54,882
74,121
18,264
18,264
(2,119)
18,264
18,264
(2,119)
Total segment (loss) before income tax
(1,632,668)
(67,162)
(379,549)
(2,079,379)
Total segment assets
Total segment liabilities
692,744
18,001
-
-
307,320
1,000,064
42,606
60,607
(c) Measurement of segment information
All information presented in part (b) above is measured in a manner consistent with that in the financial statements.
(d)
(e)
Segment revenue
No inter-segment sales occurred during the current financial year. The entity is domiciled in Australia. No revenue was derived
from external customers in countries other than the country of domicile. Revenues of $21,819 (2014: $18,264) were derived
from one Australian financial institution during the year. These revenues are attributable to the corporate segment.
Reconciliation of segment information
Total segment revenue, total segment profit/(loss) before income tax, total segment assets and total segment liabilities as
presented in part (b) above, equal total entity revenue, total entity profit/(loss) before income tax, total entity assets and total
entity liabilities respectively, as reported within the financial statements.
Alicanto Minerals Limited | 45
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
21.
Events Occurring After the Balance Sheet Date
On 31 July 2015 6,350,000 options expired with exercise prices of $0.20 and $0.30.
There are no further material events subsequent to balance date.
22. Related Party Transactions
(a)
Parent entity
The ultimate parent entity within the group is Alicanto Minerals Limited.
(b)
Subsidiaries
Interests in subsidiaries are set out in note 25.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Total key management personnel compensation
(d)
Transactions with Director Related Parties
The following transactions occurred with related parties:
Recharges from director related entities:
Recharge of costs by Gryphon Minerals Limited
2015
$
415,775
11,668
253,942
681,385
2015
$
16,035
Consolidated
2014
$
365,842
2,775
55,221
423,838
Consolidated
2014
$
34,276
Purchases from director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
28,087
7,227
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
4,251
-
(e)
23.
(a)
(b)
Terms and conditions of related party transactions
Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other
parties unless otherwise stated.
Share Based Payments
Fair value of listed options granted
The fair value of listed options granted is calculated as the market value prevailing at the date on which the options are
authorised for issue. No listed options were issued during the year.
Fair value of unlisted options granted
The weighted average fair value of the options granted during the year was $0.05 (2014: $0.11). The price was calculated by
using the Black-Scholes European Option Pricing Model applying the following inputs:
Weighted average exercise price:
Weighted average life of the option:
Weighted average underlying share price:
Expected share price volatility:
Risk free interest rate between: 1.87% to 2.98%
Discount factor for lack of marketability
$0.20
4 Years
$0.13
85.0%
20.0%
(2014: $0.32)
(2014: 4 Years)
(2014: $0.24)
(2014: 85.0%)
(2014: 3.51%)
(2014: 20.0%)
Alicanto Minerals Limited | 46
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2015
23.
Share Based Payments (continued)
Peer volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future
tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate in the
future. Total share-based payment transactions recognised during the year were as set out below. Details of other options
movements and balances are set out in note 14.
Unlisted options
Options issued to directors, employees and consultants
Consolidated
2015
$
2014
$
540,562
138,052
24. Contingent Liabilities
The Company continues to advance negotiations to resolve the dispute over the ownership of B-22 and B-23 permits. Upon
resolution of this dispute, the Company has a potential liability owing of US$25k in relating to tenement fees and rates.
There are no further contingent liabilities outstanding at the end of the year.
25.
Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in note 1(b):
Name of entity
Equity HoldingA
Country of
incorporation
Class
of shares
Alicanto Minerals WA Pty Ltd
StrataGold Guyana Inc.
Australia
Guyana
Ordinary
Ordinary
A: The proportion of ownership interest is equal to the proportion of voting power held.
26. Parent Entity Information
(a) Assets
Current assets
Non-current assets
Total assets
(b) Liabilities
Current liabilities
Non-current liabilities
Total liabilities
(c) Equity
Contributed equity
Reserves
Accumulated losses
Total equity
(d) Total comprehensive income/(loss) for the year
(Loss) for the year
Other comprehensive income for the year
Total comprehensive (loss) for the year
(e) Capital commitments
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
Total capital commitments
The parent entity has not guaranteed any loans for any entity during the year.
2015 %
100
100
2014 %
100
100
Company
2015
$
873,828
579,304
1,453,132
54,882
-
54,882
6,537,079
1,091,777
(6,230,606)
1,398,250
(4,458,851)
-
(4,458,851)
-
-
-
-
2014
$
301,763
2,662,852
2,964,615
42,606
-
42,606
4,142,549
551,215
(1,771,755)
2,922,009
(661,391)
-
(661,391)
-
-
-
-
Alicanto Minerals Limited | 47
Director’s Declaration
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 28 to 47 are in accordance with the Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
(ii) giving a true and fair view of the financial position as at 30 June 2015 and of its performance for the financial year ended
on that date; and
the audited remuneration disclosures set out on pages 18 to 25 of the Directors’ report comply with section 300A of the
Corporations Act 2001; 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; and
the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the
International Accounting Standards Board.
(b)
(c)
(d)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Travis Schwertfeger
Managing Director
Perth, Western Australia, 11 September 2015
Alicanto Minerals Limited | 48
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALICANTO MINERALS LIMITED
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Report on the Financial Report
We have audited the accompanying financial report of Alicanto Minerals Limited, which comprises
the consolidated statement of financial position as at 30 June 2015, 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, notes comprising a summary
of significant accounting policies and other explanatory information, and the directors’ declaration
of the consolidated entity comprising the company and the entities it controlled at the year’s end or
from time to time during the financial year.
Directors’ responsibility 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 Corporations 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 note 1(a)(i), the directors also state, in accordance with Australian
Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements
comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the
audit to obtain reasonable assurance whether the financial report is free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial report, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the company’s preparation of the financial report that gives a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the company’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the directors, as well as evaluating the overall presentation of the
financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or
management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Liability limited by a scheme approved
under Professional Standards Legislation
Opinion
In our opinion:
(a)
the financial report of Alicanto Minerals Limited is in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the consolidated entity’s financial position as at 30
June 2015 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001; and
(b)
the consolidated financial report of the Company also complies with International Financial
Reporting Standards as disclosed in note 1(a)(i).
Inherent Uncertainty Regarding Going Concern
Without qualification to the opinion expressed above, attention is drawn to the following matter:
As referred to in Note 1(a)(iii) to the financial statements, the financial statements have been
prepared on a going concern basis. The consolidated entity comprising the Company and its
subsidiaries has incurred a loss of $2,357,202 for the year ended 30 June 2015 and had a net
operating cash outflows of $1,882,648 for the year ended 30 June 2015. The working capital as at
30 June 2015 is $853,994. The ability of the consolidated entity to continue as a going concern and
meet its planned exploration, administration and other commitments is dependent upon the
consolidated entity raising further working capital and/or successfully exploiting its mineral assets.
In the event that the consolidated entity is not successful in raising further equity or successfully
exploiting its mineral assets, the consolidated entity may not be able to meet its liabilities as and
when they fall due and the realisable value of the consolidated entity’s current and non-current
assets may be significantly less than book values.
Report on the Remuneration Report
We have audited the remuneration report included in pages 18 to 25 of the directors’ report for the
year ended 30 June 2015. 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
Opinion
In our opinion the remuneration report of Alicanto Minerals Limited for the year ended 30 June
2015 complies with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
11 September 2015
Additional Shareholder Information
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3 the company’s Corporate Governance Statement can be found on the company’s website,
refer to http://www.alicantominerals.com.au/index.php/corporate-profile/corporate-governance.
Shareholding
The distribution of members and their holdings of equity securities in the holding company as at 3 September 2015 were as follows:
Number Held as at 3 September 2015
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Holders of less than a marketable parcel: 74.
Substantial Shareholders
The names of the substantial shareholders listed on the company’s register as at 3 September 2015:
Shareholder
Hamish Halliday
Harmanis Holdings Pty Ltd
Javelin Minerals Inc
Symorgh Investments Pty Ltd
Voting Rights - Ordinary Shares
Class of Equity Securities
Fully Paid Ordinary Shares
1
7
65
137
97
307
Number
5,345,000
4,000,333
3,966,667
3,878,333
In accordance with the holding company's Constitution, on a show of hands every member present in person or by proxy or attorney
or duly authorised representative has one vote. On a poll every member present in person or by proxy or attorney or duly authorised
representative has one vote for every fully paid ordinary share held.
Options
Unlisted options
Unlisted options
Unlisted options
Unlisted options
Exercise price
Expiry date Number of options Number of holders
$0.200
$0.320
$0.230
$0.065
31 May 2016
21 November 2017
7 September 2018
25 March 2019
3,550,000
1,250,000
8,300,000
2,000,000
12
2
10
2
Alicanto Minerals Limited | 51
Additional Shareholder Information (continued)
Twenty Largest Shareholders
The names of the twenty largest ordinary fully paid shareholders as at 3 September 2015 are as follows:
Shareholder
Harmanis Holdings Pty Ltd
Javelin Minerals Inc
Mctavish Industries Pty Ltd
Simon Bolster
Symorgh Investments Pty Ltd
Seventy Three Pty Ltd
J&J Bandy Nominees Pty Ltd
Peter and Leslie Clark
Mctavish Industries Pty Ltd
Clare Saunders
Symorgh Investments Pty Ltd
Lionel Weaven
ME WA Pty Ltd
Midbridge Investments Pty Ltd
Jamie Mann Super Pty Ltd
Evan Hillard
JR & AJ Parkman
Moonboolie Pty Ltd
Tower Corporate Pty Ltd
Far East Capital Pty Ltd
Number
% Held of Issued Ordinary
Capital
4,000,333
3,966,667
3,850,000
2,515,501
2,360,000
1,719,333
1,521,156
1,416,145
1,400,000
1,400,000
1,283,333
1,224,353
1,111,333
1,070,000
1,046,400
1,000,000
820,300
730,000
680,653
600,000
6.94%
6.88%
6.68%
4.36%
4.10%
2.98%
2.64%
2.46%
2.43%
2.43%
2.23%
2.12%
1.93%
1.86%
1.82%
1.74%
1.42%
1.27%
1.18%
1.04%
33,715,507
58.51%
Alicanto Minerals Limited | 52
Tenement Listing
As at 3 September 2015
Project
Tassawini Project
Arakaka Project
Location
Tenement
Interest
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
PL 01/2005, GS14: S-15
PL 34/2005, GS14: S-16
V-04/MP/000, MP 47/98
V-5/MP/000, MP 23/01
V-5/MP/001, MP 24/01
V-5/MP/002, MP 25/01
Y-33/000/04, PPMS/680/04
Y-33/001/04, PPMS/681/04
Y-31/000/04, PPMS/463/04
Y-31/001/04, PPMS/464/04
J-81/000/02, PPMS/884/02
J-81/001/02, PPMS/885/02
J-81/002/02, PPMS/886/02
J-59/000/2000, PPMS/1057/2002
J-59/001/2000, PPMS/1058/2002
J-59/002/2000, PPMS 1059/2002
J-59/003/2000, PPMS/1060/2002
J-59/004/2000, PPMS/1061/2002
J-59/005/2000, PPMS/1062/2002
J-59/006/2000, PMS/1063/2002
J-59/007/2000, PPMS/1064/2002
J-59/008/2000, PPMS/1065/2002
J-59/009/2000, PPMS/1066/2002
J-59/010/2000, PPMS/1067/2002
J-59/011/2000, PPMS/1068/2002
J-59/012/2000, PPMS/1069/2002
J-59/013/2000, PPMS/1070/2002
J-59/014/2000, PPMS/1071/2002
51/002/94, Ituni #1
51/003/94, Ituni #2
51/324/74, May
P-109/000/2000, PPMS/809/2001
P-109/001/2000, PPMS/810/2001
P-109/002/2000, PPMS/811/2001
P-109/003/2000, PPMS/812/2001
P-109/004/2000, PPMS/813/2001
P-109/005/2000, PPMS/814/2001
P-128/000/02, PPMS/707/02
P-128/001/02, PPMS/708/02
P-128/002/02, PPMS/709/02
P-128/003/02, PPMS/710/02
P-128/004/02, PPMS/711/02
P-17/000, PPMS/0222/1994
P-17/001, PPMS/0223/1994
P-8/000/94, PPMS/0074/1994
P-8/001, PPMS/73/1994
P-8/002, PPMS/75/1994
51/2005/235, Dennis #1
51/2005/236, Dennis #2
51/2005/237, Dennis #3
51/2005/238, Dennis #4
51/1983/034, Wintime
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Alicanto Minerals Limited | 53
Tenement Listing (continued)
Arakaka Project (continued)
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
Guyana
51/1983/035, Intime
51/1984/028, Ester aka Esta
S-267/000/07, PPMS/629/07
S-269/000/07, PPMS/631/07
P-9/000, PPMS/76/94
P-9/001, PPMS/77/94
P-9/002, PPMS/78/94
Y-1/MP/000/06, MP 91/2007
K-132/000/09, PPMS/1310/09
K-132/001/09, PPMS/1311/09
PL 10/2014, GS14: S-62
PL 11/2014, GS14: S-63
PL 12/2014, GS14: S-64
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Notes
E:
PL:
PPMS:
MP:
Exploration License
Prospecting License
Prospecting License Medium Scale
Mining Permit
Alicanto Minerals Limited | 54