ABN 90 141 196 545
al
ABN 81 149 126 858
Annual Report
2017
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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
2017 Annual Report
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
2
3
4
34
35
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60
64
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Corporate Directory
Non-Executive Chairman
Didier Murcia AM
Managing Director
Travis Schwertfeger
Non-Executive Directors
Hamish Halliday
Company Secretary
Jamie Byrde
Principal & Registered Office
Suite 3, Level 3, 24 Outram Street
WEST PERTH WA 6005
Telephone: (08) 6279 9425
Facsimile: (08) 6500 9989
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 Limited (‘Alicanto’) I am pleased to present to shareholders the Company’s Annual
Report for the year ending 30 June 2017.
This has been an exciting year of growth and achievement for our Company with the acquisition of the Ianna gold project in
combination with significant advancement of the Arakaka gold project. Following those two key developments, among several
milestones achieved by the Alicanto team in the past year, the Company has never been better poised for opportunity to substantially
add value through discovery.
The Arakaka Gold project continues to be progressed on both the Main Trend and Xenopsaris target areas with a high standard of
technical work by Alicanto’s team and with strong technical support from Barrick Gold Corp. (“Barrick”). Barrick has incrementally
accelerated exploration expenditure on the Arakaka project under the US$10m Earn-In Agreement announced 1 March 2016 as our
exploration team continues to de-risk the exploration process and demonstrate significant bulk tonnage potential. Reconnaissance
work reported over the past year has advanced Arakaka from a grassroots project to a more advanced targeted drill testing stage.
The recently acquired Ianna gold project is an advanced stage exploration target with several drilled zones of open-ended
mineralisation requiring follow-up. Alicanto’s management sees potential to substantially increase the tonnage potential of this
mineralisation. Additionally, the Company has recently expanded the Ianna project area by acquiring adjoining ground, providing
further potential for growth through new discoveries on previously undrilled targets.
I thank our shareholders for their continued support throughout the year, and their support in the recent Rights Issue completed
subsequent to the reporting period. I also welcome our more recent shareholders to the register.
The team at Alicanto Minerals Limited 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 continue to be 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 Limited submit herewith the financial statements of the Company for the year ended 30 June 2017
in order to comply with the provisions of the Corporations Act 2001.
1.
Directors
The following persons were Directors of Alicanto Minerals Limited during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Mr Didier Murcia
Mr Travis Schwertfeger
Mr Hamish Halliday
Non-Executive Chairman
Managing Director
Non-Executive Director
2.
Principal Activities
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.
3.
Operating Results
The loss attributable to owners of the entity after providing for income tax amounted to $1,194,529 (2016: $1,479,742).
4.
Dividends Paid or Recommended
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.
5.
Financial Position
The entity has $1,836,953 in cash and cash equivalents as at 30 June 2017 (2016: $1,216,247). The Directors believe the cash at year
end and cash subsequently raised puts the entity in a sound financial position with sufficient capital to effectively explore its current
landholdings.
6.
Business Strategies & Prospects for the Forthcoming Year
Alicanto Minerals Limited 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 Limited 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.
7.
Significant Changes in the State of Affairs
The following significant changes in the state of affairs of the entity occurred during the financial period:
▪ On 8 November 2016, the Company announced the entering into of a definitive agreement to acquire the Ianna Project in
Guyana’s Northwest Mining District.
o The Ianna Gold Project is located in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s
Northwest District and is located less than 25km from Alicanto’s flagship Arakaka Project (refer to Figure 1). The
key terms of the agreement are: US$25,000 within 5 days after confirmation date; US$50,000 within 4 months after
confirmation date and US$200,000 15 months after the completion date. Alicanto must keep the project tenements
in good standing during the 36 month option period ending 7 November 2019. (refer to ASX announcement dated
8 November 2016).
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Directors’ Report
8.
Post Balance Date Events
▪ On 23 June 2017, the Company announced a Pro-rata Renounceable Rights Issue of which the key terms of the rights issue
are as follows:
o A pro-rata renounceable rights issue for one (1) new share for every four (4) shares held at an issue price of $0.14;
and
o One (1) free attaching listed option for every (2) new shares subscribed for exercisable at $0.28 on or before 28 July
2019;
o Rights issue is partially underwritten by CPS Capital Group Pty Ltd for up to $1.0 million;
o On 26 July 2017, the Company issued 18,214,062 new shares under the Rights Issue raising gross proceeds of
$2,549,969; and
o 9,107,031 free attaching new listed options were issued with an exercise price of $0.28 on or before 28 July 2019.
▪ On 18 August 2017, the company finalised the Rights Issue Shortfall and an additional placement to Sprott Group taking the
total placement to $3.75m as follows:
o Under the rights issue shortfall, 3,100,000 ordinary shares were allotted at $0.14 and 1,550,000 free attaching listed
options exercisable at $0.28 on or before 28 July 2019 raising gross proceeds of $434,000;
o The additional placement was finalised issuing 5,400,000 ordinary shares were allotted at $0.14 and 1,700,000 free
attaching listed options exercisable at $0.28 on or before 28 July 2019 raising gross proceeds of $756,000.
▪ On 1 September 2017, the company announced finalising completion of several option agreements granting the Company the
exclusive right to explore and acquire a 100% beneficial interest (“Agreements”) in mining permits totalling approximately
60km2 that are contiguous with the Company’s Ianna gold project. The additional tenure increases the Ianna Project to a
115km2 project area.
9.
Review of Operations
Alicanto Minerals Limited (‘Alicanto’ or ‘the Company’) (ASX: AQI) is an emerging mineral exploration company focused on the
exploration and development of two gold projects in Guyana, South America.
The Arakaka Gold Project covers an area of over 300km2 located in a relatively underexplored area within the Northern Guiana Shield
Geological Terrane. The project covers volcano-sedimentary Paleoproterozoic greenstone rocks which are highly prospective for high
tonnage, orogenic style gold deposits. The permits are 100% held either directly by an Alicanto Guyanese subsidiary, or subject to
various underlying option agreements. Barrick Gold Corporation (‘Barrick’) has the option to earn a 65 percent interest in the project
after meeting US$10 million in funding requirements pursuant to an Earn-in Agreement (for additional information, see “Arakaka
Gold Project Earn-in Agreement” below).
The Ianna Gold Project covers an area of 115km2 in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s Northwest
District and is located approximately 20km from Alicanto’s Arakaka Project. The permits are 100% held subject to various underlying
option agreements held through a direct Guyanese subsidiary of the Company. Ianna is at an advanced exploration stage, with a
number of mineralised discoveries in drilling requiring follow-up exploration activity to assess and define gold resource potential.
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Directors’ Report
9.
Review of Operations (continued)
Figure 1 | Location of Arakaka and Ianna gold projects located in the Northwest Mining District of Guyana on modified geology from the Guyana Geology and Mines Commission’s
Geological Map of Guyana, 1987.
Corporate
Financial Performance and Position
The net operating loss after tax for the year ended 30 June 2017 was $1,194,529 (2016: $1,479,742). The loss for the period includes
$265,900 (2016: $764,559) in exploration and evaluation expenditure and share based payment expenses of $468,966 (2016: $390,696)
were also recognised during the financial year. As at 30 June 2017 the Company had cash of $1,836,953.
Earn–in Agreement with Barrick Gold Corporation
Alicanto and Barrick have entered into an Earn-in Agreement whereby the Company granted Barrick the exclusive right to acquire a
65% interest in the Arakaka Gold Project. Barrick may earn up to a 65% interest in the Arakaka Project by meeting US$10 million in
funding requirements, including US$8 million in exploration expenditures over four years, and US$2 million paid to Alicanto upon
completion of the exploration earn-in expenditures.
Having completed the minimum expenditure requirement of US$1.8m in the first contract year, Barrick may withdraw from the Earn-
in Agreement with 60 days’ notice to Alicanto. Significant terms of the Earn-in Agreement are provided in the ASX announcement
dated 1 March 2016.
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Directors’ Report
9.
Review of Operations (continued)
As announced on 7 December 2016 Barrick elected to continue funding the Arakaka Gold Project into the second contract year,
ending 31 December 2017 (“Contract Year”), Exploration activity with Alicanto as the operator continue and the Company’s proposals
for US$3.0m exploration expenditure on the Arakaka Gold Project during the Contract Year (refer to ASX announcement dated 4
August 2017). The approved exploration budget includes over 7,000m of diamond core drilling in the Contract Year designed to both
follow up on 2016 results as well as advancing early stage exploration at the extensive Arakaka Main Trend and Xenopsaris Target
Areas within the larger Arakaka Project.
While Alicanto is the operator, it will receive in any contract year the lesser of US$100,000 and 5% of the approved annual exploration
expenditure towards overheads while utilising the Company’s highly experienced technical team to manage exploration. Having
completed US$4m in exploration expenditure, subsequent to the reporting period, Barrick currently retains the right to become
operator of the Arakaka project at Barrick’s election.
Following payment of the US$2.0 million to Alicanto, completing a total US$10.0 million contribution, Alicanto and Barrick will form
an incorporated Joint Venture (Arakaka JV). Barrick is permitted to accelerate the balance of the US$8.0 million of expenditure
funding at any time during the Earn-in period. Once the Arakaka JV is formed, the parties will each be required to contribute to
further exploration and feasibility costs on a proportional basis for Alicanto to retain its 35% interest in the project. Should Alicanto
not contribute its attributable costs of the JV prior to a decision to mine, the Company would dilute to no less than a 15% interest in
the Arakaka JV. Alicanto would then be free carried and retain its 15% interest in the Arakaka JV to a decision to mine. Upon a notice
of decision to mine by the Arakaka JV, Alicanto can elect to either contribute, or convert its interest in the project to a 2% net smelter
royalty.
Share Placements
On 28 July 2016, the company announced the completion of a share placement raising gross proceeds of $1.5 million. The shares were
issued to clients and affiliates of the Sprott Group of companies. Under the placement Alicanto issued 11.6 million shares at $0.13
raising with one (1) free attaching option for every two (2) shares subscribed for. The options issued have a $0.23 strike price and a
three year term expiring 28 July 2019.
On 23 June 2017, the company announced a one (1) for four (4) Pro-rata Renounceable Rights Issue at an issue price of $0.14 and one
(1) new listed option for each two (2) new shares subscribed for ($0.28, expiring 28 July 2019) to raise up to $3m. On 26 July 2017, the
Company finalised the rights issue, raising total funds under the issue to $2,544,000. On the same day, the announcement of Shortfall
and a Placement for $1,190,000 to Sprott Global Resources was made for the issue of 8,500,000 ordinary shares at $0.14 and 4,250,000
listed options ($0.28, expiring 28 July 2019). The raising under shortfall and placement was finalised on 18 August 2017. The total
shares issued under the Rights Issue and Placement were 26,714,062 ordinary shares and 13,357,031 listed options.
Overview of the Arakaka Gold Project
The Arakaka Gold Project comprising over 300km2 of permits that are 100% held either directly by Alicanto’s wholly owned Guyanese
subsidiary, or subject to various underlying option agreements. Barrick Gold Corporation (“Barrick”) has the option to earn a 65%
interest in the project after meeting US$10 million in funding requirements pursuant to an Earn-in Agreement (for additional
information, see “Arakaka Gold Project Earn-in Agreement” above).
Alicanto’s Arakaka gold project is located in Guyana’s under-explored Northwest District, host to the Barama-Mazaruni supergroup,
within one of the last and among the least explored greenstone belts across the Guiana and West African Shields that is not yet host to
substantial gold resources.
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9.
Review of Operations (continued)
The Arakaka Gold Project itself has been the source of more the 1Moz of alluvial and near surface gold production within Guyana,
with a mining history that extends more than 100 years. The Project boasts good infrastructure, with an all-season road network, daily
flights to within 10km of the property boundary, and deep water port facilities to within 15km of the property boundary.
Over US$20m in exploration investment prior to Alicanto’s investment has been made into the Arakaka Gold Project, providing
Alicanto with a high quality regional scale geophysical and surface geochemical datasets identifying extensive gold anomalism which
defines multiple top tier targets for reconnaissance work, but with sparse drilling completed previously to assess resource potential.
Overview of the Ianna Gold Project
Located in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s Northwest Mining District (refer to Figure 1), the
Ianna Project is a 115km2 land position situated less than 20km southeast from Alicanto’s ongoing exploration operations at the
Arakaka Gold Project.
Since acquisition of the project in November 2016, exploration activity by Alicanto has focused on surface mapping and sampling
campaigns to verify and expand previously identified and drill tested gold mineralisation from historical work. From these
programmes, six targets have been prioritised for drill testing by Alicanto planned for the December 2017 quarter.
Highlights of the Ianna Gold Project include:
▪ Three extensive mineralised corridors delivering drill ready targets at six prospects covering over 8km of strike extent.
▪ Historical drilling has already delivered multiple ore grade intersections within 50m of surface;
•
•
•
•
•
50m @ 2.47g/t Au from 10m to end of hole;
48m @ 1.19g/t Au from surface;
14m @ 4.27g/t Au from 24m;
12m @ 3.84g/t Au from 20m;
12m @ 3.99g/t Au from surface.
▪ The Ianna Project contains both the structural and lithological setting considered ideal to host large scale gold deposits.
Reported exploration activity and planned drilling is focused on three corridors of mineralisation, including the Gomes-Ianna trend, the
King’s Ransom trend, and the Eastern extension target areas (refer to Figure 2). The Gomes-Ianna and King’s Ransom trends are both
host to mineralisation identified in existing drilling associated with extensive surface geochemical survey work, including over 12,400m
of Reverse Circulation and 926m of diamond in historical drilling. The historical drilling covers limited strike extent to shallow depth,
with ~95% of drilling testing less than 50m below surface and a significant proportion of holes ending in mineralisation (refer to ASX
announcement dated 26 July 2016).
The Project has excellent infrastructure, including existing camp facilities, an existing airstrip and river port landing on the property,
and can be accessed by road from the Arakaka Project area.
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9.
Review of Operations (continued)
Figure 2 | Regional Geology of the Barama-Mazaruni greenstone belt hosting the Arakaka Gold Project and the Ianna Gold Project areas, with major structural corridors and locations of key
target areas within each Project.
Operation Report | Arakaka Gold Project
Arakaka Main Trend – Reconnaissance drilling
A campaign of reconnaissance drilling was completed during the 2016-17 financial year covering over 30km of strike extent along three
major mineralised structures within the 12km long and up to 1.7km wide Arakaka Main trend gold anomaly. A total of 42 holes
totalling 4,705m of diamond drilling were completed on the Arakaka Main trend during the reporting period.
The Reconnaissance drilling program is focused on understanding the tectono-stratigraphic framework of the Arakaka Main trend and
to better constrain mineralising structures within the extensive surface soil geochemistry and geophysical anomalism identified within
the Arakaka Main trend.
Arakaka Main Trend reconnaissance drilling includes the first drill tests in the 6km gap in drilling between historical gold intercepts at
Purple Heart (drilling up to 13.5m @ 7.36g/t Au, refer to ASX announcement dated 26 August 2016) and the 14-Mile target area
drilling up to 4m @ 21.1g/t Au, refer to ASX announcement dated 17 September 2014).
Extensions to Main Trend reconnaissance drilling at 14-Mile in 2017 total 17 diamond holes creating four new section lines adding
geological definition to an additional 4.5km of the Arakaka Main Trend, and a width of 1.6km in an area of variable landform and
regolith including extensive alluvial cover where surface sampling techniques have been assessed to have been ineffective.
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9.
Review of Operations (continued)
Drilling was successful in confirming continuity of known
identifying additional structural
mineralised structures and
corridors controlling mineralisation. Pervasive alteration and
mineralisation
structural
architecture for the focusing of mineralising fluids and has
identified three separate mineralised trends termed:
a highly prospective
indicates
• Purple Heart Structure;
• Central Structure;
• Valley Structure.
trend:
The drilling has also identified numerous macro-scale folds
within the metasediments which have historically been observed
to focus gold mineralisation in the Purple Heart area of the
Arakaka
The reconnaissance program has also
substantially increased the mapped extent of favourable diorite
lithology within the Pepperpot and 14 mile target areas,
substantially increasing volume potential for mineralisation on
the Arakaka Main Trend.
Figure 3 | 14 Mile Reconnaissance drilling site – ARDD227
Diamond core contained multiple occurrences of free gold (refer to Figure 5) in several drill holes targeting two of the major
structures. Favourable sulphide mineralisation and pervasive hydrothermal alteration indicative of an extensive hydrothermal gold
mineralising system are encountered on every line of drilling, with increasing intensity of mineralisation and alteration observed in
drilling vectoring follow-up work into four priority prospect areas for targeted drilling (refer to Figure 4) in progress subsequent to the
reporting period:
• Concorde: Targeting the >2,5km Purple Heart structure as it merges with the Central Structure. Significant drill intercepts to
date include 9.72m @ 1.44g/t, 5.1m @ 3.97g/t and 3m @2.69g/t gold. Significant intercepts in drilling are supported by
extensive rock chipping, >500ppb Au in soil anomalism and mapping;
• Revenge: Targeting the prospective Gold Hill Feldspar Porphyry unit folded into the mineralised Central Structure. Much of
the area is buried beneath alluvial cover but small scale saprolite pits occur in areas of exposed upper saprolite. Rock chipping
to date 5.7g/t Au and Auger results up to 6.52g/t Au.
• Bonaventure: Targeting the extensions of significant drill intersections within the prospective Gold Hill Feldspar Porphyry
unit. Drilling stepping out 850m to the West of existing drilling and 250m to the East within the >3.2km prospective
corridor from intersected mineralisation at the Gold Hill pit including 4m @ 21.1g/t gold. The drilling is supported by
extensive >500ppb soil anomalism, saprolite mining and mapping which define the current boundaries of the anomaly;
• Cavalleria: Targeting stacked flexures on multiple mineralised structural horizons. The target lies beneath alluvial cover but
drilling along strike shows increasing alteration and mineralisation vectors towards the area.
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Directors’ Report
9.
Review of Operations (continued)
Figure 4 | Overview of Arakaka Trend Geology and Drilling with 2017 Reconnaissance drill locations and 2016 better drilling intercepts (highlighted in pink background) and
geology as mapped by Alicanto geologists.
2017 Barrick Earn-In Drilling
2016 Barrick Earn-in Drilling
Figure 5 | Example of visible gold in diamond drill hole ARDD-015 (located within 1.2m @ 1.15g/t Au assay interval from 73m drill depth – adjacent to 1m @ 6.74g/t Au
assay interval with no free gold observed sampled from 72m drill depth).
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Directors’ Report
9.
Review of Operations (continued)
Xenops - Reconnaissance Drilling
The Xenopsaris (or”Xenops”) target area is the southern extension of the >15km long Gomes Trend anomalism (refer to Figures 2
and 8), which is host to the Gomes Hill Prospect where significant drilled mineralisation requiring additional extension drilling includes
better historical intercepts of 19.19m @ 3.4g/t gold from 65m, incl. 6m @ 6.25g/t gold in hole MD008, 17m @ 2.11g/t gold from
46m, incl. 4.25m @ 6.12g/t gold in hole MD002 and 11.0m @ 3.43g/t gold from 62m in TAK9717 (refer to ASX announcement
dated 9 February 2015).
The drilling program of 9 reconnaissance diamond holes totalling 1,218m is follow-up work on limited trenching activity reported 7
March 2017 totalling 1,105 linear meters of sampling confirming significant gold mineralisation correlating with favourable soil and
auger sample anomalism. Trenching work confirmed the presence of interpreted diorites and identified a new diorite intrusion also
associated with mineralisation.
Reconnaissance drilling tests less than 1km strike extent of the open ended >7km extension to the southeast of Gomes Hill where
mineralisation has been identified in soil and confirmed in auger drill sampling (refer to ASX announcement dated 11 March 2015).
The drilling confirms mineralisation in the sub-surface, confirms structural interpretations for the area, and confirms continuation of
favourable lithology.
The drilling amounts to two section lines spaced >650m apart. The drilling was designed to establish a geological framework for the
significant surface anomalism. Significant results from the drilling include (refer to ASX announcement dated 4 August 2017):
• XDD002: 5.78m @ 0.78g/t Au from 68m and 1m @ 4.23g/t Au from 78m;
• XDD005: 1.4m @ 9.14g/t Au from 23m;
• XDD006: 1m @ 4.25g/t Au from 30m and 2.25m @ 3.73g/t Au from 124m;
• XDD009: 3m @ 2.19g/t Au from 40m.
The drilling identified a regional scale alteration system around mineralisation with a wide zone of proximal sericite-ankerite-pyrite
alteration proximal to mineralised intercepts. Mineralisation is related to quartz-pyrite-gold veins observed across all lithological units.
The extent and geometry of the favourable intrusions interpreted to be a primary control on mineralisation are being assessed with
ongoing exploration activity, and the mineralisation remains open in all directions with potential to increase in volume and tenor with
improved definition and refined targeting of structural and lithologic controls at Xenopsaris.
Figure 6: Example of alteration profile observed approaching mineralisation in XDD006 (NQ Core).
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9.
Review of Operations (continued)
(cid:1)(cid:3)(cid:3)(cid:4)(cid:3)(cid:3)(cid:5)(cid:3)(cid:3)(cid:6)(cid:3)(cid:3)(cid:1)(cid:3)(cid:3)(cid:7)(cid:3)(cid:3)(cid:8)(cid:3)(cid:3)(cid:9)
(cid:10) (cid:3)(cid:5)(cid:3)(cid:7)(cid:3)(cid:11)(cid:3)(cid:12)(cid:3)(cid:1)(cid:3)(cid:4)(cid:3)(cid:13)(cid:3)(cid:3)(cid:4)(cid:3)(cid:5)(cid:3)(cid:10) (cid:3)(cid:5)(cid:3)(cid:8)(cid:3)(cid:11)(cid:3)(cid:14)
A favourable structural setting for the formation of significant mineralisation was established with the confirmation of a regional scale
antiformal fold hinge against the high-strain Temberlin structure. This structural setting is similar to those observed at regionally
significant gold deposits including the 13.7Moz Gros Rosebel deposit (Iamgold) and 6Moz Meriam deposit (Newmont) in Suriname.
With the level of understanding provided by the reconnaissance drilling at Xenops further trenching is proposed of the >15km
Gomes-Xenopsaris anomalous trend for 2017 to help define specific drill targets.
Figure 7: Example of gold mineralisation observed in XDD006 (NQ Core), photo taken at x10 magnification of core at 126.0m from 2.25m @ 3.73g/t Au from 124m reported
interval.
Xenops - Trenching
Recent exploration activity focuses on several well defined zones of +500ppb Au surface anomalism within the >7km long mineralised
corridor southeast of Gomes Hill prospect defined by extensive +100ppb Au anomalism within soils. Previous exploration activity
includes multiple +1g/t Au results with peak soil values of 6.0g/t Au, 2.84g/t Au, and 1.65g/t Au (refer to ASX announcement dated
11 March 2015). Auger drilling was utilised to better refine the location of potentially economic mineralisation within broad zones of
soil anomalism. Better results from auger drilling included 10g/t and 3.7g/t Au proximal to reported trenching (refer to ASX
announcement dated 11 March 2015). These previous soil and auger programs has followed up with 1,105m’s of trenching, with
location and summaries of trench results provided in Figure 8 below (refer to ASX announcement dated 7 March 2017):
Xenopsaris Peak Rock Chips: 162g/t, 33.7g/t, 28.1g/t & 27.5g/t gold;
22m @ 2.02g/t gold within a broader 37m @ 1.45g/t gold in XETR007;
6m @ 8.33g/t gold and 3m @ 2.04g/t gold in XETR010.
The compilation of trenching assay results with detailed mapping and existing datasets has defined three new prospects for potential
drilling at the Xenopsaris target area. The lithologic and structural complexity of the Xenopsaris target is also host to multiple diorite
intrusions which are associated with gold at several prospects through the district. This favourable geological setting is complemented
by the extensive surface anomalism and is culminating into a highly prospective area for drilling targeting requiring additional
exploration.
Beaker Prospect: High grade rock chips up to 162.23g/t gold within a continuous zone of mineralisation including 22m @
2.02g/t gold within 37m @ 1.45g/t gold in XETR007;
Gonzo Prospect: High grade rock chips up to 5.44g/t gold within a zone of 6m @ 8.33g/t gold in XETR010;
Fozzie Prospect: High grade rock chips up to 33.68g/t gold in XETR002 and 17m @ 0.69g/t gold in XETR005.
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Directors’ Report
9.
Review of Operations (continued)
Figure 8 | Xenopsaris Area with trench locations and
summary of exploration activity over previously reported gold
surface anomalies and Alicanto interpreted geology. June 2017
quarter drill collars and trench locations in Magenta
Xenops - Soil Geochemistry
During the reporting period, a series of soil sampling campaigns dovetailed in with Main Trend drilling programs have yielded
extensions to gold anomalism at the Xenopsaris target area, including a new northeast trending mineralised structure intersecting the
Gomes/Ianna corridor at the northern extent of the Xenopsaris extension identified as the Scooter Prospect (refer to Figure 9). The
Scooter prospect is sub-parallel to the Arakaka trend where surface geochemical sampling delivered a large, open-ended anomaly
extending >1.6km peaking at 3.05g/t gold in soils within the Arakaka Gold Project. At Scooter, a large diorite body has been mapped
in numerous small saprolite workings. Identified gold anomalism and artisanal workings are focused on the favourable rheological
contrast between the identified Diorite body and the surrounding metasediments. The anomalism remains open in all directions.
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Directors’ Report
9.
Review of Operations (continued)
Figure 9 | Plan map of the Scooter and Gomes Hill Prospects and Xenopsaris Area targets showing existing drill collars, better significant reported drill results, updated soil anomaly
outlines, and Alicanto interpreted geology. (*refer to ASX announcement dated 9 February 2015, **refer to ASX announcement dated 27 May 2015)
Continued mapping and compilation of recent soil sampling in the northeast of the Xenopsaris trend has highlighted two further
>100ppb Au in soil, with the new Statler gold anomaly extending >1.5km in length with a maximum soil sample result of 1.56g/t Au
within the Gomes-Ianna Corridor. Adjacent to the Statler anomaly, in mirrored stratigraphy, the Waldorf gold anomaly tracks the
western side of a north-northwest trending ridgeline that is well suited for future trenching activities. Further trenching and
reconnaissance phase drilling is needed to better define the geometry of favourable diorite intrusions in the area to identify discrete
targets for drilling to assess the gold resource potential for the area.
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Directors’ Report
9.
Review of Operations (continued)
Eyelash - Trenching
Four trenches totalling approximately 624 linear metres were completed in the Eyelash area during January. Two trenches successfully
intersected mineralisation at the Kid Prospect and the Pancho Prospect areas (refer to ASX announcement dated 7 March 2017), with
better results from initial 3m sampling returning:
•
•
24m @ 1.16g/t gold within a broader 54m @ 0.59g/t gold that extends to the end of the trench and better rock chips
returning 26.5g/t, 22.5g/t and 22.15g/t gold – EYTR002;
12m @ 0.67g/t gold and rock chips up to 14.2g/t gold – EYTR001.
Vein orientation studies based on selective rock chip sampling completed during trench mapping and channel sampling activities are
ongoing, and resampling of anomalous zones on 1m intervals is planned for the coming month.
Figure 10 | Eyelash Target area summary map with trench locations and summary of better previous results by prospect area in context of surface gold anomalism and Alicanto regional
geology interpretation.
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Directors’ Report
9.
Review of Operations (continued)
Operation Report | Ianna Gold Project
Alicanto’s exploration program at Ianna during the reporting period was focused on defining discrete, drill-ready targets on multiple
trends of mineralisation through the project area in a lead-up to a targeted drill campaign on the Ianna Project planned for the
December 2017 quarter. The surface exploration program operated from April to early August with soil, channel sampling and auger
sampling programs in conjunction with detailed geological mapping and interpretation of multi-element geochemistry datasets collected
from pXRF analysis to better define geologic interpretations advanced drilling planning for the coming year.
Recent mapping and multi-element geochemistry interpretation has refined the geometry and extent of the Ianna Intrusion. This
update to the local geology significantly expands the potential volume of the Ianna intrusion, a favourable lithology for mineralisation
in the Project. Assay results announced subsequent to the reporting period have also extended the soil grid coverage over previously
unexplored areas of the property expanding the prospective footprint of the Ianna hydrothermal gold system. Follow up auger
sampling confirming mineralisation in the saprolite further refined drill targeting (refer to ASX announcements dated 5 July and 13
September 2017).
Figure 11 | Overview of Ianna project Exploration Targets over simplified regional geology as mapped by Alicanto geologists showing locations of recent soil sampling (in context of historical soil
contours) and historical RC drilling.
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Directors’ Report
9.
Review of Operations (continued)
The surface mapping and sampling program phase of this year’s program was completed in early August, and additional results of
sampling are now completed over the Kings Ransom and Eastern Extension trends, highlighting several additional targets for initial
drill testing include the following six areas:
• Eastern Extension: New Target, Undrilled:
o Newly identified mineralised corridor of regional significance;
o A 250m wide Granodiorite intrusive hosts observed mineralisation in the locality. Mineralisation is associated with
sheeted to stockwork quartz-pyrite veining which has been observed throughout the intrusive. The intrusive is undrilled;
o >700m long and >300m wide zone of artisanal (“Porknokker”) workings focused on the highly strained margins of the
intrusive body;
o Channel samples to 6m @ 6.91g/t gold, 30m @ 0.27g/t gold from 0m to EOC, 16m @ 0.3g/t gold from 0m;
o Mineralisation is unconstrained along strike with the strike potential concealed by low-lying, swampy areas.
• Kings Ransom Extension: New Target:
o >90m wide zone of >100ppb gold in Auger;
o Peak trench results of 21m @ 9.93g/t gold and 20m @ 6.75g/t gold;
o Peak auger result: 1.14g/t gold located >1.2km along strike from 12m @ 3.99g/t gold in historical RC drilling.
• B-Zone: previous announced, Undrilled:
o Pressure shadow target between the Ianna granodiorite and the volcaniclastic country rock. An undrilled target with >
1.4km of +0.5g/t gold in soils;
o Peak rock chip of 251g/t gold;
o Peak soil results of 5.74g/t gold and 5.57g/t gold in soils;
New results include:
o 18m at 0.54g/t gold in representative channel sampling across the mineralised trend.
• C - Zone: previously announced, Undrilled:
o >1km long zone of >0.5g/t gold-in-soil anomalism host to significant auger anomalism;
o Peak Soil 37g/t gold;
New results include:
o Peak Auger: 1.55g/t gold within >100m wide zone of >100ppb gold in Auger;
o 22m @ 1.66g/t gold from channel samples and 26m @ 0.44g/t gold.
• D – Zone: previously announced, follow-up and extension testing of drilled intercepts:
o >800m along strike from the Bushmaster area which intersected up to 50m @ 2.47g/t gold from 10m to EOH, 48m @
1.19g/t gold from 0m, 14m @ 4.27g/t gold from 24m and 12m @ 3.84g/t gold from 20m in RC drilling.
New results include:
o Channel sampling to 4m @ 1.08g/t gold and 2m @ 2.5g/t gold
• A-Zone: previously announced, drilled mineralisation requiring follow-up:
o Sheared contact of the Ianna intrusion with extensive porknocker mining and sparse drilling to date, including better
intercepts of 16m @1.17g/t gold and 6m @3.08g/t gold from 28m drill depth.
Including Money Pit, the largest artisanal saprolite pit in the area.
o
o Peak Soil: 66.9g/t gold;
o Peak Rock Chips: 242g/t Au, 70g/t Au.
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Directors’ Report
9.
Review of Operations (continued)
A-Zone target area
Alicanto geologists have mapped out the North-Eastern contact of the Ianna Granodiorite intrusive body which is coincident with the
largest artisanal mining pits in the Ianna area including the Money, Fern Leaf and Sweetheart pits (refer to Figures 11 and 12).
Mineralisation is observed in the pits as tension vein arrays of quartz-gold (+/- fuchsite) veins both within the Granodiorite intrusive
and within high strain talc schist units. The competency contrasts between the rigid granodiorite and ductile talc-schists make for a
favourable setting for bulk tonnage gold deposits. High strain zones within the Granodiorite are frequently exploited by syn-late mafic
dykes, making them easy to map using portable XRF lithogeochemistry discrimination. These internal shear zones represent gold
bearing fluid pathways cutting through the granodiorite that are known to host mineralisation in West African analogues and could
significantly increasing the volume potential for mineralisation.
Recent mapping and rock chipping of the A-Zone target area anomaly has better defined the position of the highly strained contact
between the granodiorite and surrounding intermediate metavolcanics which represents the regional scale Gomes-Ianna shear zone.
Sampling within the artisanal pits has returned rock chip results of up to 251g/t Au from zones of 1-3cm stacked quartz veining with
pyrite boxworks to the selvedge within highly altered granodiorite.
The A-Zone (eastern margin) target area anomaly has only been subjected to limited historical RC drilling with much of it deemed
ineffective. Significant results historically returned from the A-Zone target area anomaly include:
• HR003: 10m @ 1.16g/t Au from 48m;
• HR006: 19m @ 0.93g/t Au from 1m;
• HR012: 16m @ 1.17g/t Au from 6m;
• HR015: 6m @ 1.24g/t Au from 42;
•
SR094: 8m @ 1.82g/t Au from 48m.
Figure 12 | Overview of Ianna project geology over simplified Alicanto regional geology.
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Directors’ Report
9.
Review of Operations (continued)
C-Zone Gold Anomaly
Recent soil sampling to the east of the A-Zone target area anomaly has identified a >2.2km long and up to 900m wide +100ppb Au in
soil anomaly on 400m spaced soil lines with a peak value of 37g/t Au in soil. The soil anomalism is open along strike to the southeast is
entirely undrilled (refer to Figure 13).
The C-Zone gold in soil anomalism is coincident with multiple, mapped talc schist shear zones identified coincident with higher tenor
(>0.5g/t Au) soil anomalism within the metasediment country rock of the Ianna area. The identification of significant widths of gold
anomalism away from the Ianna Granodiorite has significant implications for the overall prospectivity of the Ianna area by greatly
increasing the footprint for potential mineralisation.
The area will require follow-up with auger in-fill on soil sampling and reconnaissance diamond drilling.
Figure 13 | Geological map showing the geology and location of the A-Zone target area and C-Zone gold anomalies with highlighted rock chip and soil anomalism.
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Directors’ Report
9.
Review of Operations (continued)
About Guyana
The Co-operative Republic of Guyana is located on the northern coast of South America and is a member of the Caribbean
Community (CariCom). The English speaking country has a long history of mining and gold production which has been open to
foreign investment from only recent times following the enactment of the 2004 Land Tenure Act.
Guyana’s history and social acceptance of mining make Guyana a favourable mining jurisdiction, with relatively low risk for
environmental and community issues versus comparable jurisdictions and a modern mining law overseen by a dedicated geology and
mines commission. The positive jurisdiction combined with its highly prospective and under-explored mineral potential makes it an
excellent destination for exploration and mining, with three gold mines financed by foreign investment announcing commercial
production in 2016, and a history of substantial gold, bauxite and diamond mining operations.
Geologically, Guyana is underlain by the Guiana Shield, a Proterozoic aged craton that was contiguous with the Leo Mann Shield of
West Africa prior to the opening of the Atlantic Ocean. As such, the geology of the Guiana Shield is similar in age, lithology and style
of mineralisation to the prolific Birimian gold belts of West Africa (refer to Figure 14).
Figure 14 | Location Map - Arakaka Gold Project
Project Generation
The acquisition of the Arakaka Gold Project in 2013 delivered a core strategic asset in one of the most underexplored greenstone belts
in the world. Alicanto has increased its footprint within the in the highly prospective Barama-Mazaruni Greenstone Belt in Guyana’s
Northwest District with the acquisition of the Ianna Gold Project located less than 25km from Alicanto’s flagship Arakaka Project in
late 2016 (refer to Figure 1).
The Company intends to continuously evaluate additional projects within Guyana for potential joint venture or acquisition. In
addition, the Company shall also continue to evaluate projects elsewhere, in gold, copper and other commodities to grow shareholder
value.
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Directors’ Report
9.
Review of Operations (continued)
Mineral Resource Estimation
As at 30 June 2017, 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.
10.
Likely Developments and Expected Results of Operations
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.
11.
Environmental Regulation
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.
12.
Information on Directors and Company Secretary
Didier Murcia AM
Qualifications
Non-Executive Chairman- appointed 30 May 2012
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 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
Other Directorships
Fully Paid Ordinary Shares
28 cent Listed Options expiring 28 July 2019
23 cent Options expiring 7 September 2018
0.1 cent Options expiring 30 April 2021
522,500
1,250
750,000
750,000
Centaurus Metals Limited (since 16 April 2009)
Strandline Resources Limited (since 23 October 2014)
Gryphon Minerals Limited (28 July 2006 to 13 October 2016)
Cradle Resources Limited (13 August 2013 to 8 May 2016)
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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
12.
Information on Directors and Company Secretary (continued)
Travis Schwertfeger Managing Director- appointed 15 September 2014
Qualifications
BSc Geological Engineering, MSc Ore Deposit Geology and Evaluation, MAIG
Experience
Mr Schwertfeger has over 20 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 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
28 cent Listed Options expiring 28 July 2019
23 cent Options expiring 7 September 2018
0.1 cent Options expiring 30 April 2021
300,000
50,000
1,500,000
2,000,000
Hamish Halliday
Qualifications
Non-Executive Director - appointed 17 March 2016
BSc (Geology), MAusIMM
Experience
Mr Halliday is a Geologist with a Bachelor of Science from the University of Canterbury and has over 20
years of corporate and technical experience in the mining industry. Mr Halliday has been involved in the
discovery and acquisition of numerous projects over a range of commodities throughout four continents.
Mr Halliday has founded and held executive and non-executive directorships with a number of successful
listed exploration companies including Venture Minerals Limited and Adamus Resources Limited
(‘Adamus’). He was CEO of Adamus from its inception through to successful completion of a feasibility
study on its gold project in Ghana which is now in production.
Interest in Securities
Fully Paid Ordinary Shares
28 cent Listed Options expiring 28 July 2019
23 cent Options expiring 7 September 2018
6.5 cent Options expiring 25 March 2019
0.1 cent Options expiring 30 April 2021
5,825,000
75,000
1,500,000
1,000,000
1,000,000
Other Directorships
Venture Minerals Limited (since 30 January 2008)
Comet Resources Limited (since 16 December 2014)
Blackstone Minerals Limited (since 30 August 2016)
Renaissance Minerals Limited (25 February 2016 to 27 September 2016)
Company Secretary
Jamie Byrde BCom CA
Appointed - 16 March 2017
Mr Byrde is a Chartered Accountant with over 13 years’ experience in corporate, audit and company secretarial matters. Previously Mr
Byrde has held positions providing corporate advisory services, financial accounting/reporting and ASX/ASIC compliance
management. Mr Byrde is also currently Company Secretary for Blackstone Minerals Limited and Venture Minerals Limited.
13.
Audited Remuneration Report
The Directors are pleased to present your Company’s 2017 remuneration report which sets out remunerations information for Alicanto
Minerals Limited’s non-executive directors, executive directors and other key management personnel.
The remuneration report is set out under the following headings:
A. Directors and 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 Limited’s performance;
F. Non-Executive Director remuneration policy;
G. Voting and comments made at the Company’s 2016 Annual General Meeting;
H. Details of remuneration;
I. Details of share based compensation and bonuses;
J.
K. Equity instruments held by key management personnel; Loans to key management personnel;
L. Other transaction with key management personnel.
Service agreements;
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Directors’ Report
13.
Audited Remuneration Report (continued)
M. Loans to key management personnel;
N. Other transaction with key management personnel.
A.
Directors and key management personnel disclosed in this report
This report details the nature and amount of remuneration for all key management personnel of Alicanto Minerals Limited 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 H Halliday
Non-Executive Chairman
Non-Executive Director
Executive Directors
Mr T Schwertfeger
Managing Director
Other Key Management Personnel
Mr M Harden
Mr J Byrde
Mr B Dunnachie
Chief Geologist
Company Secretary (appointed 16 March 2017)
Company Secretary (resigned 15 March 2017)
Changes since the end of the reporting period
None
B. Remuneration Governance
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
the Company’s website
http://www.alicantominerals.com.au/index.php/corporate-profile/corporate-governance.
Statement which
inspection
available
for
on
is
C. Use of remuneration consultants
The Company has not engaged or contracted remuneration consultants during the financial year.
D. Executive remuneration policy and framework
Remuneration Policy
The remuneration policy of Alicanto Minerals Limited 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 Limited 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.
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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)
D. Executive remuneration policy and framework (continued)
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.
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.
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Directors’ Report
13.
Audited Remuneration Report (continued)
E. Relationship between remuneration and Alicanto Minerals Limited’s performance
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, at the discretion of the non-executive directors, 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.
F. Non-Executive Director remuneration policy
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.
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 non-executive directors 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. Reviews are performed to confirm that executive remuneration is in line with market practice and is reasonable in
the context of Australian non-executive reward practices.
There was a salary freeze on all Non-Executive’s base salaries since 2013 through to March 2016 which formed part of broader cost
reducing measures to ensure that the Company conserved cash reserves in order to maintain exploration activities whilst initially
working through volatile market conditions
G. Voting and comments made at the company’s 2016 Annual General Meeting
The company received 99.85% of “Yes” votes on its remuneration report for the 2016 financial year (2015: 100%). The Company did
not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
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Directors’ Report
13.
Audited Remuneration Report (continued)
H. Details of Remuneration
The Key Management Personnel of Alicanto Minerals Limited for the year ending 30 June 2017 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
$
49,275
78,563
219,178
210,000
50,700
18,563
Incentives
$
-
-
-
-
-
Other
Amounts
$
Super-
annuation
$
Options3
$
$
1,778
1,778
-
3,562
32,038
42,717
83,091
126,620
1,778
20,822
85,434
327,212
1,778
1,333
445
-
-
-
172,897
17,087
-
384,675
69,120
19,008
2017
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Directors
Mr T Schwertfeger
Other Key Management
Personnel
Mr M Harden
Mr B Dunnachie1
Mr J Byrde
Total Remuneration
1: Mr Dunnachie resigned on 15 March 2017.
2: Mr Byrde appointed on 16 March 2017
3: The fair value of the options is calculated at the date of grant using a Black-Scholes model, refer to Section I for further details of options issued in the June 2016
1,009,726
626,279
350,173
24,384
8,890
-
and 2017 financial year
2016
Non-Executive Directors
Mr D Murcia
Mr H Halliday1
Mr M Bowles2
Executive Directors
Mr T Schwertfeger
Other Key Management
Personnel
Mr M Harden
Mr B Dunnachie
Short-Term Employee Benefits
Post
Employment
Securities
Total
Cash Salary
& Fees
$
32,850
21,875
23,417
156,119
200,000
40,500
Incentives
$
-
-
-
-
-
-
Other
Amounts
$
Super-
annuation
$
Options3
$
$
1,708
497
1,329
-
2,078
2,225
40,047
53,396
-
74,605
77,846
26,971
1,708
14,831
125,320
297,978
-
1,708
-
-
32,038
21,358
232,038
63,566
Total Remuneration
1: Mr H Halliday was appointed as a Director on 17 March 2016.
2: Mr M Bowles resigned as Non-Executive Director on 11 April 2016.
3: The fair value of the options is calculated at the date of grant using a Black-Scholes model.
No retirement benefits or equity securities were issued to any Director or other key management personnel of the entity during the financial year.
272,159
474,761
19,134
6,950
-
773,004
Alicanto Minerals Limited | 27
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
Options are issued to directors and executives as part of their remuneration. The options are not always issued based on performance
criteria and in the instances, they are not, they are issued to the majority of directors and executives of Alicanto Minerals Limited to
increase goal congruence between executives, directors and shareholders.
Options issued – 30 June 2017
Options issued in the current financial year, incentive options have been issued to key management personnel. The options vest upon
achievement of performance based milestones as follows:
i)
100% of the options shall vest on 28 February 2018 subject to remaining an employee of the company.
Options issued – 30 June 2016
Options issued in the prior financial year, incentive options have been issued to Directors and other key management personnel. The
options vest upon achievement of performance based milestones as follows:
ii) Tranche 1 - 50% of the options vested on 28 February 2017 subject to remaining an officer, employee or consultant to the
Company at the time of vesting;
iii) Tranche 2 – The remaining 50% of the options shall vest upon the Company achieving one of the following milestones;
- Barrick Gold Corporation continuing into the second contract year in accordance with the Earn-In Agreement at the
Arakaka Project as announced on 1 March 2016; or
- the Company announcing a 50 gram x metre/tonne Au significant drill intercept or greater at a 0.5 gram/tonne Au cut-off
grade.
Further details of options issued to Directors and key management personnel are as follows:
Granted No. Options Granted
as Part of
Remuneration
$
Total
Remuneration
Represented by
Options
Exercised No. Other changes
No.
Lapsed
No.
30 June 2017
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger
Other Key Management Personnel
-
-
-
Mr M Harden
Mr B Dunnachie3
Mr J Byrde
30 June 2016
Non-Executive Directors
Mr D Murcia
Mr H Halliday1
Mr M Bowles2
Executive Director
Mr T Schwertfeger
900,000
-
-
750,000
1,000,000
-
32,038
42,717
85,434
172,897
17,087
-
40,043
53,390
-
2,000,000
125,308
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie3
600,000
400,000
32,034
21,356
1: Mr H Halliday was appointed as a Director on 17 March 2016.
2: Mr M Bowles resigned as Non-Executive Director on 11 April 2016.
3: Mr B Dunnachie resigned on 15 March 2017.
4. Mr J Byrde appointed on 16 March 2017
39%
34%
26%
45%
25%
-
54%
69%
-
42%
14%
34%
-
-
-
-
(400,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Alicanto Minerals Limited | 28
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)
Issue Date
Expiry Date
% Vested in Year
Exercise Price
Number of
Options
30 June 2017
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger
25 May 16
25 May 16
30 Apr 21
30 Apr 21
25 May 16
30 Apr 21
Other Key Management Personnel
Mr M Harden
Mr M Harden
Mr B Dunnachie
30 June 2016
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger
Mr T Schwertfeger
25 May 16
4 Oct 16
25 May 16
25 May 16
25 May 16
27 Nov 14
25 May 16
Other Key Management Personnel
Mr M Harden
Mr B Dunnachie
25 May 16
25 May 16
30 Apr 21
30 Apr 21
30 Apr 21
30 Apr 21
30 Apr 21
07 Sept 18
30 Apr 21
30 Apr 21
30 Apr 21
100%
100%
100%
100%
53%
100%
0%
0%
0%
0%
0%
0%
$0.001
$0.001
750,000
1,000,000
$0.001
2,000,000
$0.001
$0.001
$0.001
$0.001
$0.001
$0.23
$0.001
$0.001
$0.001
600,000
900,000
600,000
750,000
1,000,000
1,500,000
2,000,000
600,000
400,000
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 2017
4 Oct 16
30 June 2016
25 May 16
30 Apr 21
$0.001
$0.309
$0.31
30 Apr 21
$0.001
$0.096
$0.097
85%
85%
1.70%
1.82%
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.
J. Services Agreements
Remuneration and other key terms of employment for the Executives, Non-Executives and Other Executives of Alicanto Minerals
Limited are formalised in executive service agreements. Major provisions of the agreements relating to remuneration are set out below:
Mr D Murcia, Non-executive Chairman
Term of Agreement – unspecified.
Base fee of $30,000 exclusive of superannuation. From 1 August 2017, this fee increased to $60,000 exclusive of
superannuation.
Eligible to participate in the Company’s Employee Incentive Scheme.
No termination benefit under any circumstances.
Alicanto Minerals Limited | 29
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. Services Agreements (continued)
Mr T Schwertfeger, Managing Director
Term of Agreement – 12 months.
Base fee of $240,000* inclusive of superannuation. From 1 August 2017, this fee increases to $270,000 exclusive of
superannuation.
In addition to his base salary and non-cash benefits, Mr Schwertfeger is entitled to be paid a cash bonus equal to 9 months of
his salary, should a recommended takeover be made to the Company, as a result of which the Bidder is successful in acquiring
at least 51% of the Company.
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 market conditions over the previous years, Mr Schwertfeger had agreed to a voluntary reduction of 50% of his executive base salary in
order for the company to conserve funds. The voluntary reduction remained in place from commencement of employment through to March 2016.
Mr H Halliday, Non-executive Director
Term of Agreement – unspecified.
Base fee of $75,000 exclusive of superannuation (From 1 August 2017 the base fee increased to $100,000 for a consulting
element)
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 $210,000 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 J Byrde, Company Secretary – Appointed 16 March 2017.
Term of Agreement – Agreement is held with related entity and charged on an even proportion across three related entities.
Base fee of $54,750.
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 personnel
The tables on following page show the number of:
(i) Shares in the company; and
(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. During the period, no shares were issued to employees. There were no further shares granted during the reporting
period as compensation.
Alicanto Minerals Limited | 30
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
2017
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden
Mr B Dunnachie3
2016
Directors of Alicanto Minerals Limited
520,000
200,000
5,665,000
766,650
140,000
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday1
Mr M Bowles2
Other key management personnel
Mr M Harden
Mr B Dunnachie3
520,000
-
-
2,375,001
350,000
140,000
1: Mr H Halliday was appointed as a Director on 17 March 2016.
2: Mr M Bowles resigned as Non-Executive Director on 11 April 2016.
3: Mr B Dunnachie resigned 15 March 2017.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(140,000)
-
200,000
5,665,000
(2,375,001)
416,650
-
520,000
200,000
5,665,000
766,650
-
520,000
200,000
5,665,000
-
766,650
140,000
Balance
at start of the
year
Granted as
remuneration
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable
2017
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday1
1,500,000
3,500,000
3,500,000
Other key management personnel
-
-
-
Mr M Harden
Mr B Dunnachie3
Mr J Byrde
1,350,000
650,000
100,000
900,000
-
-
2016
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday1
Mr M Bowles2
1,250,000
1,500,000
-
3,500,000
750,000
2,000,000
1,000,000
-
Other key management personnel
Mr M Harden
Mr B Dunnachie3
1,750,000
450,000
600,000
400,000
1: Mr H Halliday was appointed as a Director on 17 March 2016.
2: Mr M Bowles resigned as a Director on 11 April 2016.
3: Mr B Dunnachie resigned 15 March 2017.
L. Loans to key management personnel
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(650,000)
-
(500,000)
-
-
(3,500,000)
1,500,000
3,500,000
3,500,000
2,250,000
-
100,000
1,500,000
3,500,000
3,500,000
-
1,500,000
3,500,000
3,500,000
1,350,000
-
100,000
750,000
1,500,000
2,500,000
-
(1,000,000)
(200,000)
1,350,000
650,000
750,000
250,000
There were no loans made to directors of Alicanto Minerals Limited and other key management personnel of the group, including their
close family members or entities related to them.
Alicanto Minerals Limited | 31
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)
M. Other transactions with key management personnel
Mr D Murcia was formally a Non-Executive Director of Gryphon Minerals Limited which shares office and administration service
costs on normal commercial terms and conditions.
Mr D Murcia is a Director of Murcia Pestell Hillard a company which provides legal services on normal commercial terms and
conditions.
Mr H Halliday is a Non-Executive Director of Venture Minerals Limited and Blackstone Minerals which shares office and
administration service costs on normal commercial terms and conditions.
Recharges from Director related entities:
Recharge of costs by Gryphon Minerals Limited
Recharge of costs by Venture Minerals Limited
Recharge of costs by Blackstone Minerals Limited
Purchases from Director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
2017
$
15,520
39,008
16,004
Consolidated
2016
$
23,401
8,103
-
38,198
72,808
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
3,856
2,147
End of Remuneration Report.
14.
Shares under Option
Unissued ordinary shares of Alicanto Minerals Limited under option at the date of this report are as follows:
Date Options Granted
Expiry Date
Exercise Price
Number under Option
22 Nov 13
12 Sep 14
27 Nov 14
02 Apr 15
25 May 16
15 Jul 16
28 Jul 16
24 July 17
18 Aug 17
21 Nov 17
07 Sept 18
07 Sept 18
25 Mar 19
30 Apr 21
31 Jul 19
28 Jul 19
28 Jul 19
28 Jul 19
$0.320
$0.230
$0.230
$0.065
$0.001
$0.130
$0.230
$0.280
$0.280
1,250,000
6,800,000
1,250,000
2,000,000
6,250,000
348,000
5,960,000
9,107,031
4,250,000
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
15.
Proceedings on behalf of the Company
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.
Alicanto Minerals Limited | 32
A L I C A N T OM I N E R A L S L I M I T E D
Directors’ Report
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
Mr H Halliday
17.
Insurance of Officers
Directors Meetings
Number Eligible
to Attend
7
7
7
Meetings
Attended
7
7
7
Subsequent to the financial year end, Alicanto Minerals Limited has paid a premium of $8,890 (2016: $6,950) 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.
18.
Auditors Independent Declaration & Non-Audit Services
The lead auditor’s independence declaration for the year ended 30 June 2017 has been received and can be found on page 34 of the
Directors’ report. No fees were paid or payable to the auditors for non-audit services performed during the year ended 30 June 2017.
Signed in accordance with a resolution of the Board of Directors.
Travis Schwertfeger
Managing Director
Perth Western Australia, 28 September 2017
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 full 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 | 33
A L I C A N T OM I N E R A L S L I M I T E D
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
36
37
38
39
40
59
60
These financial statements are the consolidated financial statements of the consolidated entity consisting of Alicanto Minerals
Limited and its subsidiaries. The financial statements are presented in the Australian currency.
Alicanto Minerals Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Alicanto Minerals Limited
Suite 3, Level 3,
24 Outram Street
WEST PERTH WA 6005
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 22 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 28 September 2017. 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 | 35
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2017
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:
Note
3(a)
3(b)
4(a)
23
4(b)
4(c)
10
6(a)
Consolidated
2017
$
156,584
157,946
(195,433)
(82,814)
(353,604)
(468,966)
(10,468)
(58,743)
(30,605)
(36,175)
(6,351)
(265,900)
2016
$
25,917
167,870
(104,117)
(152,040)
(173,466)
(390,696)
(17,592)
(44,475)
(10,335)
(13,786)
(2,463)
(764,559)
(1,194,529)
(1,479,742)
-
-
(1,194,529)
(1,479,742)
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
15(b)
30,050
26,260
-
Total comprehensive (loss) attributable to owners
(1,164,479)
(1,453,482)
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
17
17
(1.3)
N/A
(2.4)
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 | 36
Consolidated Statement of Financial Position
As at 30 June 2017
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Trade and Other Receivables
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(a)
8(b)
9
10
11
12
13(a)
15(c)
Consolidated
2017
$
2016
$
1,836,953
84,836
1,216,247
46,034
1,921,789
1,262,281
20,000
239,550
611,288
870,838
-
151,480
611,288
762,768
2,792,627
2,025,049
503,289
60,005
563,294
563,294
495,793
33,104
528,897
528,897
2,229,333
1,496,152
9,117,041
1,915,900
(8,803,608)
7,577,323
1,527,908
(7,609,079)
2,229,333
1,496,152
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 37
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2017
Consolidated
Balance at 1 July 2015
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
$
$
6,537,079
(6,129,337)
19,175
1,091,777
1,518,694
-
-
-
(1,479,742)
-
(1,479,742)
-
26,260
26,260
-
-
-
(1,479,742)
26,260
(1,453,482)
1,040,244
-
1,040,244
-
-
-
-
-
-
-
390,696
390,696
1,040,244
390,696
1,430,940
Balance at 30 June 2016
7,577,323
(7,609,079)
45,435
1,482,473
1,496,152
Balance at 1 July 2016
Total comprehensive income for the year:
Loss for the year
Foreign exchange differences
7,577,323
(7,609,079)
45,435
1,482,473
1,496,152
-
-
-
(1,194,529)
-
(1,194,529)
-
30,050
30,050
-
-
-
(1,194,529)
30,050
(1,164,479)
Transactions with owners in their capacity as
owners:
Contributions of equity (net of transaction costs)
Share based payment transactions
1,331,394
208,324
1,539,718
-
-
-
-
-
-
-
357,942
357,942
1,331,394
566,266
1,897,660
Balance at 30 June 2017
9,117,041
(8,803,608)
75,485
1,840,415
2,229,333
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 38
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2017
Cash Flows from Operating Activities
Receipts from customers (inclusive of goods and services tax)
Exclusivity payment received
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation
Contributions received from farm-in partners
Note
Consolidated
2017
$
2016
$
290,706
-
(708,970)
18,856
(4,499,662)
4,297,548
50,935
105,918
(448,222)
5,317
(1,760,971)
1,462,559
Net cash (outflow) from operating activities
18
(601,522)
(584,464)
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Payments for security deposits
Net cash (outflow) 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 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
(186,467)
(20,000)
(32,993)
-
(206,467)
(32,993)
1,566,870
(138,175)
1,049,295
(25,717)
1,428,695
1,023,578
620,706
1,216,247
1,836,953
406,121
810,126
1,216,247
2016
$
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 | 39
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies
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)
(b)
(i)
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.
Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alicanto Minerals Limited as at
30 June 2017 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 26.
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.
Segment reporting
(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.
ii)
Equipment Hire
Equipment hire income is recognised through the rental of exploration equipment as part of the Barrick Earn-In agreement.
Alicanto Minerals Limited | 40
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies (continued)
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.
Trade and other receivables
(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:
Alicanto Minerals Limited | 41
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies (continued)
Property, plant and equipment (continued)
(k)
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.
(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.
Alicanto Minerals Limited | 42
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies (continued)
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’).
(q) Contributed equity
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.
Alicanto Minerals Limited | 43
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies (continued)
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
A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet mandatorily
applicable to the group have not been applied in preparing these consolidated financial statements. Those which may be relevant to
the group are set out below. The group does not plan to adopt these standards early.
(i)
AASB 9 Financial Instruments and associated Amending Standards (applicable for annual reporting period commencing 1 January
2018).
The Standard will be applicable retrospectively (subject to the comment on hedge accounting below) and includes revised
requirements for the classification and measurement of financial instruments, revised recognition and derecognition
requirements for financial instruments and simplified requirements for hedge accounting.
Key changes made to this standard that may affect the Group on initial application include certain simplifications to the
classification of financial assets, simplifications to the accounting of embedded derivatives, and the irrevocable election to
recognise gains and losses on investments in equity instruments that are not held for trading in other comprehensive income.
The directors anticipate that the adoption of AASB 9 will not have a material impact on the Group’s financial instruments.
(ii) AASB 16: Leases (applicable to annual reporting periods commencing on or after 1 January 2019).
AASB 16 removes the classification of leases as either operating leases or finance leases for the lessee effectively treating all
leases as finance leases. Short term leases (less than 12 months) and leases of a low value are exempt from the lease accounting
requirements. Lessor accounting remains similar to current practice.
The directors anticipate that the adoption of AASB 16 will not have a material impact on the Group’s recognition of leases and
disclosures.
Alicanto Minerals Limited | 44
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
1.
Summary of Significant Accounting Policies (continued)
(iii) AASB 2014-10: Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (applicable to annual reporting periods commencing on or after 1 January 2018).
This Standard amends AASB 10: Consolidated Financial Statements with regards to a parent losing control over a subsidiary
that is not a “business” as defined in AASB 3: Business Combinations to an associate or joint venture and requires that:
-
-
-
a gain or loss (including any amounts in other comprehensive income (OCI)) be recognised only to the extent of the
unrelated investor’s interest in that associate or joint venture;
the remaining gain or loss be eliminated against the carrying amount of the investment in that associate or joint venture;
and
any gain or loss from remeasuring the remaining investment in the former subsidiary at fair value also be recognised only
to the extent of the unrelated investor’s interest in the associate or joint venture. The remaining gain or loss should be
eliminated against the carrying amount of the remaining investment.
The directors anticipate that the adoption of AASB 2014-10 will not have a material impact on the Group’s Financial
Statements.
(iv) AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods commencing on or after 1 January 2018).
When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-
based model. Apart from a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all
contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to
customers and potential customers. This Standard will require retrospective restatement, as well as enhanced disclosures
regarding revenue.
The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or
services. To achieve this objective, AASB 15 provides the following five-step process:
identify the contract(s) with a customer;
identify the performance obligations in the contract(s);
▪
▪
▪ determine the transaction price;
▪
▪
allocate the transaction price to the performance obligations in the contract(s); and
recognise revenue when (or as) the performance obligations are satisfied.
The directors anticipate that the adoption of AASB 15 will not have a material impact on the Group’s Financial Statements.
(v)
Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the
current or future reporting periods and on foreseeable future transactions
2.
Critical accounting estimates and judgements
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)
(c)
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.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences when management considers that it is probable that
future taxable profits will be available to utilise those temporary differences.
Alicanto Minerals Limited | 45
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
3. Revenue
(a)
Revenue from continuing operations
Equipment rental
Interest received
Total revenue from continuing operations
(b) Other income
Management fees from farm-in partners
Exclusivity fee
Foreign exchange gain
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
Plant and equipment – field
Plant and equipment – motor vehicle
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
2017
$
133,592
22,992
156,584
157,114
-
832
157,946
332,782
20,822
353,604
6,548
10,098
19,529
36,175
6,351
6,351
2017
$
29,598
-
-
29,598
Consolidated
2016
$
20,600
5,317
25,917
30,335
105,918
31,617
167,870
158,635
14,831
173,466
2,835
3,853
7,098
13,786
2,463
2,463
Consolidated
2016
$
19,571
-
-
19,571
Alicanto Minerals Limited | 46
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
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
2017
$
2016
$
-
-
-
-
-
-
-
-
-
-
-
-
(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 27.5% (2016: 30%)
(1,194,529)
(328,495)
(1,479,742)
(443,922)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
- Share based payments
- Other non-deductible amounts
- Unrecognised tax losses
128,966
80,346
119,183
117,209
124,737
201,976
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 27.5% (2016: 30%)
(f)
Unrecognised temporary differences
Unrecognised deferred tax asset relating to capital raising costs
5,385,985
1,481,145
4,952,593
1,485,778
57,404
66,935
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 | 47
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
7.
(a)
Cash & Cash Equivalents
Total cash and cash equivalents
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Consolidated
2017
$
2016
$
836,953
1,000,000
1,836,953
1,216,247
-
1,216,247
Note that cash includes $398,905 in funds received from farm-in partners and held on trust for current and future
exploration programs.
Cash at bank and on hand
Cash on hand is non-interest bearing. Cash at bank bears interest rates between 0.00% and 0.60% (2016: 0.00% and 0.95%).
Cash at bank and on hand
Deposits at call as at June 2017 were bearing interest at between 2.10% and 2.55%. There were no deposits at call as at June
2016.
Trade & Other Receivables
Current
Other receivables
Prepayments
Total current trade and other receivables
Non-Current
Deposits
Total non-current trade and other receivables
70,158
14,678
84,836
20,000
20,000
32,255
13,779
46,034
-
-
(b)
(c)
8.
(a)
(b)
(c)
Past due and impaired receivables
As at 30 June 2017, there were no other receivables that were past due or impaired (2016: nil).
Alicanto Minerals Limited | 48
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
Consolidated
Plant &
Equipment
Office
$
Plant &
Equipment
Field
$
Motor
Vehicles
Total
$
$
9. Property, Plant and Equipment
Year ended 30 June 2016
Opening net book amount
Additions
Depreciation charge
Effect of exchange rates
Closing net book amount
At 30 June 2016
Cost or fair value
Accumulated depreciation
Net book amount
Year ended 30 June 2017
Opening net book amount
Additions
Depreciation charge
Effect of exchange rates
Closing net book amount
At 30 June 2017
Cost or fair value
Accumulated depreciation
Net book amount
10.
(a)
Exploration & Evaluation Expenditure
Non-current
Opening balance
Exploration and evaluation costs
Contributions received from farm-in partners
Exploration expensed
Total non-current exploration and evaluation expenditure
(b)
Recoverability of capitalised costs
Exploration expenditure is expensed as incurred.
6,450
3,750
(2,835)
-
7,365
15,736
(8,371)
7,365
7,365
8,951
(4,376)
-
11,940
24,687
(12,747)
11,940
14,135
30,847
(3,853)
(1,883)
39,246
45,309
(6,063)
39,246
39,246
50,324
(12,270)
254
77,554
94,002
(16,448)
77,554
32,827
69,444
(7,098)
9,696
104,869
110,010
(5,141)
104,869
104,869
77,431
(19,529)
(12,715)
150,056
183,393
(33,337)
150,056
53,412
104,041
(13,786)
7,813
151,480
171,055
(19,575)
151,480
151,480
136,706
(36,175)
(12,461)
239,550
302,082
(62,532)
239,550
Consolidated
2017
$
2016
$
611,288
4,563,448
(4,297,548)
(265,900)
611,288
611,288
2,111,929
(1,347,370)
(764,559)
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.
Alicanto Minerals Limited | 49
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
11. Trade & Other Payables
Current
Trade payables
Contributions received from farm-in partners held on trust
Total current trade & other payables
No trade or other payables are considered past due.
12. Provisions
Current
Employee entitlements
Total current provisions
Consolidated
2017
$
104,384
398,905
503,289
2016
$
349,858
145,935
495,793
60,005
60,005
33,104
33,104
13.
(a)
Contributed Equity
Issued capital
Ordinary shares (fully paid)
Total contributed equity
(b) Ordinary Shares
Consolidated
Consolidated
2017
Shares
2016
Shares
2017
$
$
2016
$
$
85,256,251
85,256,251
72,036,251
72,036,251
9,117,041
9,117,041
7,577,323
7,577,323
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 2015
Share issue
Share issue
Less: Transaction costs
Closing Balance at 30 June 2016
-
Opening Balance 1 July 2016
Share issue
Exercise of Options
Exercise of Options
Exercise of Options
Exercise of Options
Exercise of Options
Less: Transaction costs
Closing Balance at 30 June 2017
14 Mar 16
14 Mar 16
-
28 Jul 16
06 Oct 16
08 Feb 17
16 Feb 17
10 Mar 17
22 Mar 17
57,629,001
416,650
13,990,600
72,036,251
72,036,251
11,600,000
250,000
400,000
375,000
525,000
70,000
85,256,251
$0.040
$0.075
$0.13
$0.301
$0.097
$0.097
$0.097
$0.097
6,537,079
16,666
1,049,295
(25,717)
7,577,323
7,577,323
1,508,000
75,279
38,845
36,417
50,984
6,798
(176,605)
9,117,041
Alicanto Minerals Limited | 50
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
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
2017 unlisted share option details
21 Nov 17
07 Sept 18
25 Mar 19
28 July 19
31 July 19
30 Apr 21
$0.320
$0.230
$0.065
$0.23
$0.13
$0.001
Weighted average exercise price
2016 unlisted share option details
31 Jul 15
31 Jul 15
31 May 16
21 Nov 17
07 Sept 18
25 Mar 19
30 Apr 21
$0.200
$0.300
$0.200
$0.320
$0.230
$0.065
$0.001
Weighted average exercise price
1,250,000
8,300,000
2,000,000
-
-
6,970,000
18,520,000
$0.132
5,850,000
500,000
3,550,000
1,250,000
8,300,000
2,000,000
-
21,450,000
$0.208
-
-
-
5,960,000
348,000
900,000
7,208,000
$0.20
-
-
-
-
-
-
6,970,000
6,970,000
$0.001
-
(250,000)
-
-
-
(1,370,000)
(1,620,000)
$0.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,850,000
500,000
3,550,000
-
-
-
-
9,900,000
$0.205
1,250,000
8,050,000
2,000,000
5,960,000
348,000
6,500,000
24,108,000
$0.16
-
-
-
1,250,000
8,300,000
2,000,000
6,970,000
18,520,000
$0.132
15. Reserves
(a) Unlisted option reserve
Opening balance
Unlisted options issued
Exercise of options
Closing balance
2017
$
1,482,473
507,396
(149,454)
1,840,415
Consolidated
2016
$
1,091,777
390,696
-
1,482,473
2016
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. This includes expense recognised to the Profit and Loss of $468,966 and $38,430
recognised in share issue costs.
(b) Functional currency translation reserve
Opening balance
Exchange differences arising on translation of foreign operations
Closing balance
45,435
30,050
75,485
19,175
26,260
45,435
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
1,840,415
75,485
1,915,900
1,482,473
45,435
1,527,908
Alicanto Minerals Limited | 51
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
16.
Financial Instruments, Risk Management Objectives and Policies
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
2017
Financial assets
Cash and cash equivalents
Trade & other receivables (current)
Trade & other receivables (non-current)
Financial Liabilities
Trade and other payables (current)
1.43%
0.00
2.10%
0.00
Weighted
Average
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
$
Non-
interest
Bearing
$
350,688
-
-
350,688
1,000,000
-
20,000
1,020,000
486,265
84,836
-
571,101
-
-
Consolidated
2016
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
$
0.57
0.00
0.00
660,569
-
660,569
-
-
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 2017, 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.
Alicanto Minerals Limited | 52
2017 Total
$
1,836,953
84,836
20,000
1,941,789
-
-
-
-
-
-
-
503,289
503,289
503,289
503,289
Non-
interest
Bearing
$
555,678
32,255
587,933
2016 Total
$
1,216,247
32,255
1,248,502
495,793
495,793
495,793
495,793
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
16.
(c)
Financial Instruments, Risk Management Objectives and Policies (continued)
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
2017
$
2016
$
(1,194,529)
(1,479,742)
83,419,703
61,871,136
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 exchange differences
Changes in assets and liabilities:
- Decrease/(Increase) in operating receivables & prepayments
- Increase/(Decrease) in operating trade and other payables
Net cash (outflows) from Operating Activities
(1,194,529)
36,175
468,966
24,364
(38,803)
102,305
(601,522)
(1,479,742)
13,786
407,362
15,306
71,955
386,869
(584,464)
19. Commitments
Exploration/tenure commitments
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
Total exploration commitments
2017
$
372,500
2,676,250
-
3,048,,750
Consolidated
2016
$
712,270
3,722,618
-
4,434,888
In order to maintain rights of tenure to exploration/mining tenements subject to these agreements, the group would have
the above discretionary exploration and tenure 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.
Segment Information
(a)
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.
Alicanto Minerals Limited | 53
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
20.
Segment Information (continued)
(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 2016 is as
follows:
Exploration
Australia
$
Corporate
$
2017
Total segment revenue
Equipment rental
Interest revenue
Depreciation and amortisation expense
Guyana
$
133,592
133,592
-
(31,798)
Total segment (loss) before income tax
(282,154)
Total segment assets
Total segment liabilities
2016
Total segment revenue
Equipment rental
Interest revenue
Depreciation and amortisation expense
925,003
434,910
20,600
20,600
-
(10,951)
Total segment (loss) before income tax
(735,782)
Total segment assets
Total segment liabilities
884,583
434,138
Total
$
156,584
133,592
22,992
(36,175)
22,992
-
22,992
(4,377)
(912,375)
(1,194,529)
1,867,624
2,792,627
128,384
5,317
-
5,317
(2,835)
563,294
25,917
20,600
5,317
(13,786)
(743,960)
(1,479,742)
1,140,466
2,025,049
94,759
528,897
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(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)
Segment revenue
No inter-segment sales occurred during the current financial year. The entity is domiciled in Australia. A detailed breakdown of
other revenue is as follows;
Equipment rental - Guyana
Interest received - Australia
Total revenue from continuing operations (Note 3a)
2017
$
133,592
22,992
156,584
Consolidated
2016
$
20,600
5,317
25,917
(e)
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.
21.
Events Occurring After the Balance Sheet Date
▪ On 23 June 2017, the Company announced a Pro-rata Renounceable Rights Issue of which the key terms of the rights issue
are as follows:
o A pro-rata renounceable rights issue for one (1) new share for every four (4) shares held at an issue price of $0.14;
and
o One (1) free attaching listed option for every (2) new shares subscribed for exercisable at $0.28 on or before 28 July
2019;
o Rights issue is partially underwritten by CPS Capital Group Pty Ltd for up to $1.0 million;
Alicanto Minerals Limited | 54
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
21.
Events Occurring After the Balance Sheet Date (continued)
o On 26 July 2017, the Company issued 18,214,062 new shares under the Rights Issue raising gross proceeds of
$2,549,969; and
o 9,107,031 free attaching new listed options were issued with an exercise price of $0.28 on or before 28 July 2019.
▪ On 18 August 2017, the company finalised the Rights Issue Shortfall and an additional placement to Sprott Group taking the
total placement to $3.75m as follows:
o Under the rights issue shortfall, 3,100,000 ordinary shares were allotted at $0.14 and 1,550,000 free attaching listed
options exercisable at $0.28 on or before 28 July 2019 raising gross proceeds of $434,000;
o The additional placement was finalised issuing 5,400,000 ordinary shares were allotted at $0.14 and 1,700,000 free
attaching listed options exercisable at $0.28 on or before 28 July 2019 raising gross proceeds of $756,000.
▪ As announced on the ASX on 1 September 2017, the company executed several option agreement granting the Company
exclusive rights to explore and acquire a 100% beneficial interest in mining permits totalling approximately 60km2 that are
contiguous with the Company’s Ianna Gold Project. The agreements with the five private owners of various permits and
claims total US$108,000 with option periods ranging from 2 to 4 years. The various agreements total US$111,000 over the
next 12 months;
▪ There are no further material events subsequent to balance date.
22. Related Party Transactions
(a)
(b)
Parent entity
The ultimate parent entity within the group is Alicanto Minerals Limited.
Subsidiaries
Interests in subsidiaries are set out in note 26.
(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
Recharge of costs by Venture Minerals Limited
Recharge of costs by Blackstone Minerals Limited
2017
$
635,169
24,384
350,173
1,009,726
Consolidated
2016
$
481,711
19,134
272,159
773,004
2017
$
15,520
39,008
16,004
Consolidated
2016
$
23,401
8,103
-
Purchases from director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
38,198
72,808
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
3,856
2,147
(e)
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.
Alicanto Minerals Limited | 55
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
23.
Share Based Payments
(a)
(b)
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
During the year 7,208,000 unlisted options were issued, with the weighted average fair value of the options granted during the
year being $0.0472 (2016: $0.096). The price was calculated by using the Black-Scholes European Option Pricing Model
applying the following inputs:
2017
$0.197
Weighted average exercise price:
3.2 Years
Weighted average life of the option:
$0.27.7
Weighted average underlying share price:
Expected share price volatility:
85.0%
Risk free interest rate between: 1.80%
Discount factor for lack of marketability
0%
(2016: $0.001)
(2016: 5Years)
(2016: $0.097)
(2016: 85.0%)
(2016: 1.82%)
(2016: 0%)
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 are as set out in (d) below. Details of other
options movements and balances are set out in note 14.
(c)
Fair value of unlisted shares issued
During the year, nil fully paid ordinary shares were issued to employees in lieu of salary. Total fair value of the shares issued
was nil (2016: $16,666).
(d)
Reconciliation of share based payments
Options issued to directors, employees and consultants
Shares issued in lieu of salary
Consolidated
2017
$
468,966
-
468,966
2016
$
390,696
16,666
407,362
24. Contingent Liabilities
Alicanto has entered into a number of agreements on the exploration tenure at the Arakaka Project and there are contingent
liabilities that exist as follows;
i)
Purchase of alluvial rights should the company wish to progress to development which is to a maximum of US$2.2
million in cash.
ii) Net smelter royalties of up to 2.5%.
As per the Ianna Project Acquisition as finalised and announced on the ASX on 8 November 2016, the company has a
contingent liability that exists as follows:
i)
ii)
Can elect to acquire the property for a lump sum of US$3.0m or;
A lump sum payment of US$1.35m and a net smelter royalty of up to 2.0%.
There are no further contingent liabilities outstanding at the end of the year.
25.
Interest in Farm-in/Farm-out Arrangements
Alicanto announced on 1 March 2016 that it had entered into an Earn-in Agreement with Barrick Gold Corporation (“Barrick”)
whereby the Company granted Barrick the exclusive right to acquire a 65% interest in the Arakaka Gold Project. Barrick may
earn up to a 65% interest in the Arakaka Project by meeting US$10 million in funding requirements, including;
i) US$8 million in exploration expenditures over four years; and
ii) US$2 million paid to Alicanto upon completion of the exploration earn-in expenditures.
Alicanto Minerals Limited | 56
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
25.
Interest in Farm-in/Farm-out Arrangements (continued)
Barrick may only withdraw from the Earn-in Agreement after contributing a minimum of US$1.8 million by the end of the first
contract year, being 31 December 2016. For each subsequent year during the Earn-in period, Barrick has the option to
continue funding exploration activities to retain its Earn-in Right, subject to minimum cumulative expenditure thresholds for
each year and a total cumulative expenditure of US$8.0 million by 31 December 2019. If Barrick terminates the agreement and
ceases to make contributions at any time during the earn-in period Barrick will forfeit all rights and interest to the Arakaka Gold
Project.
Alicanto will remain the operator during the first two years of the Earn-in and it will receive in any contract year the lesser of
US$100,000 and 5% of the approved annual exploration expenditure towards overheads while utilising the Company’s highly
experienced technical team to manage exploration. Barrick will have the right to become or appoint the operator at any time
after one of the following occurs;
i)
ii)
31 December 2017, provided Barrick has made minimum cumulative expenditure contributions of US$3.2 million as
of such date;
the date on which Barrick's exploration contributions first exceed US$4.0 million; or
iii)
a change in control.
If Barrick funds US$8.0 million in aggregate expenditures prior to 31 December 2019, Barrick can elect to make a payment to
Alicanto of US$2.0 million to exercise its Earn-in Right and acquire a 65% interest in the Arakaka Gold Project. With the
payment of the US$2.0 million to Alicanto, completing a total US$10.0 million contribution, Alicanto and Barrick will form an
incorporated Joint Venture (Arakaka JV). Barrick is permitted to accelerate the balance of the US$8.0 million of expenditure
funding at any time during the Earn-in period.
Once formed, the parties will each be required to contribute to further exploration and feasibility costs on a proportional basis
for Alicanto to retain its 35% interest in the project. Should Alicanto not contribute its attributable costs of the JV prior to a
decision to mine, the Company would dilute to no less than a 15% interest in the Arakaka JV. Alicanto would then be free
carried and retain its 15% interest in the Arakaka JV to a decision to mine. Upon a notice of decision to mine by the Arakaka
JV, Alicanto can elect to either contribute, or convert its interest in the project to a 2% net smelter royalty.
26.
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.
Calrissian (Guyana) Resources Inc.
Manticore Resources (Guyana) Inc.
Banner (Guyana) Inc.
Australia
Guyana
Guyana
Guyana
Guyana
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
A: The proportion of ownership interest is equal to the proportion of voting power held.
2017 %
100
100
100
80
100
2016 %
100
100
100
80
-
Alicanto Minerals Limited | 57
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2017
26.
Subsidiaries (continued)
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
(f) Guarantees
The parent entity has not guaranteed any loans for any entity during the year.
(g) Contingent Liabilities
The parent entity has no contingent liabilities at the end of the financial year.
2017
$
1,835,684
604,794
2,440,478
527,289
-
527,289
9,117,041
1,840,415
(9,044,267)
1,913,189
(1,304,677)
-
(1,304,677)
-
-
-
-
Company
2016
$
1,133,101
580,219
1,713,320
413,114
-
413,114
7,557,323
1,482,473
(7,739,590)
1,300,206
(1,508,984)
-
(1,508,984)
-
-
-
-
Alicanto Minerals Limited | 58
Director’s Declaration
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 35 to 58 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 2017 and of its performance for the financial year ended
on that date; and
(b)
(c)
(d)
the audited remuneration disclosures set out on pages 23 to 32 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.
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, 28 September 2017
Alicanto Minerals Limited | 59
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 18 September 2017 were as follows:
Number Held as at 18 September 2017
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: 11.
Substantial Shareholders
Class of Equity Securities
Fully Paid Ordinary Shares
23
39
110
283
112
567
Class of Equity Securities
Listed Options
10
48
17
85
23
183
The names of the substantial shareholders listed on the company’s register as at 18 September 2017:
Shareholder
Exploration Capital Partners 2014 LP
Harmanis Holdings Pty Ltd
Hamish Halliday
Symorgh Investments Pty Ltd
Voting Rights - Ordinary Shares
Number
9,996,845
7,000,333
5,825,000
5,638,333
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
Unlisted options
Unlisted options
Exercise price
Expiry date Number of options Number of holders
$0.320
$0.230
$0.065
$0.230
$0.130
$0.001
21 November 2017
7 September 2018
25 March 2019
28 July 2019
31 July 2019
30 April 2021
1,250,000
8,050,000
2,000,000
5,960,000
348,000
6,250,000
2
9
2
43
1
7
Alicanto Minerals Limited | 64
Additional Shareholder Information (continued)
Twenty Largest Shareholders
The names of the twenty largest ordinary fully paid shareholders as at 18 September 2017 are as follows:
Shareholder
Number
MERRILL LYNCH AUST NOM PL
HARMANIS HLDGS PL
JAVELIN MINERALS INC
CITICORP NOM PL
HSBC CUSTODY NOM AUST LTD
BNP PARIBAS NOM PL
HALLIDAY HAMISH PETER
J P MORGAN NOM AUST LTD
SIMON JAMES SYD BOLSTER R
SYMORGH INV PL
MCTAVISH IND PL
SYMORGH INV PL
BELLARINE GOLD PL
SAUNDERS CLARE
FAR EAST CAP PL
SWANCAVE PL
HILLARD EVAN CAMPBELL
HARDEN MARCUS
GATTY MARK A T + H L
BNP PARIBAS NOMS PL
27,041,432
7,000,333
4,619,456
4,571,502
4,457,289
3,879,746
3,850,000
3,813,828
3,150,266
2,585,000
1,870,000
1,653,333
1,626,099
1,400,000
1,312,500
1,250,000
1,000,000
891,650
860,500
816,077
77,649,011
% Held of Issued Ordinary
Capital
24.10%
6.24%
4.12%
4.07%
3.97%
3.46%
3.43%
3.40%
2.81%
2.30%
1.67%
1.47%
1.45%
1.25%
1.17%
1.11%
0.89%
0.79%
0.77%
0.73%
69.20%
Twenty Largest Listed Option Holders
The names of the twenty largest Listed Option Holders as at 18 September 2017 are as follows:
Shareholder
MERRILL LYNCH AUST NOM PL
SABET HOSSEIN
SIMON JAMES SYD BOLSTER R
PLAN-1 PL
QI ZI JUAN
ANIKAVA PL
CAMERON SARAH
BEYNON ROBERT + JULIE
CAFFIERI JIMMY F + L
CAFFIERI JIMMY F + L
VETTER ANTHONY JOHN + J
J P MORGAN NOM AUST LTD
GATTY MARK A T + H L
ROOKHARP INV PTY
ZAPPIA NOM PL
LEATHER MARK
FAR EAST CAP PL
SULESKI STOJCE
SWANCAVE PL
PARKER IAN M P + C S
Number
4,250,000
1,425,581
345,026
328,571
314,286
236,500
214,286
200,000
178,572
178,572
165,000
161,250
151,250
150,000
142,857
131,570
131,250
125,000
125,000
125,000
9,079,571
% Held of Listed Options
31.82%
10.67%
2.58%
2.46%
2.35%
1.77%
1.60%
1.50%
1.34%
1.34%
1.24%
1.21%
1.13%
1.12%
1.07%
0.99%
0.98%
0.94%
0.94%
0.94%
67.99%
Alicanto Minerals Limited | 65
Tenement Listing (continued)
As at 18 September 2017
Project
Location
Tenement
Interest as at 18
September 2017
Tassawini
Guyana
Arakaka
Guyana
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
100%
100%
100%
100%
100%
PL-02/2016, GS14:S-26
100%
PL-03/2016, GS14:S-31
100%
PL-04/2016, GS14:S-39
100%
Y-33/000/04, PPMS/680/04
100%
Y-33/001/04, PPMS/681/04
100%
Y-31/000/04, PPMS/463/04
100%
Y-31/001/04, PPMS/464/04
100%
J-81/000/02, PPMS/884/02
100%
J-81/001/02, PPMS/885/02
100%
J-81/002/02, PPMS/886/02
100%
J-59/000/2000, PPMS/1057/2002
100%
J-59/001/2000, PPMS/1058/2002
100%
J-59/002/2000, PPMS 1059/2002
100%
J-59/003/2000, PPMS/1060/2002
100%
J-59/004/2000, PPMS/1061/2002
100%
J-59/005/2000, PPMS/1062/2002
100%
J-59/006/2000, PMS/1063/2002
100%
J-59/007/2000, PPMS/1064/2002
100%
J-59/008/2000, PPMS/1065/2002
100%
J-59/009/2000, PPMS/1066/2002
100%
J-59/010/2000, PPMS/1067/2002
100%
J-59/011/2000, PPMS/1068/2002
100%
J-59/012/2000, PPMS/1069/2002
100%
J-59/013/2000, PPMS/1070/2002
100%
J-59/014/2000, PPMS/1071/2002
100%
51/002/94, Ituni #1
100%
51/003/94, Ituni #2
100%
51/324/74, May
100%
Jars, Jars#1, Jars#2
P-109/000/2000, PPMS/809/2001 100%
P-109/001/2000, PPMS/810/2001 100%
P-109/002/2000, PPMS/811/2001 100%
P-109/003/2000, PPMS/812/2001 100%
P-109/004/2000, PPMS/813/2001 100%
P-109/005/2000, PPMS/814/2001 100%
100%
P-128/000/02, PPMS/707/02
100%
P-128/001/02, PPMS/708/02
100%
P-128/002/02, PPMS/709/02
100%
P-128/003/02, PPMS/710/02
100%
P-128/004/02, PPMS/711/02
100%
P-17/000, PPMS/0222/1994
100%
P-17/001, PPMS/0223/1994
100%
P-8/000/94, PPMS/0074/1994
100%
P-8/001, PPMS/73/1994
Alicanto Minerals Limited | 66
Tenement Listing (continued)
Project
Location
Tenement
Interest as at 18
September 2017
Arakaka
Guyana
Ianna
Guyana
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
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
P-175/MP/000/2015
P-175/MP/001/2015
P-175/MP/002/2015
P-184/MP/000/2015
PL-09/2011, GS14: B-22
PL-10/2011, GS14: B-23
P-633/000, PPMS/1190/2015
P-633/001, PPMS/1191/2015
P-633/002, PPMS/1192/2015
P-633/003, PPMS/1193/2015
P-633/004, PPMS/1194/2015
P-633/005, PPMS/1195/2015
P-642/000, PPMS/123/2016
B-19/MP/000
D-15/MP/000
D-16/MP/000
R-31/MP/002
R-31/MP/003
R-31/MP/004
R-31/MP/005
R-31/MP/000
R-31/MP/001
J-10/MP/000
J-14/MP/000
J-14/MP/001
J-14/MP/002
B-19/MP/000
Baggie
Owen #1
Owen
Emillio
Anita
Joy #2
Joy #3
Patsy
Patsy #1
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
80%1
80%1
80%1
80%1
80%
80%
100%
100%
100%
100%
100%
100%
100%
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
Alicanto Minerals Limited | 67
Tenement Listing (continued)
Project
Location
Tenement
Ianna
Guyana
Karen
Karen #1
Sherry
Sherry #1
Sherry #2
Tracy
Queen
Queen #1
Nick
Nick #1
Ray
Ray #1
Jeff
Interest as at 18
September 2017
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
Notes
E:
PL:
PPMS:
MP:
Exploration License
Prospecting License
Prospecting License Medium Scale
Mining Permit
Alicanto Minerals Limited | 68