ABN 90 141 196 545
al
ABN 81 149 126 858
Annual Report
2018
A L I C A N T OM I N E R A L S L I M I T E D
2018 Annual Report
2
Contents
Corporate Directory
Chairman’s Letter to Shareholders
Directors’ Report
Auditor’s Independence Declaration
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
Schedule of Mineral Tenements
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3
4
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Corporate Directory
Non-Executive Chairman
Didier Murcia AM
Chief Executive Officer
Peter George
Non-Executive Directors
Hamish Halliday
Travis Schwertfeger
Company Secretary
Jamie Byrde
Principal and 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 2018.
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. Alicanto will retain 100% of the Arakaka Project
following a decision by Barrick in June 2018 to withdraw from the Arakaka Earn-in Agreement.
Barrick’s decision follows a US$7.1m investment in regional reconnaissance programs which has highlighted
multiple targets throughout the Arakaka Project. Alicanto will now look to capitalise on the Barrick funded
work, taking the opportunity to focus on higher grade targets not tested during Barrick’s earn-in period.
The 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 the team at Alicanto Minerals for their hard work and commitment over the past 12 months, and our
shareholders for their continued support.
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 consolidated financial statements of the Company and its
controlled entities (“Group”) or (“Consolidated Entity”) for the year ended 30 June 2018 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 Non-Executive Director (resigned as Managing Director 26 June 2018)
Mr Hamish Halliday
Non-Executive Chairman
Non-Executive Director
Mr Peter George was appointed as Chief Executive Officer on 6 August 2018.
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 $2,866,787 (2017: $1,194,529).
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 $2,008,823 in cash and cash equivalents as at 30 June 2018 (2017: $1,836,953). The Directors believe the cash at
year end puts the entity in a sound financial position with sufficient capital to effectively explore its current landholdings.
6.
Business Strategies and 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 year:
On 19 June 2018, the Company announced that it will retain 100% of the Arakaka Project following a decision by Barrick Gold
Corporation (“Barrick”) to withdraw from the Arakaka Earn-in Agreement announced 1 March 2016.
Barrick’s decision follows a US$7.1m investment in regional reconnaissance programs which has highlighted multiple targets
throughout the Arakaka Project for follow-up exploration.
On 26 July 2017, the Company issued 18,214,062 new shares under the Rights Issue raising gross proceeds of $2,549,969; and
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 (including the $2.54m initial Rights Issue) to $3.75m as follows:
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Directors’ Report
7.
Significant Changes in the State of Affairs (continued)
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 115km 2
project area.
8.
Post Balance Date Events
On 6 of August 2018, the Board announced the appointment of Mr Peter George as Chief Executive Officer of the Company.
9.
Review of Operations
Introduction
Alicanto Minerals Limited (‘Alicanto’ or ‘the Company’) (ASX: AQI) is an emerging mineral exploration company focused on the
exploration and development of two highly prospective gold projects in Guyana, South America. The Arakaka gold project and
the Ianna gold project are both located in the underexplored northern Guiana Shield geological terrane. The projects cover
volcano-sedimentary Paleoproterozoic greenstone rocks which are highly prospective for high tonnage, orogenic style gold
deposits.
Alicanto received highly encouraging assay results for both the Ianna and Arakaka Gold projects during the reporting period.
At Arakaka, recent results have identified extensions to historical drilling at both the Purple Heart and Gomes Prospect that have
potential for significant gold resources. Alicanto has defined four targets with significant resource potential for follow-up
exploration activity. The priority targets sit outside the size criteria that has been the focus of regional scale reconnaissance
programmes over the past two years under the prior Barrick joint venture.
At Ianna, the Company has completed over 2,650m of drilling across multiple prospects within the project, intersecting significant
gold mineralisation in all holes (Refer to ASX releases dated 16 February and 19 June 2018) and confirmed multiple targets with bulk
tonnage potential for follow-up exploration.
Financial Performance and Position
The net operating loss after tax for the year ended 30 June 2018 was $2,866,787 (2017: $1,194,529). The loss for the period
includes $2,123,413 (2017: $265,900) in exploration and evaluation expenditure and share based payment expenses of $187,866
(2017: $468,966) were also recognised during the financial year. As at 30 June 2018 the Company had cash of $2,008,823.
Overview of the Arakaka Gold Project
The Arakaka Gold Project covers an area of approximately 300km2 located in a relatively underexplored area within the
Northern Guiana Shield Geological Terrane (refer to Figure 1). 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.
Alicanto’s Arakaka gold project is located in the Barama-Mazaruni supergroup, within one of the last and among the least
explored greenstone belts across the Guiana and West African Shields (refer to Figure 12) that is not yet host to substantial gold
resources. 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.
Overview of the Ianna Gold Project
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 (refer to Figure 1). The permits are
100% held subject to various underlying option agreements held through a direct Guyanese subsidiary of the Company.
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Directors’ Report
9.
Review of Operations (continued)
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.
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.
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.
Operation Report | Arakaka Gold Project (100% Alicanto)
Alicanto is currently advancing exploration on four high grade targets within the Arakaka Project area, each of which the
Company believes has the potential to host significant gold resources. Drill targeting across several prospects has been enhanced
with a US$7.1m investment by Barrick Gold Corp. over the past 2 ½ years.
Overall, the Company has completed several concurrent exploration and drilling programs over the reporting period with all
drilling results for the March to May drilling campaigns and from the Xenopsaris trenching program finalised prior to the
reporting date.
The US$7.1m investment by Barrick in regional reconnaissance programs has highlighted multiple targets throughout the Arakaka
Project, with 8 targets with >1Moz gold potential generated from 1km spaced drilling on over 10km of strike extent within the
Arakaka Main Trend (refer to Figure 2).
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9.
Review of Operations (continued)
Figure 2 | Location of anomalous gold target areas and select Prospects within the >300km2 Arakaka gold Project land position
Barrick funding assessed the two top ranked targets, in-filling each selected target from 1km drill spacing to 300m to 700m
spacing to assess for Barrick size potential. Similarly, reconnaissance drilling to define geology and folding geometry at
Xenopsaris were completed only at a reconnaissance level of work, with no follow-up on multiple 250,000 oz to 500,000oz Au
size potential targets analogous to the drilled mineralisation at the Company’s Gomes Hill Prospect.
Alicanto will now look to capitalise on the Barrick funded work, taking the opportunity to focus on higher grade targets not
tested during Barrick’s earn-in period. The Company has defined four targets with significant resource potential for follow-up
exploration activity. The priority targets sit outside the size criteria that has been the focus of regional scale reconnaissance
programmes over the past two years under the prior Barrick joint venture. High priority targets identified during the quarter
include:
o
Following up on drill results (Refer to ASX release 9 Feb 2015) of:
Gomes Prospect:
o 19.2m @ 3.4g/t gold (incl 6m @ 6.25g/t),
o 17m @ 2.11g/t & 11m @ 3.43g/t gold remains open along strike.
o
Extensions to high grade mineralization, previous drill intersections/trenching (Refer to ASX release dated 27 Mar 2018) includes:
Xenopsaris Prospect:
o 20m @ 2.0g/t gold,
o 6m @ 8.3g/t gold,
o 3m @ 16.4g/t gold
Purple Heart Prospect:
o
Step-out drilling following up on previous intercepts on 800m spaced sections (Refer to ASX release dated 19 June 2018)
includes:
o 13.5m @ 7.4g/t gold
o 48m @ 1.8g/t gold
o 20.5m @ 1.4g/t gold
o 12m @ 1.2g/t gold
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9.
Review of Operations (continued)
Eyelash Prospect:
o
Trenching following up on surface and underground adit channel samples (Refer to ASX releases dated 7 Mar 2017 and 14 Jul 2015)
includes:
o 2m @ 33.4g/t gold
o 0.6m @ 68.4g/t gold
o 10m @ 2.6g/t gold,
o 26.5g/t gold in rock chipping
Gomes Prospect
Trenching Results
The recent results received at the end of the reporting period are located 200m away to the SE of significant surface trench
results including 22m @ 2.02g/t Au.
Recent trenching at Xenopsaris extended up towards the Gomes Prospect includes trenching up to 1.1km to the southeast of
the Gomes prospect (Refer to Figure 3). Two trenches have intersected significant gold mineralisation along strike from the
Gomes Prospect, where extensions to mineralisation south of Gomes have been constrained by the lack of surface geochemical
anomalism Results of trenching (Refer to ASX release dated 19 June 2018) include:
o 6m @ 2g/t gold within 33m @ 0.5g/t and;
o 6m @ 1.2g/t gold at the end of the trench – XETR031
o 15m @ 0.5g/t gold – XETR030
Figure 3 | Location of reported trenching in Gomes prospect area of the Xenopsaris trend with locations of existing drill collars.
Importantly, the results of both trenches are limited by a layer of colluvium shedding off the hill to the SW that obscures surface
geochemical responses. Therefore, any further bodes of significant mineralisation are likely to be obscured in the area.
Mineralisation at Gomes and along the Xenopsaris area is associated with rheological contrasts in the vicinity of the Temberlin
Structure, so mapping of the structure and lithology through trenching and drilling will be important factors in the growth of the
Gomes prospect resource potential.
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9.
Review of Operations (continued)
Figure 4 | Gomes Hill Prospect Cross Section D
Figure 5 | Gomes Hill Cross Section E
There has been limited work between the trench area and the Gomes drilling area where results from previous drilling (refer to
Figures 4 & 5) located approximately 1km along strike from the reported trench results includes better intercepts of (Refer to
ASX release dated 9 February 2015):
o 19.19m @ 3.4g/t gold from 65m, including, 6m @ 6.25g/t gold;
o 17m @ 2.11g/t gold from 46m, including, 4.25m @ 6.12g/t gold;
o 11.0m @ 3.43g/t gold from 62m.
Further trenching is currently being planned to close down the spacing of trenches were possible in context of landform and
regolith setting in the local area and refine drill targeting to identify extensions to the known mineralisation.
Xenopsaris Target Area – Summary of results
Diamond Drill Results
In the reporting period, the Company completed 22 holes for a total of 3,020m’s of reconnaissance diamond drilling covering
over 5km strike extent within the >17km long anomalous gold zone at the Xenopsaris target area. (Refer to ASX releases dated 4
August 2017 and 19 June 2018).
The drilling targeted the fold closure of a high-strain, regional scale antiformal fold hinge (Refer to Figure 6). This structural setting
is similar to those observed at other regionally significant gold deposits within the Guiana Shield, including the 13.7 Moz Au Gros
Rosebel deposit (IAMGOLD) and 6 Moz Au Meriam deposit (Newmont) in neighbouring Suriname.
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9.
Review of Operations (continued)
The reconnaissance drilling successfully identified a regional scale alteration system around mineralisation with a wide zone of
sericite-ankerite-pyrite alteration proximal to mineralised intercepts. Mineralisation is related to quartz-pyrite-gold veins
observed across all lithologic units, but particularly well developed in preferential stratigraphic horizons such as laterally
continuous dolerite bodies and polymict conglomerates. The mineralisation remains open in all directions with potential for
substantial volume and tenor increases with improved definition and refined targeting of structural controls where intersecting
preferential lithologic horizons in the fold complex at Xenopsaris (refer to Figure 6). Better assay results include:
o 6m @ 1.53g/t gold from 30m - XDD013
o 8.3m @ 1.15g/t gold from 9.7m - XDD023
o 1.4m @ 9.14g/t gold from 23m - XDD005
o 1m @ 4.25g/t gold from 30m and 2.25m @ 3.73g/t gold from 124m
o 3m @ 2.19g/t Au from 40m
Figure 6 | Xenopsaris Target area and Gomes Prospect located on the Gomes-Ianna structural corridor with drill collar and trench locations on interpretive regional scale
geology interpretation.
Arakaka Gold Project - Main Trend / Purple Heart Target
1,265m of diamond drilling for nine holes has been completed in the Purple Heart to Concorde Prospects, closing down drill
spacing on the prospective Purple Heart Structure to approximately 750m x 200m spacing over >1.4km of strike length within
the 3.2km long mineralised corridor (Refer to Figure 8).
Assays reported (Refer to ASX release dated 19 June 2018) from ARDD278 are from the Purple Heart Area, 750m northeast along
strike from 13.5m @ 7.36g/t Au in historical drilling with no drilling targeting the structure between the two holes. Current
assays include results of up to 11.95m @ 1.2g/t Au. Mineralisation remains open to the NE along strike for >1km.
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9.
Review of Operations (continued)
Figure 7 | Example of mineralisation in holdeARDD278 at 162.7m drill depth, returning 5.26g/t gold in highly strained quartz feldspar porphysy with sericite-
pyrrhotite-arsenopyrite alteration in selvadge of quartz-chlorite-arsenopyrite-gold veins.
Visible gold was observed in multiple holes including reported significant intervals in ARDD278 and two locations in hole
ARDD279 which is located 200m east on the same section line as ARDD278.
Mineralisation appears to be shallowly dipping (20o) to the NW and consists of three to four sub-parallel mineralised bodies
forming in and around areas of high strain at the margins of Quartz-Feldspar Porphyry bodies hosted in metasediments. The
lowermost mineralised body has been intersected in drilling 400m to the southeast of ARDD278 (refer to Figure 7) with
historical results located over 200m away on the same section (Refer to ASX release dated 26 August 2015) with historical results
including:
o 48m @ 1.8g/t gold
o 20.5m @ 1.4g/t gold
1.3km to the northeast of the ARDD278 drill area is the Concorde Prospect located at the same structural horizon and is
centred on the Purple Heart Structure. These reported results, in combination with Concorde and Purple Heart prospect results
extends the known prospective strike length of the Purple Heart Structure to more than 3.2km (refer to Figure 8).
2016-17 reconnaissance drilling on 300m spaced section lines at Concorde (Refer to ASX releases dated 4 October 2016 and 1 March
2018) intersected:
o 18m @ 1.63g/t gold from 3m in ARDD267 including 9.35m @ 2.71g/t gold
o 9.72m @ 1.44g/t gold from 159m
o 5.1m @ 3.97g/t gold from 71m in ARDD015
o 2.1m @ 1.48g/t gold from 50.1m in ARDD257 with visible gold
o 1.7m @ 1.7g/t gold from 77.5m in ARDD256 with visible gold
o 7m @ 0.55g/t gold from 116m in ARDD254
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9.
Review of Operations (continued)
Figure 8 | Location of recent drilling on the Arakaka Main Trend.
Eyelash Project
The Eyelash Target Area within the greater Arakaka Project area is located approximately 23km to the southwest of the 12 km
long Arakaka Main Trend Target area and is host to extensive alluvial working, with multiple small-scale saprolite pits, which
include dozens of mine shafts and tunnels along a 2km north-south trend, within a 5km long surface gold anomaly (refer to Figure
2) and over 20km of alluvial workings draining from the high tenor gold anomaly.
Four trenches totalling approximately 624 linear metres were completed in the Eyelash area during January of the reporting
period (Refer to ASX release dated 7 March 2018). Two trenches successfully intersected mineralisation at the Kid Prospect and the
Pancho Prospect areas (refer to Figure 9), 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
A more comprehensive trench program is required at the Eyelash Target Area for follow-up work at the Kelly Prospect (refer to
inset in Figure 9) on surface and underground adit channel samples (refer to ASX releases date 7 March 2017 and 14 July 2015)
including:
o 2m @ 33.4g/t gold
o 10m @ 2.6g/t gold, 5.4m @ 2.7g/t gold, and 2m @ 8.2g/t gold (adit sampling)
o 24m @ 1.2g/t gold (including peak rock chips up 26.5g/t gold), and;
o 0.6m @ 68.4g/t gold
The target area retains some of the highest grade gold results from veining with sufficient widths and veining density to support
either surface or underground mining methods with sufficient lateral extent for mineral resource potential.
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9.
Review of Operations (continued)
Figure 9 | 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. With Kelly Prospect Inset map shown below.
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9.
Review of Operations (continued)
Ianna Gold Project (100% Alicanto)
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 (refer to Figure 10). 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.
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.
Highlights of the Ianna Gold Project include:
▪ Three extensive mineralised corridors delivering drill ready targets at six prospects covering over 8km of strike extent
(refer to Figure 11).
▪ 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.
Figure 10 | 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.
At Ianna, recent acquisition and expansion of the project has pulled together three discrete corridors of mineralisation, each with
strong evidence for a system potentially capable of multi-million ounce gold resources. Completion of maiden drill tests at the
Ianna Gold project have identified high grade vein gold mineralisation within the extensive hydrothermal alteration associated
with significant gold assays in previously reported assays at each of four drilled target areas representing over 12km of strike
extent potential across three mineralised structural trends.
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9.
Review of Operations (continued)
Two of the mineralised trends are host to historical drilling associated with extensive surface geochemical survey work, including
over 12,400m of Reverse Circulation and 926m of Diamond 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 release dated 26 July 2016).
Diamond Drill Results
Alicanto completed 2,600m of initial drill tests across multiple targets at the Ianna Gold Project, Guyana.
The recent results have identified high grade vein gold mineralisation within the extensive hydrothermal alteration associated
with significant gold assays in previously reported assays, and have also confirmed mineralisation at a number of conceptual and
previously undrilled target areas.
Results suggest potential for high grade shoots of mineralisation associated with the broad zones of bulk tonnage style
mineralisation identified at each of the target areas assessed as evidenced in previously reported results including (Refer to ASX
releases dated 26 July 2016 and 16 February 2018). The high-grade vein intercepts occur at both the Eastern Extension target, and at
the southern extent of the Ianna Main intrusion (Refer to Figure 11). Better Intercepts from the 2017-18 reporting period (Refer to
ASX releases dated 16 Feb 2018 and 19 June 2018) include:
Ianna Main Intrusion
o 13.9m @ 1.2g/t from surface,
o 8m @ 1.7g/t gold
o 18m @ 1.6g/t gold from 50m, within 89m @ 1.02g/t gold
o 50m @ 2.47g/t Gold at End of Hole
o 58m @ 1.2g/t Gold
o 14m @ 4.27g/t Gold, and
o 12m @ 3.84g/t Gold
o 10.7g/t gold over 1.8m from 43.3m and
o 1.2g/t gold over 6.5m – IDD015
Eastern Extension Trend
o 16.1m @ 1.4g/t gold at end of hole
o 10.8m @ 1.2g/t gold at end of hole
o 26.5g/t gold over 0.5m – IDD013
o 6m @ 6.9g/t gold in trenching
Kings Ransom Trend
o 12m @ 3.99g/t gold in RC
o 20m @ 6.75g/t gold and 22m @ 1.9g/t gold in trenching
Major regional scale shear zone and associated new corridor of gold mineralisation identified in Maiden Drilling (Eastern
Extension).
Results of the initial drilling across all target areas confirmed extensive and pervasive alteration encountered are typical of a large-
scale mineralising system, and the occurrence of visible gold and high grade niche grades within the mineralised zones indicate
potential for increasing volumes of higher grade material with further definition of the geometry of the intrusive body and
structural complexities associated with that favourable lithologic feature.
Work continues through the wet season in Guyana on integrating datasets and prioritising prospect areas for future drilling
targeting high grade shoots and to delineate areas of resource potential within the licence area. Trenching and Auger sampling is
anticipated to be ongoing in support of prospect assessment.
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9.
Review of Operations (continued)
Figure 11 | Ianna Plan Map with drill collar locations and summary of better intercepts received to date.
Ianna Gold Project Acquisition
Alicanto’s wholly owned Guyanese subsidiary retains options and exclusive rights to explore and acquire a 100% beneficial
interest in a number of mining permits totalling approximately 115km2 (Refer to ASX releases dated 7 November 2016 and 1
September 2017). The tenure covers multiple northwest trending mineralised structures, in the highly prospective Barama-
Mazaruni greenstone belt. The land acquisitions form part of a longer-term land consolidation strategy for the Ianna project area
with additional acquisition and application for land subject to exploration results.
Given Alicanto’s preference for an alternative trust holding structure for the Ianna Project to the one currently in place over
tenements acquired under the Option Deed (Refer to ASX release dated 8 November 2016), the ownership holding structure of the
Ianna Project is to be updated, with associated costs to be set-off as against option payments which Alicanto is required to make
to maintain the option. The process of completing the revised nominee ownership documentation and related title transfer to
an Alicanto nominee approved by the Vendor is an ongoing process where the Vendor has advised that the currently appointed
nominee has yet to comply with the Vendor’s direction to execute transfer documentation. Alicanto and the Vendor are
currently working through a legal process to enforce compliance by the vendor’s Guyanese nominee in compliance with the
terms of the current nominee agreement.
About Guyana
The Co-operative Republic of Guyana is located on the Caribbean 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.
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Directors’ Report
9.
Review of Operations (continued)
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. Mining laws are governed by the Mining Act
No. 20 of 1989 (the “Mining Act”) and the Regulations made under Section 136 thereof. Under Section 6 of the Mining Act all
minerals within the lands of Guyana are vested in the state. The Guyana Geology and Mines Commission (“GGMC”) may, with
the approval of the Minister, grant a licence or permit under the Mining Act authorizing the holder of the licence to enter on
Government lands and then search for or mine, take and appropriate, any minerals.
The Mining Act allows for the following licences or permits granted by the GGMC:
a) Prospecting and Mining Licences for prospecting or mining on a large scale for areas between 500 and 12,800 acres (up
to 51.8km2) areas applied for under the Prospecting licence.
b) Prospecting or Mining Permits for prospecting or mining on a medium scale covering between 150 to 1200 acres (up to
4.9km2).
c) Mining Claims for mining on a small scale up to 1500 x 800 ft (up to 0.1km2)
d) Section 97 of the Mining Act also provides for the granting of permission by the Minister for any person to carry out
geological, geographical and other surveys and investigations for the prospecting for or mining of any mineral on such
terms and conditions as may be agreed between the Minister and the applicant for the permission.
Foreign investors and domestic investors receive the same treatment under the applicable laws of Guyana and are equally able to
hold property in Guyana, provided that prospecting or mining permits for medium scale mining and small scale claims may only
be issued to:
•
•
•
•
•
•
an individual who is a citizen of Guyana and an adult;
a partnership consisting of two or more citizens of Guyana;
a company whose entire issued share capital is beneficially owned by citizens of Guyana or by a corporation which has
been established by or under a written law in operation in Guyana, or partly by such citizens and partly by such a
corporation;
a co-operative society registered under the Co-operative Societies Act;
a public corporation, or any other corporate body established by or under any written law in force in Guyana; or
any organization established by the Government or by or under any written law in force in Guyana and authorized to
carry on mining operations.
Large scale prospecting and mining licences may be granted to a body or persons as specified in Sections 17(2) and 17(3) of the
Mining Act which includes a Company within the meaning of the Companies Act. There is no restriction on foreign persons or
companies as shareholders of such companies. Under Section 97(1) of the Mining Act the Minister may permit any person to
carry on geological, geophysical or other surveys or such terms as may be agreed between the Minister and the applicant for the
permission.
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Directors’ Report
9.
Review of Operations (continued)
Figure 12 | Location Map - Arakaka Gold Project
Project Generation
The acquisition of the Arakaka Gold Project 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.
For detailed information on all aspects of the company and its project please visit www.alicantominerals.com.au.
Mineral Resource Estimation
As at 30 June 2018, 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.
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Directors’ Report
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, Officers and Company Secretary
Didier Murcia AM Non-Executive Chairman- appointed 30 May 2012
Qualifications
Experience
LLB, BJuris
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.
Interest in Securities
In January 2014, Mr Murcia was made a Member of the Order of Australia in recognition of his
significant service to the international community.
Fully Paid Ordinary Shares
28 cent Listed Options expiring 28 July 2019
0.1 cent Options expiring 30 April 2021
522,500
1,250
750,000
Other Directorships 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)
Peter George
Qualifications
Experience
Chief Executive Officer – appointed 6 August 2018
BEng (Mining)(WASM)
Mr George has a background in company, project and operations management with experience in gold,
iron-ore, lithium, nickel, zinc, copper and other base metals projects across Australia and Europe,
having worked with major resources companies, mining contractors/consultants and small to mid-cap
miners. Most recently, Mr George held the role of Project Resident Manager at Mineral
Resources Limited, where he was responsible for bringing the 200Mt+ Wodgina Lithium DSO
operation into production within 49 days.
Prior to Mineral Resources Limited, Mr George was Chief Operations Officer at Keras Resources
(AIM) and was responsible for all operational aspects of the company including the rapid progress
of multiple gold projects through the feasibility and approvals process and then into production. Mr
George is a member of the Australasian Institute of Mining and Metallurgy, Graduate of the Australian
Institute of Company Directors and holds a WA First Class Mine Managers Certificate of Competency.
Interest in Securities Nil
Travis
Schwertfeger
Qualifications
Experience
Interest in Securities
Non-Executive Director – appointed 26 June 2018 (previously Managing Director- 15
September 2014)
BSc Geological Engineering, MSc Ore Deposit Geology and Evaluation, MAIG
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 Alicanto’s Guyanese Projects. 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.
Fully Paid Ordinary Shares
28 cent Listed Options expiring 28 July 2019
2,400,000
50,000
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Directors’ Report
12.
Information on Directors, Officers and Company Secretary (continued)
Hamish Halliday
Qualifications
Experience
Interest in Securities
Other Directorships
Company Secretary
Non-Executive Director - appointed 17 March 2016
BSc (Geology), MAusIMM
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.
Fully Paid Ordinary Shares
28 cent Listed Options expiring 28 July 2019
6.5 cent Options expiring 25 March 2019
0.1 cent Options expiring 30 April 2021
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)
5,825,000
75,000
1,000,000
1,000,000
Jamie Byrde BCom CA
Appointed - 16 March 2017
Mr Byrde is a Chartered Accountant with over 14 year’s 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 2018 remuneration report which sets out remuneration 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 2017 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.
M. Loans to key management personnel;
Service agreements;
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 (resigned 26 June 2018 and appointed Non-Executive Director).
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Directors’ Report
13. Audited Remuneration Report (continued)
A. Directors and key management personnel disclosed in this report (continued)
Other Key Management Personnel
Mr M Harden
Mr J Byrde
Chief Geologist (resigned 15 June 2018 and appointed Geological Consultant).
Company Secretary
Since the end of the reporting period, Mr Peter George was appointed as Chief Executive Officer on 6 August 2018.
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 Company’s website
http://www.alicantominerals.com.au/index.php/corporate-profile/corporate-governance.
the Corporate Governance Statement which
inspection on
is available
for
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.
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.
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Directors’ Report
13. Audited Remuneration Report (continued)
D.
Executive remuneration policy and framework (continued)
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.
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.
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Directors’ Report
13. Audited Remuneration Report (continued)
E. Relationship between remuneration and Alicanto Minerals Limited’s performance
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.
G. Voting and comments made at the Company’s 2017 Annual General Meeting
The Company received 100% of “Yes” votes on its remuneration report for the 2017 financial year (2016: 99.85%). 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 2018 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.
Mr Peter George was appointed as Chief Executive Officer of the Company on 6 August 2018.
Short-Term Employee Benefits
Post
Employment
Securities
Total
2018
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Directors
Mr T Schwertfeger1
Other Key Management
Personnel
Mr M Harden2
Mr J Byrde
Cash
Salary &
Fees
$
64,331
20,000
265,765
238,776
50,000
Incentives
$
-
-
-
-
-
-
-
-
Consulting
fees
$
Other
Amounts
$
Super-
annuation
$
-
79,651
2,691
2,691
-
-
2,691
25,248
Options3
$
-
-
-
$
67,022
102,342
293,704
-
2,691
-
4,750
130,904
22,377
369,680
79,818
Total Remuneration
10,764
1: Mr Schwertfeger resigned 26 June 2018 as Managing Director and appointed as Non-Executive Director.
2: Mr Harden resigned as Chief Geologist on 15 June 2018 and was engaged as a Geological Consultant. Remuneration is inclusive of annual leave paid on
638,872
153,281
29,998
912,566
-
79,651
resignation.
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
2017 and 2018 financial year
Short-Term Employee Benefits
Post
Employment
Securities
Total
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
Cash Salary
& Fees
$
49,275
78,563
219,178
210,000
50,700
18,563
626,279
Incentives
$
-
-
-
-
-
-
Other
Amounts
$
Super-annuation
$
Options3
$
$
1,778
1,778
1,778
1,778
1,333
445
8,890
-
3,562
32,038
42,717
83,091
126,620
20,822
85,434
327,212
-
-
-
172,897
17,087
-
384,675
69,120
19,008
24,384
350,173
1,009,726
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 and 2017 financial year
I. Details of share-based compensation and bonuses
Options are issued to directors and executives as part of their remuneration. The options are not 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.
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Directors’ Report
13.
Audited Remuneration Report (continued)
I.
Details of share-based compensation and bonuses (continued)
Options issued – 30 June 2018
There were no options issued to Directors or Executives during the year other than to Other Key Management Personnel for
incentive options issued under the Employee Incentive Scheme. The options vest upon achievement of performance based
milestones as follows:
i) 50% of the options shall vest on 30 April 2021 subject to remaining an employee of the company for 15 months from
date of issue or 500,000 JORC compliant mineral resources estimate.
ii) 50% subject to the employee remaining with the company for 6 months.
Further details of options issued to Directors and key management personnel are as follows:
Granted No.
Fair Value at Gant
Date
$
Total
Remuneration
Represented by
Options
Exercised No.
Other changes
No.
Lapsed
No.
30 June 2018
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger1
-
-
-
-
-
-
Other Key Management Personnel
Mr M Harden4
Mr J Byrde
-
600,000
-
40,871
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 Dunnachie2
Mr J Byrde3
900,000
-
-
32,038
42,717
85,434
172,897
17,087
-
-
-
-
35%
28%
39%
34%
26%
45%
25%
-
-
-
-
(900,000)
-
-
-
-
-
(400,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1: Mr Schwertfeger resigned as Managing Director 26 June 2018 and appointed Non-Executive Director.
2: Mr B Dunnachie resigned on 15 March 2017.
3. Mr J Byrde appointed on 16 March 2017
4. Mr M Harden’s options were granted in Financial Year 2016/17 of which the $130,904 options remuneration expense represents the portion recognised in
current year relating to the vesting conditions attached to Mr Hardens options.
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Directors’ Report
13. Audited Remuneration Report (continued)
I.
Details of share-based compensation and bonuses (continued)
Issue Date
Expiry Date
% Vested in Year
Exercise Price Number of Options
30 June 2018
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger
Other Key Management Personnel
-
-
-
-
-
-
Mr M Harden
Mr J Byrde
Mr J Byrde
30 June 2017
Non-Executive Directors
Mr D Murcia
Mr H Halliday
Executive Director
Mr T Schwertfeger
-
20 Dec 17
20 Dec 17
-
30 Apr 21
28 Jul 19
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
25 May 16
4 Oct 16
25 May 16
30 Apr 21
30 Apr 21
30 Apr 21
-
-
-
-
-
100%
100%
100%
100%
100%
100%
100%
-
-
-
-
-
-
-
$0.001
$0.23
-
300,000
300,000
$0.001
$0.001
750,000
1,000,000
$0.001
2,000,000
$0.001
$0.001
$0.001
600,000
900,000
600,000
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 2018
20 Dec 17
20 Dec 17
30 June 2017
4 Oct 16
28 Jul 19
30 Apr 21
$0.23
$0.001
$0.029
$0.107
$0.135
$0.135
85%
85%
1.94%
2.17%
30 Apr 21
$0.001
$0.309
$0.31
85%
1.70%
0%
0%
0%
Historical volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future
tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate in the
future.
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 $60,000 exclusive of superannuation. From 1 July 2018 a voluntary fee reduction of 30% is in place for a total
base fee of $42,000 exclusive of superannuation.
Eligible to participate in the Company’s Employee Incentive Scheme.
No termination benefit under any circumstances.
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Directors’ Report
13. Audited Remuneration Report (continued)
J.
Services Agreements (continued)
Mr T Schwertfeger, Managing Director (resigned 26 June 2018)
Non-Executive Director a base fee of $36,000 per annum inclusive of superannuation is payable (from 26 June 2018).
Managing Director (resigned 26 June 2018)
Term of Agreement – Ended.
Previous Base fee of $270,000 inclusive of superannuation.
Mr P George, Chief Executive Officer (appointed 6 August 2018)
Term of Agreement – unspecified
Base salary of $246,375 inclusive of superannuation.
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 H Halliday, Non-executive Director
Term of Agreement – unspecified.
Base fee of $20,000 Non-Executive Director and $80,000 Management Consultant inclusive of superannuation.
From 1 July 2018, a voluntary reduction of 30% is in place for a total base fee of $70,000.
Eligible to participate in the Company’s Employee Incentive Scheme.
No termination benefit under any circumstances.
Mr M Harden, Chief Geologist (resigned 15 June 2018, appointed Geological Contractor).
Term of Agreement – ended.
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 | 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)
K.
Equity instruments held by key management personal (continued)
Shares
Balance
at the start of the year
Received on exercise
of options
Other changes
Balance at the end of
the year
2018
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden3
Mr J Byrde
2017
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden2
Mr B Dunnachie1
1: Mr B Dunnachie resigned 15 March 2017.
2. Mr M Harden resigned 15 June 2018.
520,000
200,000
5,665,000
766,650
-
520,000
200,000
5,665,000
766,650
140,000
-
-
-
1,500,000
-
-
-
-
-
-
2,500
100,000
160,000
-
-
-
-
-
-
(140,000)
522,500
300,000
5,825,000
2,266,650
-
520,000
200,000
5,665,000
766,650
-
Unlisted options
Balance
at start of
the year
Granted as
remuneration
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable
2018
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden2
Mr J Byrde
1,500,000
3,500,000
3,500,000
2,250,000
100,000
2017
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden2
Mr B Dunnachie1
Mr J Byrde
1,500,000
3,500,000
3,500,000
1,350,000
650,000
100,000
1: Mr B Dunnachie resigned 15 March 2017.
2. Mr M Harden resigned 15 June 2018.
Listed Options ($0.28,
28 July 2019)
Balance
at start of
the year
2018
Directors of Alicanto Minerals Limited
Mr D Murcia
Mr T Schwertfeger
Mr H Halliday
Other key management personnel
Mr M Harden
Mr J Byrde
-
-
-
-
-
-
-
-
-
600,000
-
-
-
900,000
-
-
Granted as
remuneration
Exercised
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
3,500,000
3,500,000
1,500,000
3,500,000
3,500,000
(1,500,000)
-
750,000
700,000
750,000
400,000
-
-
-
-
(650,000)
-
1,500,000
3,500,000
3,500,000
2,250,000
-
100,000
1,500,000
3,500,000
3,500,000
1,350,000
-
100,000
Other
changes
Balance at
end of the
year
Vested and
exercisable
1,250
50,000
75,000
62,500
-
1,250
50,000
75,000
62,500
-
1,250
50,000
75,000
62,500
-
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)
L.
Loans to key management personnel
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
M. Other transactions with key management personnel
Mr D Murcia is a Director of Murcia Pestell Hillard a company which provides legal services on normal commercial terms and
conditions. Mr D Murcia was formerly a Director Gryphon Minerals which previously shared office space and administration
services.
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 Venture Minerals Limited
Recharge of costs by Blackstone Minerals Limited
Recharge of costs by Gryphon Minerals Limited
Purchases from Director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
Consolidated
2018
$
50,805
155,481
-
2017
$
39,008
16,004
15,520
33,173
38,198
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
22,410
3,856
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
20 Dec 17
20 Dec 17
02 Apr 15
25 May 16
15 Jul 16
28 Jul 16
24 July 17
18 Aug 17
Expiry Date
28 July 19
30 Apr 21
25 Mar 19
30 Apr 21
31 Jul 19
28 Jul 19
28 Jul 19
28 Jul 19
Exercise Price
$0.23
$0.001
$0.065
$0.001
$0.130
$0.230
$0.280
$0.280
Number under Option
1,100,000
550,000
2,000,000
2,750,000
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 | 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
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
6
7
7
Alicanto Minerals Limited has paid a premium of $10,764 (2017: $8,890) 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 and Non-Audit Services
The lead auditor’s independence declaration for the year ended 30 June 2018 has been received and can be found on page 31 of
the Directors’ report. No fees were paid or payable to the auditors for non-audit services performed during the year ended 30
June 2018.
Signed in accordance with a resolution of the Board of Directors.
Travis Schwertfeger
Non-Executive Director
Perth Western Australia, 28 September 2018
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 consultant and 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.
No New Information or Data
This annual report contains references to Exploration Results and Exploration Targets, all of which have been cross referenced to previous market announcements made by the
Company. The Company confirms that it is not aware of any new information or data that materially effects the information in the said announcement. In the case of estimates of
Mineral Resources all assumptions and technical parameters underpinning the estimates have not materially changed.
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
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
28 September 2018
The Directors
Alicanto Minerals Limited
Suite 3, Level 3
24 Outram Street
West Perth, WA 6005
Dear Sirs
RE:
ALICANTO MINERALS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Alicanto Minerals Limited.
As Audit Director for the audit of the financial statements of Alicanto Minerals Limited for the year
ended 30 June 2018, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LIMITED
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Financial Statements
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
33
34
35
36
37
56
57
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 18 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 2018. 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 | 32
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2018
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
Note
3(a)
3(b)
4(a)
23
4(b)
4(c)
10
6(a)
Consolidated
2018
$
194,208
358,908
(326,928)
(74,651)
(437,894)
(187,866)
(51,114)
(71,715)
(38,953)
(99,225)
(8,144)
(2,123,413)
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)
(2,866,787)
(1,194,529)
-
-
(Loss) attributable to owners
(2,866,787)
(1,194,529)
Other comprehensive income:
Items that may be reclassified to profit or loss
-
Items that will not be classified to profit or loss
Exchange differences on translation of foreign operations
15(b)
(105,870)
30,050
-
Total comprehensive (loss) attributable to owners
(2,972,657)
(1,164,479)
Basic and Diluted earnings/(loss) per share (cents per share)
17
(2.6)
(1.4)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying
notes.
Alicanto Minerals Limited | 33
Consolidated Statement of Financial Position
As at 30 June 2018
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
Consolidated
2018
$
2017
$
2,008,823
48,463
1,836,953
84,836
2,057,286
1,921,789
20,000
453,842
884,186
20,000
239,550
611,288
1,358,028
870,838
3,415,314
2,792,627
11
12
538,245
51,685
503,289
60,005
589,930
563,294
589,930
563,294
2,825,384
2,229,333
13(a)
15(c)
12,800,082
1,695,697
(11,670,395)
9,117,041
1,915,900
(8,803,608)
2,825,384
2,229,333
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 34
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2018
Consolidated
Balance at 1 July 2016
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
$
$
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)
1,331,394
208,324
1,539,718
-
-
-
-
-
-
-
1,331,394
357,942
357,942
566,266
1,897,660
Balance at 30 June 2017
9,117,041
(8,803,608)
75,485
1,840,415
2,229,333
Balance at 1 July 2017
Total comprehensive income for the year:
Loss for the year
Foreign exchange differences
9,117,041
(8,803,608)
75,485
1,840,415
2,229,333
-
-
-
(2,866,787)
-
(2,866,787)
-
(105,870)
(105,870)
-
-
-
(2,866,787)
(105,870)
(2,972,657)
Transactions with owners in their capacity as
owners:
Contributions of equity (net of transaction
costs)
Share based payment transactions
3,379,092
303,949
3,683,041
-
-
-
-
-
-
-
3,379,092
(114,333)
(114,333)
189,616
3,568,708
Balance at 30 June 2018
12,800,082
(11,670,395)
(30,385)
1,726,082
2,825,384
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Alicanto Minerals Limited | 35
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2018
Cash Flows from Operating Activities
Receipts from customers (inclusive of goods and services tax)
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation
Contributions received from farm-in partners
Net cash (outflow) from operating activities
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Acquisition of mineral tenements
Payments for security deposits
Note
10
18
9
10
Consolidated
2018
$
2017
$
276,067
(927,161)
57,467
(5,568,674)
3,523,829
290,706
(708,970)
18,856
(4,499,662)
4,297,548
(2,638,472)
(601,522)
(297,602)
(272,898)
-
(186,467)
-
(20,000)
Net cash (outflow) from investing activities
(570,500)
(206,467)
Cash Flows from Financing Activities
Proceeds from issue of shares
Share issue transaction costs
Net cash inflow from financing activities
3,741,720
(360,878)
1,566,870
(138,175)
3,380,842
1,428,695
Net increase in cash and cash equivalents
171,870
620,706
Cash and cash equivalents at the start of the year
1,836,953
1,216,247
Cash and cash equivalents at the end of the year
7
2,008,823
1,836,953
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 | 36
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
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)
Compliance with IFRS
The financial statements of Alicanto Minerals Limited also comply with Australian Equivalents to International Financial
Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements and notes as presented comply
with International Financial Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of
available for sale financial assets.
(iii) Going Concern
The financial report has been prepared on a going concern basis. The directors believe there are sufficient grounds to
believe that the business will be able to continue to pay its debts as and when they fall due. For the year ended 30 June
2018, the Group incurred a loss before tax of $2,866,787 (2017: loss of $1,194,529) and incurred net cash inflows of
$171,870 (2017: $620,706). At 30 June 2018, the Group had total current assets of $2,057,286 (2017: $1,921,789) and total
liabilities of $589,930 (2017: $563,294).
The Group’s ability to continue as a going concern basis is dependent upon maintain sufficient funds for its operations and
commitments. The Directors continue to be focused on meeting the Group’s business objectives and is mindful of the
funding requirements to meet these objectives. The Directors consider the basis of going concern to be appropriate based
on future cash forecasts, existing cash reserves and the ability to significantly reduce activity and preserve cash if necessary.
Furthermore, the Directors are also of the opinion that a capital raising could be achieved to raise additional funds if
required.
Should the Group be unable to undertake the initiatives disclosed above, there is uncertainty which may cast doubt as to
whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a
going concern.
(b)
Principles of consolidation
(i)
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alicanto Minerals Limited as
at 30 June 2018 and the results of all subsidiaries for the year then ended.
Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A
list of subsidiaries is provided in Note 25.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statement of the Group from the
date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that
control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities
are eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where
necessary to ensure uniformity of the accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-controlling
interests”. The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and
are entitled to a proportionate share of the subsidiary’s net assets on liquidation at either fair value or at the non-
controlling interests’ proportionate share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling
interests are attributed their share of profit or loss and each component of other comprehensive income. Non-controlling
interests are shown separately within the equity section of the statement of financial position and statement of profit or
loss.
Alicanto Minerals Limited | 37
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
1.
(b)
(ii)
Summary of Significant Accounting Policies (continued)
Principles of consolidation (continued)
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.
(d) Revenue recognition
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.
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.
Alicanto Minerals Limited | 38
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
1.
(f)
Summary of Significant Accounting Policies (continued)
Leases (continued)
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:
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.
Alicanto Minerals Limited | 39
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
1.
(l)
Summary of Significant Accounting Policies (continued)
Intangibles (continued)
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.
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.
(n) Trade and other payables
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.
Alicanto Minerals Limited | 40
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
1.
(p)
Summary of Significant Accounting Policies (continued)
Employee benefits (continued)
(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)
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.
(ii) 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.1.
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)
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.
(ii) 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.
Alicanto Minerals Limited | 41
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
1.
(t)
Summary of Significant Accounting Policies (continued)
Foreign currency translation (continued)
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.
(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.
Alicanto Minerals Limited | 42
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
Summary of Significant Accounting Policies (continued)
1.
(u) New accounting standards and interpretations (continued)
(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)
New amended standards adopted by the Group
None of the new standards and amendments to standards that are mandatory for the first time for the financial year
beginning 1 January 2017 affected any of the amounts recognised in the current period or any prior period, although it
caused minor changes to the Group’s disclosures.
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) 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.
(b)
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.
(c)
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 | 43
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
Consolidated
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
Other income – reimbursement of exploration
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
Leasehold Improvements
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
2018
$
140,657
53,551
194,208
135,410
223,498
-
358,908
412,646
25,248
437,894
9,854
7,970
38,877
42,524
99,225
8,144
8,144
31,070
-
-
31,070
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
29,598
-
-
29,598
Alicanto Minerals Limited | 44
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
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
2018
$
2017
$
-
-
-
-
-
-
-
-
-
-
-
-
(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% (2017: 27.5%)
(2,866,787)
(788,366)
(1,194,529)
(328,495)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
- Share based payments
- Other non-deductible amounts
- Unrecognised tax losses
51,663
610,082
126,621
128,966
80,346
119,183
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)
(f)
Tax losses
Unused tax losses for which no deferred tax asset has been recognized
Potential tax benefit at 27.5% (2017: 27.5%)
8,024,361
2,206,699
5,385,985
1,481,145
Unrecognised temporary differences
Unrecognised future deductions relating to capital raising costs
Unrecognised deferred tax asset on capital raising costs at 27.5% (2017: 27.5%)
140,587
38,661
57,404
15,786
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 | 45
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
7. Cash and Cash Equivalents
Total cash and cash equivalents
(a)
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Consolidated
2018
$
2017
$
808,823
1,200,000
2,008,823
836,953
1,000,000
1,836,953
Note that cash includes $407,855 (2017: 398,905) in funds received from farm-in partners and held on trust for
current 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 1.00% (2017: 0.00% and
0.60%).
Cash at bank and on hand
Deposits at call as at June 2018 were bearing interest at between 2.05 and 2.10% (2017: 2.10% and 2.55%).
Trade and Other Receivables
Current
Other receivables
Prepayments
Total current trade and other receivables
Non-Current
Deposits
Total non-current trade and other receivables
48,463
-
48,463
20,000
20,000
70,158
14,678
84,836
20,000
20,000
(b)
(c)
8.
(a)
(b)
(c)
Past due and impaired receivables
As at 30 June 2018, there were no other receivables that were past due or impaired (2017: nil).
Leasehold
Improvements
9. Property, Plant and Equipment
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
Year ended 30 June 2018
Opening net book amount
Additions
Depreciation charge
Effect of exchange rates
Closing net book amount
At 30 June 2018
Cost or fair value
Accumulated depreciation
Net book amount
$
-
-
-
-
-
-
-
-
-
-
27,615
(9,854)
-
17,761
27,615
(9,854)
17,761
Consolidated
Plant and
Equipment
Office
$
Plant and
Equipment
Field
$
Motor
Vehicles
Total
$
$
7,365
8,951
(4,376)
-
11,940
24,687
(12,747)
11,940
11,940
15,070
(7,970)
1,163
20,203
41,033
(20,830)
20,203
39,246
50,324
(12,270)
254
77,554
94,002
(16,448)
77,554
77,554
185,759
(38,877)
(19,817)
204,619
260,104
(55,485)
204,619
104,869
77,431
(19,529)
(12,715)
150,056
183,393
(33,337)
150,056
150,056
69,158
(42,524)
34,569
211,259
287,676
(76,417)
211,259
151,480
136,706
(36,175)
(12,461)
239,550
302,082
(62,532)
239,550
239,550
297,602
(99,225)
15,915
453,842
616,428
(162,586)
453,842
Alicanto Minerals Limited | 46
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
10. Exploration and Evaluation Expenditure
(a) Non-current
Opening balance
Exploration and evaluation costs
Acquired Minerals Rights – Ianna Project
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.
Consolidated
2018
$
2017
$
611,288
5,647,242
272,898
(3,523,829)
(2,123,413)
884,186
611,288
4,563,448
-
(4,297,548)
(265,900)
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.
Consolidated
2018
$
167,283
370,962
538,245
2017
$
104,384
398,905
503,289
51,685
51,685
60,005
60,005
11. Trade and Other Payables
Current
Trade payables
Contributions received from farm-in partners held on trust
Total current trade and other payables
No trade or other payables are considered past due.
12. Provisions
Current
Employee entitlements
Total current provisions
13. Contributed Equity
Issued capital
(a)
Ordinary shares (fully paid)
Total contributed equity
(b) Ordinary Shares
Consolidated
Consolidated
2018
Shares
2017
Shares
2018
$
$
2017
$
$
113,720,313
113,720,313
85,256,251
85,256,251
12,800,082
12,800,082
9,117,041
9,117,041
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.
(c) 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.
Alicanto Minerals Limited | 47
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
Date
Shares
Issue Price
Total $
13. Contributed Equity (continued)
(d) Movements in issued capital
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
28 Jul 16
-
06 Oct 16
08 Feb 17
16 Feb 17
10 Mar 17
22 Mar 17
Opening Balance 1 July 2017
Share issue
Exercise of Options
Share Issue
Exercise of Options
Less: Transaction costs
Closing Balance at 30 June 2018
26 Jul 17
-
26 Jul 17
18 Aug 17
30 Apr 18
17
72,036,251
11,600,000
250,000
400,000
375,000
525,000
70,000
85,256,251
85,256,251
18,214,062
250,000
8,500,000
1,500,000
113,720,313
$0.13
$0.301
$0.097
$0.097
$0.097
$0.097
$0.14
$0.0971
$0.14
$0.1864
7,577,323
1,508,000
75,279
38,845
36,417
50,984
6,798
(176,605)
9,117,041
9,117,041
2,549,969
24,278
1,190,000
279,671
(360,877)
12,800,082
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. Share Options
(a)
2018 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
1,250,000
8,050,000
2,000,000
5,960,000
348,000
6,500,000
24,108,000
$0.16
(b) 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
14(c) 2018 Listed Options
1,250,000
8,300,000
2,000,000
-
-
6,970,000
18,520,000
$0.132
-
-
-
1,100,000
-
550,000
1,650,000
$0.035
-
-
-
5,960,000
348,000
900,000
7,208,000
$0.20
-
-
-
-
-
(1,750,000)
(1,750,000)
$0.001
-
(250,000)
-
-
-
(1,370,000)
(1,620,000)
$0.04
(1,250,000)
-
-
-
-
-
(1,250,000)
$0.23
-
-
-
-
-
-
-
-
-
8,050,000
2,000,000
7,060,000
348,000
5,300,000
22,758,000
$0.15
1,250,000
8,050,000
2,000,000
5,960,000
348,000
6,500,000
24,108,000
$0.16
On 26 July 2017, in accordance with the Rights Issue Prospectus issued on 26 June 2017, 9,107,031 listed options were issued with
an exercise price of $0.28 an expiry date of 28 July 2019. A further 4,250,000 listed options were issued on the 18 August 2017
following the final placement of the shortfall of rights taken up by shareholders. Under the prospectus, for every 2 shares acquired,
1 free attaching listed option was granted.
Alicanto Minerals Limited | 48
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
15. Reserves
(a) Unlisted option reserve
Opening balance
Unlisted options issued
Exercise of options
Closing balance
2018
$
1,840,415
187,866
(302,199)
1,726,082
Consolidated
2017
$
1,482,473
507,396
(149,454)
1,840,415
2017
The unlisted option reserve records items recognised on valuation of director, employee and contractor share
options. Information relating to options issued, exercised and lapsed during the financial year and options outstanding
at the end of the financial year, is set out in note 14.
(b) Functional currency translation reserve
Opening balance
Exchange differences arising on translation of foreign operations
Closing balance
75,485
(105,870)
(30,385)
45,435
30,050
75,485
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
1,726,082
(30,385)
1,695,697
1,840,415
75,485
1,915,900
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
2018
Financial assets
Cash and cash equivalents
Trade and other receivables (current)
Trade and other receivables (non-
current)
Weighted
Average
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
$
Non-
interest
Bearing
$
2018 Total
$
1.24%
0.00%
2.05%
4,458
-
-
1,200,000
-
20,000
804,365
48,463
-
2,008,823
48,463
20,000
4,458
1,220,000
852,828
2,077,286
Financial Liabilities
Trade and other payables (current)
0.00%
-
-
-
-
538,245
538,245
538,245
538,245
Alicanto Minerals Limited | 49
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
16. Financial Instruments, Risk Management Objectives and Policies (continued)
(a)
Interest Rate Risk (continued)
Consolidated
2017
Financial assets
Cash and cash equivalents
Trade and other receivables (current)
Trade and other receivables (non-
current)
Weighted
Average
Interest Rate
%
Floating
Interest
Rate
$
Fixed
Interest
$
Non-
interest
Bearing
$
2017 Total
$
1.43%
0.00%
2.10%
350,688
-
-
1,000,000
-
20,000
486,265
84,836
-
1,836,953
84,836
20,000
350,688
1,020,000
571,101
1,941,789
Financial Liabilities
Trade and other payables (current)
0.00%
-
-
-
-
503,289
503,289
503,289
503,289
The maturity date for all cash, trade and 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.
(b) Group 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 2018, the group’s exposure to interest rate risk is not considered material.
(c) 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.
(d)
(d)
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.
Foreign Currency Risk
The Group is exposed to currency risk arising from exchange rate fluctuations on purchases that are denominated in
currency other than the respective functional currencies of the Group entities, primarily the Australian Dollar (AUD) and
Guyanese Dollars (GUD). The currencies in which these transactions are primarily denominated in are AUD, GUY and the
USD.
The Group’s investments in its Guyanese subsidiaries are denominated in AUD and are not hedged as those currency
positions are considered long term in nature. The Group does not have a hedging policy in place.
Alicanto Minerals Limited | 50
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
17. Earnings per Share
Earnings/(Loss)
(a)
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:
(c) Diluted Loss Per Share
Diluted loss per share is considered to be the same as the basic loss per
share, as the potential ordinary shares on issue are anti-dilutive and have
not been applied inf calculating dilutive loss per share.
Consolidated
2018
$
2017
$
(2,866,787)
(1,194,529)
110,003,464
83,419,703
Consolidated
2018
$
2017
$
18. Cash Flow Information
a)
Reconciliation of cash flows from operating activities with loss from ordinary activities after tax:
(2,866,787)
Profit/(loss) from ordinary activities after income tax
99,225
Depreciation
187,866
Share based payments
Net exchange differences
(121,783)
Changes in assets and liabilities:
- Decrease/(Increase) in operating receivables and prepayments
- Increase/(Decrease) in operating trade and other payables
Net cash (outflows) from Operating Activities
36,375
26,632
(2,638,472)
(1,194,529)
36,175
468,966
24,364
(38,803)
102,305
(601,522)
b)
Non-cash investing and financing activities
There were no non-cash investing and financing activities during the year.
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
Consolidated
2018
$
2017
$
1,234,484
2,133,333
-
3,367,817
372,500
2,676,250
-
3,048,750
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 three operating segments, being exploration for mineral reserves and the corporate/head office function in
Australia.
Alicanto Minerals Limited | 51
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
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 2018
is as follows:
Exploration
Guyana
$
Australia
$
2018
Total segment revenue
Equipment rental
Interest revenue
Depreciation and amortisation expense
140,657
140,657
-
(82,182)
Total segment (loss) before income tax
(1,611,530)
Total segment assets
Total segment liabilities
2017
Total segment revenue
Equipment rental
Interest revenue
Depreciation and amortisation expense
1,357,535
384,644
133,592
133,592
-
(31,798)
Total segment (loss) before income tax
(282,154)
Total segment assets
Total segment liabilities
925,003
434,910
-
-
-
-
-
-
-
-
-
-
-
-
-
Corporate
$
53,551
-
53,551
(17,043)
Total
$
194,208
140,657
53,551
(99,225)
(1,255,257)
(2,866,787)
2,057,779
3,415,314
205,286
589,930
22,992
-
22,992
(4,377)
156,584
133,592
22,992
(36,175)
(912,375)
(1,194,529)
1,867,624
2,792,627
128,384
563,294
(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)
Consolidated
2018
$
140,657
53,551
194,208
2017
$
133,592
22,992
156,584
(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.
Alicanto Minerals Limited | 52
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
21. Events Occurring After the Balance Sheet Date
On 6 of August 2018, the Board announced the appointment of Mr Peter George as Chief Executive Officer of the Company.
There are no further post balance date events.
22. Related Party Transactions
(a)
Parent entity
The ultimate parent entity within the group is Alicanto Minerals Limited.
(b)
Subsidiaries
Interests in subsidiaries are set out in note 25.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Total key management personnel compensation
(d)
Transactions with Director Related Parties
The following transactions occurred with related parties:
Recharges from director related entities:
Recharge of costs by Venture Minerals Limited
Recharge of costs by Blackstone Minerals Limited
Recharges of costs by Gryphon Minerals Limited
Purchases from director related entities
Purchases for legal services from Murcia Pestell Hilliard Lawyers
Consolidated
2018
$
729,287
29,998
153,281
912,566
2017
$
635,169
24,384
350,173
1,009,726
Consolidated
2018
$
50,805
155,481
-
2017
$
39,008
16,004
15,520
33,173
38,198
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current payables
22,410
3,856
(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.
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.
Fair value of unlisted options granted
During the year 1,650,000 unlisted options were issued, with the weighted average fair value of the options granted during
the year being $0.0551 (2017: $0.0472). The price was calculated by using the Black-Scholes European Option Pricing
Model applying the following inputs:
2018
$0.154
Weighted average exercise price:
2.2 Years
Weighted average life of the option:
$0.135
Weighted average underlying share price:
Expected share price volatility:
85.0%
Risk free interest rate between: 2.02%
Discount factor for lack of marketability
20%
(2017: $0.197)
(2017: 3.2Years)
(2017: $0.277)
(2017: 85.0%)
(2017: 1.80%)
(2017: 0%)
Alicanto Minerals Limited | 53
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
23. Share Based Payments (continued)
(b)
Fair value of unlisted options granted (continued)
Peer volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future
tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate
in the future. Total share-based payment transactions recognised during the year are as set out in (d) below. Details of
other options movements and balances are set out in note 14.
(c)
Fair value of ordinary shares issued
During the year, there were no fully paid ordinary shares were issued to employees in lieu of salary. Total fair value of the
shares issued was nil (2017: $Nil).
(d)
Reconciliation of share based payments
Options issued to directors, employees and consultants
Shares issued in lieu of salary
Consolidated
2018
$
187,866
-
187,866
2017
$
468,966
-
468,966
24. Contingent Liabilities
Alicanto, through its subsidiaries 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%.
As announced on the ASX on 1 September 2017, the Company entered into several option agreements granting the
Company exclusive rights to explore and acquire a 100% beneficial interest in mining permits doubling the Ianna Project
Landholding. The various agreements with ongoing payments at the Company’s elections total approximately A$150,000
over the next 12 months.
There are no further contingent liabilities outstanding at the end of the year.
25. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1(b):
Name of entity
Equity HoldingA
Country of
incorporation
Alicanto Minerals WA Pty Ltd
StrataGold Guyana Inc.
Calrissian (Guyana) Resources Inc.
Manticore Resources (Guyana) Inc.
Banner (Guyana) Inc.
Australia
Guyana
Guyana
Guyana
Guyana
Class
of shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
2018
%
100
100
100
80
100
2017
%
100
100
100
80
100
A: The proportion of ownership interest is equal to the proportion of voting power held.
Alicanto Minerals Limited | 54
Notes to Alicanto Minerals Limited Financial Statements
For the year ended 30 June 2018
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.
2018
$
2,008,165
622,468
2,630,633
576,248
-
576,248
12,800,082
1,726,082
(12,471,779)
2,054,385
(3,427,512)
(3,427,512)
-
-
-
-
Company
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)
-
-
-
-
Alicanto Minerals Limited | 55
Director’s Declaration
In the Directors’ opinion:
(a)
the financial statements and notes set out on pages 32 to 55 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 2018 and of its performance for the financial year
ended on that date; and
the audited remuneration disclosures set out on pages 20 to 29 of the Directors’ report comply with section 300A of
the Corporations Act 2001; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable; and
the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by
the International Accounting Standards Board.
(b)
(c)
(d)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Travis Schwertfeger
Non-Executive Director
Perth, Western Australia, 28 September 2018
Alicanto Minerals Limited | 56
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ALICANTO MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Alicanto Minerals Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement
of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2018 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Company in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter - Going Concern
Without modification to the audit opinion expressed above, attention is drawn to the following matter.
As referred to in note 1 to the financial report, the financial report has been prepared on a going concern basis. At
30 June 2018, the Group had net assets of $2,825,384, cash and cash equivalents of $2,008,823 and net working
capital surplus of $1,467,356. The Group had incurred a loss for the year ended 30 June 2018 of $2,866,787.
The ability of the Group to continue as a going concern and meet its administration, exploration and other
commitments is dependent upon the Group raising further working capital or commercialisation of its exploration
assets. In the event the Group is unable to raise further working capital and/or commercialise its exploration
assets, the company may not be able to meet its liabilities as they fall due, or realise its assets at their stated
values.
Liability limited by a scheme approved
under Professional Standards Legislation
Key Audit Matters
We have defined the matter described below to be key audit matter to be communicated in our report. Key audit
matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report of the current period. This matter was addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.
Key Audit Matter
How the matter was addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
As at 30 June 2018, Capitalised Exploration and
Evaluation Expenditure totalled $884,186 (refer to
Note 10 of the financial report).
The carrying value of Capitalised Exploration and
Evaluation Expenditure is a key audit matter due
to:
The significance of the expenditure capitalised
representing 26% of total assets;
to assess management’s
The necessity
the
requirements of
the
application of
accounting standard Exploration
for and
Evaluation of Mineral Resources (“AASB 6”),
in light of any indicators of impairment that
may be present; and
The assessment of significant judgements
the
made by management
Capitalised Exploration
and Evaluation
Expenditure.
in relation
to
Inter alia, our audit procedures
following:
included
the
i. Assessing the Group’s right to tenure over
exploration assets by corroborating
the
ownership of the relevant licences for mineral
resources to government registries and relevant
third-party documentation;
ii. Reviewing the directors’ assessment of the
carrying value of the capitalised exploration and
evaluation costs, ensuring the veracity of the
data presented and assessing management’s
consideration of potential impairment indicators,
commodity prices and the stage of the Group’s
projects also against AASB 6;
iii. Evaluation of Group documents for consistency
with the intentions for continuing exploration
and evaluation activities in areas of interest and
corroborated in discussions with management.
The documents we evaluated included:
Minutes of the board and management;
Announcements made by the Group to the
Australian Securities Exchange;
Cash flow forecasts and
iv. Consideration
of
of
the
accounting standard AASB 6 and reviewed the
to ensure appropriate
financial statements
disclosures are made.
requirements
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company’s annual report for the year ended 30 June 2018, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial report.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in Internal control that we identify during our
audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore key audit matters. We describe these
matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 20 to 29 of the directors’ report for the year ended
30 June 2018. The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards
Opinion on the Remuneration Report
In our opinion, the Remuneration Report of Alicanto Minerals Limited for the year ended 30 June 2018 complies
with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
28 September 2018
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 21 September 2018 were as
follows:
Number Held as at 18 September 2018
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and above
Class of Equity Securities
Fully Paid Ordinary Shares
30
80
179
353
124
766
Class of Equity Securities
Listed Options
10
45
13
66
20
154
Holders of less than a marketable parcel: 367.
Substantial Shareholders
The names of the substantial shareholders listed on the company’s register as at 21 September 2018:
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
5,183,333
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 21 November 2017
7 September 2018
$0.230
25 March 2019
$0.065
28 July 2019
$0.230
31 July 2019
$0.130
30 April 2021
$0.001
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 | 61
Additional Shareholder Information (continued)
Twenty Largest Shareholders
The names of the twenty largest ordinary fully paid shareholders as at 21 September 2018 are as follows:
Shareholder
Number
CITICORP NOM PL
HARMANIS HLDGS PL
HSBC CUSTODY NOM AUST LTD
HALLIDAY HAMISH PETER
J P MORGAN NOM AUST LTD
ROOKHARP INV PTY
BNP PARIBAS NOM PL
HARDEN MARCUS
SCHWERTFEGER TRAVIS
SIMON JAMES SYD BOLSTER R
SYMORGH INV PL
MCTAVISH IND PL
SYMORGH INV PL
FAR EAST CAP PL
BELLARINE GOLD PL
SAUNDERS CLARE
GOTHA STREET CAP PL
GREGORACH PL
SWANCAVE PL
MONARCH ASSET MGNT PL
27,131,301
7,000,333
4,458,915
3,850,000
3,380,758
3,090,304
2,517,049
2,391,650
2,350,000
2,192,966
2,130,000
1,870,000
1,653,333
1,629,153
1,520,922
1,400,000
1,200,000
1,100,000
1,069,252
1,000,000
72,935,936
% Held of Issued
Ordinary Capital
23.45%
6.05%
3.85%
3.33%
2.92%
2.67%
2.18%
2.07%
2.03%
1.90%
1.84%
1.62%
1.43%
1.41%
1.31%
1.21%
1.04%
0.95%
0.92%
0.86%
63.04%
Twenty Largest Listed Option Holders
The names of the twenty largest Listed Option Holders as at 21 September 2018 are as follows:
Shareholder
CITICORP NOM PL
SABET HOSSEIN
FIRST INV PTNRS PL
SABET HOSSEIN
QI ZI JUAN
LAMBOS NICHOLAS JAMES
LEATHER MARK
ANIKAVA PL
VETTER ANTHONY JOHN + J
BEYNON ROBERT + JULIE
GATTY MARK A T + H L
ROOKHARP INV PTY
ZAPPIA NOM PL
J P MORGAN NOM AUST LTD
FAR EAST CAP PL
IRELAND JOHN T + J P
BROUGHTON SEC PL
SULESKI STOJCE
RADONJIC LENORE THERESA
BLAKENEY ALAN ROBERT
Number
4,358,858
2,000,000
800,000
360,000
314,286
273,557
250,000
236,500
200,000
200,000
151,250
150,000
142,857
139,566
131,250
130,000
129,629
125,000
122,000
101,855
10,316,608
% Held of Listed Options
32.63%
14.97%
5.99%
2.70%
2.35%
2.05%
1.87%
1.77%
1.50%
1.50%
1.13%
1.12%
1.07%
1.04%
0.98%
0.97%
0.97%
0.94%
0.91%
0.76%
77.22%
Alicanto Minerals Limited | 62
Tenement Listing (continued)
As at 18 September 2018
Project
Location
Tenement
Interest as at 18
September 2018
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
PL-02/2017, GS14:S-26
PL-03/2017, GS14:S-31
PL-04/2017, GS14:S-39
Y-33/000/04, PPMS/680/04
Y-33/001/04, PPMS/681/04
Y-31/000/04, PPMS/463/04
Y-31/001/04, PPMS/464/04
J-81/000/02, PPMS/884/02
J-81/001/02, PPMS/885/02
J-81/002/02, PPMS/886/02
J-59/000/2000, PPMS/1057/2002
J-59/001/2000, PPMS/1058/2002
J-59/002/2000, PPMS 1059/2002
J-59/003/2000, PPMS/1060/2002
J-59/004/2000, PPMS/1061/2002
J-59/005/2000, PPMS/1062/2002
J-59/006/2000, PMS/1063/2002
J-59/007/2000, PPMS/1064/2002
J-59/008/2000, PPMS/1065/2002
J-59/009/2000, PPMS/1066/2002
J-59/010/2000, PPMS/1067/2002
J-59/011/2000, PPMS/1068/2002
J-59/012/2000, PPMS/1069/2002
J-59/013/2000, PPMS/1070/2002
J-59/014/2000, PPMS/1071/2002
51/002/94, Ituni #1
51/003/94, Ituni #2
51/324/74, May
Jars, Jars#1, Jars#2
P-109/000/2000, PPMS/809/2001
P-109/001/2000, PPMS/810/2001
P-109/002/2000, PPMS/811/2001
P-109/003/2000, PPMS/812/2001
P-109/004/2000, PPMS/813/2001
P-109/005/2000, PPMS/814/2001
P-128/000/02, PPMS/707/02
P-128/001/02, PPMS/708/02
P-128/002/02, PPMS/709/02
P-128/003/02, PPMS/710/02
P-128/004/02, PPMS/711/02
P-17/000, PPMS/0222/1994
P-17/001, PPMS/0223/1994
P-8/000/94, PPMS/0074/1994
P-8/001, PPMS/73/1994
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Alicanto Minerals Limited | 63
Tenement Listing (continued)
Project
Location
Tenement
Interest as at 18
September 2018
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/123/2017
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 | 64
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 2018
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 | 65