CLASSIC MINERALS LIMITED
ACN: 119 484 016
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2023
CLASSIC MINERALS LIMITED
C O N T E N T S
Corporate directory
Directors’ report
Directors’ declaration
Auditor’s independence declaration
Independent audit report
Statement of Profit or Loss and other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the financial statements
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CLASSIC MINERALS LIMITED
CORPORATE DIRECTORY
DIRECTORS
John Lester
Frederick Salkanovic
Lu Ning Yi
Stephen John O’Grady
Gillian Catherine King
COMPANY SECRETARY
Madhukar Bhalla
A.B.N.
77 119 484 016
PRINCIPAL OFFICE & REGISTERED OFFICE
71 Furniss Road
Landsdale, WA 6065
SHARE REGISTRY
Link Market Services
Level 12, 680 George Street
Sidney NSW 2000
AUDITORS
Elderton Audit Pty Ltd
Level 32, 152 St Georges Terrance,
Perth, WA 6000
SECURITIES EXCHANGE LISTING
Australian Securities Exchange (ASX: CLZ)
- 1 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
In order to comply with the provisions of the Corporations Act 2001, the Directors of Classic Minerals Limited submit
herewith the financial report and the directors report for the financial year ended 30 June 2023.
Directors
The names of directors in office at any time during or since the end of the financial year are:
John Lester
Frederick Salkanovick
Lu Ning Yi
Stephen John O’Grady
Gillian Catherine King
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Company Secretary
The name of secretary in office at any time during or since the end of the financial year is:
Madhukar Bhalla
Mr Madhukar Bhalla is a qualified Company Secretary and a Fellow of Governance Institute of Australia as well as a
Fellow of the Institute of Chartered Secretary and Administrators.
Current Directors’ qualifications and experience
John Lester (Non-executive Chairman)
Age: 81 years old
Qualifications and
Experience
Mr Lester has a degree in Physiology from Oxford University and was a member of
the Institute of Investment Analysts in London. He started his career as a stockbroker
with Joseph Sebag and Co in London specializing in mining companies including six
months with Consolidated Goldfields. He joined Jardine Fleming and Company then
Hong Kong’s largest investment bank as chief dealer and became a Director of that
Company.
He was Head of Corporate Finance at Pembroke Securities in Sydney and later moved
to Indonesia where he founded a paging company and several satellite and internet
companies as well as arranging the underwriting of Jakarta’s first publicly listed
mining company.
He joined the Board of Golden West Resources Limited and became Managing
Director where he was responsible for the company raising more than $60 million
from Asian investors. He was Chairman of Yilgarn Infrastructure Ltd which was a
major tenderer for building the Port of Oakajee having a fully funded bid with partners
including China Rail, China Ports, Sinosteel Ansteel Bank of China and China Exim
Bank. He was a founding Director and Chairman of publicly listed Coal Limited.
Shareholdings as at the date
of this report (post-
consolidation basis):
518,846 ordinary shares
91,250 options
1,200,000 performance rights Class B
- 2 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Frederick Salkanovick (Non-Executive Director)
Age: 78 years old
Qualifications and
Experience
Mr Salkanovick has a history of mining in Western Australia and throughout
Australia for the past 45 years. He has operated successful precious metals and
gemstone mining operations and brings further hands-on experience to the Company
as it ramps up its exploration and mining development activities at the Forrestania
Gold project.
Mr Salkanovick has a strong knowledge of the mining and resources sector in
Australia, he is a strong supporter of the company with key competencies in
exploration, materials processing, marketing and financial management in relation to
junior mining companies.
Shareholdings as at the date
of this report (post-
consolidation basis):
379,166 ordinary shares
94,791 options
400,000 performance rights Class B
Lu Ning Yi (Non-Executive Director)
Age: 69 years old
Qualifications and Experience
Mr Lu Ning Yi had a long career as an experienced and respected financial journalist
with China’s Jiangsu Economic newspaper. His position placed him in direct contact
with many of China’s top business executives. Since coming to Australia, Mr Lu has
maintained and expanded his extensive Chinese and Australian business
relationships. Mr Lu is a director of Chi Masters International Pty Ltd and is also a
Non-Executive director of the Heritage Golf and Country Club in Victoria.
Shareholdings as at the date of this
report (post-consolidation basis):
475,289 ordinary shares
118,821 options
400,000 performance rights Class B
Stephen John O’Grady (Non-Executive Director)
Age: 61 years old
Qualifications and Experience Stephen has contributed to the successful development of many mines, including a
wealth of experience in the open cut and underground mining of gold. He has been
the mining engineer for over 80 open cut mining projects and over 30 underground
mining projects in the last two decades. His forte is in the pit design, optimization and
mine planning space. He has studied the geology and created commensurate scoping
and feasibility studies across five continents including due diligence work for Minjar
Gold and various WA gold projects.
Shareholdings as at the date of this
report (post-consolidation basis):
400,000 performance rights Class B
- 3 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Gillian Catherine King (Non-Executive Director)
Age: 53 years old
Qualifications and Experience Gillian brings a wealth of experience in Human Resources and Indigenous Affairs.
Ms. King is a Noongar and Gurindji descendant; whose background is versatile and
has experience in a variety of professional appointments and in business. She has been
an Employment Consultant working with remote indigenous clients in the Pilbara
assisting with employment placement as well as owning their business and managing
finances.
Gillian obtained a Certificate in Metalliferous Mining open cut and, due to her
industry and efforts, was a finalist in the Training and Excellence Awards 2004. She
has experience in Haulage and in Laboratory analysis.
Gillian is qualified in Training, Assessing and Mentoring Indigenous staff for
retention in their employment. She has been employed with the Disability Service
Commission as a Social Trainer and as an Indigenous Support Worker for Families
experiencing Domestic Violence situations.
Shareholdings as at the date of this
report (post-consolidation basis):
400,000 performance rights Class B
Meetings of directors
During this financial year, the Directors met regularly to discuss the affairs of the Company.
The number of Directors’ meetings held during the financial period and the number of meetings attended by each director
were as follows:
Director
Board of Directors
Meetings
Attended
Number
Eligible to Attend
John Lester
Lu Ning Yi
Frederick Salkanovic
Stephen John O’Grady
Gillian Catherine King
22
22
22
22
22
22
22
22
22
22
The Company agreed that in order to reduce costs of directors travelling to Perth to attend board meetings that most of
the decisions would be discussed and reduced to Circular Resolutions. During the year ended 30 June 2023 there were 22
Circular Resolutions that were passed unanimously by all Directors.
Principal activities
The principal activity of Classic Minerals Limited during the financial year was the exploration of mineral resource
based projects, focussing on gold.
Operating results
The loss of the Company for the year ended 30 June 2023 amounted to $23,646,156 (2022: loss of $14,154,948).
Dividends
No dividends were paid or declared for payment since the incorporation of the Company.
- 4 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Shares issued during or since the end of the year as a result of exercise of options
As at the date of this report details of ordinary shares issued by the Company during or since the end of the financial year
as a result of the exercise of an option (post-consolidation basis) are:
Date of exercise
Number of shares issued
01/09/2022
1,887,932
Amount paid for the
shares
$94,397
Unissued shares under option and performance rights
At the date of this report unissued ordinary shares or interests of the Company under option (post-consolidation basis)
are:
Date of options
granted
03/02/2021
10/02/2021
10/02/2021
10/05/2021
10/05/2021
17/06/2021
24/06/2021
24/06/2021
24/09/2021
24/09/2021
22/03/2022
24/03/2022
24/03/2022
01/04/2022
24/06/2022
24/06/2022
26/08/2022
26/08/2022
02/09/2022
13/09/2022
24/09/2022
24/09/2022
14/10/2022
01/11/2022
02/11/2022
14/12/2022
15/12/2022
24/12/2022
24/12/2022
20/01/2023
27/01/2023
27/01/2023
27/01/2023
27/01/2023
03/02/2023
08/02/2023
17/02/2023
20/02/2023
27/02/2023
Carried forward
Number of shares under
option
28,119,434
119,992
119,992
119,992
119,992
2,666,490
139,991
59,996
139,991
59,996
3,282,624
140,000
60,000
588,196
140,000
60,000
9,064,725
5,000,000
944,024
83,593,758
140,000
60,000
868,056
12,333,333
114,392,134
29,894,157
21,875,000
60,000
140,000
3,519,144
15,000,000
15,107,890
30,000,000
59,614,678
33,967,644
14,948,947
17,793,594
24,793,388
13,716,318
542,763,476
Exercise price of
option
Expiry date of option
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.18000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.18000
$0.10000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.25000
$0.01385
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/06/2025
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/06/2025
01/06/2025
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/12/2025
25/01/2026
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
- 5 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Unissued shares under option and performance rights (continued)
Brought forward
01/03/2023
14/03/2023
17/03/2023
24/03/2023
28/03/2023
17/04/2023
27/04/2023
08/05/2023
23/06/2023
13/07/2023
21/07/2023
25/07/2023
22/08/2023
TOTAL
542,763,476
3,415,300
193,866,500
76,977,402
14,970,060
234,858,800
618,583,576
60,240,963
92,592,593
147,058,823
62,500,000
6,250,000
31,250,000
112,500,000
2,197,827,493
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
At the date of this report, unissued ordinary shares or interests of the Company under performance rights are 9,333,333
shares (post-consolidation basis).
- 6 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations
In the 2022/23 reporting year, the following milestones were achieved:
• The Company received formal approvals from DMIRS for its Project Management Plan paving the way for
mining operations to commence at Kat Gap.
• Received formal approvals from DMIRS for the construction of the Gekko processing plant.
• The Company secured a total of A$20.5M in funding, in two parts, to allow for the execution of all its phase 1
project development.
• Pilot run of the Gekko gravity gold treatment plant outperforms expectations.
• Site construction for the milling facility nearing completion ahead of stage 1 mining operations.
• Tailings Dam Facility (TSF) fully commissioned and ready for use.
• Gold resource upgraded at Kat Gap.
• Conducted further infill and extensional RC drilling at Kat Gap.
In the year, a total of 8,397m of RC drilling was completed across the Company’s projects:
• Kat Gap 114 RC holes for 8,397m.
About Forrestania Gold Project and Kat Gap Gold Project
The FGP Tenements (excluding Kat Gap) are registered in the name of Reed Exploration Pty Ltd, a wholly owned
subsidiary of ASX-listed Hannans Ltd (ASX: HNR). Classic has acquired 80% of the gold rights on the FGP Tenements
from a third party, whilst Hannans has maintained its 20% interest in the gold rights.
Classic Minerals owns a 100% interest in the gold rights on the Kat Gap Tenements and non-gold rights including but not
limited to nickel and other metals. Classic no longer has the rights to Lithium on the tenement.
The main thrust of exploration at Forrestania has been the Kat Gap project along with the Lady Ada and Lady Magdalene
tenements. These all have a JORC-defined gold resource outlined in the following table.
Classic has been working heavily on the 100% owned Kat Gap tenements about 50 km to the Southeast of the Ladies as
it brings the project closer to production. It has received formal approvals from DMIRS to commence both mining and
milling activities at Kat Gap.
Classic has global inferred and indicated mineral resources of 8.41 Mt at 1.45 g/t for 391,417 ounces of gold, classified
and reported in accordance with the JORC Code (2012), with a Scoping Study (see ASX Announcement released 2nd
May 2017) suggesting both the technical and financial viability of the project. The current post- mining Mineral Resource
for Lady Ada, Lady Magdalene and Kat Gap is tabulated below. Additional technical detail on the Mineral Resource
estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 18
December 2019, 21 January 2020, and 20 April 2020
Prospect
Lady Ada
Lady Magdalene
Kat Gap
Total
Indicated
Grade
(Au g/t)
2.01
Tonnes
257,300
254,900
512,200
2.5
2.25
Oz Au
Tonnes
16,600
20,488
37,088
1,090,800
5,922,700
886,512
7,900,012
Inferred
Grade
(Au g/t)
1.23
1.32
2.11
1.40
Oz Au
Tonnes
43,100
251,350
60,139
354,589
1,348,100
5,922,700
1,141,412
8,412,212
Total
Grade
(Au g/t)
1.38
1.32
2.19
1.45
Oz Au
59,700
251,350
80,367
391,417
Notes:
1. The Mineral Resource is classified in accordance with JORC, 2012 edition.
2. The effective date of the mineral resource estimate is 14 June 2023.
3. The mineral resource is contained within FGP tenements.
4. Estimates are rounded to reflect the level of confidence in these resources at the present time.
5. Mineral resources for Lady Ada and Lady Magdalene (Ladies) are reported at 0.5 g/t Au cut-off grade, Kat Gap at 0g/t Au.
6. Depletion of the resource from historic open pit mining has been considered for the Ladies deposits. Trial pit mining depletion at Kap Gap
has not been accounted for in the block model due to the ore remaining unprocessed.
- 7 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
1. Kat Gap Gold Project
The Kat Gap high-grade gold project is strategically located approximately 70km SSE of the Company’s Forrestania Gold
Project, containing the Lady Magdalene and Lady Ada gold resources.
The Company made applications to DMIRS for the proposed Kat Gap mine development and processing facility. These
applications include the project management plan, mine closure plan and native vegetation clearing permit (NVCP). The
Company received formal approvals from DMIRS to commence construction of the gold treatment plant along with the
approvals for stage 1 mining at Kat Gap during the reporting period. The approvals include installation and operation of
a gold gravity circuit, gold room, crushing circuit, tailings storage facility, processing control systems and high voltage
power among others.
During the year the Company completed vital pilot testing of its crushing and gravity components of the Gekko gold
treatment processing plant on a small parcel of bulk sample ore at its Gnangara site. The test work completed by Nagrom
in the laboratory has now been confirmed with the Gekko Inline Pressure Jig and Gekko Spinner delivering more than
95% of the liberated gold through a simple gravity process at a crush size of less than 2mm. The Gekko Jig used, in the
pilot plant setup, was an IPJ 1000 capable of processing a throughput of up to 30 tons per hour. Classic also has a Gekko
IPJ 2400 which has a nameplate capacity of up to 100 tons per hour. The Pilot was capable of processing 10 tonnes of
feed per hour, however, was run at 1-2 tph during the pilot to focus on understanding and optimising process dynamics
rather than throughput rate.
The Pilot is upgradeable to 100tph utilising the equipment which is already owned by Classic.
The full flowsheet is:
- Gekko Jig concentrates to a Gekko centrifugal concentrator
-
Jig tailings to two centrifugal gold concentrators (ICON) in series
- Concentrate clean-up for smelting.
- Tailings collected for reprocessing when CIL plant established (cyanide alternatives are currently being
assessed to continue the philosophy of a greener gold plant – if technically and commercially appropriate).
The gravity gold testwork returned a recovery of 73.2% into a mass pull of 4.6% of the feed. This compares very well
against previous bench scale metallurgical test work of 65-75% gravity gold recovery in approximately 5% mass pull1.
These results clearly demonstrate that the Gekko plant is perfectly suited to Kat Gap style ore capable of extracting high
levels of gravity gold at relatively low cost. The gravity concentrate produced at a low cost with no chemical reagents
provides confidence of the viability of the milling process.
The tailings dam storage facility (TSF) was fully commissioned and ready for use during June 2023. The Gekko gravity
plant is nearing completion and will be fully operational early next financial year2. The Company has also cleared all
remaining vegetation for waste dumps, ore stockpile pads, administration, and mechanical facilities along with marking
out of the stage one open pit crest and abandonment bund walls in readiness for mining to commence.
During the financial year the Company received an upgrade to the gold resource at Kat Gap. It successfully converted
20,488oz of previous inferred resources to the indicated category. This allows the company to advance rapidly towards
stage 1 extraction, processing, and monetisation of the Kat Gap gold asset.
Classic completed two programs of RC drilling which were completed in November 2022. The drilling programs
consisted of 15 deep extensional holes for 1,552m and 99 infill holes for 6,845m.
1 ASX Announcement 10 August 2020
2 ASX Announcement 18 August 2023
- 8 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
The 15-hole deep RC drilling program (FKGRC471-479 500-505) covered an area approximately 200-250m along strike
to the north of the Proterozoic dyke. The holes were focused on testing the down dip extent of high-grade gold at Kat
Gap. The holes were drilled now to make the way clear for future surface mine infrastructure. Holes were drilled to an
average depth of 150m below surface and were drilled on 20m x 20m and 20m x 40m grid spacings. The drilling
intersected several zones of high-grade gold mineralisation down plunge and down dip from previous high-grade results.
Most of the deep drilling was focused on the northern extremities of the known deeper gold mineralisation looking for
extensions. The results were very encouraging showing clearly the system is alive and well at depth. Further drilling is
required to scope out the high grade at depth.
Better results from the deep holes include:
•
•
•
•
•
•
10m @ 9.26g/t Au from 57m including 3m @ 28.30g/t Au from 57m in FKGRC471.
6m @ 12.12g/t Au from 70m including 1m @ 51.10g/t Au from 70m in FKGRC472.
1m @ 11.20g/t Au from 79m in FKGRC474.
8m @ 3.25g/t Au from 95m including 1m @ 11.40g/t Au from 101m in FKGRC476.
4m @ 7.45g/t Au from 73m in FKGRC501.
9m @ 1.71g/t Au from 73m in FKGRC502.
During the financial year, Classic completed an extensive program of infill RC drilling. The drilling program, consisted
of 99 holes for 6,845m and was undertaken mainly to aid in ore extraction during future open pit mining operations. The
program
A further need for closer spaced infill drilling eventuated from the bulk sample mining operation. The pit was centred on
an area of the resource block model, drilled on a 10m x 10m and 10m x 5m drill pattern, which came closest to the surface.
The ore zone exposed during the bulk sample mining showed strong evidence of pinching and swelling of the main quartz
veins over relatively short wavelengths of around 10-15m. To gain a higher level of confidence in the overall status of
the current resource block model and to ensure adequate intersection of the higher-grade components of the gold ore zone,
drilling was conducted on a minimum of 10m spaced sections and 10m spaced holes on the section. This spacing will
permit an upgrade from the current inferred status to indicated, needed for final pit design work. The infill program has
also dramatically reduced the number of potential grade control RC holes required in pit once operations are underway.
The infill holes were drilled on a 10m x 10m and 10m x 5m grid spacings to hit further high-grade pinch and swell quartz
veins which were observed during the mining of the bulk sample pit. The results have confirmed observations made while
the bulk sample pit was mined and show that 10m x 10m and 10m x 5m drill spacing is adequate to hit these high-grade
pinch and swell quartz zones. The 99-hole infill RC drilling program mostly covered an area 100m to 300m along strike
to the north of the Proterozoic dyke and 200m north along strike from the bulk sample mining operation.
Most of the infill drilling consist of relatively shallow holes down to depths of 40-80m. However deeper holes down to
100-160m will also be drilled early next quarter to extend the known gold mineralisation to greater depths down dip. This
work will hopefully add additional mineable ounces and a potentially larger final open pit design.
Better results from the infill drilling include:
•
3m @ 13.23g/t Au from 32m including 1m @ 17.00g/t Au from 34m in FKGRC391.
•
5m @ 7.36g/t Au from 42m including 2m @ 14.20g/t Au from 42m in FKGRC397.
•
2m @ 17.20g/t Au from 53m including 1m @ 19.90g/t Au from 53m in FKGRC402.
•
2m @ 21.07g/t Au from 33m in FKGRC407.
•
6m @ 5.55g/t Au from 49m including 1m @ 18.10g/t Au from 50m in FKGRC412.
•
12m @ 9.60g/t Au from 28m including 4m @ 25.34g/t Au from 36m in FKGRC416.
•
10m @ 15.34g/t Au from 29m including 2m @ 43.00g/t Au from 31m in FKGRC418.
• 10m @ 16.19g/t Au from 37m including 1m @ 45.00g/t Au from 46m in FKGRC422.
•
6m @ 4.08g/t Au from 48m including 1m @ 11.50g/t Au from 52m in FKGRC426.
•
2m @ 14.86g/t Au from 29m including 1m @ 25.50g/t Au from 29m in FKGRC436.
•
6m @ 3.10g/t Au from 60m including 1m @14.10g/t Au from 60m in FKGRC455.
- 9 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
Future drilling programs at Kat Gap will focus mainly on extensional drilling down dip on the main granite – greenstone
contact and testing the large 5 km long geochemical anomaly identified in historical auger soil sampling out in the granite.
2. Funding
Classic secured additional funding totalling A$20.5M, in two parts, to allow for the execution of all its phase one project
development. A A$15M put option agreement with US institutional investment group LDA Capital and a A$5.5M
convertible note issue.
Classic may access the equity capital by exercising put options under the Agreement at the Company’s election for a
period of three years from the date of execution.
The Company may draw down an aggregate amount of up to A$15 million under the Agreement. The Company can draw
down funds during the term of the Agreement by issuing ordinary shares of the Company (Shares) for subscription to
LDA Capital.
The Company may issue call notices to LDA Capital with each call notice being a put option on LDA Capital to subscribe
for and pay for those Shares on closing, subject to the satisfaction of certain conditions precedent, including requirements
for the Company to have released applicable Corporations Act and ASX filings on the ASX.
The number of Shares subject to a call notice is limited to a maximum of 10 times the average daily number of the
Company’s Shares traded on the ASX during the 15-trading day period before its issue. The issue price of the capital call
Shares will be 90% of the higher of the average VWAP of Shares in the 30-trading day period prior to the issue of the put
option notice by Classic (subject to any applicable adjustments) and the minimum acceptable price (MAP) notified to
LDA Capital by the Company upon exercise of the put option. The VWAP calculation is subject to adjustment as a result
of certain events occurring including trading volumes falling below an agreed threshold level or a material adverse event
occurring in relation to the Company.
Classic also entered a mandate with Still Capital Pty Ltd (Mandate) for a capital raising of up to $5.5 million by way of a
proposed issue of convertible notes, each with a face value of $25,000 (Convertible Notes). The Convertible Notes will
be convertible into ordinary shares in the Company at any time up to 18 months after the issue of the Convertible Notes
– any Convertible Note not converted by that date will be redeemed.
Noteholders converting Convertible Notes will also be entitled to one (1) free attaching option for every two (2) shares
issued on conversion, exercisable at $0.025 on before 1 December 2025 (Conversion Options).
3. Fraser Range Project
The Company has continued its Earn-in & Joint Venture Agreement with Independence Newsearch Pty Ltd, a 100%-
owned subsidiary of Independence Group NL (ASX:IGO), allowing for free-carried exploration of the Fraser Range
Project.
During the financial year 2022-2023, IGO completed no field-based exploration activities on the project.
4. Subsequent Events
Subsequent to the financial year end Classic:
• Commissioned the processing plant;
• Produced the first gold concentrate;
• Conducted a successful Security Purchase Plan;
• Poured the first gold bar from gravity derived concentrate;
• Announced the adoption of ESG reporting standards;
• Published the first baseline ESG disclosure report, and
• Commenced Trial Mining at Kat Gap.
- 10 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
Risk Management
Risk management is a complex and critical component of the Company's governance. The Board oversees and guides the
Company’s risk management framework, and the CEO is charged with implementing appropriate risk systems within the
Company. Classic’s risk management policy is reviewed and endorsed annually by the Board in line with ASX Corporate
Governance Principles and Recommendations.
Classic’s identified material risks and mitigating actions are summarised in the table below:
Material Risks
Inability to access adequate funding
Mitigating Actions
• Maintaining relationships with existing and potential investors/
Major safety incident
Processing technology impacts
economic viability
Loss or forfeiture of key tenements
Major compliance breach
Material cultural heritage breach
Loss of key personnel
shareholders.
• Continuing to educate the market and investors on Classic Minerals
corporate strategy.
• Preserving cash where possible.
• Appropriate safety standards, policies and procedures in place further
supported by Classic’s Health, Safety and Environment System.
• Appropriate inductions and communication of safety standards and
monitoring of compliance.
• Engagement of mineral processing experts and advisors.
• Technical panel overview and support.
• Employing and retaining experienced technical people.
• Actively managing deliverables and milestones.
• Maintaining a compliance register and system to meet key tenement
conditions.
• Maintaining a register and system to meet key compliance items.
• Appropriate internal financial controls.
• Appropriate policies communicated to employees including code of
conduct, corporate governance, anti-bribery and corruption and whistle
blower policies.
• Company values and culture.
• Maintaining communications and relationship with traditional owners and
community.
• Undertake culture heritage surveys to obtain clearance and understand area
of significance.
• Multi-level engagement with key partners, suppliers and shareholders.
• Central access to data, information and reports.
Classic continues to actively manage these risks and mitigating actions.
Significant changes in state of affairs
There were no significant changes other than reported in the state of affairs of the Company during the year ended
30 June 2023.
- 11 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
Subsequent events
On 6 July 2023, the Company announced that it has submitted a capital Call Notice to LDA Capital Limited targeting a
$550,000 equity draw-down under the terms of its strategic $15 million Put Option Agreement with the US-based
financier. LDA Capital Limited subscribed for 500,000,000 shares and the Company received $317,816 net off expenses.
The Company extended repayment date of $180,000 loan from Greywood Holdings Pty Ltd which was due on 12 July
2023. The latest extension loan is payable on 12 November 2023.
The Company extended repayment date of $300,000 loan from CTRC Pty Ltd which was due on 19 July 2023. The latest
extension loan is payable on 19 November 2023.
On 21 July 2023, the Company repaid the unsecured short-term loan of $500,000 from Beirne Trading Pty Ltd by issuance
of the Company’s shares.
On 24 July 2023, the Company announced its intention to undertake an offer of fully-paid ordinary shares in the Company
to eligible shareholders under a Share Purchase Plan at an issue price of $0.00085 per share to raise up to $2,080,000.
The Share Purchase Plan was closed on 23 August 2023, and the Company raised approximately $2,079,500 out a
maximum permitted amount of $2,080,000. Fund raised will be applied for the purpose of accelerating exploration and
production activities at the Company’s Kat Gap project.
The Company extended repayment date of $500,000 loan from CTRC Pty Ltd which was due on 25 July 2023. The latest
extension loan is payable on 25 September 2023.
The Company extended repayment date of $200,000 loan from Greywood Holdings Pty Ltd which was due on 25 July
2023. The latest extension loan is payable on 25 November 2023.
The Company extended repayment date of $320,000 loan from Foskin Pty Ltd which was due on 29 July 2023. The latest
extension loan is payable on 29 September 2023.
The Company extended repayment date of $500,000 loan from Greywood Holdings Pty Ltd which was due on 3 August
2023. The latest extension loan is payable on 3 October 2023.
The Company extended repayment date of $200,000 loan from UFL Technology Pty Ltd which was due on 15 August
2023. The latest extension loan is payable on 15 October 2023.
The Company extended repayment date of $250,000 loan from CTRC Pty Ltd which was due on 18 August 2023. The
latest extension loan is payable on 18 October 2023.
The Company extended repayment date of $250,000 loan from CTRC Pty Ltd which was due on 26 August 2023. The
latest extension loan is payable on 26 October 2023.
The Company extended repayment date of $807,247 loan from Whead Pty Ltd which was due on 31 August 2023. The
latest extension loan is payable on 31 October 2023.
The Company extended repayment date of $700,000 loan from Klip Pty Ltd which was due on 24 September 2023. The
latest extension loan is payable on 24 December 2023.
The Company extended repayment date of $300,000 loan from Rotherwood Pty Ltd which was due on 24 September
2023. The latest extension loan is payable on 24 December 2023.
- 12 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Review of operations (continued)
Environmental regulation
The Company is aware of its environmental obligations and acts to ensure its environmental commitments are met. The
directors are not aware of any significant breaches during the year.
Non-audit services
No non-audit services were provided in this financial year by the auditors.
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
those proceedings.
Corporate Governance Statement
The Corporate Governance Statement is available on Classic Minerals Limited’s website at
www.classicminerals.com.au/corpgov.php
Auditor’s independence declaration
The auditor’s independence declaration for the year ended 30 June 2023 has been received, forms part of the Director’s
Report, and can be found on page 18.
Indemnification of Officers
In accordance with the Company’s constitution, except as may be prohibited by the Corporations Act 2001, every Officer
or agent of the Company shall be indemnified out of the property of the Company against any liability incurred by him
in his capacity as Officer or agent of the Company or any related corporation in respect of any act or omission whatsoever
and howsoever occurring or in defending any proceedings, whether civil or criminal.
During the previous financial year, the Company has paid insurance premiums in respect of directors’ and officers’
liability insurance. The insurance premiums relate to:
•
Costs and expenses incurred by the relevant officers in defending legal proceedings, whether civil or criminal
and whatever their outcome; and
Other liabilities that may arise from their position, with the exception of conduct involving wilful breach of duty
or improper use of information to gain a personal advantage.
•
- 13 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for Directors and executives of Classic Minerals Limited in
accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of this report, Key
Management Personnel (“KMP”) of the Company are defined as those persons having authority and responsibility for
planning, directing and controlling the major activities of the Company, directly or indirectly, including any Director.
The remuneration report is set out in the Table.
Principles used to determine the nature and amount of remuneration.
The Board is responsible for determining and reviewing compensation arrangements for the Directors. The Board assesses
the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant
employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of
a high quality board and executive team. The Company does not link the nature and amount of the emoluments of such
officers to the Company’s financial or operational performance. The expected outcome of this remuneration structure is
to retain and motive directors.
Due to the current size of the Company and number of directors, the Board has elected not to create a separate
Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the
guidance of the formal charter.
The rewards for Directors have no set or pre-determined performance conditions or key performance indicators as part of
their remuneration due to the current nature of the business operations. The Board determines appropriate levels of
performance rewards as and when they consider rewards are warranted.
The remuneration policy, setting the terms and conditions for the executive directors and other executives, was developed
by the board. All executives receive a base salary (which is based on factors such as length of service and experience)
and superannuation. The board reviews executive packages annually by reference to the Company's performance,
executive performance and comparable information from industry sectors and other listed companies in similar industries.
The board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to
attract the highest calibre of executives and reward them for performance that results in long-term growth in shareholder
wealth.
(a) Details of key management personnel
(i) Directors
John Lester
Lu Ning Yi
Frederick Salkanovick
Stephen John O’Grady
Gillian Catherine King
(ii) Senior Executives
Dean Goodwin
- 14 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Details of Remuneration for Year Ended 30 June 2023 and 30 June 2022
The remuneration for each key management personnel of the Company during the year was as follows:
SHORT-TERM BENEFITS
POST EMPLOYMENT
SHARE-BASED
PAYMENT
TOTAL
Salary
Other
Non-
Monetary
Superannuation
Retirement
Benefits
Equity
Performance
rights
$
REPRE-
SENTED BY
EQUITY/OP
TIONS
%
Directors
John Lester (i)
2023
2022
60,000
60,000
100,000
130,000
Frederick Salkanovick (ii)
2023
2022
40,000
40,000
Lu Ning Yi (ii)
2023
39,996
2022
40,008
Stephen John O’Grady (iii)
39,993
2023
2022
39,993
Gillian Catherine King (iv)
39,996
2023
39,996
2022
Senior Executives
Dean Goodwin (v)
-
-
-
1,409
-
-
51,500
5,500
-
-
-
-
-
-
-
-
-
-
2023
2022
360,000
360,000
202,900
276,740
-
75,000
Total Remuneration Key Management Personnel
2023
2022
579,985
579,997
354,400
413,649
-
75,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,340
-
10,447
-
10,447
-
10,447
-
10,447
160,000
221,340
40,000
50,447
39,996
51,864
39,993
50,440
91,496
55,943
-
66,003
562,900
777,743
-
139,131
934,385
1,207,777
0%
14%
0%
21%
0%
20%
0%
21%
0%
19%
0%
8%
0%
12%
i)
John Lester is entitled to non-executive chairman’s fee of $60,000 per annum effective 1 January 2019. A formal contract is also in place
with John Lester amounting to $100,000 per annum payable as retainer fees. Additional $30,000 in 2022 relates to additional consultancy
services during the year.
Frederick Salkanovick and Lu Ning Yi are paid non-executive directors at $40,000 per annum effective 1 January 2019.
ii)
iii)
Stephen John O’Grady is paid non-executive directors at $40,000 per annum effective 9 June 2020.
iv) Gillian Catherine King is paid non-executive directors at $40,000 per annum effective 6 May 2021.
v)
Dean is remunerated on a success basis, at the company’s discretion, to establish a JORC compliant resource estimate for the Forrestania
Gold Project and the Kat Gap Project as per the contract dated 1 July 2019. By the agreed proposal dated 1 February 2021, Dean was paid
$30,000 (excluding GST) on a monthly basis, plus additional costs incurred as required for the provided services. For the year ended 30 June
2023, the other short-term benefits of Dean Goodwin included the payment of additional services and rental charges totalling $202,900.
Employment Details of Members of Key Management Personnel
Mr Dean Goodwin is the Chief Executive Officer of the Company. Mr Goodwin is remunerated on a success basis, at the
company’s discretion, to establish a JORC compliant resource estimate for the Forrestania Gold Project and the Kat Gap
Project as per the contract dated 1 July 2019. By the agreed proposal dated 1 February 2021, Dean was paid $30,000
(excluding GST) on a monthly basis, plus additional cost incurred as required for the provided services.
- 15 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Non-Executive Director Letter Agreements
The Company has non-executive director letter agreements with Mr John Lester, Mr. Frederick Salkanovick, Mr. Lu Ning
Yi, and Stephen O’Grady, these letter agreements outline the terms and conditions on which the Non-Executive Directors
would carry out their duties to the Company. Mr. Lu, Mr. Salkanovick, Mr. O’Grady and Ms. King are entitled to an
annual remuneration of $40,000 with no superannuation, while Mr. Lester is entitled to $60,000 with no superannuation
effective 1st Jan 2019. They are reimbursed for reasonable expenses incurred in carrying out their duties.
Shareholdings of Key Management Personnel
Number of ordinary shares held by key management personnel during the year (post-consolidation basis):
Balance
1 July 2022
Received as
remuneration
Net Change
Other
Balance
30 June 2023
John Lester
Frederick Salkanovick
Lu Ning Yi
Dean Goodwin
518,846
379,166
475,289
929,168
2,302,469
-
-
-
-
-
-
-
-
27,419,420
27,419,420
518,846
379,166
475,289
28,348,588
29,721,889
Option holdings of Key Management Personnel
Number of options held by key management personnel during the year (post-consolidation basis):
Balance
1 July 2022
Received as
remuneration
Net Change
Other
Balance
30 June 2023
John Lester
Frederick Salkanovick
Lu Ning Yi
Dean Goodwin
350,673
284,374
356,466
658,414
1,649,927
-
-
-
-
-
(259,423)
(189,583)
(237,645)
18,291,922
17,605,271
91,250
94,791
118,821
18,950,336
19,255,198
Performance Rights of Key Management Personnel
Number of performance rights held by key management personnel during the year (post-consolidation basis):
Balance
1 July 2022
Received as
remuneration
Expired
Balance
30 June 2023
John Lester
Frederick Salkanovick
Lu Ning Yi
Stephen John O’Grady
Gillian Catherine King
Dean Goodwin
1,200,000
400,000
400,000
400,000
400,000
2,400,000
5,200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,200,000
400,000
400,000
400,000
400,000
2,400,000
5,200,000
- 16 -
CLASSIC MINERALS LIMITED
DIRECTORS’ REPORT
Transactions with Directors, Director Related Entities and other Related Entities are:
2022
On 27 July 2021 the Company made a transfer of vehicle to Reliant Resources Pty Ltd for nil consideration, in accordance
with the agreed proposal dated 1 February 2021 from Dean Goodwin, Consultant Geologist of Reliant Resources Pty
Ltd. The transfer value is $75,000.
The Board adopted a Performance Rights Plan, which was approved by shareholders, at the General Meeting of the
Company held on 6 August 2021.
END OF REMUNERATION REPORT
This report of the directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board
of Directors.
Lu Ning Yi
Non-executive Director
Date this 28th day of September 2023.
- 17 -
CLASSIC MINERALS LIMITED
DIRECTORS’ DECLARATION
It is the opinion of the directors of Classic Minerals Limited (the “Company”);
1.
the financial statements and notes are in accordance with the Corporations Act 2001 and:
a.
b.
comply with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
give a true and fair view of the financial position of the Company as at 30 June 2023 and of the
performance as represented by the results of its operations and its cashflows for the year ended on that
date;
2.
3.
4.
in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
the financial statements and notes also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as disclosed in note 2.
this declaration has been made after receiving the declarations required to be made to the directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2023.
This declaration is made in accordance with a resolution of the Board of Directors.
Lu Ning Yi
Non-executive Director
Date this 28th day of September 2023.
- 18 -
Auditor's Independence Declaration
To those charged with governance of Classic Minerals Limited;
As auditor for the audit of Classic Minerals Limited for the year ended 30 June 2023, I declare that, to the best of
my knowledge and belief, there have been:
i)
ii)
no contraventions of the independence requirements of the Corporations Act 2001 in relation to the
audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Elderton Audit Pty Ltd
Rafay Nabeel
Director
Perth
28 September 2023
4
Independent Auditor’s Report to the members of Classic Minerals Limited
Opinion
We have audited the financial report of Classic Minerals Limited (the Company) which comprises the statement
of financial position as at 30 June 2023, the statement of profit or loss and other comprehensive income, the
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 Company is in accordance with the Corporations Act
2001, including:
i)
giving a true and fair view of the Company’s financial position as at 30 June 2023 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 as 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material uncertainty related to going concern
We draw attention to Note 2 to the financial report, which describes that the ability of the Company to continue as
a going concern is dependent on successful mining and exploration, and further equity issues to the market. As a
result, there is material uncertainty related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern, and therefore whether it will realise its assets and extinguish
its liabilities in the normal course of business and at the amounts stated in the financial report.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be key audit matters to be communicated in our report.
Exploration and evaluation expenditure
Refer to Note 10, Exploration and evaluation assets ($2,739,000) and accounting policy Note 2(j).
Key Audit Matter
At 30 June 2023, the Company has capitalised
exploration and evaluation expenditure of $2.7million.
The Company has capitalised exploration and
evaluation expenditure in line with AASB 6
Exploration for and Evaluation of Mineral Resources,
which requires use of management’s assumptions
and key judgements regarding recoverability of
capitalised costs. There is a risk that amounts are
capitalised which no longer meet the recognition
criteria of AASB 6.
We have considered it as key audit matter as the
amount is significant to financial statements and it
involves significant judgement.
How our audit addressed the matter
Our audit work included, but was not restricted to, the
following:
• We obtained evidence that the Company has valid
rights to explore in the areas represented by the
capitalised
evaluation
expenditures by obtaining valid contracts giving
the Company rights to explore, for a sample of
capitalised exploration costs;
exploration
and
• We enquired with management,
reviewed
announcements made and reviewed minutes of
directors’ meetings to ensure that the company
had not decided to discontinue activities in any of
its areas of interest;
• We agreed the terms of acquisition agreements
and on a sample basis corroborated rights to
tenure to government registries and relevant
agreements as applicable; and
• We enquired with management to ensure that the
Company had not decided to proceed with
development of a specific area of interest, yet the
carrying amount of the exploration and evaluation
asset was unlikely to be recovered in full from
successful development or sale.
Borrowings
Refer to Note 16, Borrowings ($8,464,534) and Note 17, Convertible Notes ($675,000)
Key Audit Matter
The Company has borrowings of around $9 million as
at 30th June 2023.
How our audit addressed the matter
Our audit work included, but was not restricted to, the
following:
• We reviewed the loan agreements to identify key
Borrowings are considered to be a key audit matter
due to:
• The significance of the balances to the Company's
financial position;
• Risks of misstatement associated with the rights
and obligations of the Company in repaying the
loans with cash, shares and options; and
• Whether the loans have been accurately recorded
at year end based on the terms of the loan
agreements.
terms and conditions;
• We ensured that shareholders’ approvals were
obtained for issuance of convertible notes and
securities issued as consideration for the loans
(borrowing fees). We cross-referred those to
ASX announcements;
• We tested the mathematical accuracy of the
interest expenses;
• We traced the repayment and receipt of loans to
supporting documentation;
• We obtained confirmation of the balance at 30
June 2023 from the lenders; and
• We assessed
the
disclosures included in the relevant notes to the
financial statements.
the appropriateness of
Property, Plant and Equipment
Refer to Note 12, Plant and Equipment ($6,353,695)
Key Audit Matter
As at 30 June 2023, the carrying value of property,
plant and equipment is $6.3 million. In accordance
with AASB 136, the Company is required to do
impairment assessment as its plant is not currently in
use. The entity has engaged an external expert to
assess recoverable amounts for property, plant and
equipment.
Property plant and equipment are considered to be a
key audit matter due to:
• The significance of the balances to the
Company's financial position;
• The assessment of the recoverable amount
involves key assumptions and requires significant
judgment.
Other Information
How our audit addressed the matter
Our audit work included, but was not restricted to, the
following:
• We paid a site visit to verify the existence and
conditions of the assets;
• We reviewed the valuation report prepared by
expert in terms of experience and competence,
appropriateness of valuation model and key
assumptions;
• We reviewed management business plan against
the intended use of the assets and related mining
approvals; and
• We ensured that disclosures within the financial
statements are accurate and that all estimates
and judgements made by management are
included therein.
The directors are responsible for the other information. The other information comprises the Review of Operations
and Directors Report and other information included in the Company’s annual report for the year ended 30 June
2023 but does not include the financial report and our auditor’s report thereon.
The other information obtained at the date of this auditor's report is included in the annual report, (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 conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor's report,
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 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 Company’s ability 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 have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with 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 the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. 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.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
• 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.
• 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 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.
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 the 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
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 14 to 17 of the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Classic Minerals Limited for the year ended 30 June 2023, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Elderton Audit Pty Ltd
Rafay Nabeel
Director
Perth
28 September 2023
CLASSIC MINERALS LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Research & development rebate
Other income
Employee benefits and consultants expense
Advertising and marketing expenses
Legal expenses & professional fees
Depreciation and amortisation expense
Exploration expenses
Mine rehabilitation expense
Financing charges
Travel expenses
Occupancy expenses
Impairment losses
Loss on asset disposal
Share based payment expense
Administration expenses
(Loss) before income tax expense
Income tax expense
(Loss) for the year
Other comprehensive income, net of income tax
Total comprehensive loss for year
Basic and diluted (loss) per share (cents per share)
The accompanying notes form part of this financial report.
Note
3
3
4
19(a)
4
5
6
30 June 2023
$
729,315
81,791
(1,505,899)
(151,579)
(740,326)
(409,565)
(9,934,848)
(1,232,841)
(7,647,777)
(117,274)
(65,756)
(1,387,382)
-
270,537
(1,534,552)
(23,646,156)
-
(23,646,156)
-
(23,646,156)
30 June 2022
$
2,814,245
364,949
(866,933)
(305,828)
(1,094,171)
(395,734)
(10,000,072)
-
(2,934,413)
(72,710)
(45,581)
-
(17,472)
(523,157)
(1,078,071)
(14,154,948)
-
(14,154,948)
-
(14,154,948)
(1.16)
(7.79)
- 25 -
CLASSIC MINERALS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration and evaluation
Right of use assets
Plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Advance for convertible notes
Provisions
Lease liability
Borrowings
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Convertible notes
Lease liability
Provision for mine rehabilitation
TOTAL CURRENT LIABILITIES
Note
7
8
9
10
11
12
13
17
14
15
16
17
15
18
30 June 2023
$
30 June 2022
$
16,863
93,062
425,375
535,300
2,739,000
439,920
6,353,696
9,532,616
420,980
108,205
119,976
649,161
2,739,000
375,507
6,485,023
9,599,530
10,067,916
10,248,691
6,416,887
-
129,208
153,594
8,464,534
15,164,224
675,000
342,141
1,222,920
2,240,061
5,880,972
2,126,650
114,802
94,023
6,405,018
14,621,465
-
319,546
-
319,546
TOTAL LIABILITIES
17,404,285
14,941,011
NET ASSETS/(LIABILITIES)
(7,336,369)
(4,692,320)
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
19
19(a)
80,845,504
2,595,579
(90,777,452)
(7,336,369)
61,024,284
3,382,192
(69,098,796)
(4,692,320)
The accompanying notes form part of this financial report.
- 26 -
CLASSIC MINERALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
Equity
$
Balance at 30 June 2022
61,024,284
3,382,192
(69,098,796)
(4,692,320)
Loss for the year
Other Comprehensive Income
Total Comprehensive Income/(Loss)
Transactions with owners recorded
directly in equity
Exercise of options
Conversion of convertible notes
Share based payments
Shares to be issued
Shares issued (net of expenses) during the
year
Reclassification
-
-
-
-
-
-
(23,646,156)
-
(23,646,156)
(23,646,156)
-
(23,646,156)
94,397
8,897,500
-
-
-
-
1,054,137
76,750
-
-
-
-
94,397
8,897,500
1,054,137
76,750
10,879,323
(50,000)
-
(1,917,500)
-
1,967,500
10,879,323
-
Balance at 30 June 2023
80,845,504
2,595,579
(90,777,452)
(7,336,369)
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
Equity
$
Balance at 30 June 2021
51,995,750
3,116,982
(54,943,848)
168,884
Loss for the year
Other Comprehensive Income
Total Comprehensive Income/(Loss)
Transactions with owners recorded
directly in equity
Exercise of options
Share based payments
Shares to be issued
Shares issued (net of expenses) during the
year
-
-
-
-
-
-
(14,154,948)
-
(14,154,948)
(14,154,948)
-
(14,154,948)
1,056
-
50,000
-
265,210
-
8,977,478
-
-
-
-
-
1,056
265,210
50,000
8,977,478
Balance at 30 June 2022
61,024,284
3,382,192
(69,098,796)
(4,692,320)
The accompanying notes form part of this financial report.
- 27 -
CLASSIC MINERALS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipt of Research & Development rebate
Payments to suppliers and employees
Interest paid
Interest received
Net cash (outflows) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of tenements
Purchase of fixed assets
Purchase of prospects
Loans to other entity
Net cash (outflows) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Share capital received
Proceed from convertible notes
Capital raising costs
Proceeds from options entitlement
Repayment of lease liability
Repayment of loans and related interest
Proceeds of short-term loans
Net cash inflows from financing activities
Net increase in cash held
Cash at bank at the beginning of the year
Cash at bank at the end of the year
The accompanying notes form part of this financial report.
Note
30 June 2023
$
30 June 2022
$
729,315
(12,911,025)
(1,173,868)
369
(13,355,209)
-
(950,451)
-
-
(950,451)
8,650,969
7,445,850
(2,039,896)
94,397
(139,947)
(3,724,767)
3,614,937
13,901,543
(404,117)
420,980
16,863
23(a)
16
23(b)
2,814,245
(8,691,141)
(678,734)
45
(6,555,585)
300,000
(1,105,460)
(210,000)
-
(1,015,460)
5,910,417
2,126,650
(733,220)
938
(175,281)
(4,937,221)
3,780,789
5,973,072
(1,597,973)
2,018,953
420,980
- 28 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
1. Corporate Information
The financial report of Classic Minerals Limited (the Company) for the year ended 30 June 2023 was authorised
for issue in accordance with a resolution of the directors on 28 September 2023.
2. Summary of Significant Accounting Policies
Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards (including the Australian Accounting Interpretations), other authoritative pronouncements
of the Australian Accounting Standards Board and the Corporation Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this
financial report are presented below and have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Going Concern
The accounts have been prepared on the going concern basis, which contemplates continuity of normal activities
and the realisation of assets and settlement of liabilities in the ordinary course of business. The Company
recognised a loss of $23,646,156 for the year ended 30 June 2023 (2022: $14,154,948).
The net working capital position of the Company at 30 June 2023 was a deficit of $14,628,924 (2022:
$13,972,304). The Company has expenditure commitments relating to exploration expenditure obligations for their
projects of $824,330 which potentially could fall due in the twelve months to 30 June 2024.
As disclosed in note 16, the Company has shareholder loans owing as at 30 June 2023 which are payable on various
dates in July – September 2023 amounting $5,923,920 plus accrued interest of $1,747,434. Directors are confident
extensions can be obtained on the shareholders loans due within 1 year until the Company has capacity to repay
the funds, as has been the case in prior periods.
On 6 July 2023, the Company announced that it has submitted a capital Call Notice to LDA Capital Limited
targeting a $550,000 equity draw-down under the terms of its strategic $15 million Put Option Agreement with
the US-based financier. LDA Capital Limited subscribed for 500,000,000 shares and the Company received
$317,816 net off expenses.
On 24 July 2023, the Company announced its intention to undertake an offer of fully-paid ordinary shares in the
Company to eligible shareholders under a Share Purchase Plan at an issue price of $0.00085 per share to raise up
to $2,080,000. The Share Purchase Plan was closed on 23 August 2023, and the Company raised approximately
$2,079,500 out a maximum permitted amount of $2,080,000. Fund raised will be applied for the purpose of
accelerating exploration and production activities at the Company’s Kat Gap project.
As of the date of this financial report, the Company has the following outstanding facilities:
-
Standby Subscription Agreement with Stock Assist Group Pty Ltd in which the investor agrees to subscribe
for shares if requested by the Company subject to the terms and conditions of the facility. There were no
drawings under this facility for the year ended 30 June 2023 and as of the date of this financial report. This
facility will end on 19 September 2024.
- 29 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
- The Company entered into Put Option Agreement with LDA Capital Limited on 13 December 2022. Under
the agreement the Company will be able to flexibly draw down up to $15,000,000 by exercising put options
to LDA Capital Limited over the duration of 36 months starting on the date of the agreement. LDA Capital
Limited has subscribed 1,196,588,344 shares with total purchase price of $1,347,070 through the period ended
the date of this financial report.
In term of operation, subsequent to the financial year end, the Company:
-
-
-
-
-
-
commissioned the processing plant;
produced the first gold concentrate;
poured the first gold bar from gravity derived concentrate;
announced the adoption of ESG reporting standards;
published the first baseline ESG disclosure report, and
commenced Trial Mining at Kat Gap.
The Directors have prepared a cashflow forecast which indicates that the Company needs to raise additional capital
to meet all commitments and workings capital requirements for the period 12 months from the date of signing this
report. The ability of the Company to continue as a going concern is dependent on:
- The ability of the Company to raise capital from equity markets as required; and
- Containing cash outflows based on working capital requirements.
The above conditions represent a material uncertainty that may cast significant doubt about the ability of the
Company to continue as a going concern. Should the Company be unable to continue as a going concern it may
be required to realise its assets and extinguish its liabilities other than in the normal course of business and at
amounts different to those stated in the financial statements. The financial statements do not include any
adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and
classification of liabilities that might result should the Company be unable to continue as a going concern and
meet its debts as and when they fall due.
a) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments,
net of outstanding bank overdrafts.
b) Employee benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, and sick leave
when it is probable that settlement will be required and they are capable of being measured reliably.
Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their
nominal values using the remuneration rate expected to apply at the time of settlement.
Provisions made in respect of employee benefits which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash outflows to be made by the entity in respect of services
provided by employees up to reporting date.
c) Recognition And Measurement – Financial Instruments
Financial assets and financial liabilities are recognised in the Company’s statement of financial position when the
Company becomes a party to the contractual provisions of the instrument.
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs,
except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are
expensed to profit or loss immediately.
- 30 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.
Summary of Significant Accounting Policies (continued)
Classification and subsequent measurement
Financial assets
Financial assets are subsequently measured at:
•
•
•
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
•
•
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
•
•
the contractual terms within the financial asset give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows collection
and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value
through other comprehensive income are subsequently measured at fair value through profit or loss.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time
option on initial classification and is irrevocable until the financial asset is derecognised.
Financial liabilities
Financial liabilities are subsequently measured at:
•
•
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
•
•
•
a contingent consideration of an acquirer in a business combination to which AASB 3: Business
Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is
transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
•
•
•
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Company no longer controls the asset (ie the Company has no practical ability to make a unilateral
decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.
- 31 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or
loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other
comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve
is not reclassified to profit or loss, but is transferred to retained earnings.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled
or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a
substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability
and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Impairment
The Company recognises a loss allowance for expected credit losses on financial assets that are measured at
amortised cost or fair value through other comprehensive income.
Loss allowance is not recognised for:
•
•
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
The Company uses the simplified approach to impairment, as applicable under AASB 9: Financial Instruments:
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead
requires the recognition of lifetime expected credit loss at all times. This approach is applicable to:
•
•
trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue
from Contracts with Customers and which do not contain a significant financing component; and
lease receivables.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration
various data to get to an expected credit loss (ie diversity of customer base, appropriate groups of historical loss
experience, etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Company recognises the movement in the loss allowance as an impairment gain or loss
in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that
asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in
fair value recognised in other comprehensive income. Amounts in relation to change in credit risk are transferred
from other comprehensive income to profit or loss at every reporting period.
For financial assets that are unrecognised (eg loan commitments yet to be drawn, financial guarantees), a provision
for loss allowance is created in the statement of financial position to recognise the loss allowance.
- 32 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
d) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of
the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST;
ii.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified
as operating cash flows.
e) Impairment of assets
At each reporting date, the Company reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are independent from other assets, the entity estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised in the Statement of Profit or Loss and Other Comprehensive Income immediately, unless the relevant
asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in the
Statement of Profit or Loss and Other Comprehensive Income immediately, unless the relevant asset is carried at
fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.
f)
Income tax
Current tax
Current tax is calculated by reference to the amount of income tax payable or recoverable in respect of the taxable
profit or tax loss for the year. It is calculated using tax rates and tax laws that have been enacted or substantively
enacted by reporting date. Current tax for current and prior years is recognised as a liability (or asset) to the extent
that it is unpaid (or refundable).
Deferred tax
Deferred tax is accounted for using the statement of financial position liability method in respect of temporary
differences arising from differences between the carrying amount of assets and liabilities in the financial statements
and the corresponding tax base of those items.
- 33 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible
temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and
liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of
assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor
accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary
differences arising from goodwill.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries,
branches, associates and joint ventures except where the entity is able to control the reversal of the temporary
differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax
assets arising from deductible temporary differences associated with these investments and interests are only
recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of thetemporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year(s) when the
asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax
consequences that would followfrom the manner in which the entity expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority
and the entity intends to settle its current tax assets and liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax is recognised as an expense or income in the statement of comprehensive income,
except when it relates to items credited or debited directly to equity, in which case the deferred tax is also
recognised directly in equity, or where it arises from the accounting for a business combination, in which case it
is taken into account in the determination of goodwill or excess.
g) Payables
Trade payables and other accounts payable are recognised when the entity becomes obliged to make future
payments resulting from the purchase of goods and services.
h) Presentation currency
The entity operates entirely within Australia and the presentation currency is Australian dollars.
i) Plant and equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over their useful lives to the
Company commencing from the time the asset is held ready for use. The depreciation rates used for each class of
depreciable assets are:
- 34 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
Class of fixed asset
Plant & equipment
Motor vehicles
Useful lives (in years)
5 - 10
8
j) Exploration and Evaluation Expenditure
Identifiable exploration assets acquired are recognised as assets at their cost of acquisition.
Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is
not expected to be recovered through use or sale.
Subsequent exploration and evaluation costs related to an area of interest are written off.
Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the
year in which the decision is made
k) Intangible assets
Intangible assets have been identified as Forrestania Intellectual Properties acquired in November 2017. They have
a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the
straight-line method on annual basis over the expected life of the assets i.e 4 years.
l) Provision
Provisions are recognised when the entity has a present obligation, the future sacrifice of economic benefits is
probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the
present value of those cashflows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from
a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received
and the amount of the receivable can be measured reliably.
m) Revenue recognition
Interest revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the
financial asset.
Research & Development rebate
Research & development rebate is recognised only when the rebate has been received.
n) Equity based compensation
The Company expenses equity based compensation such as share and option issues after ascribing a fair value to
the shares and/or options issued. If options vest at date of grant, the expense is taken up at date of grant and a
corresponding Option Reserve is credited.
- 35 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
o) Issued capital
Issued capital is recognised at the fair value of the consideration received by the Company. Any transaction costs
on the issue of shares are recognised directly in equity as a reduction of the share proceeds received.
p) Leases
The Company as a lessee
At inception of a contract, the Company assesses if the contract contains characteristics of or is a lease. If there is
a lease present, a right-of-use asset and a corresponding liability are recognised by the Company where the
Company is a lessee. However, all contracts that are classified as short-term leases (i.e. leases with a remaining
lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-
line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot
be readily determined, the Company uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
i.
ii. variable lease payments that depend on the index of the rate, initially measured using the index or rate at the
fixed lease payments less any lease incentives;
commencement date;
the exercise price of purchase options if the lessee if reasonably certain to exercise the options;
lease payments under extension profits, if the lessee is reasonably certain to exercise the options; and
iii. the amount expected to be payable by the lessee under residual value guarantees;
iv.
v.
payments of penalties for terminating the lease, if the lease term reflects the exercise of options to terminate the
lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease payments
made at or before the commencement date and initial direct costs. The subsequent measurement of the right-of-
use asset is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that the
Company anticipates exercising a purchase option, the specific asset is depreciated over the useful life of the
underlying asset.
q) Earnings per share
Basic earnings per share is calculated as a net profit attributable to members, adjusted to exclude any costs of
servicing equity (other than dividends) and preference share dividends, divided by the weighted average number
of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members, adjusted for:
•
costs of servicing equity (other than dividends) and preference share dividends;
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the year that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
- 36 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
r) Sale of Non-Current Asset
Income from the sale of assets is measured as the consideration received net of the carrying value of the asset and
any cost of disposal.
s) Share based payments
The Group provides benefits to directors, employees and consultants in the form of share-based payment
transactions, whereby services are rendered in exchange for shares or rights over shares (‘equity-settled
transactions’).
The cost of these equity-settled transactions with directors, employees and consultants is measured by reference
to the fair value at the date at which they are granted. The fair value is determined using an appropriate valuation
model.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which
vesting is conditional upon a market or non-vesting condition. These are treated as vesting irrespective of whether
or not the market or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. An additional expense is recognised for any modification that increases the total fair value of
the share-based arrangement, or is otherwise beneficial to the recipient, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award
are treated as if they were a modification of the original award, as described in the previous paragraph. The dilutive
effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted loss per
share.
t) Critical accounting judgements, estimates, and assumptions
Exploration and evaluation costs
Exploration and evaluation costs are written off in the year they are incurred apart from acquisition costs which
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 statement of financial position date reached a
stage that permits reasonable assessment of the existence of economically recoverable reserves.
Share-based payment transactions
The entity measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using Black-Scholes
model taking into account the terms and conditions upon which the instruments were granted. The accounting
estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
- 37 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2. Summary of Significant Accounting Policies (continued)
Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best
estimates of directors. These estimates take into account both the financial performance and position of the
Company as they pertain to current income taxation legislation, and the directors understanding thereof. No
adjustment has been made for pending or future taxation legislation. The current income tax position represents
that directors’ best estimate, pending an assessment by the Australian Taxation Office.
Comparative figures
When required by accounting standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
When the Company applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies
items in its financial statements, a statement of financial position as at the beginning of the earliest comparative
period will be disclosed.
u) New and Amended Standards Adopted by the Company
The Company has adopted all the new, revised or amending Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. Any new
or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. There
was no material impact on the Company’s financial statements upon the adoption of these Standards and
Interpretations.
- 38 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 3: REVENUE FROM CONTINUING
OPERATIONS
Research & development rebate
Interest income
Other income (i)
30 June 2023
$
30 June 2022
$
729,315
2,814,245
1,451
80,340
81,791
46
364,903
364,949
811,106
3,179,194
For the year ended 30 June 2023, other income includes fuel tax credit, rental income and insurance claim proceed.
For the year ended 30 June 2022, other income includes receipts of selling interest in tenements, fuel tax credit, SGC
amnesty refund and insurance claim proceed.
On 16 February 2022 the Company entered into a binding heads of agreement in which Tribitrage Holdings Pty Ltd must
pay $300,000 for an 80% interest in the lithium and associated minerals rights on the Company’s tenements M74/249 and
E74/467, and commit to a minimum spend of $500,000 in exploration expenditures in the first 24 months. The Company
shall retain a 20% free carried interest to “Decision to Mine” at which point a joint venture will be established with
Tribitrage Holdings Pty Ltd as manager pursuant to which each party will be required to contribute its percentage shares
of joint venture expenditure or have its interest diluted in accordance with a standard industry dilution formula.
NOTE 4: ADMINISTRATION AND DEPRECIATION AND
AMORTISATION EXPENSES
The loss before income tax expense has been arrived at after charging the
following expenses:
30 June 2023
$
30 June 2022
$
(a) Administration expenses
Insurance expenses
Telephone expenses
Other administration expenses
(b) Depreciation and amortisation expenses
Amortisation related to right of use assets
Depreciation related to plant and equipment
234,739
15,460
1,284,353
1,534,552
152,392
257,173
409,565
164,196
14,095
899,780
1,078,071
148,436
247,298
395,734
- 39 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 5: INCOME TAX
(a) Current tax expense
Current year
30 June 2023
$
30 June 2022
$
5(b)
-
-
-
-
(b) Numerical reconciliation between tax expense and pre-tax net profit
Profit/ (Loss) before tax
Income tax expense/(benefit) calculated at 30% (2022: 25%)
Tax effect of:
- Non-deductible expenses
- Share based payments
- Unrecognised timing differences
- Research & Development rebate received
Income tax expense on pre-tax net profit
(23,646,156)
(7,093,847)
(14,154,947)
(3,538,737)
3,668,812
-
3,657,168
(232,133)
-
856,261
130,789
2,734,016
(182,329)
-
(c) Unrecognised deferred tax balances
The following deferred tax assets at 30%
(2022: 25%) have not been brought to account:
Unrecognised deferred tax asset – tax losses
Unrecognised deferred tax asset – other timing
differences
Net deferred tax assets
18,026,006
10,655,619
3,239,034
21,265,040
434,393
10,090,012
The net deferred tax assets not brought into account will only be of a benefit to the Company if future assessable income
is derived of a nature and amount sufficient to enable the benefits to be realised, the conditions for deductibility imposed
by the tax legislation continue to be complied with and the Company are able to meet the continuity of ownership and/or
continuity of business tests.
This tax note has been prepared on the basis that prior year losses are able to be recouped. It should be noted that the
ability of a company to utilise prior year tax losses will depend upon the satisfaction of the loss recoupment tests contained
within the Income Tax Legislation. At the time of preparing the financial statements, this assessment has not been
undertaken.
- 40 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 6: EARNINGS PER SHARE
Profit/(loss) for the year
Weighted average number of ordinary shares
Earnings/(loss) per share – cents
NOTE 7: CASH AND CASH EQUIVALENTS
Cash at bank
NOTE 8: TRADE AND OTHER RECEIVABLES
Current
Other receivables
Bonds and security deposits
Less: Provision for doubtful debt
NOTE 9: OTHER CURRENT ASSETS
Current
Prepaid Expenses
Advance payments
30 June 2023
$
30 June 2022
$
(23,646,156)
(14,154,948)
2,042,834,179
(1.16)
181,668,849
(7.79)
30 June 2023
$
30 June 2022
$
16,863
16,863
420,980
420,980
30 June 2023
$
30 June 2022
$
176,503
48,937
(132,378)
93,062
191,646
48,937
(132,378)
108,205
30 June 2023
$
30 June 2022
$
199,776
225,599
425,375
119,976
-
119,976
The Company capitalised some prepaid expenses relating to insurance, investor relations and marketing expenses, rental,
software and other subscriptions as at reporting date. These prepaid expenses are expensed to the statement of profit or
loss as goods received or services rendered.
Advance payments mainly consist of advances for the purchase of vehicle.
NOTE 10: EXPLORATION AND EVALUATION ASSETS
Current
Forrestania Project (i)
Kat Gap Project(ii)
30 June 2023
$
30 June 2022
$
729,000
2,010,000
2,739,000
729,000
2,010,000
2,739,000
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is
dependent on the successful development and commercial exploitation or sale of the respective areas.
- 41 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 10: EXPLORATION AND EVALUATION ASSETS
(continued)
Movement in exploration and evaluation assets
Opening balance
Addition
Written-off to exploration expenses
Ending balance
30 June 2023
$
30 June 2022
$
2,739,000
-
-
2,739,000
2,910,000
750,000
(921,000)
2,739,000
(i) The Company entered into an agreement to acquire 80% gold rights in 5 exploration licences and 2 prospecting
licences, collectively known as the Forrestania Gold Project. The acquisition was completed on 22 August 2017, with
the payment of the consideration, being the issue of 85,000,000 shares. The Company wrote off these exploration
and evaluation assets of $121,000 during the year ended 30 June 2022.
Pursuant to a Head of Agreement dated 20 March 2017 between the Company and Fortuna SL Mining Pty Ltd
(“Fortuna”), the Company acquired 100% gold interest in 2 prospecting licences, also known as the Lady Lila
tenements. The acquisition was completed on 4 August 2017 with the payment of the consideration, being the issue
of 40,000,000 shares. Fortuna will retain a 2.5% Net Smelter Royalty on all gold production at these tenements. The
Company wrote off these exploration and evaluation assets of $400,000 during the year ended 30 June 2022.
(ii) On 5 July 2017, the Company signed an agreement with Sulphide Resources Pty Ltd to acquire 100% interest in two
exploration licences – E74/422 and E74/467 also known as the Kat Gap project. Under this agreement, the Company
paid an Option Fee of $55,000 (GST inclusive) and has the right to purchase the tenements within 18 months for a
further consideration of $250,000. Additionally, the Company must spend $140,000 on the tenements during the
option period. The company has paid the $250,000 and acquired the full ownership of the tenement. The Company
wrote off these exploration and evaluation assets of $150,000 during the year ended 30 June 2022.
During the year ended 30 June 2021, the Company entered into an agreement with Goldbridge Pty Ltd to acquire
100% interest in licences P74/383 and P74/383; and secured a sub-lease on licence G74/10. These tenements form
part of Kat Gap project with $50,000 Option Fee, $500,000 in cash and $560,000 in shares (560 million shares at 0.1
cent/share) as its payment of the considerations.
In March 2022, the Company entered into Tenement Sale Agreement with Goldbridge SL Pty Ltd to acquire 100%
interest in licenses G74/10 and G74/11 for consideration of $300,000 in cash and 450 million fully-paid ordinary
shares in the capital of the Company.
- 42 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 11: RIGHT OF USE ASSETS
Current
Properties
Accumulated depreciation
30 June 2023
$
30 June 2022
$
851,997
(412,077)
439,920
635,192
(259,685)
375,507
The Company leased commercial property at 71 Furniss Road as their head office and premises at 289 Gnangara Road as
storage. In pursuant to AASB 16 Leases, the lease was recognised as a right-of-use asset and a corresponding lease liability
in the last financial year. The right-of-use asset is depreciated over the lease period on a straight-line basis.
NOTE 12: PLANT AND EQUIPMENT
Gross Carrying Amount
Balance at 30 June 2022
Additions
Balance at 30 June 2023
Accumulated Depreciation
Balance at 30 June 2022
Depreciation
Balance at 30 June 2023
Net Book Value
As at 30 June 2022
Provision for impairment losses
As at 30 June 2022
As at 30 June 2023
Provision for impairment losses
As at 30 June 2023
Plant &
Equipment Motor Vehicles
$
888,874
26,483
915,357
309,999
102,561
412,560
578,875
-
578,875
502,797
-
502,797
$
1,392,882
140,013
1,532,895
441,865
154,612
596,477
951,017
-
951,017
936,418
-
936,418
Work in
Progress
$
6,451,840
1,346,731
7,798,571
TOTAL
$
8,733,596
1,513,227
10,246,823
-
-
-
751,864
257,173
1,009,037
6,451,840
(1,496,709)
4,955,131
7,981,732
(1,496,709)
6,485,023
7,798,571
(2,884,091)
4,914,480
9,237,786
(2,884,091)
6,353,695
The Company engaged independent valuer, Gordon Brothers Pty. Ltd., to make assessment on the value of processing
plant, mobile plant and mine accommodation as classified in the Work in Progress as of 12 July 2023. The Appraisal
Report dated 1 August 2023 determined the valuation amount of $4,914,480 on the basis of Fair Market Value In
Continued Use (FMVICU) by utilizing cost approach valuation method. The effective date of the revaluation is 1 August
2023. The Company has recognised impairment losses of $1,387,382 for the year ended 30 June 2023 and provided
provision for impairment losses of $2,884,091 as of 30 June 2023.
- 43 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 13: TRADE AND OTHER PAYABLES
Current
Trade and other creditors (i)
Shares to be issued
Accruals
Accrual – outstanding salaries
30 June 2023
$
30 June 2022
$
5,471,453
-
909,027
36,407
6,416,887
5,219,429
13,000
607,954
40,589
5,880,972
(i) Trade payables are non-interest bearing and are normally settled on 30-60 day terms. As at 30 June 2023, the amount
of trade payables was $5,499,843 and the amount exceeding normal trading terms totalling $3,456,222.
NOTE 14: PROVISIONS
Current
Provision for annual leave
NOTE 15: LEASE LIABILITY
Current lease liability
Non-current lease liability
Lease liability relates to leased commercial property as in note 11.
30 June 2023
$
30 June 2022
$
129,208
129,208
114,802
114,802
30 June 2023
$
30 June 2022
$
153,594
342,141
495,735
94,023
319,546
413,569
- 44 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 16: BORROWINGS
30 June 2023
$
30 June 2022
$
Current
Loans from Aneles Consulting Services Pty Ltd – due on 30 August
2023 and 14 September 2023
Loans from Beirne Trading Pty Ltd – due on 22 July 2023 and 24
September 2023
Loans from CTRC Pty Ltd – due on 19 July 2023, 25 July 2023,
18 August 2023 and 26 August 2023 (2022: 4 July 2022,
25 July 2022, 18 August 2022 and 26 August 2022)
Loan from Foskin Pty Ltd – due on 29 July 2023 (2022:
29 July 2022)
Loans from Gold Processing Equipment Pty Ltd – due on
20 July 2023, 14 August 2023 and 31 August 2023
(2022: 20 July 2022 and 14 August 2022)
Loans from Greywood Holdings Pty Ltd – due on 12 July 2023,
25 July 2023 and 3 August 2023 (2022: 3 July 2022, 12 July 2022,
25 July 2022 and 3 August 2022)
Loans from Gurindji Pty Ltd – due on 14 July 2022 and 24 July 2022
Loans from Janama Asset Management Pty Ltd – due on 2 July 2023
Loan from Klip Pty Ltd – due on 24 September 2023 (2022:
24 September 2022)
Loan from Michael Wilson – due on 27 July 2023 (2022:
27 July 2022)
Loans from Rotherwood Enterprises Pty Ltd – due on 24 September
2023 (2022: 24 September 2022)
Loan from Tracey Pearson – due on 7 August 2023 (2022:
7 August 2022)
Loans from Whead Pty Ltd – due on 31 August 2023 (2022:
16 August 2022, 28 September 2022, 9 October 2022 and
31 October 2022)
Total loans from shareholders
Loans from Radium Capital (R&D) – due on 30 November 2023
(2022: 30 November 2022)
Loan from UFL Technology Pty Ltd – due on 15 August 2023
Loans from Attvest Finance, Hunter Premium Funding, Monument
Premium Funding (Insurance)
Total loans
Accrued interest
201,173
1,000,000
-
-
1,300,000
1,300,000
320,000
360,000
315,500
305,500
880,000
-
60,000
700,000
30,000
300,000
10,000
807,247
1,130,000
15,000
-
700,000
30,000
300,000
10,000
720,000
5,923,920
4,870,500
459,382
200,000
133,798
6,717,100
1,747,434
8,464,534
312,015
-
91,877
5,274,392
1,130,626
6,405,018
(i) Short-term loans from Aneles Consulting Service Pty Ltd, Beirne Trading Pty Ltd, Gurindji Pty Ltd, Janama Asset
Management Pty Ltd, Klip Pty Ltd, Michael Wilson, Rotherwood Enterprises Pty Ltd, Tracey Pearson, and $15,500
loan from Gold Processing Equipment Pty Ltd are unsecured, while the other short-term loans from shareholders
are secured against the Company’s assets under Personal Property Securities Register (PPSR). The short-term loans
from shareholders carries an interest rate of 3% per month.
(ii) The loan facilities from Radium Capital were advanced against the expected R&D refund from the ATO on or
before 30 September 2023 (2022: 30 September 2022) and carries an interest rate of 15% p.a. (2022: 14% p.a.).
(iii) The loan facility from UFL Technology Pty Ltd is unsecured with interest rate of 3% per month.
- 45 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 16: BORROWINGS (continued)
Movement of borrowings
30 June 2023
Loans from shareholders
Loans from Radium Capital (R&D)
Loans from UFL Technology Pty Ltd
Loans from Attvest Finance, Hunter
Premium Funding and Monument
Premium Funding (Insurance)
Total borrowings
Movement of borrowings
30 June 2022
Loans from shareholders
Loan from Pies Corporate Services
Loans from Radium Capital (R&D)
Loans from Attvest and Hunter
Premium Funding (Insurance)
Total borrowings
-
2,071,032
51,338
5,822,370
Opening
balance
$
Cash inflow
Cash outflow
Interest
$
$
6,001,126
2,865,000
(2,772,785)
312,015
-
449,937
300,000
(322,069)
(118,000)
$
18,032
18,730
18,000
Non-cash movements
Transactions
cost
$
Shares
Issued
$
Options
issued
Credit
provided
$
$
Others
$
2,233,164
(2,770,881)
(15,633)
365,898
769
-
-
-
-
-
-
-
91,877
6,405,018
-
3,614,937
(295,082)
(3,507,936)
14,976
69,738
260
2,234,193
-
(2,770,881)
-
(15,633)
321,767
687,665
Accrued
Interest
Closing
balance
$
$
1,756,433
7,680,354
-
(9,000)
459,382
191,000
-
1,747,433
133,798
8,464,534
-
-
-
-
-
Opening
balance
Cash inflow
Cash outflow
Interest
Transactions
cost
$
$
$
$
$
Shares
Issued
$
Options
issued
Credit
provided
$
$
Others
$
Accrued
Interest
Closing
balance
$
$
Non-cash movements
3,700,000
3,111,500
(3,140,251)
499,572
1,334,339
(599,636)
(35,024)
150,000
519,289
(177,500)
7,500
(2,178,644)
129,827
20,000
769
-
-
-
-
-
-
-
-
1,130,626
6,001,126
(230,258)
-
-
-
312,015
-
3,780,789
(119,560)
(5,615,955)
5,822
642,721
120
1,355,228
-
(599,636)
-
(35,024)
154,157
154,157
-
(230,258)
-
1,130,626
91,877
6,405,018
- 46 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 17: CONVERTIBLE NOTES
Financial liability component
Embedded derivative component
Convertible notes
Opening balance 1 July 2022
Issuance of convertible notes
Converted into ordinary shares
Closing balance 30 June 2023
30 June 2023
$
30 June 2022
$
496,399
178,601
675,000
No. of
Convertible
Notes
-
1,274.5
(1,139.5)
135.0
-
-
-
$
-
9,572,500
(8,897,500)
675,000
(i) As announced on 11 July 2022, the Company issued 160 convertible notes with face value of $25,000, convertible
into fully paid ordinary shares in the capital of the Company at any time up to 18 months after the issue of convertible
notes. Any convertible note not converted by that date will be redeemed. The price at which conversion shares to be
issued (conversion price) is $0.075 per share (on a post-consolidation basis) or a 20% discount to the 15-day VWAP,
whichever is lower. Instead of interest, every two (2) ordinary shares entitlements under the convertible notes issue
will have one (1) free attaching unlisted option to acquire a further ordinary share in the Company, exercisable at
$0.18 on post-consolidation basis and expiring 1 June 2025.
As at 30 June 2022, the Company received funds totaling $2,126,650 as subscriptions of the convertible notes. In
total the Company received $4,000,000 in cash for the issuance of the notes and recognised $406,901 transaction
cost for the above mentioned free attaching unlisted option. All convertible notes issued on 11 July 2022 have been
converted as of 30 June 2023. The Company issued 256,464,126 ordinary shares and 126,939,834 options for the
conversions.
In relation to the issuance of convertible notes, the Company entered into a mandate with Still Capital Pty. Ltd. which
will be entitled to the following fees:
-
-
- Capital raising fee of 3% (plus GST) of the total funds received under the placement of the convertible note.
Sign on fee of $100,000;
Success fee of 2.5 million shares and 5.0 million options (each on post-consolidation basis);
(ii) On 25 January 2023, the Company issued 1,114.5 convertible notes with face value of $5,000, convertible into fully
paid ordinary shares in the capital of the Company at any time up to 18 months after the issue of convertible notes.
Any convertible note not converted by that date will be redeemed. The price at which conversion shares to be issued
(conversion price) is $0.017 per share (on a post-consolidation basis) or a 20% discount to the 15-day VWAP,
whichever is lower. Noteholders converting notes will also be entitled to one (1) free attaching unlisted option for
every two (2) ordinary shares issued on conversion, exercisable at $0.025 on before 1 December 2025.
The Company received $5,572,500 in cash for the issuance of the notes. The Company has issued 3,095,567,820
ordinary shares and 1,547,783,908 options for the conversion of convertible notes issued on 25 January 2023.
In relation to the issuance of convertible notes, the Company entered into a mandate with Still Capital Pty. Ltd. which
will be entitled to the following fees:
- Capital raising fee of 6% of the total funds received;
-
-
Sign on fee of $100,000;
and 30,000,000 options at $0.025 exercisable prior to 1 December 2025.
- 47 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 18: PROVISON FOR MINE REHABILITATION
Provision for mine rehabilitation
30 June 2023
$
30 June 2022
$
1,222,920
1,222,920
-
-
The Company makes provision for the future cost of rehabilitating mine sites which represents the present value of
rehabilitation costs relating to mine sites, which are expected to be incurred until when the producing mine properties are
expected to cease operations.
NOTE 19: ISSUED CAPITAL
Ordinary shares
At the beginning of the reporting year
Shares to be issued
Post-consolidation basis; with 1:150 consolidation ratio effective on
8 July 2022
Share based payments (refer to Note 27)
Shares issued at 1.85 cents (August 2022)
Shares issued at 1.9 cents (September 2022)
Options exercised at 5 cents (September 2022)
Convertible notes converted at 1.76 cents (September 2022)
Convertible notes converted at 2.08 cents (September 2022)
Convertible notes converted at 2.16 cents (September 2022)
Convertible notes converted at 2.88 cents (September 2022)
Convertible notes converted at 3 cents (September 2022)
Convertible notes converted at 1.44 cents (October 2022)
Shares issued at 1.5 cents (November 2022)
Shares issued at 1.6 cents (November 2022)
Shares issued at 1.6 cents (December 2022)
Convertible notes converted at 0.842 cents (December 2022)
Shares issued at 1.6 cents (January 2023)
Convertible notes converted at 0.71 cents (January 2023)
Shares issued at 0.6 cents (February 2023)
Shares issued at 0.65 cents (February 2023)
Shares issued at 0.765 cents (February 2023)
Convertible notes converted at 0.392 cents (February 2023)
Convertible notes converted at 0.511 cents (February 2023)
Convertible notes converted at 0.562 cents (February 2023)
Convertible notes converted at 0.605 cents (February 2023)
Convertible notes converted at 0.669 cents (February 2023)
Convertible notes converted at 0.732 cents (February 2023)
Convertible notes converted at 0.737 cents (February 2023)
Shares issued at 0.1 cents (March 2023)
Shares subscribed by LDA Capital at 0.319 cents (March 2023)
Convertible notes converted at 0.149 cents (March 2023)
Convertible notes converted at 0.166 cents (March 2023)
Convertible notes converted at 0.167 cents (March 2023)
Convertible notes converted at 0.177 cents (March 2023)
Convertible notes converted at 0.208 cents (March 2023)
Convertible notes converted at 0.293 cents (March 2023)
Convertible notes converted at 0.366 cents (March 2023)
Carried forward
- 48 -
30 June 2023
$
61,024,284
(50,000)
60,974,284
60,974,284
4,093,171
150,000
500,000
94,397
2,942,500
132,500
50,000
200,000
75,000
25,000
740,000
3,660,549
700,000
525,000
483,452
50,000
200,000
300,000
250,000
50,000
75,000
200,000
300,000
200,000
100,000
400,000
100,000
452,990
250,000
500,000
50,000
272,500
700,000
150,000
25,000
79,971,343
Number of Shares
31,074,896,554
(50,000,000)
31,024,896,554
206,828,780
1,266,598,947
8,108,108
26,315,790
1,887,932
167,187,503
6,370,192
2,314,815
6,944,444
2,500,000
1,736,111
49,333,334
228,784,268
43,750,000
62,372,773
30,215,780
7,038,288
33,333,333
46,153,845
32,679,738
12,755,102
14,677,534
35,587,188
49,586,776
29,897,894
13,661,202
54,274,085
100,000,000
142,000,000
167,785,235
301,932,367
29,940,120
153,954,804
336,538,462
51,194,539
6,830,601
3,731,069,890
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19: ISSUED CAPITAL (continued)
Ordinary shares
Brought forward
Shares issued at 0.085 cents (April 2023)
Shares issued at 0.1 cents (April 2023)
Convertible notes converted at 0.083 cents (April 2023)
Convertible notes converted at 0.088 cents (April 2023)
Convertible notes converted at 0.092 cents (April 2023)
Convertible notes converted at 0.095 cents (April 2023)
Shares issued at 0.085 cents (May 2023)
Shares subscribed by LDA Capital at 0.089 cents (May 2023)
Convertible notes converted at 0.081 cents (May 2023)
Convertible notes converted at 0.085 cents (June 2023)
Shares proposed to be subscribed by LDA Capital
Share base entry for difference between market value of shares and
the value of the creditors paid
Less: expenses related to capital raising
At the end of the reporting year
Ordinary shares
At the beginning of the reporting year
Share based payments (refer to Note 27)
Shares issued at 0.1 cents (July 2021)
Options exercised at 0.3 cents (July 2021)
Shares issued at 0.13 cents (September 2021)
Shares issued at 0.1 cents (September 2021)
Shares issued at 0.085 cents (September 2021)
Shares issued at 0.1 cents (December 2021)
Options exercised at 0.3 cents (December 2021)
Shares issued at 0.085 cents (March 2022)
Shares issued at 0.085 cents (April 2022)
Options exercised at 0.3 cents (June 2022)
Share base entry for difference between market value of shares and
the value of the creditors paid
Shares to be issued
Less: expenses related to capital raising
At the end of the reporting year
30 June 2023
$
79,971,343
251,600
250,000
100,000
325,000
750,000
50,000
500,000
494,080
150,000
250,000
Number of Shares
3,731,069,890
296,000,000
250,000,000
120,481,927
369,318,182
815,217,390
52,631,580
588,235,294
554,588,344
185,185,185
294,117,647
103,411,656
(17,735)
(2,228,784)
80,845,504
-
-
7,360,257,095
30 June 2022
$
51,995,750
3,296,581
300,000
69
2,385,417
1,000,000
425,000
205,000
237
1,500,000
300,000
750
Number of Shares
21,770,381,433
3,296,580,000
300,000,000
23,000
1,834,935,897
1,000,000,000
500,000,000
205,000,000
79,166
1,764,705,882
352,941,176
250,000
298,700
50,000
(733,220)
61,024,284
-
50,000,000
-
31,074,896,554
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion
to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
Consolidation of the Company’s securities on issue on a 1:150 basis was approved in the shareholders’ general meeting
held on 8 July 2022. The consolidation is effective on 8 July 2022.
- 49 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE
Options
As at 1 July 2018
Options issued with an exercise price of 0.7 cents
(expiry 5 November 2021)
Options issued with an exercise price of 0.2 cents
(expiry 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry 3 June 2022)
Options issued with an exercise price of 0.2 cents
(expiry 1 March 2022)
As at 30 June 2019
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Exercise of options at 0.2 cents
Free attaching options issued with an exercise
price of 0.7 cents (expiry: 5 November 2021)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Exercise of options at 0.2 cents
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Free attaching options issued @$0.0001 per
option with an exercise price of 0.2 cents (expiry:
1 March 2022)
As at 30 June 2020
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Exercise of options at 0.2 cents
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Options issued with an exercise price of 0.2 cents
(expiry: 1 March 2022)
Free attaching options issued with an exercise
price of 0.3 cents (expiry: 3 February 2024)
Exercise of options at 0.3 cents
Exercise of options at 0.3 cents
Exercise of options at 0.3 cents
Exercise of options at 0.3 cents
Free attaching options issued with an exercise
price of 0.3 cents (expiry: 3 February 2024)
Options issued @$0.00072 per option with an
exercise price of 0.3 cents (expiry: 3 February
2024)
Carried forward
Date
Note
$
Number of Options
-
-
24/12/2018
28/02/2019
-
-
2,000
4,000
16,655
20,000,000
40,000,000
-
142,268
164,923
-
60,000,000
15/07/2019
(i)
-
145,490,352
05/08/2019
(ii)
9,475
15,000,000
27/09/2019
15/10/2019
(iii)
-
(11,475)
80,000,000
(35,000,000)
08/11/2019
-
79,333,334
22/11/2019
12/12/2019
(iv)
597,214
(143,871)
160,000,000
(105,000,000)
27/12/2019
(v)
148,859
50,000,000
24/03/2020
(v)
45,686
50,000,000
18/06/2020
(v)
194,565
100,000,000
18/06/2020
23/07/2020
13/08/2020
15/10/2020
20/11/2020
03/02/2021
18/03/2021
29/04/2021
17/06/2021
17/06/2021
17/06/2021
41,800
1,047,176
458,000,000
1,057,823,686
10,000
-
7,500
5,714
-
-
-
-
-
-
100,000,000
(37,832,090)
75,000,000
57,142,800
4,220,222,136
(324,003)
(20,834)
(1,250,000)
(79,250)
400,000,000
17/06/2020
(vi)
12,940
1,083,330
18,000,000
5,888,682,445
- 50 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
02/12/2021
24/09/2021
5/11/2021
17/06/2021
-
03/12/2021
24/12/2021
01/03/2021
21/07/2021
28/07/2021
22/09/2021
Date
Options
Brought forward
Options issued @$0.00072 per option
with an exercise price of 0.3 cents
(expiry: 3 February 2024)
Unissued options
As at 30 June 2021
Exercise of options at 0.3 cents
Forfeited unissued options
Options issued with an exercise price
of 0.3 cents
(expiry: 3 February 2024)
Grant of options with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Expiry of options with an exercise of
0.7 cents
Options issued with an exercise price
of 0.3 cents
(expiry: 3 February 2024)
Exercise of options at 0.3 cents
Grant of options with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Expiry of options with an exercise
price of 0.2 cents
Options issued with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Grant of options with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Options issued with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Grant of options with an exercise price
of 0.3 cents (expiry: 3 February 2024)
Exercise of options at 0.3 cents
As at 30 June 2022
Post-consolidation basis; with 1:150 consolidation
ratio effective on 8 July 2022
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.5 (expiry: 25 August 2022)
Expiry of options with an exercise
price of $0.5
Exercise of options at $0.5
Options issued with an exercise price
of $0.18 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.10 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.18 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Carried forward
11/07/2022
03/08/2022
25/08/2022
01/09/2022
26/08/2022
02/09/2022
13/09/2022
24/09/2022
22/03/2022
24/03/2022
01/04/2022
24/06/2022
29/06/2022
Note
$
Number of Options
1,083,330
5,888,682,445
12,940
53,212
1,149,482
-
(28,345)
18,000,000
-
5,906,682,445
(23,000)
-
-
36,000,000
13,203
-
-
-
12,036
-
-
8,270
-
7,244
-
1,161,890
1,161,890
427,725
-
-
-
46,539
-
299,327
27
1,935,508
-
(99,333,334)
60,000,000
(79,166)
-
(1,152,801,062)
492,426,471
-
88,235,294
-
(250,000)
5,330,857,648
35,536,686
5,000,000
103,415,489
(101,527,557)
(1,887,932)
9,064,725
944,024
83,593,758
200,000
134,339,193
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvi)
(xvii)
- 51 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
Date
14/10/2022
01/11/2022
Options
Brought forward
Options issued with an exercise price
of $0.18 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.10 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.01385 (expiry: 25 January 2026)
Options issued with an exercise price
of $0.18 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.10 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.18 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.10 (expiry: 1 June 2025)
Options issued with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Grant of options with an exercise price
of $0.45 (expiry: 3 February 2024)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Carried forward
01/11/2022
02/11/2022
13/12/2022
14/12/2022
15/12/2022
24/12/2022
20/01/2023
27/01/2023
27/01/2023
27/01/2023
03/02/2023
08/02/2023
17/02/2023
20/02/2023
27/02/2023
01/03/2023
14/03/2023
17/03/2023
24/03/2023
24/03/2023
28/03/2023
17/04/2023
Note
$
Number of Options
1,935,508
134,339,193
(xvi)
2,543
868,056
-
-
-
375,256
53,406
-
1
5,086
-
92
12,333,333
400,000
114,392,134
59,614,678
29,894,157
21,875,000
200,000
3,519,144
15,107,890
15,000,000
96,936
30,000,000
-
-
-
-
-
-
-
-
-
-
-
-
2,468,828
33,967,644
14,948,947
17,793,594
24,793,388
13,716,318
3,415,300
193,866,500
76,977,402
14,970,060
-
234,858,800
618,583,576
1,685,435,114
(xviii)
(xvi)
(xix)
(xvi)
(xx)
(xxi)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxiii)
(xxii)
(xxiii)
(xxiii)
- 52 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
Date
Options
Brought forward
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Options issued with an exercise price
of $0.25 (expiry: 1 December 2025)
Grant of options with an exercise price
of $0.45 (expiry: 3 February 2024)
At the end of reporting year
27/04/2023
08/05/2023
23/06/2023
24/06/2023
Note
$
Number of Options
2,468,828
1,685,435,114
(xxiii)
(xxiii)
(xxiii)
(xxii)
-
-
-
-
2,468,828
60,240,963
92,592,593
147,058,823
-
1,985,327,493
(i)
(ii)
(iii)
(iv)
Relates to options issued for repayment of debt approved by shareholders on 27 June 2019 of which the value is reflected
within the opening balance as at 1 July 2019.
Relates to options issued for financing activities pursuant to a mandate dated 4 of March 2019. As at 30 June 2019 the terms
of the options were subject to further negotiation and were accrued for as a liability.
Financier options approved by shareholders on 27 June 2019 of which the value is reflected within the opening balance as at
1 July 2019.
Relates to 160,000,000 options issued to financiers pursuant to mandates entered into during 30 June 2019. These were
approved by shareholders on 27 June 2019 however were subject to further negotiations and were accrued for as a liability
as at 30 June 2019. Subsequently, shareholder approval was obtained on 22 November 2019 and were accordingly the options
were re-valued using the Black-Scholes option-pricing model with the inputs in the table below. $597,214 represents the
difference between the fair value of $613,369 and the balances recorded as at 30 June 2019.
(v)
Establishment options issued to Whead Pty Ltd as part of a financing facility and were valued using the Black-Scholes
option-pricing model with the inputs in the table below.
(vi)
Options issued to Klip Pty Ltd (Klip) and Rotherwood Enterprises Pty Ltd (Rotherwood) as part of a financing facilities.
(vii)
106,000,000 unissued options for GTT Venture Pty Ltd as performance rights remuneration, and Klip and Rotherwood as
part of financing facilities.
(viii) Relates to unissued options of which the value is reflected within the opening balance as at 1 July 2021. 40,000,000 options
for GTT Venture Pty Ltd were not issued as the performance was not achieved.
(ix)
(x)
(xi)
Relates to unissued options of which the value is reflected within the opening balance as at 1 July 2021. Options issued to
Klip and Rotherwood, 18,000,000 options each.
21,000,000 options and 18,000,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
Relates to unissued options of which the value is reflected within the opening balance as at 1 July 2021. 21,000,000 options
and 9,000,000 options issued to Klip and Rotherwood, respectively.
Issuance of 21,000,000 options and 9,000,000 options for Klip and Rotherwood, respectively, in relation with the options
granted on 24 September 2021.
(xii)
21,000,000 options and 18,000,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
(xiii)
21,000,000 options and 9,000,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
(xiv)
21,000,000 options and 9,000,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
- 53 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
(xv)
5,000,000 options issued to Still Capital Pty Ltd as part of success fee on completion of convertible notes issuance on 11
July 2022.
(xvi)
126,939,840 options issued to noteholders as a result of conversion of convertible notes issued on 11 July 2022.
(xvii)
140,000 options and 60,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
(xviii) 59,614,678 options issued as part of $15 million equity funding package provided by LDA Capital Limited.
(xix)
140,000 options and 60,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
(xx)
15,000,000 options issued to Beirne Trading Pty Ltd as part of a financing facilities.
(xxi)
30,000,000 options issued to Still Capital Pty Ltd as part of fee on issuance of convertible notes on 25 January 2023.
(xxii)
140,000 options and 60,000 options granted to Klip and Rotherwood, respectively as part of a financing facilities.
(xxiii) 1,547,783,908 options issued to noteholders as a result of conversion of convertible notes issued on 25 January 2023.
Consolidation of the Company’s securities on issue on a 1:150 basis was approved in the shareholders’ general meeting
held on 8 July 2022. The consolidation is effective on 8 July 2022.
The valuation of the options was based on the following key inputs:
2023
Input
Number of options
Grant date share price
Exercise price
Expected volatility
Risk-free interest rate
Dividend yield
Fair value
2022
Input
Number of options
Grant date share price
Exercise price
Expected volatility
Risk-free interest rate
Dividend yield
Fair value
Financing options
11/07/2022 (xv)
5,000,000
$0.15
$0.18
110%
3.01%
Nil
$427,725
Financing options
24/09/2021 (x)
39,000,000
$0.001
$0.003
110%
0.22%
Nil
$13,203
Financing options
13/12/2022 (xviii)
59,614,678
$0.011
$0.01385
110%
3.12%
Nil
$375,256
Financing options
24/12/2021 (xii)
39,000,000
$0.001
$0.003
110%
0.91%
Nil
$12,036
Financing options
25/01/2023 (xxi)
30,000,000
$0.008
$0.025
110%
3.13%
Nil
$96,936
Financing options
24/03/2022 (xiii)
30,000,000
$0.001
$0.003
110%
1.45%
Nil
$8,270
Financing options
24/12/2022 (xx)
1,500,000
$0.009
$0.45
110%
3.27%
Nil
$92
Financing options
24/06/2022 (xiv)
30,000,000
$0.001
$0.003
110%
2.83%
Nil
$7,244
There has been no alteration of the terms and conditions of the above share-based payment arrangement since grant date.
- 54 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
The following table illustrates the number and weighted average exercise prices of and movements in share options issued
during the year:
30 June 2023
30 June 2022
Number
(post-
consolidation
basis)
35,536,68
2,053,206,296
(1,887,932)
(101,527,557)
1,985,327,493
1,985,327,493
Weighted
average
exercise price
($)
0.45
0.24
0.50
0.50
0.23
0.23
Number
(pre-
consolidation
basis)
5,906,682,445
676,661,765
(352,166)
(1,252,134,396)
5,330,857,648
5,330,857,648
Weighted
average
exercise price
(cents)
0.29
0.30
0.30
0.24
0.30
0.30
Outstanding at the beginning of year
Granted during the year
Exercised during the year
Expired during the year
Outstanding at the end of year
Exercisable at the end of year
The weighted average remaining contractual life for the share-based payment options outstanding as at 30 June 2023 was
2.3 years (2022: 1.6 years).
The weighted average fair value of options granted during the year was 0.06 cents (2022: 0.03 cents)
The following share options were exercised during the year ended 30 June 2023 and 2022.
30 June 2023
30 June 2022
Exercise date Expiry Date
25/08/2022
25/08/2022
Options
exercised
1,887,932
250,000*
79,166*
23,000*
* Before consolidation
Share price
at exercise
date
(cents)
2.00
Exercise
date
Expiry Date
Share price
at exercise
date
(cents)
29/06/2022
03/12/2021
12/07/2021
03/02/2024
03/02/2024
03/02/2024
0.10
0.10
0.20
Consolidation of the Company’s securities on issue on a 1:150 basis was approved in the shareholders’ general meeting
held on 8 July 2022. The consolidation is effective on 8 July 2022.
- 55 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
Performance rights
During the year ended 30 June 2022, the following performance rights were issued:
Security
Recipients
Number
Details
Vesting Condition
Exercise
Price
Expiry
Date
Class A
Performance
Rights –
Tranche 1
Employees
326,666,667
(2,177,778
using post-
consolidation
basis)
Class A
Performance
Rights –
Tranche 2
Employees
326,666,667
(2,177,778
using post-
consolidation
basis)
Class A
Performance
Rights –
Tranche 3
Employees
326,666,666
(2,177,778
using post-
consolidation
basis)
Unlisted
performance rights
each exercisable into
one ordinary share
on meeting the
vesting condition at
any time up to and
including the expiry
date.
Unlisted
performance rights
each exercisable
into one ordinary
share on meeting
the vesting
condition at any
time up to and
including the expiry
date.
Unlisted
performance rights
each exercisable
into one ordinary
share on meeting
the vesting
condition at any
time up to and
including the expiry
date.
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 150,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project.
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 200,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project.
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 250,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project.
nil
30 June
2026
nil
30 June
2026
nil
30 June
2026
- 56 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
Security
Recipients
Number
Details
Vesting Condition
Exercise
Price
Expiry
Date
Class B
Performance
Rights –
Tranche 1
Directors
140,000,000
(933,333
using post-
consolidation
basis)
Class B
Performance
Rights –
Tranche 2
Directors
140,000,000
(933,333
using post-
consolidation
basis)
Class B
Performance
Rights –
Tranche 3
Directors
140,000,000
(933,333 using
post-
consolidation
basis)
Unlisted
performance rights
each exercisable
into one ordinary
share on meeting
the vesting
condition at any
time up to and
including the expiry
date.
Unlisted
performance rights
each exercisable into
one ordinary share
on meeting the
vesting condition at
any time up to and
including the expiry
date.
Unlisted
performance rights
each exercisable into
one ordinary share
on meeting the
vesting condition at
any time up to and
including the expiry
date.
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 150,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 200,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project
The Company
announces that it has
defined an ‘inferred
mineral resource’ of at
least 250,000 ounces of
gold, at a minimum
grade of at least 1 gram
per tonne in accordance
with the JORC Code,
at the Company’s Kat
Gap mineral
exploration project
nil
30 June
2026
nil
30 June
2026
nil
30 June
2026
- 57 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
The valuation of the performance rights was based on the Black Scholes valuation methodology with the following key
inputs:
Class A Performance Rights
Class B Performance Rights
Methodology
Black Scholes
Vesting conditions
Recipients
Grant date
Expiry date
Assumed spot price ($)
Exercise price ($)
Risk-free rate (%)
Volatility (%)
Non-market
Employees
6 August 2021
30 June 2026
0.001
nil
0.597
100
Black Scholes
Non-market
Non-Executive Directors
26 August 2021
30 June 2026
0.001
nil
0.597
100
Fair value per
Performance Right ($)
Tranche
Number
Total undiscounted
fair value ($)
Class A Performance Rights
Class B Performance Rights
0.001
0.001
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
326,666,667
326,666,667
326,666,666
140,000,000
140,000,000
140,000,000
326,667
326,667
326,667
140,000
140,000
140,000
The total share-based payment expense relating to performance rights based on vesting conditions to 30 June 2022 is
$252,802 based on expected vesting period of 5 years. The Company derecognized the share-based payment to nil as at 30
June 2023.
This reserve is used to recognise the value of shares, options and performance rights issued as share-based payments.
Reconciliation of reserve:
Shares
Options
Performance Rights
Share based payment reserve
30 June 2023
$
30 June 2022
$
126,750
2,468,829
-
2,595,579
-
1,161,890
2,220,302
3,382,192
- 58 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 19(a): RESERVE (continued)
Loss from settlement of creditor, being the difference between
market value of shares issued and the value of creditors paid
Reversal of performance rights reserve
Unissued options
Total Share based payment expense
19
19(a)
19(a)
(17,735)
(252,802)
-
(270,537)
298,700
252,802
(28,345)
523,157
Note
30 June 2023
$
30 June 2022
$
NOTE 20: EXPENDITURE COMMITMENTS
(a) Exploration Expenditure Commitments
Payable
Not later than 1 year
More than 1 year but not later than 5 years
Greater than 5 years
(b) Capital Expenditure Commitments
30 June 2023
$
30 June 2022
$
824,330
2,714,426
748,079
4,286,835
652,894
3,209,640
1,745,841
5,608,375
On 20th July 2020, the Company announced that it has secured a Gekko gold gravity processing plant to be used for
future on site processing of gold ore at its Kat Gap Gold Project. The agreed value of the contract is approximately $3.9
million.
NOTE 21: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Earn in and Joint Venture Agreement
The Company entered into an Earn in and Joint Venture Agreement over the Company’s Fraser Range tenements, with
Independence Newsearch Pty Ltd, a 100% owned subsidiary of Independence Group NL on 17th June 2019. Under the
terms of a mandate with Argonaut, 1.5% of any exploration expenditure as defined in the Independence Newsearch Pty
Ltd earn-in and joint venture agreement, will be payable by the Company as and when that exploration expenditure is
incurred but excluding the first $640,000 exploration expenditure associated with the first earn-in period.
Key commercial terms of the Agreement are:
-
-
Initial cash payment to Classic of A$300,000;
Independence can elect to earn a 51% interest in the project by expending A$1,500,000 on exploration over two
years (first earn in period);
- Minimum expenditure of A$640,000 must be incurred prior to Independence withdrawing;
- At the end of the first earn in period, having made a further cash payment of A$500,000, Independence can elect to:
form a joint venture (49% Classic / 51% Independence)
increase its interest to 70% by a further A$1,000,000 of expenditure over two years
be granted an option to buy out Classics 49% interest for A$2,250,000 and a 1% net smelter royalty.
o
o
o
If Independence elects to earn a 70% interest in the project, Classic will be free carried to the completion of a pre-
feasibility study; or
If Independence elects to buy-out Classic, then Classic would have received aggregate value of A$4,550,000, in
cash and tenement expenditure, plus will retain a 1% net smelter royalty from this transaction.
-
-
The payment was made at the end of the first earn in period. Subsequent to receiving the payment, the 51% interest in the
tenements was transferred to IGO.
- 59 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 21: CONTINGENT LIABILITIES AND CONTINGENT ASSETS (continued)
Royalties
The company purchased Fraser Range tenements and mineral interest (E28/2811 and E28/2812) from X Minerals Pty Ltd
on 7 November 2019. X Minerals Pty Ltd will retain a 2% Net Smelter Return royalty until future dealing.
The sale of the Doherty’s project was concluded on 5 July 2017. Classic will receive a 7.5% Net Smelter Return royalty
from production.
Standby Subscription facility agreement
On 19 September 2017, the Company by mutual agreement amended the terms of its Standby Subscription Agreement
with Stock Assist Group Pty Ltd. The Facility arrangement has been increased from $1,000,000 to $5,000,000. Under the
Facility the Investor agrees to subscribe for shares if requested by the Company subject to the terms and conditions of
this Facility. There were no drawings under this facility for the year ended 30 June 2023. This facility will end on 19
September 2024.
NOTE 22: SEGMENT REPORTING
The Company operates predominantly in the mineral exploration industry in Australia. For management purposes, the
Company is organised into one main operating segment which involves the exploration of minerals in Australia. All of
the Company’s activities are interrelated and discrete financial information is reported to the Board (Chief Operating
Decision Maker) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the
Company’s as one segment. The financial results from this segment are equivalent to the financial statements of the
Company’s as a whole.
NOTE 23: STATEMENT OF CASH FLOWS
a. Reconciliation of the net loss after income tax to net cash flows
from operating activities
Net profit/(loss) for the year
Non-cash Items
Depreciation and amortisation expense
Share based payments1
Settlement of a bonus payable to KMP via the disposal of a motor
vehicle
Miscellaneous assets written off
Impairment losses
Loss on asset disposal
Shares yet to be issued
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other assets
Increase/(decrease) in trade creditors and other payables
Increase/(decrease) in provisions
Cash outflows from operations
30 June 2023
$
30 June 2022
$
(23,646,156)
(14,154,948)
409,565
(270,537)
-
-
1,387,382
-
(13,000)
15,143
(512,204)
8,037,272
1,237,326
(13,355,209)
395,734
523,157
75,000
921,000
-
17,472
63,000
(303,438)
(447,088)
6,361,052
(6,526)
(6,555,585)
1 During the year, non-cash share-based payments amounted to -$270,537 (2022: $523,157). Of these, -$302,282
(2022: $244,457) related to operating activities. Other share-based payments in relation to financing and investing
activities were:
Investing:
- Purchase of plant and equipment of -$40,000 (2022: $250,000)
Financing:
- Settlement of borrowing, borrowing fee and interest of $71,745 (2022: 28,700)
- 60 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 23: STATEMENT OF CASH FLOWS (continued)
b. Reconciliation of cash and equivalents
Cash and equivalents comprise
- cash at bank
- undeposited fund
30 June 2023
$
30 June 2022
$
16,863
-
16,863
420,980
-
420,980
Cash at bank earns interest at floating rates based on daily bank deposit rates.
Short term deposits are made for varying years of between one day and three months depending on the immediate cash
requirements of the Company and earn interest at the respective short-term deposit rates.
NOTE 24: KEY MANAGEMENT PERSONNEL DISCLOSURES
Compensation of key management personnel by category
Short-term employee benefits
Share-based payment
30 June 2023
$
30 June 2022
$
934,385
-
934,385
1,068,646
139,131
1,207,777
Refer to the Remuneration report contained in the Director’s Report for details of the remuneration paid to each member
of the Company’s Key Management Personnel, shares and option holdings.
NOTE 25: RELATED PARTY TRANSACTIONS
Transactions with Directors, Director Related Entities and other Related Entities are:
2022
On 27 July 2021 the Company made a transfer of vehicle to Reliant Resources Pty Ltd for nil consideration, in
accordance with the agreed proposal dated 1 February 2021 from Dean Goodwin, Consultant Geologist of Reliant
Resources Pty Ltd. The transfer value is $75,000.
The Board adopted a Performance Rights Plan, which was approved by shareholders, at the General Meeting of the
Company held on 6 August 2021.
- 61 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 26: FINANCIAL RISK MANAGEMENT AND POLICIES
The Company’s activities expose it to a variety of financial risks: market risk (interest rate risk), credit risk and liquidity
risk. The Company’s overall risk management program focuses on the unpredictability of the financial markets and seeks
to minimise potential adverse effects on the financial performance of the Company. The Company does not use derivative
financial instruments; however the Company uses different methods to measure different types of risk to which it is
exposed.
Risk management is carried out by the Board of Directors with assistance from suitably qualified external advisors when
required. The Board provides written principles for overall risk management and further policies will evolve
commensurate with the evolution and growth of the Company.
The carrying value of the Company’s financial instruments are as follows:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Advance for convertible notes
Lease liability
Borrowings
Convertible notes
30 June 2023
$
30 June 2022
$
16,863
93,062
109,925
6,416,887
-
495,735
8,464,534
675,000
16,052,156
420,980
108,205
529,185
5,880,972
2,126,650
413,569
6,405,018
-
14,826,209
The Company’s principal financial instruments comprise cash and cash equivalents and trade and other receivables. The
Company has borrowings, convertible notes and trade and other payables in the normal course of business.
The main purpose of these financial instruments is to fund the Company’s operations.
It is, and has been throughout the year under review, the Company’s policy that no trading in financial instruments shall
be undertaken. The main risks arising from the Company are cash flow (interest rate risk, liquidity risk and credit risk).
The Board reviews and agrees policies for managing each of these risks and they are summarised below.
(a) Market risk
(i)
Foreign exchange risk
The Company’s exposure to foreign exchange risk arising from currency exposures is limited.
(ii) Cash flow and interest rate risk
The Company’s only interest rate risk arises from cash and cash equivalents held. Term deposits and current accounts
held with variable interest rates expose the Company to cash flow interest rate risk. The Company does not consider this
to be material and has therefore not undertaken any further analysis of risk exposure.
- 62 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 26: FINANCIAL RISK MANAGEMENT AND POLICIES (continued)
(b) Credit risk
Credit risk is managed by the Board and arises from cash and cash equivalents as well as credit exposure including
outstanding receivables and committed transactions.
All cash balances held at banks are held at internationally recognised institutions.
The maximum exposure to credit risk at reporting date is the carrying amount of the trade and other receivables. The
credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about default rates.
Financial assets that are neither past due and not impaired are as follows:
Cash and cash equivalents
AA S&P rating
Trade and Other receivables
Unsecured
(c)
Liquidity risk
30 June 2023
$
30 June 2022
$
16,863
420,980
93,062
108,205
Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding.
The Company’s exposure to the risk of changes in market interest rates relate primarily to cash assets and floating interest
rates. The Company does not have significant interest-bearing assets and is not materially exposed to changes in market
interest rates.
The directors monitor the cash-burn rate of the Company on an on-going basis against budget and the maturity profiles
of financial assets and liabilities to manage its liquidity risk.
The financial liabilities the Company had at reporting date were trade payables incurred in the normal course of the
business, a hire purchase liability borrowings and convertible notes.
The following table sets out the carrying amount, by maturity, of the financial assets and liabilities:
Year ended 30 June 2023
<1 year
Financial Assets:
Cash and cash equivalents
Trade and other receivables
Financial Liabilities:
Trade and other payables
Lease liability
Borrowings
Convertible notes
16,863
93,062
109,925
6,416,887
153,594
8,464,534
-
15,035,015
1 - 5
Years
Over 5
Years
Total contractual
cashflows
Weighted
average
effective
interest rate
%
-
-
-
-
-
-
-
-
16,863
93,062
109,925
6,416,887
495,735
8,464,534
675,000
16,052,156
-
-
-
-
-
-
-
-
-
-
342,141
-
675,000
1,017,141
- 63 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 26: FINANCIAL RISK MANAGEMENT AND POLICIES (continued)
(c)
Liquidity risk (continued)
Year ended 30 June 2022
<1 year
1 - 5
Years
Over 5
Years
Total contractual
cashflows
Weighted
average
effective
interest rate
%
Financial Assets:
Cash and cash equivalents
Trade and other receivables
Financial Liabilities:
Trade and other payables
Advance for convertible notes
Lease liability
Borrowings
420,980
108,205
529,185
5,880,972
2,126,650
94,023
6,405,018
14,506,663
-
-
-
-
-
319,546
-
319,546
(d)
Fair value estimation
-
-
-
-
-
-
-
-
420,980
108,205
529,185
4,646,458
2,126,650
413,569
6,405,018
14,826,209
-
-
-
-
-
-
The fair value of financial assets and liabilities must be estimated for recognition and measurement or for disclosure
purposes.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair
values due to their short term nature.
The fair value of long term borrowings is not materially different from their carrying value.
The Company’s principle financial instruments consist of cash and deposits with banks, accounts receivable, trade
payables and borrowings. The main purpose of these non-derivative financial instruments is to finance the Company’s
operations.
(e)
Capital risk
The Company determines capital to be the equity as shown in the statement of financial position plus net debt (being total
borrowings less cash and cash equivalents).
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the number of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
During 2023, the Company’s strategy, which has remained unchanged from previous years, borrowed funds on a short-
term basis to assist in its exploration activities. The company’s equity management is determined by funds required to
undertake its research & development activities and meet its corporate and other costs.
- 64 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 27: SUBSEQUENT EVENTS
On 6 July 2023, the Company announced that it has submitted a capital Call Notice to LDA Capital Limited targeting a
$550,000 equity draw-down under the terms of its strategic $15 million Put Option Agreement with the US-based
financier. LDA Capital Limited subscribed for 500,000,000 shares and the Company received $317,816 net off expenses.
The Company extended repayment date of $180,000 loan from Greywood Holdings Pty Ltd which was due on 12 July
2023. The latest extension loan is payable on 12 November 2023.
The Company extended repayment date of $300,000 loan from CTRC Pty Ltd which was due on 19 July 2023. The latest
extension loan is payable on 19 November 2023.
On 21 July 2023, the Company repaid the unsecured short-term loan of $500,000 from Beirne Trading Pty Ltd by issuance
of the Company’s shares.
On 24 July 2023, the Company announced its intention to undertake an offer of fully-paid ordinary shares in the Company
to eligible shareholders under a Share Purchase Plan at an issue price of $0.00085 per share to raise up to $2,080,000.
The Share Purchase Plan was closed on 23 August 2023, and the Company raised approximately $2,079,500 out a
maximum permitted amount of $2,080,000. Fund raised will be applied for the purpose of accelerating exploration and
production activities at the Company’s Kat Gap project.
The Company extended repayment date of $500,000 loan from CTRC Pty Ltd which was due on 25 July 2023. The latest
extension loan is payable on 25 September 2023.
The Company extended repayment date of $200,000 loan from Greywood Holdings Pty Ltd which was due on 25 July
2023. The latest extension loan is payable on 25 November 2023.
The Company extended repayment date of $320,000 loan from Foskin Pty Ltd which was due on 29 July 2023. The latest
extension loan is payable on 29 September 2023.
The Company extended repayment date of $500,000 loan from Greywood Holdings Pty Ltd which was due on 3 August
2023. The latest extension loan is payable on 3 October 2023.
The Company extended repayment date of $200,000 loan from UFL Technology Pty Ltd which was due on 15 August
2023. The latest extension loan is payable on 15 October 2023.
The Company extended repayment date of $250,000 loan from CTRC Pty Ltd which was due on 18 August 2023. The
latest extension loan is payable on 18 October 2023.
The Company extended repayment date of $250,000 loan from CTRC Pty Ltd which was due on 26 August 2023. The
latest extension loan is payable on 26 October 2023.
The Company extended repayment date of $807,247 loan from Whead Pty Ltd which was due on 31 August 2023. The
latest extension loan is payable on 31 October 2023.
The Company extended repayment date of $700,000 loan from Klip Pty Ltd which was due on 24 September 2023. The
latest extension loan is payable on 24 December 2023.
The Company extended repayment date of $300,000 loan from Rotherwood Pty Ltd which was due on 24 September
2023. The latest extension loan is payable on 24 December 2023.
- 65 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 28: SHARES GRANTED TO CREDITORS AND LENDERS FOR SETTLEMENTS
Shares granted to creditors and advisers as share based payments during the year are as follows:
30 June 2023
Issued for
Creditor's repayment
Borrowing fee payment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Creditor's repayment
Creditor's repayment
Borrowing fee payment
Loan repayment including interest
Loan repayment including interest
Creditor's repayment
Creditor's repayment
Loan repayment including interest
Creditor's repayment
Borrowing fee payment
30 June 2022
Issued for
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Borrowing fee payment
Creditor's repayment
Grant Date
Vesting Date
12/08/2022
12/08/2022
02/09/2022
14/09/2022
14/09/2022
01/11/2022
15/12/2022
15/12/2022
27/01/2023
27/01/2023
03/02/2023
20/02/2023
20/02/2023
16/03/2023
17/03/2023
03/04/2023
03/04/2023
03/04/2023
03/04/2023
06/04/2023
08/05/2023
29/05/2023
30/05/2023
30/05/2023
12/08/2022
12/08/2022
02/09/2022
14/09/2022
14/09/2022
01/11/2022
15/12/2022
15/12/2022
27/01/2023
27/01/2023
03/02/2023
20/02/2023
20/02/2023
16/03/2023
17/03/2023
03/04/2023
03/04/2023
03/04/2023
03/04/2023
06/04/2023
08/05/2023
29/05/2023
30/05/2023
30/05/2023
Grant Date
Vesting Date
21/07/2021
21/07/2021
22/09/2021
22/09/2021
02/12/2021
02/12/2021
04/02/2022
04/02/2022
22/03/2022
22/03/2022
01/04/2022
21/07/2021
21/07/2021
22/09/2021
22/09/2021
02/12/2021
02/12/2021
04/02/2022
04/02/2022
22/03/2022
22/03/2022
01/04/2022
Number of
shares
2,004,000
11,100,000
1,250,000
9,336,000
3,685,000
4,117,647
25,773,333
7,945,922
2,672,000
18,370,000
6,805,555
5,000,000
9,166,666
30,000,000
30,000,000
95,250,000
103,700,000
155,105,000
21,600,000
30,000,000
30,000,000
478,297,824
26,720,000
158,700,000
1,266,598,947
Number of
shares
270,000,000
28,700,000
1,155,484,500
194,235,500
83,440,000
169,000,000
26,720,000
82,000,000
590,000,000
97,000,000
600,000,000
3,296,580,000
Value
($)
80,160
1,426,500
187,500
186,720
64,306
191,471
321,720
74,949
26,720
165,130
60,000
30,000
56,667
30,000
60,000
95,250
207,400
155,105
21,600
30,000
30,000
406,553
26,720
158,700
4,093,171
Value
($)
270,000
28,700
1,155,485
194,236
83,440
169,000
26,720
82,000
590,000
97,000
600,000
3,296,581
NOTE 29: AUDITORS REMUNERATION
Auditor remuneration
30 June 2023
$
30 June 2022
$
56,500
56,500
55,000
55,000
- 66 -
CLASSIC MINERALS LIMITED
ASX ADDITIONAL INFORMATION
Schedule of Mineral Tenements as at 30 June 2023
TENEMENT
AREA
M74/249
E74/467
Forrestania
Forrestania
P77/4291
Forrestania
P77/4290
Forrestania
E77/2207
Forrestania
E77/2219
Forrestania
E77/2220
Forrestania
E77/2239
Forrestania
E77/2471
Forrestania
E77/2472
Forrestania
E77/2470
Forrestania
E28/1904
E28/2705
E28/2704
E28/2703
L74/57
G74/11
G74/10
P74/383
P74/384
Fraser Range
Fraser Range
Fraser Range
Fraser Range
Forrestania
Forrestania
Forrestania
Forrestania
Forrestania
INTEREST HELD BY CLASSSIC
MINERALS LIMITED
100%
100%
80%
80%
80%
80%
80%
80%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
- 67 -
CLASSIC MINERALS LIMITED
ASX ADDITIONAL INFORMATION
As at 28 September 2023
The following information is required by the ASX Limited in respect of public companies and is current as of
21 September 2023.
1. Shareholding CLZ FPO
SIZE OF HOLDINGS
NUMBER OF
HOLDERS
Ordinary Shares
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
TOTAL
580
2,952
1,690
2,360
2,723
10,305
237,022
8,174,337
12,080,312
79,704,174
11,998,303,454
12,098,499,299
2. The number of shareholdings held which comprise less than a marketable parcel is 8,144 shareholders holding
230,657,253 shares.
3. As of 21 September 2023, there are no restricted shares.
4. There are no substantial shareholders in the Company’s registry as of 22 September 2023.
5. The voting rights attached to the ordinary shares:
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting
or by proxy has one vote on a show of hands.
Top 20 Shareholders as of 28 September 2023
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Rank Name
BEIRNE TRADING PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MISS ANNI CHEN
CUNACT PTY LTD
STILL CAPITAL PTY LTD
NEWS MINERALS PTY LTD
WHEAD PTY LTD
ROTHERWOOD ENTERPRISES PTY LTD
ANELES CONSULTING SERVICES PTY LTD
MR MD MONIRUZZAMAN
CTRC PTY LTD
WHEAD PTY LTD
SUPERHERO SECURITIES LIMITED
MR EDWARD FRANCIS LEE
KLIP PTY LTD
NINGALOO INTERNATIONAL PTY LTD
SHARESIES NOMINEE LIMITED
MR DHIRAJ SOBERS MATHEW THOMAS
MR KAJETAN KRZYSZTOF APOSTOLIDIS
GREYWOOD HOLDINGS PTY LTD
Totals:
Total Remaining Holders Balance
Total Holders Balance
- 68 -
Units
671,822,619
444,843,923
243,000,000
200,000,000
184,779,872
173,896,025
170,701,636
151,044,118
131,678,293
120,000,000
115,294,120
112,485,098
110,319,880
100,000,000
95,213,388
83,704,926
78,574,753
76,588,236
74,499,412
70,472,688
3,408,918,987
8,689,580,312
12,098,499,299
% of
Units
5.55
3.68
2.01
1.65
1.53
1.44
1.41
1.25
1.09
0.99
0.95
0.93
0.91
0.83
0.79
0.69
0.65
0.63
0.62
0.58
28.18
71.82
100.00
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
As at 28 September 2023
CLZOA Listed Options:
Exercise Price: $0.003/$0.45 (post-consolidation)
Expiry Date: 03 February 2024
SIZE OF HOLDINGS
NUMBER OF
HOLDERS
Securities
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
TOTAL
2,683
1,883
377
349
79
5,371
1,295,063
4,579,999
2,805,103
10,143,542
49,846,312
68,670,019
The number of options held which comprise less than a marketable parcel is 5,340 holders holding 28,074,573 options.
Top 20 Options Holders as of 28 September 2023
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Rank Name
MR CONSTANDINE KOUNDOURIS
BAOWIN INVESTMENTS PTY LTD
MR MARK REX KOZEL
PAUL THOMSON FURNITURE PTY LTD
MS VANESSA ROZANNE BRAWLEY
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MR FRANCIS ZHIYAN FENG
MR KEVIN EDWARD O'CONNOR
JANAMA ASSET MANAGEMENT PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR DANIEL MORRISON
MR DO SHIK HONG & MRS CHUN SOOK HONG
SUPERHERO SECURITIES LIMITED
MR GARRICK ROBERT WELLS
VICTOR REGINALD HAREB
MR TIMOTHY HUDSON
MR DANNY DAVID COGILL & MRS KYM MAREE COGILL
MR KEVIN TREVOR WYATT
MRS REBECCA ANN MUSCAT
BARRY FRANCIS PTY LTD
Totals:
Total Remaining Holders Balance
Total Holders Balance
Units
6,430,224
4,990,000
3,000,000
2,370,574
1,461,422
1,353,164
1,346,603
1,217,333
1,183,333
1,170,701
1,111,265
1,110,583
1,098,226
1,003,333
1,001,666
1,000,500
1,000,000
975,140
961,531
833,333
34,618,931
34,051,088
68,670,019
% of
Units
9.36
7.27
4.37
3.45
2.13
1.97
1.96
1.77
1.72
1.70
1.62
1.62
1.60
1.46
1.46
1.46
1.46
1.42
1.40
1.21
50.41
49.59
100.00
- 69 -
CLASSIC MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Date of options
granted
03/02/2021
10/02/2021
10/02/2021
10/05/2021
10/05/2021
17/06/2021
24/06/2021
24/06/2021
24/09/2021
24/09/2021
22/03/2022
24/03/2022
24/03/2022
01/04/2022
24/06/2022
24/06/2022
26/08/2022
26/08/2022
02/09/2022
13/09/2022
24/09/2022
24/09/2022
14/10/2022
01/11/2022
02/11/2022
14/12/2022
15/12/2022
24/12/2022
24/12/2022
20/01/2023
27/01/2023
27/01/2023
27/01/2023
27/01/2023
03/02/2023
08/02/2023
17/02/2023
20/02/2023
27/02/2023
01/03/2023
14/03/2023
17/03/2023
24/03/2023
28/03/2023
17/04/2023
27/04/2023
08/05/2023
23/06/2023
13/07/2023
21/07/2023
25/07/2023
22/08/2023
TOTAL
Number of shares under
option
28,119,434
119,992
119,992
119,992
119,992
2,666,490
139,991
59,996
139,991
59,996
3,282,624
140,000
60,000
588,196
140,000
60,000
9,064,725
5,000,000
944,024
83,593,758
140,000
60,000
868,056
12,333,333
114,392,134
29,894,157
21,875,000
60,000
140,000
3,519,144
15,000,000
15,107,890
30,000,000
59,614,678
33,967,644
14,948,947
17,793,594
24,793,388
13,716,318
3,415,300
193,866,500
76,977,402
14,970,060
234,858,800
618,583,576
60,240,963
92,592,593
147,058,823
62,500,000
6,250,000
31,250,000
112,500,000
2,197,827,493
Exercise price of
option
Expiry date of option
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.18000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.18000
$0.10000
$0.45000
$0.45000
$0.18000
$0.45000
$0.10000
$0.25000
$0.01385
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
$0.25000
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/06/2025
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/06/2025
01/06/2025
03/02/2024
03/02/2024
01/06/2025
03/02/2024
01/06/2025
01/12/2025
25/01/2026
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
01/12/2025
- 70 -