Canyon Resources Limited
ABN 13 140 087 261
Annual Report
30 June 2021
Canyon Resources Limited
Corporate directory
30 June 2021
Directors
Cliff Lawrenson
Phillip Gallagher
David Netherway
Steve Zaninovich
Peter Su
Company secretary
Matt Worner
Registered office
Principal place of business
Share register
Auditor
Solicitors
Level 9, 863 Hay Street
Perth, Western Australia, 6000
T: +61 8 6382 3342
F: +61 8 9324 1502
Level 9, 863 Hay Street
Perth, Western Australia, 6000
T: +61 8 6382 3342
F: +61 8 9324 1502
Computershare Limited
Level 11, 172 St Georges Terrace
Perth, Western Australia, 6000
T: +61 8 9323 2000
F: +61 9323 2033
www.computershare.com.au
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth, Western Australia, 6000
Allion Partners
Level 9, 863 Hay Street
Perth, Western Australia, 6000
Stock exchange listing
Canyon Resources Limited shares are listed on the Australian Securities Exchange (ASX
code: CAY)
Website
www.canyonresources.com.au
1
Canyon Resources Limited
Chairman’s Letter
30 June 2021
Dear Shareholder,
It is my pleasure to present Canyon Resources Limited’s Annual Report for the year ended 30 June 2021.
It has been a very challenging year for everyone, but particularly for a relatively early stage mining project in West Africa. However,
I am very pleased to report that despite the challenges presented by the COVID-19 pandemic, Canyon has not only fulfilled, but
exceeded its minimum work requirements in Cameroon and completed the year with no positive COVID-19 outbreaks within its
Cameroon workforce and with an enviable safety record overall.
The Company’s flagship Minim Martap Bauxite Project was advanced throughout the year and major milestones were achieved. A
key milestone was the announcement of a maiden bauxite reserve, positioning the Minim Martap Project as one of the highest
grade, lowest contaminant bauxite projects in the world. The Minim Martap Project will export bauxite at greater than 50% Al2O3
with 2.6% total SiO2 for 20 years of mining and beyond.
The initial exploration permits over the Minim Martap Project expired in July 2021 with the Company having completed all required
works and submitting a Mining License application in June of this year. Management are now working with the Government of
Cameroon to complete the Mining Convention and Mining License for the Project. These are the final steps before the project will
go into the construction phase.
During the year, the Company made key appointments in Cameroon adding proven bauxite and infrastructure expertise to the team.
Mr Rick Smith was announced as the Director General of Camalco Cameroon SA and Mr Andre Henry was appointed as Director of
Port and Rail. The addition of these two experienced and successful bauxite professionals will assist the Camalco team to optimise
the outcomes for the Project.
We look forward to completing the next phase of the project development, as we complete the negotiation of a Mining Convention
with the Government of Cameroon and finalise the Mining License. Recent regional events, particularly in Guinea, have highlighted
the need for an alternative supply of high grade West African bauxite, and we are confident that the Minim Martap Project can be
a strong alternative supplier of bauxite from within the region.
I thank all Canyon shareholders for their ongoing support as the development of Minim Martap has progressed. Thank you to my
fellow Directors and the Management as well as the Canyon Resources and Camalco team in Australia and Cameroon for their
efforts in making these difficult past twelve months a success and delivering the significant outcomes for the Minim Martap Project
over this period.
Regards
Cliff Lawrenson
Non-Executive Chairman
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Canyon Resources Limited
Contents
30 June 2021
Directors' report
Auditor's independence declaration
Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors' declaration
Independent auditor's report to the members of Canyon Resources Limited
Shareholder information
Interest in mineral permits
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Canyon Resources Limited
Directors' report
30 June 2021
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as 'the
Group') consisting of Canyon Resources Limited (referred to hereafter as 'the Company' or 'parent entity') and the entities it
controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were Directors of Canyon Resources Limited during the whole of the financial period and up to the date of
this report, unless otherwise stated:
Cliff Lawrenson - Non Executive Chairman (appointed 10 December 2020)
Phillip Gallagher - Managing Director
David Netherway - Non-Executive Director
Steven Zaninovich - Non-Executive Director
Peter Su - Non-Executive Director (appointed 16 September 2020)
Dimitri Bacopanos - Non-Executive Director (appointed 21 October 2020 - resigned 26 March 2021)
Emmanuel Correia - Non-Executive Director (resigned 10 December 2020)
Principal activities
The principal activities of the entities within the Group during the year were continued bauxite exploration and engineering
studies.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the Group after providing for income tax amounted to $4,751,302 (30 June 2020: $8,520,515).
Minim Martap Project
During the year, Canyon’s focus was on the finalisation of the exploration and feasibility study phases of its 100% owned Minim
Martap Bauxite Project (The Project).
The Project is situated adjacent to the Camrail rail line linking the region to the accessible and available Atlantic port of Douala.
The rail line is currently underutilised and coupled with the existing port of Douala, supports a low capex, low opex solution for
the delivery of very high grade, low contaminant, seaborne bauxite to market to fuel the large and growing aluminium industry.
The Company was granted three, three year non-renewable exploration permits for the Minim Martap, Makan and Nagouandal
permits on 18 July 2018. Canyon has completed all the prescribed work and studies as required by the minimum work
commitments within the exploration permits. The Company has submitted all the required documentation to finalise the Mining
Convention and to convert the exploration permits to a mining permit.
Canyon has recently received written confirmation of the commencement of the negotiations for the Mining Convention for the
Project. These negotiations are due to commence in October 2021.
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Figure 1: Location map of the Minim Martap Bauxite Project
A summary of the highlights of the past year's operations is provided below.
Bauxite Ore Reserve
On 25 May 2021, Canyon announced that it had completed its updated JORC (2012) Ore Reserve Estimate for the Minim Martap
Project.
The update to the Ore Reserve Estimate followed the completion of detailed mine scheduling and de-risking of mining costs and
reinforces the ability of the Project to produce one of the highest grade, lowest contaminant bauxite products of any mine globally
for at least 20 years and provides increased confidence in the deposit.
The updated JORC (2012) Ore Reserve Estimate was presented as follows:
Mineral Resource Upgrade
In May 2021 Canyon announced an updated Mineral Resource Estimate for the Minim Martap Project, which included 382Mt in
the Measured Category with very low silica. The upgrade brought over one third of the Company’s resource into the Measured
Category and provides Canyon with significant confidence in its resource definition, further de-risking an already robust project
and underpinning the production profile for the first 20 years of operation.
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The JORC 2012 compliant Mineral Resource estimate for Canyon’s high-grade Minim Martap Project in Cameroon was presented
as:
Execution of Cahier de Charges Agreement
On 31 May 2021, the Company announced it had executed a Cahier de Charges Agreement with the State of Cameroon
(“Agreement”).
The Agreement confirms Canyon’s major obligations and rights in relation to the Project exploration permits and stabilises the
Company’s position in relation to the Project until the completion of the Mining Convention for the Minim Martap Project. A
Mining Convention is the definitive agreement between Canyon and the State of Cameroon regarding all the key rights and
obligations for the development of the Project, including the taxation, legal, fiscal, social and environmental obligations of the
Project.
Key terms within the Agreement:
●
●
●
●
●
●
Confirmation of the rights and obligations of the Minim Martap, Makan and Ngaoundal exploration permits regarding the
financial commitments, work requirements and reporting requirements etc. All the requirements are consistent with the
Cameroon Mining Code and the obligations within the permit granting documents.
Stability of legal regime during the exploration phase until the signing of the Mining Convention and stability of the fiscal,
customs and foreign exchange regulations during the exploration and exploitation phases in relation to the Project and
Canyon’s work on the Project.
A commitment by Canyon to present one or more technical and financial partners to the State of Cameroon prior to the
execution of the Mining Convention.
An agreement between Canyon and the State of Cameroon to negotiate an agreed amount as a payment to the State for the
value of the previous studies completed on the Project, which payment will be subject to the creation of a law to enable
Canyon to make that payment. The amount and terms of the payment are to be included in the Mining Convention.
Both parties have the right to call Force Majeure and claim extended time to fulfill obligations, if required.
The parties have agreed that if a dispute cannot be solved amicably, the parties will refer the dispute to the International
Centre for the Settlement of Investment Disputes (ICSID).
Completion and Submission of ESIA
On 9 June 2021, the Company announced the completion and submission of the Environmental and Social Impact Assessment
(ESIA) for the Minim Martap Project and its submission on 1 June 2021 to the Ministry of Mines, Industry and Technology
Development (MINMIDT).
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The ESIA is a critical component of the mining permit application process and was undertaken in line with national legislation, the
International Finance Corporation Performance Standards and other key international standards, frameworks and guidelines. The
scope of the ESIA covers the three exploration tenements (Minim Martap, Makan and Ngaoundal), and includes the haul route
between the mine and the inland rail facility at Makor, the rail line itself between Makor and Douala, infrastructure at the port of
Douala, as well as the transhipment route and deep-water anchorage location.
Key impacts that the ESIA addresses through aspect specific socio-environmental management plans (SEMP) include land
acquisition and compensation, air quality, noise, water resources and limited biodiversity impacts. The ESIA contains a fully costed
management plan for how the Project will mitigate each impact, including with respect to mine closure and rehabilitation. The
costs are consistent with those forecast in the Pre-Feasibility Study (PFS).
Appointments of Mr Rick Smith and Mr André Henry
On 19 February 2021, the Company announced the appointment of Mr Rick Smith as Director General of Camalco. Mr Smith has
been working with Canyon since March 2020 as Chief Development Officer and has agreed to accept the role of DG of Camalco
and base himself in Cameroon for the crucial periods of the end of the feasibility studies and the commencement of construction
of the Project.
Mr Smith was previously a senior executive at Guinea Alumina Corporation (GAC), who successfully commissioned the USD$1.4
billion CAPEX, GAC Project. The bauxite mine is in Tinguilinta, Guinea and is West Africa’s newest bauxite mine and will export 12
million tonnes per annum through its Kamsar bauxite port facilities which were commissioned in Q3 2019.
The Company appointed Mr André Henry as Director of Port and Rail, Camalco. Camalco SA (Camalco) is the 100% owned of the
Cameroonian entity which holds the permits for Canyon’s Minim Martap Bauxite Project. Mr Henry is based within the Camrail
offices near the port of Douala. This gives him daily access to key management in the Camrail organisation.
Mr Henry has had a highly successful, rail and logistics focussed career for over 35 years and has led billion-dollar international
railway initiatives for AECOM’s West African, Middle East and North American businesses, Etihad Rail and Emirates Global
Aluminium’s bauxite project in Guinea. His experience spans the project development cycle from government negotiations,
financing, construction, operational readiness, operations, and operational optimisation.
Minister of Mines Project Site Visit
On Monday 25 January 2021, Canyon Resources Managing Director, Mr Phillip Gallagher and the new Camalco Director General,
Mr Rick Smith hosted a visit to the Minim Martap Project site by His Excellency Gabrielle Ndoko, the Minister of Mines, the
Secretary of State to the Minister of Mines, the Governor of the Adamoua Region and other dignitaries.
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Figure 2: Local news media reporting the Minister of Mines visit to the Minim Martap Project
The purpose of the site visit was for Camalco to present the results of the extensive exploration and geological research completed
by the company on the Project and to discuss the development plans for the Project.
The presentation and meetings at the towns of Martap and Minim were chaired by the Minister of Mines and attended by local
dignitaries and people from the local villages. The meetings were overwhelmingly positive, and the Minister of Mines announced
publicly that the Minim Martap Project would now be transitioning to the mining phase of the Project.
Metallurgical Testwork
On 1 October 2020, Canyon provided a summary of the outcomes of the Advanced Metallurgical Programme designed to further
understand the digestion properties of the high-grade bauxite at Minim Martap Project. The outcomes of the testing confirmed
the very high-grade of the Minim Martap Bauxite and the high rates of conversion from total alumina to available alumina at low
temperature digestion conditions, with all tests achieving at least 90% alumina conversion or greater. The results from the
Advanced Metallurgical Programme supported the properties detailed in the previously released Bauxite Technical Specification
data sheet, and reflected excellent conversion results of greater than 90% in all cases.
The Advanced Metallurgical Programme complemented the previously completed Basic Metallurgical Programme. The Physical
Properties Programme Samples for the Advanced Metallurgical Programme were randomly selected across bauxite within the ore
specifications as defined within the Ore Reserve estimate, with a focus on the priority plateaux featured within the PFS. In addition,
bulk samples were collected from an ultra-high-grade region and work is now underway to determine if there are additional large
zones of the ultra-high grade bauxite to integrate within mine scheduling and product profiling.
The programmes, conducted during 2020, largely aimed to define the refining properties of various plateaux from the Minim
Martap Bauxite Project, with a particular focus on the priority plateaux which underpin the Minim Martap PFS and the modelled
20-year mine life.
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The metallurgical test work programmes were sourced in three phases with a small sample set prepared initially from the Alice
and Beatrice Plateaux (Basic Metallurgical Programme), a larger sample set from the Beatrice and Raymonde Plateaux (Advanced
Metallurgical Programme), and a sample obtained from a high-grade location within the Raymonde Plateau. Additionally, the
Physical Properties Programme, which was also used for bulk density and bulk sampling, was completed, and complimented the
results.
Advanced Metallurgical Programme
On 1 October 2020 Canyon provided a summary of the testing that underpins the Bauxite Technical Specification data sheet which
is providing a basis for ongoing offtake and strategic partnership negotiations. The testing was completed as part of a broad range
of chemical, metallurgical and physical test work to inform the Minim Martap Pre-Feasibility Study and resulting Ore Reserve
Estimate.
Chemical properties of the bauxite product are an average of the chemical profile of the direct shipping ore derived from the
mining schedule and the resource block model. The physical and metallurgical properties are a combination of interpretations
from a number of different relevant and representative tests and investigations.
The direct shipping ore (DSO) bauxite properties of chemical, digestion and physical/handleability as presented in the product
technical specifications (ASX release 08 July 2020) are based on underpinning investigations set out in Figure 3 below and are
supported by the PFS mine scheduling and the Mineral Resource estimate (ASX release 27 September 2019).
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Canyon Resources Limited
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Figure 3: Product Specification Sheet from the Minim Martap Bauxite Project
Rail upgrades
In September 2020, the Company reported on ongoing rail upgrades underway in Cameroon as part of a five-year infrastructure
renewal programme agreed between the Cameroon Government and Camrail SA (Camrail), a subsidiary of Bolloré Transport &
Logistics. Camrail operates the existing rail network that passes approximately 50km from Canyon’s Minim Martap project.
Under the programme, and with the contribution of the World Bank, Camrail upgraded 12 steel bridges on the line between
Yaoundé and Ngaoundéré and the Edéa railway bridge between Douala and Yaoundé.
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As part of the projects implemented by the transport ministry, in February 2020 Camrail also launched upgrade work on 55 further
railway bridges (metal bridges and reinforced-concrete slab bridges) across the rail network.
In addition, 330km of track (Ka’a-Belabo, Batchenga and Ka’a, Douala-Yaoundé entrances and exits) has been renewed.
Reinforcement work has been carried out on 500km of track and 1,671 hydraulic structures have been refurbished.
With the support of development partners including the World Bank, the European Investment Bank, the French Development
Agency and the European Union, the Cameroon Government and Camrail are currently finalising the projects to renew the track
between Douala and Yaoundé and between Belabo and Ngaoundéré, for a total estimated length of about 585km.
Figure 4: An upgraded rail bridge on the Camrail rail line.
MOU with Port of Douala
In September 2020, Canyon announced the execution of a Memorandum of Understanding (MoU) with the Port Authority of
Douala (PAD), Cameroon.
During the process of completing the PFS, Canyon has established a positive working relationship with the executive team of the
PAD. The execution of the MoU formalises many of the discussions and meetings and creates a pathway for the finalisation of
required operating and logistics solutions as well as timely completion of access and operating agreements between Canyon and
the PAD.
The objective of the MoU is to establish an agreed framework by which the PAD and Canyon will cooperate effectively to ensure
the success of the Project by way of a mutually beneficial partnership.
Under the terms of the MoU, Canyon and PAD will cooperate regarding the port logistic considerations of the feasibility studies of
the Project, and to develop efficient technical and commercial solutions for the use of port facilities at the Port of Douala.
This cooperation framework aims to help both Parties effectively fulfil their responsibilities for the development of the Project,
including through structured information sharing and collaborative milestones.
Competent Person’s Statement – Ore Reserves
The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr John Battista, a
Competent Person who is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and Metallurgy
and is currently employed by Mining Plus (UK) Ltd. Mr Battista has sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in
the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC
Code).
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Competent Person’s Statement – Mineral Resources
The information in this report that relates to mineral resources is based on information compiled or reviewed by Mr Mark Gifford,
an independent Geological expert consulting to Canyon Resources Limited. Mr Mark Gifford is a Fellow of the Australian Institute
of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the
Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).
Mineral Resource Estimate
The data in this report that relates to the Mineral Resource estimates for the Minim Martap Bauxite Project is based on information
in the Resources announcement of 11 May 2021 and available to view on the Company’s website and ASX.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical
parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed.
The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcement.
Pre-Feasibility Study
The data in this report that relates to the Pre-Feasibility Study for the Minim Martap Bauxite Project and associated production
targets and forecast financial information, is based on information in the PFS announcement of 01 July 2020, and available to view
on the Company’s website and ASX.
The Company confirms that all the material assumptions underpinning the production target and forecast financial information
derived from the production target continue to apply and have not materially changed.
Ore Reserve estimate
The data in this report that relates to the Ore Reserve estimate estimates for the Minim Martap Bauxite Project is based on
information in the maiden Ore Reserve announcement of 25 May 2021 and available to view on the Company’s website and ASX.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcement and, in the case of estimates of Ore Reserves, that all material assumptions and technical
parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed.
The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcement.
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Forward-looking statements
All statements other than statements of historical fact included in this report including, without limitation, statements regarding
future plans and objectives of Canyon, are forward-looking statements. When used in this report, forward-looking statements can
be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”,
“plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions
regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are
beyond the control of the Company, its directors and management of Canyon that could cause Canyon’s actual results to differ
materially from the results expressed or anticipated in these statements.
Canyon cannot and does not give any assurance that the results, performance or achievements expressed or implied by the
forward-looking statements contained in this report will actually occur and investors are cautioned not to place undue reliance on
these forward-looking statements. Canyon does not undertake to update or revise forward-looking statements, or to publish
prospective financial information in the future, regardless of whether new information, future events or any other factors affect
the information contained in this report, except where required by applicable law and stock exchange listing requirements.
CORPORATE
Placement completed
In August 2020, Canyon announced it had agreed to place a total of 100 million new fully paid ordinary shares at $0.10 per share
to institutional and sophisticated and strategic investors to raise a total of $10m, before costs.
The placement introduced Mr Peter Su as a new strategic investor in Canyon who agreed to subscribe for approximately $5.6m at
$0.10 per Share as part of the Placement (representing a 9.4% shareholding in Canyon post-Placement).
Mr Su’s investment was made in two equal tranches, with the first tranche of $2.8 million issued on 7 September 2020 and the
second tranche of $2.8m issued on 29 September 2020.
Board Changes and Restructure
Following the completion of the first tranche of his investment pursuant to the placement in August 2020, on 7 September 2020,
Mr Peter Su joined the Board as a Non-Executive Director.
On 21 October 2020, Mr Dimitri Bacopanos was appointed a Non-Executive Director as a nominee of Mr Su, following the
successful completion of the placement announced in August 2020. Mr Bacopanos resigned from the board on 26 March 2021.
On 10 December 2020, The Company announced the appointment of Mr Cliff Lawrenson as Non-Executive Chairman, the
resignation of Mr David Netherway as Non-Executive Chairman, (continuing as a Non-Executive Director) and the resignation of
Mr Emmanuel Correia as a Non-Executive Director.
Mr Nick Allan resigned as Chief Financial Officer and Company Secretary on 28 May 2021, and Mr Matt Worner was appointed as
Company Secretary on 16 June 2021.
Matters subsequent to the end of the financial year
A $6.2m placement to institutional and sophisticated investors was announced on 2 August 2021, with the issue of 77,257,157
shares at $0.08 per share.
The majority of the placement was completed on 9 August 2021 with the issue of 70,485,675 shares at $0.08 per share raising
$5,638,854 before costs.
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Canyon Resources Limited
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The balance of the placement is in relation to Canyon's largest shareholder and Non-executive Director, Mr Su who subscribed for
his pro-rata amount under the Placement (being an amount of 6,771,482 shares at $0.08 per share raising $541,719) and therefore
continues to hold more than 9% of the Company. Mr Su’s participation in the Placement was approved by shareholders at a General
Meeting held on 20 September 2021.
Likely developments and expected results of operations
Information on likely developments in the operations of the Group and the expected results of operations have not been included
in this report because the Directors believe it would be likely to result in unreasonable prejudice to the Group.
Environmental regulation
With respect to its environmental obligations regarding its exploration activities the consolidated entity endeavours to ensure that
it complies with all regulations when carrying out any exploration work and is not aware of any breach at this time.
Information on Directors
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Name:
Title:
Qualifications:
Experience and expertise:
Cliff Lawrenson
Non-Executive Chairman (Appointed 10 December 2020)
Hons. BComm
Mr Lawrenson is an experienced mining professional who was previously the Managing
Director of Atlas Iron Ltd from 2017 until its acquisition by Hancock Prospecting Pty Ltd.
Prior to Atlas Iron, Mr Lawrenson was Managing Director of a number of ASX listed
companies in the mining and mining services sectors. Mr Lawrenson was a senior executive
of CMS Energy Corporation in the United States of America and Singapore and this was
preceded by an investment banking career.
Paladin Energy Limited (ASX: PDN) - appointed 29 October 2019
Australian Vanadium Limited (ASX: AVL) - appointed 12 October 2020
Caspin Resources Limited (ASX: CPN) - appointed 1 October 2020
Non-Executive Chairman of private companies, Pacific Energy Limited (acquired by QIC)
and Onsite Rental Group.
Altas Iron Limited (ASX:AGO) - appointed 17 January 2017 - resigned 15 October 2018
Pacific Energy Limited (ASX:PEA) - appointed 23 August 2010 - resigned 18 November
2019
Primero Group Limited (ASX:PGX) - appointed 25 October 2019 - resigned 9 March 2020.
None
Phillip Gallagher
Managing Director (Appointed 19 October 2009)
B.Bus
Mr Gallagher has had extensive experience in senior commercial and operational roles in
both private and public companies.
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Mr Gallagher is the founder of Canyon Resources, has been the Company’s Managing
Director since inception.
None
None
15,460,016 ordinary shares
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Canyon Resources Limited
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Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Name:
Title:
Qualifications:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
David Netherway
Non-Executive Director (Appointed 17 March 2014)
B.Eng (Mining), CDipAF, F.Aus.IMM
Mr Netherway is a mining engineer with over 40 years of experience in the mining industry
and until the takeover by Gryphon Minerals Limited, was CEO of Shield Mining Limited, an
ASX listed exploration company. He was involved in the construction and development of
the New Liberty, Iduapriem, Siguiri and Kiniero gold mines in West Africa and has extensive
mining experience in Africa, Australia, China, Canada, India and the former Soviet Union.
Mr Netherway was the Chairman of Afferro Mining, a UK listed iron ore exploration and
development company in Cameroon until December 2013 when Afferro was subject to a
US$200 million takeover by AIM listed IMIC plc.
Chairman of Altus Strategies plc (ALS:AIM & ALTS:TSX-V), Canyon’s joint venture partner
on the Birsok Project in Cameroon - appointed 9 May 2017.
Non-executive Director of Kore Potash Ltd (K2P:AIM, ASX & JSE) - appointed 14 December
2017.
Chairman of Kilo Goldmines Inc (KGL:TSX-V) appointed 7 July 2011 - resigned 16 March
2020.
Non-Executive Director of Avesoro Resources Inc.(ASO:AIM & TSX) appointed 1 February
2011 - resigned 8 January 2020.
14,413,015 ordinary shares
Emmanuel Correia
Non-Executive Director (Appointed 20 July 2016 - resigned 10 December 2020)
B. Bus CA
Mr Correia is a Chartered Accountant and founding director of Peloton Capital and Peloton
Advisory and has over 25 years public company and corporate finance experience in
Australia, North America and the United Kingdom. He has held various senior positions with
Deloitte and other accounting firms and boutique corporate finance houses specialising in
corporate finance, corporate strategy, mergers and acquisitions and capital raising
activities.
n/a
n/a
n/a
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Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Interests in rights:
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (last 3 years):
Interests in shares:
Steven Zaninovich
Non-Executive Director (Appointed 30 January 2019)
Mr Zaninovich has spent more than 20 years in project development, maintenance and
operational readiness in the mining industry including, most recently, as Project Director
of Tawana Resources, responsible for the delivery of the Bald Hill Lithium Project. Prior to
that, he served as Chief Operating Officer with Gryphon Minerals (“Gryphon”) before
assuming the role of Vice President of Major Projects, and becoming part of the Executive
Management Team, at Teranga Gold Corporation (“Teranga”) following its acquisition of
Gryphon Minerals. During his time with Teranga and Gryphon, and also earlier in his career,
Mr Zaninovich gained specific expertise in the development of multiple mining operations
across various commodities and jurisdictions in West Africa. He has also taken on
consultant project management roles for companies including BHP Billiton, Newmont
Mining and Gold Fields.
Mr Zaninovich’s responsibilities during previous senior executive roles have included
operational running of companies, business and strategic planning, feasibility studies and
project development, site exploration operations, health and safety, environmental and
social responsibility, human resources, risk management, project generation, strategic
direction and procurement and contracts.
Non-Executive Director of Maximus Resources Limited (ASX: IDA) appointed on 14 July
2020 and appointed as Non-Executive Chairman on 22 March 2021, Non-Executive Director
of Sarama Resources Limited (TSX-V: SWA) appointed on 24 June 2020, and Non-Executive
Director of Mako Gold Limited (ASX: MXR) appointed on 2 October 2020.
Non-Executive Director of Indiana Resources Ltd (ASX: IDA) resigned on 28 February 2021.
1,200,000 ordinary shares
600,000 performance rights
Peter Su
Non-Executive Director (Appointed 16 September 2020)
Mr Su is actively involved in property investment and development in Australia and
overseas, he is a strategic investor with a diverse range of business interests in Australia
and overseas. The Su family have historically held commercial interest in bauxite and
alumina refining in China.
None
None
60,431,506 ordinary shares
Dimitri Bacopanos
Non-Executive Director (Appointed 21 October 2020 - Resigned 26 March 2021)
Mr Bacopanos is a Chartered Accountant and Fellow of the Securities Institute of Australia
with more than thirty years of experience in a wide range of industries, geographies and
roles. He was previously an Executive Director with Ernst & Young in their Transaction
Advisory Services division and has held executive director roles in public and private
operating entities in China.
n/a
n/a
n/a
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other
types of entities, unless otherwise stated.
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.
16
Canyon Resources Limited
Directors' report
30 June 2021
Company secretary
Matt Worner
LLB, B.Bus
Appointed 16 June 2021
Mr Worner is a former lawyer, with a broad experience in IPOs, capital raising, ASX Listing Rules and Corporations Act issues. He
has held management, company secretarial and board positions with various ASX and AIM listed companies. He maintains strong
connections with brokers in both Australia and London and is currently a director of Talon Petroleum Limited (ASX:TPD).
Nick Allan
B. Com, CA
Appointed 17 April 2020 - Resigned 28 May 2021
Mr Allan is a Chartered Accountant with over 25 years’ experience in commerce, corporate advisory and public practice. Mr Allan
has previously held several senior finance positions including Chief Financial Officer and Company Secretary of a number of ASX-
listed public companies.
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2021, and the
number of meetings attended by each Director were:
Cliff Lawrenson
Phillip Gallagher
David Netherway
Steven Zaninovich
Peter Su
Dimitri Bacopanos
Emmanuel Correia
Full Board
Attended
Held
Audit and Risk Committee
Attended
Held
2
4
4
4
3
1
2
2
4
4
4
3
1
2
2
-
2
2
-
-
-
2
2
2
2
2
2
2
Held: represents the number of meetings held during the time the Director held office.
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance with
the requirements of the Corporations Act 2001 and its Regulations.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all Directors.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
17
Canyon Resources Limited
Directors' report
30 June 2021
Principles used to determine the nature and amount of remuneration
This report outlines the remuneration arrangements in place for the key management personnel of Canyon for the financial year
ended 30 June 2021. The information provided in this remuneration report has been audited as required by Section 308 (3C) of
the Corporations Act 2001.
The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are defined as
those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and
the Group, directly or indirectly, including any director (whether executive or otherwise) of the Company, and includes the
executives in the Group.
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Remuneration Philosophy
The performance of the Company depends upon the quality of the directors and executives. The philosophy of the Company in
determining remuneration levels is to:
- set competitive remuneration packages to attract and retain high calibre employees;
- link executive rewards on sustained growth and key non-financial drivers of value.
Remuneration and nomination committee
Due to the size of the Company the entire Board are members of the Remuneration and Nomination Committee. The Committee
assesses the appropriateness of the nature and amount of remuneration of directors and executives on a periodic basis by
reference to relevant employment market conditions with an overall objective of ensuring maximum stakeholder benefit from the
retention of a high-quality Board and executive team.
Non-executive Director's remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain directors
of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time
by a general meeting. The maximum aggregate payable to non-executive directors approved by shareholders is $300,000 per
annum.
Executive remuneration
The Group aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has
both fixed and variable components.
The executive remuneration and reward framework has four components:
●
●
●
●
base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave
The combination of these comprises the executive's total remuneration.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board. The process consists of a review of relevant comparative remuneration in
the market and internally and, where appropriate, obtaining external advice on policies and practices. The Board has access to
external, independent advice where necessary.
Directors and executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including
cash and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen will
be optimal for the recipient without creating undue cost for the Company.
18
Canyon Resources Limited
Directors' report
30 June 2021
Variable Remuneration
The objective of the short term incentive program is to link the achievement of the Company's operational targets with the
remuneration received by the executives charged with meeting those targets. The total potential short-term incentive available is
to be set at a level so as to provide sufficient incentive to the executive to achieve the operational targets and such that the cost
to the Company is reasonable in the circumstances.
Actual payments which may be granted to each executive depend on the extent to which specific operating targets set at the
beginning of the financial year are met. For the year to 30 June 2021, and to the date of this report, the Company made $25,000
payments to key management personnel (2020: $nil).
The Company may also make long term incentive payments to reward senior executives in a manner that aligns this element of
remuneration with the creation of shareholder wealth.
Employee Share Plan
On 25 November 2019 Shareholders approved a new employee incentive scheme titled the Canyon Long Term Incentive Plan.
As a result of this Shareholder approval the Company will be able to issue options, performance rights or performance shares
under the Plan to eligible participants over a period of 3 years without impacting on the Company’s ability to issue up to 15% of
its total ordinary securities without Shareholder approval in any 12-month period.
The objective of the Plan is to attract, motivate and retain key employees and it is considered by the Company that the adoption
of the Plan and the future issue of Plan Securities under the Plan will provide selected employees with the opportunity to
participate in the future growth of the Company.
Any future issues of Plan Securities to a related party or a person whose relationship with the company or the related party is, in
ASX’s opinion, such that approval should be obtained will require additional Shareholder approval under ASX Listing Rule 10.14 at
the relevant time.
Voting and comments made at the Company's Annual General Meeting ('AGM')
At the 30 November 2020 AGM, 73.1% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2020, which constitutes a first strike pursuant to s250U of the Corporations Act 2001. The Company did not receive
any specific feedback at the AGM regarding its remuneration practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
The key management personnel of the Group consisted of the following Directors of Canyon Resources Limited:
●
●
●
●
●
●
●
Cliff Lawrenson (Non-Executive Chairman) - appointed 10 December 2020
Phillip Gallagher (Managing Director)
David Netherway (Non-Executive Director)
Steven Zaninovich (Non-Executive Director)
Peter Su (Non-Executive Director) - appointed 16 September 2020
Dimitri Bacopanos (Non-Executive Director) - appointed 21 October 2020 - resigned 26 March 2021
Emmanuel Correia (Non-Executive Director) - resigned 10 December 2020
And the following persons:
●
●
●
James Durrant (Director of Projects)
Rick Smith (Chief Development Officer) - appointed 19 February 2021
Nick Allan (CFO & Company Secretary) - appointed 17 April 2020 - resigned 28 May 2021
19
Canyon Resources Limited
Directors' report
30 June 2021
30 June 2021
Non-Executive Directors:
Cliff Lawrenson
David Netherway
Emmanuel Correia
Steven Zaninovich
Peter Su
Dimitri Bacopanos
Executive Directors:
Phillip Gallagher **
Other Key Management
Personnel:
James Durrant ***
Rick Smith
Nick Allan
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Cash
bonus
$
Other
Super-
services * annuation
$
$
Long service
leave
$
Equity-
settled
$
Total
$
83,468
90,000
35,525
79,992
-
33,333
-
12,500
-
12,500
-
-
-
-
75,000
15,273
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
107,450
-
-
83,468
102,500
110,525
215,215
-
33,333
394,976
-
-
21,694
5,283
-
421,953
264,465
252,618
203,455
1,437,832
-
-
-
25,000
-
-
-
90,273
21,694
-
18,138
61,526
-
-
-
5,283
225,419
511,578
-
252,618
179,786
401,379
512,655 2,132,569
Refer to note 20
*
Includes annual leave accrual $11,509
**
*** Includes annual leave accrual $6,132
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-based
payments
Cash salary
and fees
$
Cash
bonus
$
Other
services
$
Super-
annuation
$
Long service
leave
$
Equity-
settled
$
Total
$
30 June 2020
Non-Executive Directors:
David Netherway
Emmanuel Correia
Steven Zaninovich
Executive Directors:
Phillip Gallagher*
Other Key Management
Personnel:
James Durrant
Nick Allan
John Lewis **
90,000
80,000
79,992
313,777
241,667
37,981
198,559
1,041,976
*
**
Includes accrued annual leave of $13,777
Resigned 17 April 2020
-
-
-
-
-
-
151,067
151,067
253,990
241,067
231,067
333,982
21,003
50,872
241,707
627,359
20,669
3,608
13,847
59,127
-
-
-
50,872
-
-
-
262,336
41,589
212,406
797,831 1,949,806
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Canyon Resources Limited
Directors' report
30 June 2021
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
Cliff Lawrenson
David Netherway
Emmanuel Correia
Steven Zaninovich
Peter Su
Dimitri Bacopanos
Executive Directors:
Phillip Gallagher
Other Key Management Personnel:
James Durrant
Rick Smith
Nick Allan
John Lewis
Fixed remuneration
Performance related
30 June 2021 30 June 2020 30 June 2021 30 June 2020
100%
88%
100%
44%
-
100%
-
37%
35%
7%
-
-
-
12%
-
56%
-
-
100%
61%
-
56%
100%
55%
-
100%
-
100%
100%
44%
-
45%
-
-
63%
65%
93%
-
-
39%
-
-
-
-
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of
these agreements are as follows:
Name:
Title:
Details:
Name:
Title:
Details:
Name:
Title:
Details:
Name:
Title:
Details:
Mr Phillip Gallagher
Managing Director
Remuneration of $300,000 per annum plus superannuation.
The agreement may be terminated by the Company giving 6 months’ notice. Mr Gallagher
can terminate the agreement by giving 3 months’ written notice.
Mr James Durrant
Director of Projects
Remuneration of $250,000 per annum plus superannuation.
The agreement may be terminated by either the Company or Mr Durrant upon the giving
of 3 months’ notice.
Mr Nick Allan
Company Secretary & CFO
Remuneration of $225,000 per annum plus superannuation.
The agreement may be terminated by either the Company or Mr Allan upon the giving of 3
months’ notice.
Mr Rick Smith
Chief Development Officer
Mr Smith will provide services for the agreed hours of 0.5 times of a full-time equivalent
role. Additional hours will be agreed in writing.
Remuneration of $200,000 per annum (being $400,000 full time equivalent).
The agreement may be terminated by either party with one month's written notice.
21
Canyon Resources Limited
Directors' report
30 June 2021
Share-based compensation
On 25 November 2019 Shareholders approved a new employee incentive scheme titled the Canyon Long Term Incentive Plan.
As a result of this Shareholder approval the Company will be able to issue options, performance rights or performance shares
under the Plan to eligible participants over a period of 3 years without impacting on the Company’s ability to issue up to 15% of
its total ordinary securities without Shareholder approval in any 12 month period.
The objective of the Plan is to attract, motivate and retain key employees and it is considered by the Company that the adoption
of the Plan and the future issue of Plan Securities under the Plan will provide selected employees with the opportunity to
participate in the future growth of the Company.
Any future issues of Plan Securities to a related party or a person whose relationship with the company or the related party is, in
ASX’s opinion, such that approval should be obtained will require additional Shareholder approval under ASX Listing Rule 10.14 at
the relevant time.
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year ended
30 June 2021.
Options
There were no options over ordinary shares granted to or vested by Directors and other key management personnel as part of
compensation during the year ended 30 June 2021.
Performance rights
The terms and conditions of each grant of performance rights over ordinary shares affecting remuneration of Directors and other
key management personnel in this financial year or future reporting years are as follows:
Name
Grant date
Vesting condition *
Number
Fair value
per right
at grant date
James Durrant
Nick Allan
21 August 2020
21 August 2020
21 August 2020
21 August 2020
21 August 2020
21 August 2020
21 August 2020
21 August 2020
1
2
3
4
1
2
3
4
333,333
333,333
666,667
666,667
266,667
266,667
533,333
533,333
$0.134
$0.134
$0.134
$0.134
$0.134
$0.134
$0.134
$0.134
* Performance Rights are subject to the following Vesting Conditions:
(1) 12 months continuous employment following completion of 3 month probation period
(2) 24 months continuous employment following completion of 3 month probation period
(3) Completion of a successful PFS, as determined by the Board of Directors
(4) Completions of successful Feasibility Study, as determined by the Board of Directors
22
Canyon Resources Limited
Directors' report
30 June 2021
The number of performance rights over ordinary shares granted to and vested by Directors and other key management personnel
as part of compensation during the year ended 30 June 2021 are set out below:
Number of
Number of
Number of
Number of
Name
Phillip Gallagher
David Netherway
Emmanuel Correia
Steven Zaninovich
James Durrant
Nick Allan
rights
granted
during the
during the
year ended
year ended
30 June 2021 30 June 2020 30 June 2021 30 June 2020
rights
granted
during the
year ended
during the
year ended
rights
vested
rights
vested
-
-
-
-
2,000,000
1,600,000
-
-
-
1,800,000
-
-
5,333,333
3,333,333
3,333,334
1,200,000
1,000,000
533,333
-
-
-
-
-
-
For performance rights granted during the year ended 30 June 2021, refer to note 30 to the financial report for details of the
methodology used to value those rights.
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each Director and other members of key management
personnel of the Group, including their personally related parties, is set out below:
Ordinary shares
Cliff Lawrenson
Phillip Gallagher
David Netherway
Emmanuel Correia
Steven Zaninovich
Peter Su
Dimitri Bacopanos
James Durrant
Rick Smith
Nick Allan
Balance at Performance
the start of
the year
rights
converted
Additions
Disposals/
other
Balance at
the end of
the year
-
10,126,683
11,079,682
5,427,780
-
-
-
-
-
-
26,634,145
-
5,333,333
3,333,333
3,333,334
1,200,000
-
-
1,000,000
-
533,333
14,733,333
-
-
-
-
-
56,330,024
-
-
-
-
56,330,024
-
-
-
(8,761,114)
-
-
-
-
-
(533,333)
(9,294,447)
-
15,460,016
14,413,015
-
1,200,000
56,330,024
-
1,000,000
-
-
88,403,055
23
Canyon Resources Limited
Directors' report
30 June 2021
Performance rights holding
The number of performance rights over ordinary shares in the Company held during the financial year by each Director and other
members of key management personnel of the Group, including their personally related parties, is set out below:
Performance rights over ordinary shares
Cliff Lawrenson
Phillip Gallagher
David Netherway
Emmanuel Correia
Steven Zaninovich
Peter Su
Dimitri Bacopanos
James Durrant
Rick Smith
Nick Allan
Balance at
the start of
the year
Granted
Converted
Expired/
forfeited/
other
Balance at
the end of
the year
-
5,333,333
3,333,333
3,333,334
1,800,000
-
-
-
-
-
13,800,000
-
-
-
-
-
-
-
2,000,000
-
1,600,000
3,600,000
-
(5,333,333)
(3,333,333)
(3,333,334)
(1,200,000)
-
-
(1,000,000)
-
(533,333)
(14,733,333)
-
-
-
-
-
-
-
-
-
(1,066,667)
(1,066,667)
-
-
-
-
600,000
-
-
1,000,000
-
-
1,600,000
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Canyon Resources Limited under option at the date of this report are as follows:
Expiry date
7 September 2023
Exercise
price
Number
under option
$0.200
4,000,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the
Company or of any other body corporate.
Shares under performance rights
Unissued ordinary shares of Canyon Resources Limited under performance rights at the date of this report are as follows:
Grant Date
27 November 2019
21 August 2020
Number
600,000
2,066,667
2,666,667
Shares issued on the exercise of options
There were no ordinary shares of Canyon Resources Limited issued on the exercise of options during the year ended 30 June 2021
and up to the date of this report.
24
Canyon Resources Limited
Directors' report
30 June 2021
Shares issued on the exercise of performance rights
The following ordinary shares of Canyon Resources Limited were issued during the year ended 30 June 2021 and up to the date of
this report on the exercise of performance rights granted:
Date performance rights converted
22 October 2020
22 October 2020
22 October 2020
Valuation
per share
Number of
shares issued
$0.227
$0.201
$0.134
12,000,000
1,200,000
1,533,333
14,733,333
Indemnity and insurance of officers
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as a Director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company
or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
Proceedings on behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to 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 part of those proceedings.
Non-audit services
There were no non-audit services provided during the financial year by the auditor.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this Directors' report.
Auditor
HLB Mann Judd (WA Partnership) continues in office in accordance with section 327 of the Corporations Act 2001.
25
Canyon Resources Limited
Directors' report
30 June 2021
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Phillip Gallagher
Managing Director
30 September 2021
Perth
26
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Canyon Resources Limited for
the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2021
L Di Giallonardo
Partner
27
Canyon Resources Limited
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Other income
Interest received
Expenses:
Foreign exchange loss
Employee expense
Consultants and contractors
Depreciation and amortisation expense
Impairment of exploration
Loss on disposal of plant and equipment
Directors' fees
Travel expenses
Compliance and regulatory
Legal and professional fees
Share based payments
Interest expense
Occupancy
Administration
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Change in fair value of equity instruments
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Basic loss per share
Diluted loss per share
Note 30 June 2021 30 June 2020
$
$
5
67,110
6,780
62,500
14,679
-
(1,177,653)
(320,300)
(99,961)
(232,257)
(150)
(737,591)
(88,928)
(121,439)
(84,699)
(1,634,786)
(741)
(125,879)
(200,808)
(7,397)
(1,551,555)
(402,381)
(110,156)
(526,155)
(1,141)
(549,992)
(356,991)
(128,541)
(140,559)
(4,300,699)
(3,048)
(162,731)
(356,348)
(4,751,302)
(8,520,515)
-
-
(4,751,302)
(8,520,515)
12
30
6
17
92,321
25,493
(141,997)
5,977
(49,676)
31,470
(4,800,978)
(8,489,045)
Cents
Cents
31
31
(0.80)
(0.80)
(1.83)
(1.83)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
28
Canyon Resources Limited
Consolidated statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Financial assets
Plant and equipment
Capitalised exploration expenditure
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note 30 June 2021 30 June 2020
$
$
7
8
9
10
11
12
2,684,012
203,794
391,464
3,279,270
1,610,466
69,688
296,566
1,976,720
-
345,756
16,760,341
17,106,097
46,207
426,892
12,144,907
12,618,006
20,385,367
14,594,726
13
14
1,040,082
203,727
1,243,809
1,434,170
184,376
1,618,546
1,243,809
1,618,546
19,141,558
12,976,180
15
16
17
66,543,010
1,886,952
(49,288,404)
52,441,940
5,380,176
(44,845,936)
19,141,558
12,976,180
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
29
Canyon Resources Limited
Consolidated statement of changes in equity
For the year ended 30 June 2021
Issued
capital
$
Fair value
reserve
$
Foreign
currency
reserve
$
Share based
payments
reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2019
41,462,717
11,235
141,544
5,000,420
(36,325,421)
10,290,495
Loss after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive
income/(loss) for the year
Transactions with owners in their
capacity as owners:
Share-based payments (note 30)
Shares issued for exploration and
evaluation acquisition
Shares issued for cash
Share issue costs
Value of performance rights
expensed
-
-
-
-
-
25,493
5,977
25,493
5,977
-
-
-
(8,520,515)
(8,520,515)
-
31,470
(8,520,515)
(8,489,045)
2,775,000
1,360,000
7,343,000
(498,777)
-
-
-
-
-
-
-
-
-
-
-
727,869
(1,330,192)
-
-
797,830
-
-
-
-
-
3,502,869
29,808
7,343,000
(498,777)
797,830
Balance at 30 June 2020
52,441,940
36,728
147,521
5,195,927
(44,845,936)
12,976,180
Issued
capital
$
Fair value
reserve
$
Foreign
currency
reserve
$
Share based
payments
reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2020
52,441,940
36,728
147,521
5,195,927
(44,845,936)
12,976,180
Loss after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive
income/(loss) for the year
Transactions with owners in their
capacity as owners:
Share-based payments (note 30)
Transfer from reserve on issue of
shares for acquisition of Birsok
Share issued for cash
Share issue costs
Value of performance rights
expensed
Performance shares converted
Transfer balance of reserve
-
-
-
-
1,850,000
10,000,000
(914,097)
-
-
92,321
(141,997)
92,321
(141,997)
-
-
-
(4,751,302)
(4,751,302)
-
(49,676)
(4,751,302)
(4,800,978)
-
-
-
-
-
-
-
-
-
-
-
1,122,132
(1,850,000)
-
245,666
512,655
(3,165,167)
(179,785)
-
-
-
-
1,122,132
-
10,000,000
(668,431)
-
-
308,834
512,655
-
-
-
3,165,167
-
-
-
(129,049)
Balance at 30 June 2021
66,543,010
-
5,524
1,881,428
(49,288,404)
19,141,558
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
30
Canyon Resources Limited
Consolidated statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Interest and other finance costs paid
Government grants received
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Proceeds from disposal of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Note 30 June 2021 30 June 2020
$
$
(3,335,751)
6,780
-
50,000
(3,015,023)
14,679
(3,048)
50,000
28
(3,278,971)
(2,953,392)
11
12
(2,035)
(5,021,369)
68
(37,577)
(4,416,715)
5,184
(5,023,336)
(4,449,108)
15
10,000,000
(668,432)
7,343,000
(498,777)
9,331,568
6,844,223
1,029,261
1,610,466
44,285
(558,277)
2,219,716
(50,973)
Cash and cash equivalents at the end of the financial year
7
2,684,012
1,610,466
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
31
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 1. General information
The financial statements cover Canyon Resources Limited as a Group consisting of Canyon Resources Limited and the entities it
controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Canyon
Resources Limited's functional and presentation currency.
Canyon Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office
and principal place of business is:
Level 9, 863 Hay Street
Perth, Western Australia, 6000
T: +61 8 6382 3342
F: +61 8 9324 1502
A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not
part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of Directors, on 30 September 2021. The
Directors have the power to amend and reissue the financial statements.
Note 2. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board ('AASB') that are mandatory for the current reporting period.
In the Directors' opinion, none of the new or amended Accounting Standards and Interpretations have had, or will have a material
effect on the Group's financial performance or position.
Going concern
This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and
realisation of assets and the settlement of liabilities in the normal course of business.
The Group has incurred a comprehensive loss for the year ended 30 June 2021 of $4,751,302 (2020: $8,520,515). As at 30 June
2021, the Group's current assets exceeded is current liabilities by $2,035,461 (30 June 2020: $358,174). Net cash used in operating
activities was $3,278,971 for the year ended (2020: $2,953,392).
Subsequent to year end 77,257,157 shares were issued at a price of $0.08 raising a total of $6,180,573 before costs.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for
for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation
of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive
income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.
32
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in
note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary
information about the parent entity is disclosed in note 25.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Canyon Resources Limited
('Company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Canyon Resources
Limited and its subsidiaries together are referred to in these financial statements as 'the Group'.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the
Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without
the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the
book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair
value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same basis as
the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Canyon Resources Limited's functional and presentation
currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or
loss.
Foreign operations
The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date.
The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which
approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in
other comprehensive income through the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of.
33
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Revenue recognition
The Group recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised
cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying
amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income
tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences,
unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets
are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
●
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets
recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying
amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there
are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either
the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting
period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12
months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily
for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to
defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-
current.
Deferred tax assets and liabilities are always classified as non-current.
34
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest
method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance.
To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either
amortised cost or fair value depending on their classification. Classification is determined based on both the business model within
which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is
being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all
of a financial asset, it's carrying value is written off.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for
the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost
or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment
at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial
recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss
allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event
that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that
credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of
expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls
over the life of the instrument discounted at the original effective interest rate.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding
land) over their expected useful lives as follows:
Plant and equipment
3-7 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets,
whichever is shorter.
35
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group.
Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Exploration and evaluation assets
Exploration and evaluation costs are either expensed as incurred or capitalised where the capitalised expense meets the
requirements for capitalisation. Exploration and evaluation costs are carried forward only if the rights to tenure of the area of
interest are current and either:
●
●
The costs are expected to be recouped through successful development and exploitation of the area of interest or;
The activities in the area of interest at the reporting date have not reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to,
the area of interest, are continuing.
Accumulated acquisition costs in relation to an abandoned area are written off in full to the statement of profit or loss and other
comprehensive income in the year in which the decision to abandon the area is made.
The carrying values of acquisition costs are reviewed for impairment when events or changes in circumstances indicate the carrying
value may not be recoverable. Where a decision has been made to proceed with development in respect of an area of interest the
relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.
The Group has elected to capitalise all acquisition costs for its areas of interest and to expense all ongoing exploration and
evaluation expenditure with the exception of the Minim Martap project where all expenditure that meets the recognition criteria
is being capitalised.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present
value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating
unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating
unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which
are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are
unsecured and are usually paid within 30 days of recognition.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled
wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured
at the present value of expected future payments to be made in respect of services provided by employees up to the reporting
date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date
on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash
outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
36
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the
Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of
the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss
for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial
or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The
cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting
date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle
the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are
considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the
share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a
cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any
remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is
treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value
is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the
absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they
act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use.
Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,
are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Issued capital
Ordinary shares are classified as equity.
37
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional
amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information
obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the
earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine
fair value.
Earnings per share
Basic earnings/loss per share
Basic earnings per share is calculated by dividing the profit/loss attributable to the owners of Canyon Resources Limited, excluding
any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during
the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings/loss per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after
income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average
number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which
are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have
not been early adopted by the Group for the annual reporting period ended 30 June 2021. The Group has not yet assessed the
impact of these new or amended Accounting Standards and Interpretations.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to
assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on
historical experience and on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The
judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities (refer to the respective notes) within the next financial year are discussed below.
38
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the
consolidated entity based on known information. This consideration extends to supply chain, staffing and geographic regions in
which the consolidated entity operates. The Company has assessed that there has been no material impact on the Company’s
ability to undertake the necessary exploration activities in respect of the Minim Martap Project and to satisfy its exploration
expenditure commitments under its exploration licences, and further the Company does not anticipate there will be any material
impact in the current financial year. Other than as addressed in specific notes, there does not currently appear to be either any
significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may
impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees and consultants where the fair value of the services
provided cannot be estimated by reference to the fair value of the equity instruments at the date at which they are granted. The
fair value is determined using a Black and Scholes model and is based on assumptions disclosed in periods disclosed when the
equity instruments are granted.
Fair value measurement hierarchy
The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest
level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs
for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which
category the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted
cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.
Employee benefits provision
The liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and
measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In
determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have
been taken into account.
Exploration and evaluation costs
The recoverability of the carrying amount of exploration and evaluation costs carried forward have been reviewed by the
directors. In conducting the review, the recoverable amount has been assessed by reference to the higher of “fair value less costs
to sell” and “value in use”. In determining value in use, future cash flows are based on various parameters.
Variations to expected future cash flows and timing thereof, could result in significant changes to the impairment test results,
which in turn could impact future financial results.
Note 4. Operating segments
The Group is managed primarily on the basis of its exploration projects. Operating segments are therefore determined on the
same basis. Reportable segments disclosed are based on aggregating tenements and permits where the tenements and permits
are considered to form a single project. This is indicated by:
●
●
●
●
having the same ownership structure;
exploration being focused on the same mineral or type of mineral;
exploration programs targeting the tenements and permits as a group, indicated by the use of the same exploration team,
and shared geological data, knowledge and confidence across the areas; and
shared mining economic considerations such as mineralisation, metallurgy, marketing, legal, environmental, social and
government factors.
39
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 4. Operating segments (continued)
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision maker with respect to
operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual
financial statements of the Group.
Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic
value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical
location.
Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets and intangible assets
have not been allocated to operating segments.
The following table presents the profit & loss and assets & liabilities information by segment provided to the Board of Directors:
30 June 2021
Segment revenue
Expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense
Material items include:
Depreciation
Share-based payments
Interest revenue
Assets
Segment assets
Total assets
Liabilities
Segment liabilities
Total liabilities
Exploration Unallocated
(Corporate)
$
(Africa)
$
Total
$
-
(1,079,894)
(1,079,894)
73,890
(3,745,298)
(3,671,408)
73,890
(4,825,192)
(4,751,302)
-
(4,751,302)
(96,577)
-
-
(3,384)
(1,634,786)
6,780
(99,961)
(1,634,786)
6,780
17,539,255
2,846,112
123,535
1,120,274
20,385,367
20,385,367
1,243,809
1,243,809
40
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 4. Operating segments (continued)
30 June 2020
Segment revenue
Expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense
Material items include:
Depreciation
Share-based payments
Interest revenue
Assets
Segment assets
Total assets
Total assets includes:
Acquisition of non-current assets
Liabilities
Segment liabilities
Total liabilities
Note 5. Other income
Net foreign exchange gain
Subsidies and grants
Other income
Note 6. Income tax benefit
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 30% (2020: 30%)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Sundry items
Movement in unrecognised temporary differences
Tax effect of current year tax losses for which no deferred tax asset has been recognised
Income tax benefit
41
Exploration Unallocated
(Corporate)
$
(Africa)
$
Total
$
-
(1,783,234)
(1,783,234)
77,179
(6,814,460)
(6,737,281)
77,179
(8,597,694)
(8,520,515)
-
(8,520,515)
(105,004)
-
-
(5,152)
(4,300,699)
14,679
(110,156)
(4,300,699)
14,679
12,853,475
1,741,251
14,594,726
14,594,726
67,385
-
67,385
70,174
1,548,372
1,618,546
1,618,546
30 June 2021 30 June 2020
$
$
29,610
37,500
-
62,500
67,110
62,500
30 June 2021 30 June 2020
$
$
(4,751,302)
(8,520,515)
(1,425,391)
(2,556,155)
3,071
1,168
(1,422,320)
(147,289)
1,569,609
(2,554,987)
(184,378)
2,739,365
-
-
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 6. Income tax benefit (continued)
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Provisions
Accrued expenses
Capital raising costs
Carry forward tax losses
Total deferred tax assets not recognised
Unrecognised temporary differences
Deferred tax liabilities at 30%
Exploration expenditure
30 June 2021 30 June 2020
$
$
61,118
8,100
233,268
21,703,982
56,395
8,100
233,268
14,216,442
22,006,468
14,514,205
30 June 2021 30 June 2020
$
$
1,895,376
2,155,034
The potential deferred tax benefit of tax losses has not been recognised as an asset because recovery of tax losses is not considered
probable in the context of AASB 112. The benefit of these tax losses will only be realised if:
(a) The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
deduction for the losses to be realised.
(b) The Company complies with the conditions for deductibility imposed by the law; and
(c)
No changes in tax legislation adversely affect the Company in realising the benefit from the deduction for the loss.
Note 7. Current assets - cash and cash equivalents
Cash on hand
Cash at bank
Note 8. Current assets - trade and other receivables
Trade receivables
Other receivables
BAS receivable
30 June 2021 30 June 2020
$
$
53,403
2,630,609
54,501
1,555,965
2,684,012
1,610,466
30 June 2021 30 June 2020
$
$
-
147,397
56,397
21,216
38,395
10,077
203,794
69,688
Included in other receivables is an amount of $138,528 receivable from the sale of the Rumble Resources Ltd (ASX:RTR) shares
sold during the year (see note 10).
42
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 9. Current assets - other assets
Prepayments
Other deposits
Other current assets
30 June 2021 30 June 2020
$
$
70,144
282,679
38,641
62,621
217,047
16,898
391,464
296,566
Other deposits includes surety bonds paid to the Cameroon Ministry of Mines in relation to the 3 Minim Martap Licences.
Note 10. Non-current assets - financial assets
Financial assets carried at fair value through other comprehensive income:
Shares in Rumble Resources Ltd
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous financial
year are set out below:
Opening fair value
Disposals
Changes in the fair value of equity investment
Closing fair value
30 June 2021 30 June 2020
$
$
-
46,207
46,207
(138,528)
92,321
20,714
-
25,493
-
46,207
The shares held in Rumble Resources Ltd (ASX: RTR) are categorised as Level 1 securities and designated as fair value through
Other Comprehensive Income.
The shares held in Rumble Resources Ltd (ASX: RTR) were disposed of during the year at an average sale price of $0.4347 per share.
The funds from the sale had not be received by the Company at balance date (see note 8).
43
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 11. Non-current assets - plant and equipment
Plant and equipment - at cost
Less: Accumulated depreciation
Computer equipment - at cost
Less: Accumulated depreciation
Office equipment - at cost
Less: Accumulated depreciation
30 June 2021 30 June 2020
$
$
561,607
(270,126)
291,481
628,846
(240,348)
388,498
77,297
(44,581)
32,716
65,977
(44,418)
21,559
58,238
(22,215)
36,023
3,699
(1,328)
2,371
345,756
426,892
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Balance at 1 July 2019
Additions
Disposals
Exchange differences
Depreciation expense
Balance at 30 June 2020
Additions
Disposals
Exchange differences
Transfers in/(out)
Depreciation expense
Balance at 30 June 2021
Office
equipment
Computer
equipment
Field
equipment
$
$
$
Total
$
2,963
-
-
-
(592)
2,371
1,611
-
(127)
33,517
(15,813)
55,934
-
(6,325)
360
(13,946)
36,023
425
(218)
(583)
12,446
(15,377)
442,797
37,577
-
3,742
(95,618)
388,498
-
-
17,718
(45,963)
(68,772)
501,694
37,577
(6,325)
4,102
(110,156)
426,892
2,036
(218)
17,008
-
(99,962)
21,559
32,716
291,481
345,756
Note 12. Non-current assets - capitalised exploration expenditure
Exploration and evaluation phase - Minim Martap
Exploration and evaluation phase - Birsok
30 June 2021 30 June 2020
$
$
16,210,341
11,594,907
550,000
550,000
16,760,341
12,144,907
44
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 12. Non-current assets - capitalised exploration expenditure (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:
Balance at 1 July 2019
Acquisition of tenements
Capitalised expenditure - Minim Martap
Exchange differences
Impairment of assets
Balance at 30 June 2020
Expenditure during the year
Exchange differences
Impairment of assets 1
Balance at 30 June 2021
$
8,179,090
29,808
4,416,715
45,449
(526,155)
12,144,907
5,021,369
(173,678)
(232,257)
16,760,341
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on
successful development and commercial exploitation or sale of the respective areas.
1 As the Birsok tenements are still in the process of being renewed, all additional expenditure recognised is being expensed. Until
such time that the renewals are finalised, any further acquisition costs are unable to be capitalised in accordance with the
Company's accounting policy.
Shares Issued for the Acquisition of the Minim Martap Project
In August 2018 Canyon announced that it had been granted the licences for the Minim Martap Project.
The Company had engaged Mr Serge Asso’o to assist it in its negotiations with the Government and to navigate the many levels of
Government involved in the acquisition. The Company agreed to pay Mr Asso’o a success fee comprised of Canyon shares upon
the successful granting of the Project to Canyon and the satisfaction of a number of project related milestones:
Subject to shareholder approval, Mr Asso’o will be issued:
(1) 30,000,000 ordinary Canyon shares following approval of grant of Minim Martap project from the Cameroon Government.
50% of the shares will be voluntarily escrowed for 6 months after their issue.
(2) 20,000,000 ordinary Canyon shares 12 months after the granting of permits. 50% of the shares will be voluntarily escrowed
for 6 months after their issue.
(3) 20,000,000 ordinary Canyon shares upon the completion and execution of a final detailed Mining Convention with the
Government of Cameroon for the mine and infrastructure related to the Minim Martap project. A final Mining Convention
includes all rail, port, other infrastructure and land access agreements for the Project, all taxation agreements and other
duties relating to the Project, commitments regarding local employment, environmental and community agreements and all
other agreements with the Government of Cameroon that relate to the long term operation of the Project.
(4) 30,000,000 ordinary Canyon shares following the issuing of a Mining Permit, the securing and confirmation of full mine
funding and the Final Investment Decision by the Board to commence mine construction. A mining permit can only be issued
by the Government of Cameroon upon the execution of the Mining Convention, a detailed Bankable Feasibility Study (BFS)
being accepted by the Government and the securing of full funding for the mine construction.
After receiving shareholder approval, Canyon issued the first Tranche of Shares to Mr Asso’o in December 2018. As a result, the
company recorded an amount of $2,040,000 as a cost of Acquisition of the Minim Martap Project being the fair value (market
price) of the first tranche of shares (30,000,000) at the measurement date being 15 August 2017, the date the agreement was
entered into. The second tranche vested 12 months from granting of the permits and shareholder approval to issue the shares
was granted at the AGM on 27 November 2019. On 10 February 2020, the Company issued 20,000,000 shares to Mr Asso’o in
relation to Tranche 2. As a result, the Company has recorded a total amount of $1,360,000 in relation to the second tranche.
45
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 12. Non-current assets - capitalised exploration expenditure (continued)
As of balance date the full amount of the value of each of Tranche 1 and 2 has been recognised.
No amounts have been recognised in relation to tranches 3 or 4. This will be reassessed by the directors as the Project progresses.
Note 13. Current liabilities - trade and other payables
Trade payables
Other payables
Note 14. Current liabilities - provisions
Annual leave
Long service leave
Note 15. Equity - issued capital
30 June 2021 30 June 2020
$
$
419,779
620,303
1,051,888
382,282
1,040,082
1,434,170
30 June 2021 30 June 2020
$
$
147,572
56,155
133,504
50,872
203,727
184,376
Ordinary shares - fully paid
623,903,552 499,170,219
66,543,010
52,441,940
30 June 2021 30 June 2020 30 June 2021 30 June 2020
Shares
Shares
$
$
Movements in ordinary share capital
Details
Balance
Shares issued for cash
Shares issued in lieu of payment
Cost of share issues
Balance
Shares issued for cash
Conversion of performance rights
Shares issued in lieu of payment
Cost of share issues
Date
1 July 2019
30 June 2020
Shares
$
418,276,469
45,893,750
35,000,000
-
41,462,717
7,343,000
4,135,000
(498,777)
499,170,219
100,000,000
14,733,333
10,000,000
-
52,441,940
10,000,000
3,165,167
1,850,000
(914,097)
Balance
30 June 2021
623,903,552
66,543,010
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does
not have a limited amount of authorised capital.
46
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 15. Equity - issued capital (continued)
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall
have one vote.
Capital risk management
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide
returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of
capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total
borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative
to the current Company's share price at the time of the investment. The Group is not actively pursuing additional investments in
the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.
The Group is subject to certain financing arrangements covenants and meeting these is given priority in all capital risk management
decisions. There have been no events of default on the financing arrangements during the financial year.
The capital risk management policy remains unchanged from the 30 June 2020 Annual Report.
Note 16. Equity - reserves
Financial assets at fair value through other comprehensive income reserve
Foreign currency reserve
Share-based payments reserve
30 June 2021 30 June 2020
$
$
-
5,524
1,881,428
36,728
147,521
5,195,927
1,886,952
5,380,176
Financial assets at fair value through other comprehensive income reserve
The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other
comprehensive income.
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations
to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration,
and other parties as part of their compensation for services.
47
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 16. Equity - reserves (continued)
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Balance at 1 July 2019
Foreign currency translation
Amortisation of shares issued in lieu of payment
Shares issued in lieu of payment
Performance rights issued to directors/employees
Movement in fair value of equity instruments
Balance at 30 June 2020
Foreign currency translation
Amortisation of shares issued in lieu of payment
Shares issued in lieu of payment
Performance rights issued to directors/employees
Movement in fair value of equity instruments
Performance shares converted
Issue of options
Transfer balance to accumulated losses
Fair value
reserve
$
Share based
payment
reserve
$
Foreign
currency
translation
$
11,235
-
-
-
-
25,493
36,728
-
-
-
-
92,321
-
-
(129,049)
5,000,420
-
757,677
(1,360,000)
797,830
-
5,195,927
-
1,122,132
(1,850,000)
512,655
-
(3,165,167)
245,666
(179,785)
141,544
5,977
-
-
-
-
147,521
(141,997)
-
-
-
-
-
-
-
Total
$
5,153,199
5,977
757,677
(1,360,000)
797,830
25,493
5,380,176
(141,997)
1,122,132
(1,850,000)
512,655
92,321
(3,165,167)
245,666
(308,834)
Balance at 30 June 2021
-
1,881,428
5,524
1,886,952
Note 17. Equity - accumulated losses
Accumulated losses at the beginning of the financial year
Loss after income tax expense for the year
Transfer from fair value reserve
Transfer from share-based payments reserve
Accumulated losses at the end of the financial year
Note 18. Equity - dividends
30 June 2021 30 June 2020
$
$
(44,845,936)
(4,751,302)
129,049
179,785
(36,325,421)
(8,520,515)
-
-
(49,288,404)
(44,845,936)
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 19. Financial instruments
This note provides information about how the Group determines fair values of various financial assets and liabilities.
Fair value of Group's financial assets and liabilities that are measured at fair value on a recurring basis
Some of the Group's financial assets and liabilities are measured at fair value at the end of the reporting period. The following
table gives information about how the fair value of these financial assets and liabilities are determined (in particular, the valuation
technique(s) and key input(s) used).
48
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 19. Financial instruments (continued)
Fair value as at
Financial assets/
liabilities
Equity
investments
designated as fair
value through
other
comprehensive
income
Fair value
hierarchy
Valuation
technique(s) and
key input(s)
Significant
unobservable
input(s)
Relationship of
unobservable
input(s) to fair
value
30 June 2021
$
30 June 2020
$
-
46,207
Level 1
Share price
None
None
There have been no transfers between the levels of the fair hierarchy during the six months to 30 June 2021.
The methods and valuation used for the purpose of measuring the fair value are unchanged compared to the previous reporting
period.
Fair value of Group's financial assets and liabilities that are not measured at fair value on a recurring basis
The Directors consider that the carrying value of the financial assets and financial liabilities recognised in the consolidated financial
statements approximate their fair values.
Note 20. Key management personnel disclosures
Directors
The following persons were Directors of Canyon Resources Limited during the financial year:
Cliff Lawrenson
Phillip Gallagher
David Netherway
Emmanuel Correia
Steven Zaninovich
Peter Su
Dimitri Bacopanos
Non-Executive Chairman (appointed 10 December 2020)
Managing Director
Non-Executive Director
Non-Executive Director (resigned 10 December 2020)
Non-Executive Director
Non-Executive Director (appointed 16 September 2020)
Non-Executive Director (appointed 21 October 2020 - resigned
26 March 2021)
Other key management personnel
The following persons also had the authority and responsibility for planning, directing and controlling the major activities of the
Group, directly or indirectly, during the financial year:
James Durrant
Rick Smith
Nick Allan
John Lewis
Project Director
Chief Development Officer
CFO & Company Secretary (appointed 17 April 2020 - resigned
28 May 2021)
CFO & Company Secretary (resigned 17 April 2020)
49
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 20. Key management personnel disclosures (continued)
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Included in Short-term benefits were payments to directors for additional services:
Cardrona Energy Pty Ltd (1) - Advisory Fees
Zivvo Pty Ltd (2) - Consulting Fees
(1) Cardrona Energy Pty Ltd - Emmanuelle Correia is a director and shareholder
(2) Zivvo Pty Ltd - Steve Zaninovich is a director and shareholder
Note 21. Remuneration of auditors
30 June 2021 30 June 2020
$
$
1,553,105
61,526
5,283
512,655
1,041,976
59,127
50,872
797,831
2,132,569
1,949,806
30 June 2021 30 June 2020
75,000
15,273
90,273
-
-
-
During the financial year the following fees were paid or payable for services provided by HLB Mann Judd (WA Partnership), the
auditor of the Company:
Audit services - HLB Mann Judd (WA Partnership)
Audit or review of the financial statements
Note 22. Contingent liabilities
There are no contingencies outstanding as at 30 June 2021.
Note 23. Commitments
Capital commitments
Committed at the reporting date but not recognised as liabilities, payable:
Exploration and evaluation
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
50
30 June 2021 30 June 2020
$
$
42,025
41,513
30 June 2021 30 June 2020
$
$
-
5,382,711
-
5,382,711
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 24. Related party transactions
Parent entity
Canyon Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 26.
Key management personnel
Disclosures relating to key management personnel are set out in note 20 and the remuneration report included in the Directors'
report.
Note 25. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Other comprehensive income for the year, net of tax
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Fair value reserve
Share-based payments reserve
Accumulated losses
Total equity
51
Parent
30 June 2021 30 June 2020
$
$
(9,266,903)
(15,544,833)
92,321
(9,174,582)
25,493
(15,519,340)
Parent
30 June 2021 30 June 2020
$
$
2,832,391
1,679,755
8,857,934
7,494,259
1,120,274
1,548,373
1,120,274
1,548,373
66,543,010
-
1,881,428
(60,686,778)
52,441,940
36,728
5,195,927
(51,728,709)
7,737,660
5,945,886
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 26. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with
the accounting policy described in note 2:
Name
Neufco Pty Ltd
Canyon West Africa Pty Ltd
Askia Sarl Pty Ltd
Canyon Derosa Pty Ltd
Canyon Cameroon Pty Ltd
Askia Minerals Sarl
Canyon West Africa Sarl
CSO Sarl
Deorsa Sarl
Camalco SA
Camalco Holdings Ltd
Principal place of business /
Country of incorporation
Ownership interest
30 June 2021 30 June 2020
%
%
Australia
Australia
Australia
Australia
Australia
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Cameroon
British Virgin Islands
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Canyon Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
Note 27. Events after the reporting period
A $6.2m placement to institutional and sophisticated investors was announced on 2 August 2021, with the issue of 77,257,157
shares at $0.08 per share.
The majority of the placement was completed on 9 August 2021 with the issue of 70,485,675 shares at $0.08 per share raising
$5,638,854 before costs.
The balance of the placement is in relation to Canyon's largest shareholder and Non-executive Director, Mr Su who subscribed for
his pro-rata amount under the Placement (being an amount of 6,771,482 shares at $0.08 per share raising $541,719) and therefore
continues to hold more than 9% of the Company. Mr Su’s participation in the Placement was approved by shareholders at a General
Meeting held on 20 September 2021.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations, or the Group's state of affairs in future financial years.
52
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 28. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Net loss on disposal of property, plant and equipment
Share-based payments
Foreign exchange differences
Impairment of exploration and evaluation
Change in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(increase) in other operating assets
Increase/(decrease) in trade and other payables
Increase in employee benefits
Net cash used in operating activities
Note 29. Non-cash investing and financing activities
Issue of performance rights to directors and employees (refer note 30)
Options issued to advisors for capital raising costs
Issue of shares on acquisition of exploration project (refer note 30)
Issue of ordinary shares
Note 30. Share-based payments
Performance rights
30 June 2021 30 June 2020
$
$
(4,751,302)
(8,520,515)
99,961
150
1,634,786
(29,610)
232,257
110,156
1,141
4,300,699
7,397
526,155
4,422
(94,898)
(394,088)
19,351
(55,746)
3,482
596,744
77,095
(3,278,971)
(2,953,392)
30 June 2021 30 June 2020
$
$
512,655
245,666
1,122,131
-
797,830
-
29,808
3,502,869
1,880,452
4,330,507
(a) On 27 November 2019 shareholders approved the issue of 1.8 million Performance Rights to Non-executive Director Steve
Zaninovich.
The Performance Rights were issued for nil cash consideration and are convertible into fully paid ordinary shares in the capital of
the Company on the terms and conditions under the Canyon Long Term Incentive Plan and subject to the following Vesting
Conditions:
(1) one third vest upon the completion of 12 months tenure as a Non-executive director of the Company from the date of the
AGM;
(2) one third vest upon the Company completing a capital raising of a minimum $10 million within the next 24 months; and
(3) one third vest upon the Company completing a PFS, over the Minim Martap Bauxite Project, from which a maiden Bauxite
ore reserve can be calculated.
During the period vesting conditions 2 and 3 have been satisfied in respect of the Performance Rights issued to Mr Zaninovich and
have been converted into ordinary shares. Vesting condition 1 has been satisfied but is pending Board approval to be converted
into ordinary shares.
53
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 30. Share-based payments (continued)
These performance rights were valued, using a valuation methodology based on the guidelines set out in AASB 2 Share based
payment. The 10-day VWAP was used given the fluctuations in the Company's share price on and around the grant date.
Assumptions:
Valuation date
10-day VWAP
Indicative value per Performance Right
- Mr Steve Zaninovich
27 November 2019
$0.2008
$0.2008
$361,440
The value of the Performance Rights is being expensed over the deemed life of the Rights. During the period $107,450 (2020:
$253,990), was recognised as an expense in relation to the rights.
(b) On 21 August 2020 the Directors approved the issue of 3.6 million Performance Rights to key management personnel, being 2
million to Mr James Durrant and 1.6 million to Mr Nick Allan.
The Performance Rights were issued for nil cash consideration and are convertible into fully paid ordinary shares in the capital of
the Company on the terms and conditions under the Canyon Long Term Incentive Plan and subject to the following Vesti
(1) 12 months continuous employment following completion of 3-month probation period (16.67%)
(2) 24 months continuous employment following completion of 3-month probation period (16.67%)
(3) Completion of a successful PFS, as determined by the Board of Directors (33.33%)
(4) Completion of a successful Feasibility Study, as determined by the Board of Directors (33.33%)
These performance rights were valued, using a valuation methodology based on the guidelines set out in AASB 2 Share based
payment. The 10 day VWAP was used given the fluctuations in the Company's share price on and around the grant date.
Assumptions:
Valuation date
10 day VWAP
Indicative value per Performance Right
- Mr James Durrant
- Mr Nick Allan
21 August 2020
$0.1337
$0.1337
$267,400
$213,920
During the period, vesting conditions 1 and 2 have been satisfied in respect of the Performance Rights issued to Mr Durrant whilst
vesting condition 3 has been satisfied in relation of the Performance Rights issued to Mr Allan and have been converted into
ordinary shares.
The value of the Performance Rights is being expensed over the deemed life of the Rights. During the period $405,205, was
recognised as an expense in relation to the rights.
The resignation of Mr Allan on 28 May 2021 forfeits his right to any unvested Performance Rights.
Ordinary Shares
Acquisition of Birsok
On 12 October 2018 the Company Announced that it signed a Letter of Intent (“LoI”) with Altus Strategies Plc (Altus), to transfer
to Canyon a 100% interest in the Birsok and Mandoum licences (the “Birsok project”) and to terminate its existing bauxite Joint
Venture Agreement (“JVA”) with Altus. The Terms of the LoI are:
Part A: In lieu of the termination of the JVA, Canyon will issue to Altus:
(1) 15,000,000 ordinary free trading Canyon shares (the "Initial Issue shares" or "Tranche 1");
(2) 10,000,000 ordinary Canyon shares to be issued 12 months following the Initial Issue shares and subject to a 12 month
voluntary escrow ("Tranche 2")
54
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 30. Share-based payments (continued)
Part B: In lieu of the transfer of the Birsok project:
(1) 5,000,000 ordinary Canyon shares, to be issued to Altus upon the execution of a mining convention on the Minim Martap
project and subject to a 12 month voluntary escrow ("Tranche 3");
(2) a US$1.50 per tonne royalty on ore mined and sold from the Birsok project.
After receiving shareholder approval, Canyon issued Tranche 1 Shares on 10 February 2020 to Altus pursuant to the agreement to
terminate the JVA. As a result, the company recorded an amount of $2,775,000 as a cost of a Acqusition of the Birsok Project being
the fair value (market price) of the first tranche of shares (15,000,000) at the measurement date being 12 October 2018, the date
the agreement was entered into. The Tranche 2 shares are vesting 12 months following the initial share issue, and the total value
of this tranche namely $1,850,000, is being brought to account over the vesting period.
As at the balance date $1,850,000 has been recognised in relation to Tranche 2, of which an amount of $1,122,131 was recognised
during the current period.
All amounts recognised are being expensed, as the Birsok tenements are still in the process of being renewed. Until such time that
the renewals are finalised, any further acquisition costs are unable to be capitalised in accordance with the Company's accounting
policy.
The Tranche 2 shares vested and 10,000,000 ordinary shares were issued on 11 February 2021.
The value of Tranche 3 shares has not been brought to account as the Directors do not believe that it can be considered probable
at this stage that the vesting condition will be met.
Options
Weighted
average
exercise price
30 June 2021 30 June 2021 30 June 2020 30 June 2020
Weighted
average
exercise price
Number of
options
Number of
options
Outstanding at the beginning of the financial year
Granted
5,000,000
4,000,000
$0.200
$0.200
5,000,000
-
$0.200
$0.000
Outstanding at the end of the financial year
9,000,000
$0.200
5,000,000
$0.000
Exercisable at the end of the financial year
9,000,000
$0.200
5,000,000
$0.200
Advisor options
On 7 September 2020, the Company issued 4,000,000 unlisted options to Ashanti Capital and arranging parties to the placement
which completed on the same day. The unlisted options have an exercise price of $0.20 per share and an expiry date of 7
September 2023. $245,666 was recognised as capital raising costs during the period.
For these options, the valuation model inputs used to determine the fair value at the grant date, are as follows:
Grant date
Expiry date
Share price
at grant date
Exercise
price
Expected
volatility
Dividend
yield
Risk-free
Fair value
interest rate at grant date
07/09/2020
07/09/2023
$0.130
$0.200
90.32%
-
0.28%
$0.061
55
Canyon Resources Limited
Notes to the consolidated financial statements
30 June 2021
Note 30. Share-based payments (continued)
Total value expensed in profit and loss
18,000,000 performance rights issued to Messrs Netherway, Gallagher and Correia
1,800,000 performance rights issued to Mr Zaninovich
3,600,000 performance rights issued to employees
Shares issued on acquisition of Birsok:
Tranche 1
Tranche 2
Note 31. Loss per share
Loss after income tax
30 June 2021 30 June 2020
$
$
-
107,450
405,205
512,655
543,840
253,990
-
797,830
-
1,122,131
1,122,131
2,775,000
727,869
3,502,869
1,634,786
4,300,699
30 June 2021 30 June 2020
$
$
(4,751,302)
(8,520,515)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
592,508,401 465,000,564
Weighted average number of ordinary shares used in calculating diluted earnings per share
592,508,401 465,000,564
Basic loss per share
Diluted loss per share
Cents
Cents
(0.80)
(0.80)
(1.83)
(1.83)
56
Canyon Resources Limited
Directors' declaration
30 June 2021
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in note 2 to the financial statements;
the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2021 and
of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Directors
___________________________
Phillip Gallagher
Managing Director
30 September 2021
Perth
57
INDEPENDENT AUDITOR’S REPORT
To the members of Canyon Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Canyon Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to
be the key audit matters to be communicated in our report.
58
Key Audit Matter
How our audit addressed the key audit
matter
Carrying amount of capitalised exploration
expenditure
Note 12 in the financial report
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group capitalises
acquisition costs for its areas of interest and then
expenses
evaluation
exploration
expenditure as incurred, with the exception of the Minim
Martap project where all expenditure that meets the
capitalisation criteria is being capitalised. The cost
model is applied after recognition.
further
and
Our audit focussed on the Group’s assessment of the
carrying amount of
the capitalised exploration
expenditure, as this is one of the most significant assets
of the Group.
Going concern
Note 1 in the financial report
The Group recorded a loss of $4.75 million for the year
ended 30 June 2021 As at 30 June 2021 the Group had
cash and cash equivalents of $2.68 million. The
Company raised $6.2 million subsequent to balance
date via a placement to professional and sophisticated
investors.
If the going concern basis of preparation of the financial
statements was inappropriate, the carrying amount of
certain assets and liabilities may have significantly
differed. In addition, management and the auditor must
consider whether a material uncertainty exists that may
cast significant doubt on the Group’s ability to continue
as a going concern. Disclosure is required in the
financial report should significant doubt exist.
The going concern basis of accounting was a key audit
matter due to the significance to users of the financial
report and the significant judgement involved with
forecasting cash flows.
Our procedures included but were not
limited to the following:
• We obtained an understanding of the key
processes
with
management’s review of the carrying
values of each area of interest;
associated
• We considered the Directors’ assessment
of potential indicators of impairment;
• We obtained evidence that the Group has
current rights to tenure of its areas of
interest;
• We examined the exploration budget for
the year ending 30 June 2022 and
discussed with management the nature of
planned ongoing activities;
• We substantiated a sample of exploration
and evaluation transactions; and
• We examined the disclosures made in the
financial report.
the
evaluating
Our procedures included but were not
limited to the following:
• We considered the appropriateness of
the going concern basis of accounting
underlying
by
assumptions in cash flow projections
prepared by
including
sensitivity analysis and subsequent
events, in particular the $6.2 million
placement subsequent to balance date;
• We agreed the receipt of the proceeds
to
from
balance date to bank statements; and
the placement subsequent
the Group
• We examined the disclosures made in
the financial report.
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2021, but does not
include the financial report and our auditor’s report thereon.
59
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with 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 Group’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 Group’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 Group 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.
-
60
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 within the directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Canyon Resources Limited for the year ended 30 June
2021 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 September 2021
L Di Giallonardo
Partner
61
Canyon Resources Limited
Shareholder information
30 June 2021
Additional information required by the ASX Limited and no shown elsewhere in this report is as follows. This is current as at 22
September 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Ordinary shares
Number
of holders
Number
of shares
%
77
204
306
1,157
6,368
773,351
2,519,366
51,019,885
816 646,841,739
-
0.11
0.36
7.28
92.25
2,560 701,160,709
100.00
Holding less than a marketable parcel
318
981,478
-
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
% of total
Number held
shares
issued
AUSGLOBAL BAUXITE PTY LTD
ALTUS STRATEGIES LTD
CANYON INCENTIVE SCHEME PTY LTD (THE CANYON RESO LTI PLAN A/C)
IBT DIRECTIONS PTY LTD (IBT PROPERTY A/C)
MR CHRISTOPHER JOHN SQUIERS + MR ADRIAN CHRISTOPHER SQUIERS + MR SASCHA TROY
SQUIERS
PONDEROSA INVESTMENTS (WA) PTY LTD (THE PONDEROSA INVESTMENT A/C)
SISU INTERNATIONAL PTY LTD
TREASURY SERVICES GROUP PTY LTD (NERO RESOURCE FUND A/C)
ZERO NOMINEES PTY LTD
DC & PC HOLDINGS PTY LTD (DC & PC NEESHAM SUPER A/C)
IBT HOLDINGS PTY LTD (IBT HOLDINGS PTY LTD FAM A/C)
MR MICHAEL ARTHUR PARISH
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
CITICORP NOMINEES PTY LIMITED
GONDWANA INVESTMENT GROUP PTY LTD (KUMOVA FAMILY SUPER FUND A/C)
WELLCRAFT PTY LTD (BLENKINSHIP FAMILY A/C)
WIDERANGE CORPORATION PTY LTD
SHIRLEE DOWNS NOMINEES PTY LTD (CJ & FO SQUIERS S/F A/C)
EASTSIDE (WA) PTY LTD
ALITIME NOMINEES PTY LTD (HONEYHAM FAMILY A/C)
63,101,506
25,000,000
18,417,982
16,665,647
11,140,731
9,650,000
8,551,652
8,125,000
7,558,848
6,657,510
6,450,000
6,300,000
6,192,808
5,970,764
5,776,210
5,042,373
5,000,000
4,760,919
4,572,659
4,500,000
9.00
3.57
2.63
2.38
1.59
1.38
1.22
1.16
1.08
0.95
0.92
0.90
0.88
0.85
0.82
0.72
0.71
0.68
0.65
0.64
229,434,609
32.73
62
Canyon Resources Limited
Shareholder information
30 June 2021
Unquoted equity securities
Options expiring 7 September 2023 exercisable at $0.20
Substantial holders
There are no substantial holders in the Company.
Voting rights
The voting rights attached to ordinary shares are set out below:
Number
on issue
4,000,000
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall
have one vote.
There are no other classes of equity securities.
Corporate Governance Statement
The Company's 2021 Corporate Governance Statement has been released as a separate document and is located on our website
at http://www.canyounresources.com.au/about-us/corporate-governance
63
Canyon Resources Limited
Interest in mineral permits
30 June 2021
Interest in Mineral Permits
Interest in, situation of and percentage interest in mineral permits held are:
Permits
Location
Interest at
30 June 2021
Own 100%
Agreement to earn up to 75%.
Agreement to earn up to 75%.
Own 100%
Own 100%
Rights to 100%
Cameroon
Cameroon
Cameroon
Cameroon
Cameroon
Cameroon
Cameroon
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
MINIM MARTAP PROJECT
Ngaoundal
Minim Martap
Makan
BIRSOK BAUXITE PROJECT
Birsok
Mandoum
Mambal (application)
Ndjimom (Mayouom Project)
TAPARKO NORTH PROJECT
Karga 2
Bani
Diobou
Tigou
TAO PROJECT
Tao
PINARELLO PROJECT
Sokarani
Niofera
Baniera
Sokarani 2
Soukoura 2
Burkina Faso
Own 100%
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Burkina Faso
Own 49% (sale of 51% to Acacia
Mining plc)
KONKOLIKAN PROJECT
Konkolikan
Burkina Faso
Own 49% (sale of 51% to Acacia
Mining plc)
DEROSA PROJECT
Bompela
Sapala
Burkina Faso
Burkina Faso
15% interest in joint venture with
Rumble Resources Ltd
64