Cohiba Minerals Limited
ABN 72 149 026 308
Annual Report - 30 June 2021
Cohiba Minerals Limited
Contents
30 June 2021
Corporate directory
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Cohiba Minerals Limited
Shareholder information
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Cohiba Minerals Limited
Corporate directory
30 June 2021
Directors
Mr Mordechai Benedikt (Executive Chairman)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Chief Executive Officer and Executive Director)
Company secretaries
Mr Justin Mouchacca
Registered office
Principal place of business
Share register
Auditor
Level 21, 459 Collins Street
Melbourne, VIC 3000
Ph: (03) 8630 3321
Level 21, 459 Collins Street
Melbourne, VIC 3000
Automic Registry Services
Level 5
126 Philip Street
Sydney NSW 2010
Ph: (02) 9698 5414
William Buck
Level 20, 181 William Street
Melbourne VIC 3000
Stock exchange listing
Cohiba Minerals Limited securities are listed on the Australian Securities Exchange
(ASX codes: CHK and CHKOA)
Website
www.cohibaminerals.com.au
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Cohiba Minerals Limited
Review of operations
30 June 2021
Highlights:
Horse Well
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Four drill holes (HWDD01 – HWDD04) were completed at Horse well for a total of 4,840.6m;
IOCG experts continued with a major review of the Horse Well drill core comprising detailed mineralogical,
petrological and geochemical studies to aid in future drill hole selection;
A detailed review of the gravity survey data was completed to further aid in target selection at Horse Well;
A drill rig was secured for an additional drill hole at Horse Well alongside HWDD04 (IOCG target);
An Environmental Compliance Report (ECR) was submitted for the completed drilling program at Horse Well;
An Exploration Program for Environment Protection and Rehabilitation (EPEPR) was completed for 12 new drill
holes at Horse Well for up to 16,800m of drilling;
Pernatty C
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A drill rig was secured for an additional 3 drill holes at Pernatty C (‘Zambian Copperbelt’ style targets);
Financial
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The Company completed a heavily oversubscribed Share Purchase Plan with $9.38 million received in
applications and acceptance of $5.79 million following scale back;
The Company was awarded a $298,500 grant via the Accelerated Discovery Initiative (ADI) for drilling at the
Pernatty C Project;
Other
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An Administration and Access Agreement was signed between Cohiba Minerals and Saltbush Ag Pty Ltd in
relation to ongoing access to the Arcoona Station;
The Mining Plan and Mine Closure Plan for the Pyramid Lake Gypsum Project was completed;
The Company secured 80% of the Wee MacGregor tenements in Queensland;
The Company secured 80% of the Olympic Domain tenements in South Australia;
All tenements within the Horse Well, Pernatty C (Mt Gunson) and Lake Torrens areas were maintained in good
standing;
All tenements in Queensland (Wee MacGregor, Mt Gordon, Success and Mt Cobalt) were maintained in good
standing; and,
The Pyramid Lake tenement in Western Australia was renewed and maintained in good standing.
South Australian (Olympic Domain) Tenements
Cohiba Minerals’ intent is to discover IOCG deposits through the systematic exploration of the Olympic Domain tenements
and through the acquisition of additional IOCG target areas within the Gawler Craton (SA). The Gawler Craton remains the
premier district to search for IOCG deposits globally and exploration activities to date have confirmed the Company’s
landholding in the Gawler Craton contain substantial exploration potential.
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Cohiba Minerals Limited
Review of operations
30 June 2021
“Horse Well” Area
The Horse Well area is a key strategic component within the Olympic Domain tenement package given its close proximity to
BHP’s Oak Dam West discovery where drilling has confirmed the presence of significant IOCG mineralisation. Drilling at the
Horse Well Project has shown the presence of persistent, low-level copper mineralisation with some high-grade copper-gold
intersections, hosted by a typical IOCG package of rocks.
The key zones of interest at Horse Well are those adjacent to drill holes HWDD_03 and HWDD_04 in particular where
persistent low-level copper mineralisation was encountered within a package of rocks consistent with an IOCG environment.
In HWDD_04 there were also discrete, high-grade copper-gold intersections (up to 12.15% Cu and 2.26 g/t Au). The results
of the Company’s recent exploration activities at Horse Well confirmed the potential for IOCG discoveries there and Cohiba.
is planning an extensive program of exploration activity, including up to 19,000m of drilling, to further test for this potential.
This large exploration program commenced shortly after year-end and is detailed later in this report.
At Horse Well four holes were drilled during FY20/21 for a total of approximately 4,800m and a detailed analysis
follows.
Drilling of hole HWDD02 commenced at Horse Well on August 25, 2020 (Figure 1). The drill hole comprised reverse circulation
(RC) drilling to 185.4m, diamond drilling (HQ size) to 699.7m and diamond drilling (NQ size) to the end of the hole at 1013.3m
on September 10, 2020.
Figure 1: DRC Drilling – drill rig and support equipment set up on HWDD_02 at Horse Well prospect.
HWDD02 was completed at 1,013m and the drill core was sent to Adelaide for further technical review. HWDD02 encountered
black shales from 684 – 890m which showed some evidence of sulphide mineralisation (Figure 2). The remainder of the hole
was drilled in porphyritic, coarse-grained granite with variable degrees of alteration including chlorite-epidote, waxy green
sericite, hematite-k-feldspar and minor quartz-hornblende.
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Cohiba Minerals Limited
Review of operations
30 June 2021
Figure 2: Black shale at 873m showing evidence of sulphide mineralisation.
Drilling commenced on the second hole (HWDD03) on September 12, 2020 and was completed on October 6, 2020. The
drillhole comprised reverse circulation (RC) drilling to 377.5m, diamond drilling (HQ size) to 598.6m and diamond drilling (NQ
size) to the end of hole (EOH) at 1,179.7m.
HWDD03 comprised a typical “cover sequence” comprising muds, silts, medium to coarse sands and pebble layers to 989.6m
where it encountered the basement material (contact) which was a hematite-rich, altered granitoid. There was evidence of
minor mineralisation as shown in Figure 3 and the strongly altered granites and pegmatites persisted to the EOH at 1,179.7m.
The decision to end the hole was based on only minor evidence of mineralisation and the emergence of significant biotite,
which is known to have a poor association with IOCG mineralisation.
Figure 3: Minor mineralisation in HWDD03 with the left photograph at the contact with the basement material and the
right photograph showing sulphides in the altered, hematitic granite.
Drilling commenced on the third hole (HWDD01) on October 23, 2020 (following a significant rain delay which also cut off
access to the HWDD04 site temporarily) and was completed on November 7, 2020. The drillhole comprised diamond drilling
(HQ size) to 677.4m and diamond drilling (NQ size) to the end of hole (EOH) at 1,182.9m.
HWDD01 comprised a typical “cover sequence” comprising muds, silts, medium to coarse sands and pebble layers with
significant amounts of hematite to around 1,020m when it encountered a granite exhibiting strong hematite and feldspar
alteration. The sediment-basement contact was not distinct with interspersed sediments and granite in the core till 1041.8m
after which granite occurred till the EOH at 1,182.9m. Only minor sulphides were observed in HWDD01 and the decision to
terminate the hole was based on lack of evidence of mineralisation despite the altered granites being very typical of an IOCG
environment. No samples from HWDD01 were submitted for analysis.
Drilling commenced on the fourth hole (HWDD04) on 9 November 2020 and was completed on November 30, 2020. The
drillhole comprised reverse circulation (RC) drilling to 300.0m, diamond drilling (HQ size) to 704.6m and diamond drilling (NQ
size) to the end of hole at 1,464.7m.
HWDD04 comprised a typical “cover sequence” comprising muds, silts, medium to coarse sands and conglomeratic layers to
971.8m where it encountered a mafic dyke with pervasive chlorite alteration, hematite veins and minor sulphides. This passed
sharply into a weakly foliated granite at 974.9m which exhibited strong hematite and chlorite alteration with minor chalcopyrite,
bornite and pyrite stringers (Figure 4). At 1,033.5m there was a band of pervasive chalcopyrite and pyrite mineralisation within
the granite (Figure 3.). The hematite-rich, altered granite exhibited stringers and disseminations of chalcopyrite + pyrite +/-
bornite to varying degrees to 1,396.2m where it encountered a fine to medium grained basalt with weak hematite alteration,
carbonate veining and minor sulphides. The basalt persisted to 1,464.7m when the decision was made to end the hole.
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Cohiba Minerals Limited
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30 June 2021
Figure 4: Pervasive chalcopyrite + pyrite mineralisation in altered, hematite-rich granite (left hand photograph) and
bornite + chalcopyrite stringers in hematite-rich, altered granite (right hand photograph).
Horse Well Drillhole Assay Results
Analytical work was undertaken by ALS Laboratories on drill core from HWDD03 and HWDD04.
HWDD03, which was the eastern most drill hole in the current program of work showed visual evidence of minor sulphide
occurrences within altered hematitic granite. HWDD03 was analysed from 982 – 1,143m in variable length intervals (from 0.15
– 2.0 m) based on visual determination of zones of interest. Despite the visual determination of these zones of interest,
HWDD03 did not return appreciable copper results with one minor intersection as summarised below:
1,062.1 – 1,062.4m
0.3m @ 0.31% Cu
HWDD04 was analysed from 950 – 1,432.6m (EOH) in 1m intervals except where mineralisation was visually apparent, and
the interval length was adjusted accordingly. The results from HWDD04 showed persistent low-level copper throughout with
some very good intersections of copper, gold and silver mineralisation as summarised below:
950 – 978m
1,033 – 1,034.3m
1,072 – 1079m
1,089.8 – 1,090.2m
1,113 – 1,117m
1,225.5 – 1226m
1,232.8 – 1,233.3m
1,258 – 1,269m
1,306 – 1,320m
1,326 – 1,326.3m
1,414 – 1,423.6m
28m @ 0.13% Cu, 0.26 g/t Au & 2.18 g/t Ag including 0.9m @1.85% Cu, 0.15 g/t Au & 9.2 g/t Ag from
974m
0.8m @ 12.15% Cu, 2.62 g/t Au, 42.5 g/t Ag, 293ppm Bi & 567ppm Sb
9m @ 0.11% Cu
0.4m @ 0.97% Cu, 0.28 g/t Au & 3.2 g/t Ag
4m @ 0.11% Cu
0.5m @ 2.58% Cu, 0.15 g/t Au & 1.94 g/t Ag
0.8m @ 1.52% Cu & 1.24 g/t Ag
11m @ 0.20% Cu & 2.01 g/t Ag including 1m @ 0.58% Cu & 9.31 g/t Ag from 1,268m
14m @ 0.14% Cu & 2.18 g/t Ag including 1m @ 0.50% Cu & 10.6 g/t Ag from 1,311m
0.3m @ 1.33% Cu
9.6m @ 0.11% Cu
Cohiba engaged the services of subject matter experts (SME) in the area of IOCG deposits to undertake extensive
petrological and geochemical assessments of holes HWDD03 and HWDD04 to aid in the development of the next program
of work.
A detailed review of the historical gravity survey data was undertaken utilising a refined interpretation methodology to also
aid in the location of drill hole collars for subsequent drilling at Horse Well.
Following completion of the drilling program the drill sites and associated tracks were fully rehabilitated and an extensive (63
page) Exploration Compliance Report (ECR) was submitted to the Department of Energy and Mining (DEM) SA as fulfilment
of the closure procedures.
During the year the Company also entered into a new Administration and Access Agreement with Saltbush Ag Pty Ltd in
relation to ongoing access to the Arcoona Station for future programs of work.
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Cohiba Minerals Limited
Review of operations
30 June 2021
Further Drilling at Horse Well
The Company completed and submitted a new Exploration Program for Environment Protection and Rehabilitation (EPEPR)
for a further 12 drill holes at Horse Well (Figure 5).
Figure 5: Location of 12 proposed drill holes at Horse Well.
Pernatty “C” Area
The Company submitted 3 Expression of Interest (EOI) and 3 Request for Proposal (RFP) documents to the Department of
Energy and Mining (DEM SA) as part of its Accelerated Discovery Initiative (ADI) and was successful in securing $298,500
for additional drilling at the Pernatty C Project to investigate Zambian Copperbelt (ZCB) style mineralisation.
Two drill holes have been scheduled for drilling at Pernatty C and will commence during Q3-Q4 of the current financial year.
The drill holes will target both Zambian Copperbelt style mineralisation as well as possible IOCG targets at depth (Figure 6).
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Cohiba Minerals Limited
Review of operations
30 June 2021
Figure 6: Proposed drill hole locations at Pernatty C.
Olympic Domain Farm-In Update
The Company successfully executed a Deed of Settlement (Deed) with Olympic Domain Pty Ltd in relation to the dispute
regarding the Company’s 80% ownership in the Olympic Domain tenements.
The Company’s 80% interest in the Olympic Domain tenements was formally registered with the Department of Energy and
Mining, South Australia (DEM SA).
Western Australia Tenements
Pyramid Lake Update (E74/594)
Cohiba Minerals Limited holds (100%) exploration licence E74/594, which covers all of Pyramid Lake in south-western
Western Australia, for a total of 11,266 hectares or 112.66 km2. Pyramid Lake itself is a salt-lake covering 6,632 hectares
located 115km northwest of the town of Esperance on the northern limit of the agricultural area (Figure 7).
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Cohiba Minerals Limited
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30 June 2021
Figure 7: Location of Cohiba’s Pyramid Lake Exploration Licence (from Hydrominex 2018).
The E74/594 property (Figure 4) is located 115 km northwest of Esperance (150 km by road) and is accessed from the highway
linking Ravensthorpe and Esperance.
The Mining Operations Plan and the Mine Closure Plan was completed by Groundwork Plus.
All activities on site were communicated to (via an Activity Report) and approved by the Esperance Tjaltjraak Native Title
Aboriginal Corporation (PBC).
Queensland Tenements
Wee MacGregor Project
The Wee MacGregor group comprises three granted mining licences, ML 2504, ML 2773, and ML 90098. These licences are
located approximately 60km southeast of Mt. Isa with access via the sealed Barkly Highway and the unsealed Fountain
Springs Road.
The Company maintained the tenements in good standing and met the expenditure requirements to secure an 80% stake in
the tenements (20% being held by Cyclone Metals Limited).
Queensland Exploration Licences
The Company holds various exploration licences through its wholly owned subsidiary Cobalt X Pty Ltd. As at the date of this
report the Company is the holder of the following mineral exploration licences pursuant to the Mineral Resources Act 1989
(QLD):
• exploration licence EPM26377 (Mt Gordon Mine Area 1),
• exploration licence EPM26376 (Mt Gordon Mine Area 2),
• exploration licence EPM26380 (Success Mine Area 1); and,
• exploration licence EPM26379 (Mt Cobalt Mine Area).
Cobalt X also held various contractual rights with third parties to facilitate the acquisition by it of additional mining and
exploration projects and related plant and equipment (Project Rights), including rights to negotiate for the acquisition of a vat
leach processing plant in the Mt. Isa region (referred to as the Lady Jenny processing plant). The nature and status of these
Project Rights has been described in detail in the Company’s Notice of General Meeting (Notice) dated 26 May 2017.
All of the Queensland Exploration Licences were maintained in good standing.
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Cohiba Minerals 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 'consolidated entity') consisting of Cohiba Minerals 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 Cohiba Minerals Limited during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Mr Mordechai Benedikt (Executive Chairman)
Mr Andrew Graham (Executive Director)
Mr Nachum Labkowski (Non-Executive Director)
Principal activities
The principal activity of the consolidated entity during the year was the exploration for natural resources, including metals,
precious metals, lithium, cobalt and minerals. There have been no significant changes in the nature of those activities during
the period.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $1,393,784 (30 June 2020: $1,288,926).
Financial performance
During the year, operating expenses increased by $114,306 to $1,425,581 (30 June 2020: $1,311,275). Other operating
expenses remained consistent during the year.
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No write down of investments recognised during the year (2020: $369,962)
Non-cash share based payment expense during the year of $505,675 (2020: $190,750)
Financial position
Net assets of the consolidated entity increased significantly from $3,956,176 to $11,171,905, attributable to the capital
raisings completed by the Company during the year. This in turn increased the Company's cash reserves from $904,285 at
30 June 2020 to $6,499,541 as at 30 June 2021.
Cash flow
The Company successfully raised gross proceeds of $7,858,828 during the year from capital raisings and $289,917 from
option conversions to accelerate exploration activities.
Refer to the detailed review of operations preceding this report for further information on the Consolidated entity’s activities.
Significant changes in the state of affairs
The following significant changes in the state of affairs of the consolidated entity took place during the financial year:
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Cohiba Minerals Limited
Directors' report
30 June 2021
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On 27 August 2020 the Company announced that it had received binding commitments for a capital raising (Placement)
of $2,290,000 from professional and sophisticated investors. An additional $290,000 was committed from Directors of
the Company. The Placement was completed with 143,125,000 fully paid ordinary shares (Shares) issued, with an issue
price of $0.016 (1.6 cents) per share, and 71,562,500 CHKOA free attaching options (Options) issued.
On 30 November 2020 the Company announced that it would offer eligible shareholders the opportunity to apply for up
to $30,000 worth of Shares with an issue price of $0.017 (1.7 cents) per Share through a Share Purchase Plan (SPP)
Offer and seeking to raise up to $2,000,000. On 17 December 2020 the Company announced that it had closed the
SPP Offer early and total applications received amounted to $9.68 million. The Board used its discretion to scale back
applications to a total of $5,279,000 and a 310,519,276 Shares were issued on 18 December 2020.
During the year, the Company issued 28,991,716 Shares for the conversion of 28,991,716 CHKOA options with an
exercise price of $0.01 (1 cent) per option.
On 1 December 2020 and 4 December 2020, the Company issued a total of 18,125,000 Shares and 9,062,500 Options
to Directors of the Company following receipt of shareholder approval for them to participate in the August 2020 capital
raising.
On 18 December 2020 the Company issued 54,000,000 options exercisable at $0.02 (2 cents) per option, with an expiry
date of 18 December 2023, to Directors of the Company following receipt of shareholder approval. A total of 24,000,000
options vested immediately and 30,000,000 options vest subject to certain vesting conditions being achieved. The
options were issued as incentive options and as part of remuneration of Directors.
On 25 March 2021 the Company announced that it had settled a dispute with Olympic Domain Pty Ltd in relation to the
Company's 80% ownership in the Olympic Domain tenements. Olympic Domain will be required to meet 20% of the
eligible, ongoing expenditure on the Olympic Domain tenements, back-dated to 15 January 2021 and the Company
would receive its 80% interest.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
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On 9 August 2021, the Company announced that it had entered into a Farm-In Agreement with Tigers Dominion Group
Pty Ltd to earn up to a 51% interest in a highly strategic IOCG target are in the Gawler Craton. The Company has
entered into a minimum commitment to spend $600,000 by drilling a 600m drill hold on the eastern part of EL6324,
followed by a 400m drill hole on either the eastern or western part of EL6324.
On 27 August 2021, the Company issued 14,000,000 unlisted options to consultants with each option being exercisable
at $0.02 (2 cents) on or before 18 December 2023.
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No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Likely developments and expected results of operations
During the previous financial years, the Company has entered into agreements to acquire new projects and project rights
and the success of the Company will depend on exploration activities proposed to be carried out on the current projects
areas of interest which have been acquired or granted to the Consolidated entity.
The Company continues to review potential new opportunities, if the Directors are successful in acquiring new projects or
entering into a joint venture, it is expected that part of the funding held by the Company may be directed to the purchase of
that project and to the exploration and development plan for that project. It may be that additional cash will be required to
fund any of these events should they eventuate. In that case the Directors will be required to review the funding options
available to the Company.
Environmental regulation
The consolidated entity holds participating interests in a number of exploration tenements. The various authorities granting
such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions given to
it under those terms of the tenement. To the best of the Directors' knowledge, the Group has adequate systems in place to
ensure compliance with the requirements of all environmental legislation described above and are not aware of any breach
of those requirements during the financial year and up to the date of the Directors' report.
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Cohiba Minerals Limited
Directors' report
30 June 2021
Information on Directors
Name:
Title:
Experience and expertise:
Mr Mordechai Benedikt
Executive Chairman
Mr Benedikt is an experienced businessman with an extensive background in food
imports for over 12 years. He is very active in export trade from Australia to Asia,
building a vast network overseas. More recently he has been actively involved in
commercial property and substantial investments in the public sector. Mr Benedikt
controls Jascot Rise Pty Ltd, a substantial shareholder in the Company.
Abilene Oil and Gas Limited (ASX: ABL)
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
105,463,737 fully paid ordinary shares
27,859,527 listed CHKOA options
22,000,000 unlisted options
Name:
Title:
Experience and expertise:
Mr Nachum Labkowski
Non-Executive Director
Mr Labkowski is the CEO and principal investor in Halevi Enterprises, a private equity
firm. Halevi Enterprises with, Mr Labkowski’s leadership, currently holds equity in over
30 private companies, which invest in real estate worldwide. Mr Labkowski’s unique
approach to investing has provided significant returns to those companies he has
invested in to date.
None
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
13,181,750 fully paid ordinary shares
3,460,375 listed CHKOA options
19,000,000 unquoted options
Name:
Title:
Experience and expertise:
Mr Andrew Graham
Chief Executive Officer and Executive Director (appointed 17 June 2020)
Mr Graham has 30 years of technical, operational and managerial experience in the
resources sector with both private and public companies in Australia and overseas. He
has founded multiple companies in the mining, mineral processing, consulting and
environmental sectors and has a passion for business building through strong
leadership, technical excellence and strategic focus. Mr Graham has built a global
network of investors, innovators and technical and commercial specialists. He has been
involved in raising hundreds of millions of investment capital, building large teams of
specialists and developing numerous projects from greenfields exploration to operating
mines. He has qualifications in applied geology, economic geology, management,
training and quarry management and is a member of the Australasian Institute of Mining
and Metallurgy and the Institute of Quarrying.
Other current directorships:
None
Former directorships (last 3 years): None
Interests in shares:
Interests in options:
Nil
3,000,000 listed CHKOA options
13,000,000 unquoted options
'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.
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Cohiba Minerals Limited
Directors' report
30 June 2021
Company secretary
Mr Justin Mouchacca, CA FGIA
Mr Mouchacca is a Chartered Accountant and Fellow of the Governance Institute of Australia with over 14 years' experience
in public company responsibilities including statutory, corporate governance and financial reporting requirements. Since July
2019, Mr Mouchacca has been principal of JM Corporate Services and has been appointed Company Secretary and
Financial Officer for a number of entities listed on the ASX and unlisted public companies.
Mr Romy Hersham
Mr Hersham was appointed on 22 May 2019 and resigned on 29 January 2021. Mr Hersham has completed a Bachelor of
Law (Hons) and Arts at Monash University, and also completed a certificate in Governance Practice (Company Secretary)
at the Governance Institute of Australia.
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:
Mordechai Benedikt
Nachum Labkowski
Andrew Graham
Held: represents the number of meetings held during the time the Director held office.
Full Board
Attended
Held
4
4
4
4
4
4
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, 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:
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Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward
governance practices:
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competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
transparency
The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the company depends on the quality of its directors and executives. The remuneration philosophy is to attract,
motivate and retain high performance and high quality personnel.
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Cohiba Minerals Limited
Directors' report
30 June 2021
The Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the company.
The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
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having financial performance as a core component of plan design
focusing on sustained growth in shareholder wealth and growth in share price and delivering constant or increasing
return on assets as well as focusing the executive on key non-financial drivers of value
In accordance with best practice corporate governance, the structure of non-executive Director and executive Director
remuneration is separate.
Non-executive Directors remuneration
Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non-executive directors'
fees and payments are reviewed annually by the Board as a whole. The chairman's fees are determined independently to
the fees of other non-executive directors based on comparative roles in the external market. The chairman is not present at
any discussions relating to the determination of his own remuneration.
ASX listing rules require the aggregate non-executive directors remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 16 May 2012, where the shareholders
approved an aggregate remuneration of $250,000.
Executive remuneration
The company aims to reward executives with a level and mix of remuneration based on their position and responsibility,
which has both fixed and variable components.
The executive remuneration and reward framework generally has two components:
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base pay and non-monetary benefits
share-based payments
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, and non-monetary benefits, are reviewed annually by the Board,
predominantly non-executive Director, based on individual and business unit performance, the overall performance of the
consolidated entity and comparable market remunerations.
The long-term incentives ('LTI') include share-based payments. During the 2021 financial year, options were issued to
directors which formed part of their remuneration.
The Company did not use any external remuneration consultants during the financial year.
Consolidated entity performance and link to remuneration
The remuneration of directors and executives are not linked to the performance, share price or earnings of the consolidated
entity.
Voting and comments made at the company's 2020 Annual General Meeting ('AGM')
At the 2020 AGM, 99.31% of the votes received supported the adoption of the remuneration report for the year ended 30
June 2020. 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 consolidated entity are set out in the following tables.
14
Cohiba Minerals Limited
Directors' report
30 June 2021
The key management personnel of the consolidated entity consisted of the following Directors of Cohiba Minerals Limited:
●
●
●
●
●
Mr Mordechai Benedikt (Executive Chairman)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Executive Director)
Mr Avi Kimelman (Non-Executive Chairman) - resigned 17 June 2020
Dr Robert Beeson (Non-Executive Director) - resigned 28 February 2020
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
87,999
180,000
123,750
391,749
-
-
-
-
-
-
-
-
-
-
-
-
-
185,508
273,507
-
-
-
236,358
83,808
505,674
416,358
207,558
897,423
2021
Non-Executive Directors:
Nachum Labkowski
Executive Directors:
Mordechai Benedikt
Andrew Graham
No termination benefits were paid to the resigning directors.
During the financial year a total of $118,800 of Mr Graham's Executive Director's fees have been capitalised to exploration
expenditure.
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees
$
Cash
bonus
$
Non-
Super-
monetary annuation
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
60,000
68,000
29,224
164,000
36,000
357,224
-
-
-
-
-
-
-
-
-
-
-
-
5,700
-
2,776
-
-
8,476
-
-
-
-
-
-
81,750
-
-
147,450
68,000
32,000
49,050
16,350
147,150
213,050
52,350
512,850
2020
Non-Executive Directors:
Avi Kimelman*
Nachum Labkowski
Robert Beeson**
Executive Directors:
Mordechai Benedikt
Andrew Graham
*
**
Resigned 17 June 2020.
Resigned 28 February 2020.
15
Cohiba Minerals Limited
Directors' report
30 June 2021
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Directors:
Mordechai Benedikt
Andrew Graham
Nachum Labkowski
Robert Beeson
Avi Kimelman
Fixed remuneration
2020
2021
At risk - STI
At risk - LTI
2021
2020
2021
2020
43%
60%
32%
-
-
77%
65%
100%
100%
45%
-
-
-
-
-
-
-
-
-
-
57%
40%
68%
-
-
23%
35%
-
-
55%
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:
Agreement commenced:
Term of agreement:
Details:
Mordechai Benedikt
Executive Director
20 May 2016
This contract will continue from commencement date until terminated.
Mr Benedikt was remunerated at $190,000 per annum.
The contract may be terminated at any time with 3 months' written notice being provided
by either the Company or Mr Benedikt. Upon expiration of the term the contract may
be renewed by mutual agreement.
Name:
Title:
Agreement commenced:
Term of agreement:
Details:
Andrew Graham
Executive Director
24 February 2020
This contract will continue from commencement date until terminated.
Mr Graham will be remunerated at $10,000 per month.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Share-based compensation
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
The terms and conditions of each grant of options over ordinary shares affecting remuneration of Directors and other key
management personnel in this financial year or future reporting years are as follows:
Grant date
Number of
options
Vesting date and
exercisable date
Expiry date
Exercise price at grant date
Fair value
per option
18/12/2020
18/12/2020
24,000,000 18/12/2020
30,000,000 Subject to vesting conditions
18/12/2023
18/12/2023
$0.02
$0.02
$0.017
$0.017
Options granted carry no dividend or voting rights.
16
Cohiba Minerals Limited
Directors' report
30 June 2021
Additional information
The earnings of the consolidated entity for the five years to 30 June 2021 are summarised below:
2021
$
2020
$
2019
$
2018
$
2017
$
Revenue
Net profit/(loss) before income tax
Net profit/(loss) after income tax
31,797
(1,209,343)
(1,209,343)
22,349
(1,288,926)
(1,288,926)
22,243
(1,096,712)
(1,096,712)
14,323
(1,474,836)
(1,474,836)
5,374
(924,722)
(924,722)
The factors that are considered to affect total shareholders return ('TSR') are summarised below:
2021
2020
2019
2018
2017
Share price at start of financial year ($)
Share price at end of financial year ($)
Basic earnings per share (cents per share)
0.008
0.016
(0.10)
0.011
0.008
(0.19)
0.007
0.011
(0.18)
0.013
0.007
(0.31)
0.015
0.013
(0.41)
Additional disclosures relating to key management personnel
Share holding
The number of shares in the Company held during the financial year by each Director and other members of key management
personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
as part of
the start of
the year
remuneration Additions*
Balance at
the end of
the year
Other
Ordinary shares
Nachum Labkowski
Mordechai Benedikt
8,856,750
39,677,784
48,534,534
4,325,000
-
- 65,785,953
- 70,110,953
- 13,181,750
- 105,463,737
- 118,645,487
*
Relates to on-market purchases or participation in capital raisings (following receipt of shareholder approval) at arms-
length terms.
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at
the start of
Balance at
the end of
the year
Granted as
remuneration
Disposed /
expired
Other*
the year
Options over ordinary shares
Nachum Labkowski
Mordechai Benedikt
Andrew Graham
1,897,875 19,000,000
20,359,527 22,000,000
3,000,000 13,000,000
25,257,402 54,000,000
-
-
-
-
1,562,500 22,460,375
7,500,000 49,859,527
- 16,000,000
9,062,500 88,319,902
*
Listed options issued as free attaching options in accordance with capital raising conducted during the year.
All options granted during the year vested immediately.
Loans to key management personnel and their related parties
There were no loans to Key Management Personnel at any time during the financial year (2020: Nil).
17
Cohiba Minerals Limited
Directors' report
30 June 2021
Other transactions with key management personnel and their related parties
During the previous financial year the Company incurred $87,000 in consulting fees relating to investor relations services,
provided by Carraway Corporate Pty Ltd, an entity associated with Avi Kimelman. The transactions were made at arms-
length terms.
The following balances were outstanding at the reporting date in relation to transactions with related parties.
Trade and other payables to relates parties
Carraway Corporate Pty Ltd
Mineral Strategies Pty Ltd
Consolidated
30 June 2021 30 June 2020
-
-
7,700
8,700
Andrew Graham receives his Chief Executive Officer and director fees through an associated entity, Mineral Strategies Pty
Ltd.
There were no other transactions with key management personnel and their related parties.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Cohiba Minerals Limited under option at the date of this report are as follows:
Grant date
Various
12 December 2020
27 August 2021
Expiry date
22 May 2022
18 December 2023
18 December 2023
Exercise
price
Number
under option
$0.01 348,903,277
$0.02 54,000,000
$0.02 14,000,000
416,903,277
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.
18
Cohiba Minerals Limited
Directors' report
30 June 2021
Shares issued on the exercise of options
The following ordinary shares of Cohiba Minerals Limited were issued during the year ended 30 June 2021 and up to the
date of this report on the exercise of options granted:
Date options exercised
20 August 2020
28 August 2020
21 September 2020
7 October 2020
26 October 2020
25 November 2020
9 December 2020
9 December 2020
17 December 2020
12 January 2021
18 January 2021
22 January 2021
3 February 2021
10 February 2021
10 March 2021
6 June 2021
Exercise
Price
Number of
shares issued
795,000
$0.01
312,500
$0.01
212,500
$0.01
102,461
$0.01
75,000
$0.01
155,476
$0.01
143,222
$0.01
250,000
$0.01
400,000
$0.01
2,417,780
$0.01
$0.01
350,000
$0.01 20,650,000
750,000
$0.01
25,000
$0.01
1,352,777
$0.01
1,000,000
$0.01
28,991,716
The options were granted on various dates.
Indemnity and insurance of officers
The consolidated entity has agreed to indemnify all the directors of the consolidated entity for any liabilities to another person
(other than the consolidated entity or related body corporate) that may arise from their position as directors of the consolidated
entity, except where the liability arises out of conduct involving a lack of good faith.
During the financial year, the consolidated entity paid a premium in respect of a contract to insure the directors and executives
of the consolidated entity 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 Consolidated entity has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the Consolidated entity or any related entity against a liability incurred by the auditor.
During the financial year, the Consolidated entity has not paid a premium in respect of a contract to insure the auditor of the
Consolidated entity or any related entity.
Proceedings on behalf of the consolidated entity
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the consolidated entity, or to intervene in any proceedings to which the consolidated entity is a party for the purpose of
taking responsibility on behalf of the consolidated entity 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.
19
Cohiba Minerals Limited
Directors' report
30 June 2021
Auditor
William Buck Audit (Vic) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
Rounding of amounts
Cohiba Minerals Limited is a type of Company that is referred to in ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been
rounded to the nearest dollar.
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
___________________________
Mordechai Benedikt
Executive Chairman
29 September 2021
20
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001 TO THE DIRECTORS OF COHIBA MINERALS LIMITED
I declare that, to the best of my knowledge and belief during the year ended 30 June 2021
there have been:
― No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
― No contraventions of any applicable code of professional conduct in relation to the
audit.
William Buck Audit (Vic) Pty Ltd
ABN: 59 116 151 136
N.S. Benbow
Director
Melbourne, dated this 29th day of September, 2021
Cohiba Minerals Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Income
Interest income
Government grant income
Foreign exchange gain on investments
Expenses
Employment expenses
Corporate expenses
Write off of investments
Write off of exploration and evaluation
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Cohiba Minerals Limited
Consolidated
Note
2021
$
2020
$
21,797
10,000
-
31,797
4,087
10,000
8,262
22,349
5
8
(798,162)
(627,419)
-
-
(521,661)
(419,652)
(291,418)
(78,544)
(1,393,784)
(1,288,926)
-
-
(1,393,784)
(1,288,926)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of Cohiba
Minerals Limited
(1,393,784)
(1,288,926)
Basic earnings per share
Diluted earnings per share
Cents
Cents
23
23
(0.12)
(0.12)
(0.19)
(0.19)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
22
Cohiba Minerals Limited
Statement of financial position
As at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Other receivables
Prepayments
Total current assets
Non-current assets
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Employee benefits
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Consolidated
Note
2021
$
2020
$
6
7
9
6,499,541
67,693
34,630
6,601,864
904,285
120,210
53,758
1,078,253
4,637,754
4,637,754
2,990,360
2,990,360
11,239,618
4,068,613
10
67,713
-
-
67,713
102,138
10,088
211
112,437
67,713
112,437
11,171,905
3,956,176
11
19,235,198 11,016,910
190,750
(7,251,484)
581,975
(8,645,268)
11,171,905
3,956,176
The above statement of financial position should be read in conjunction with the accompanying notes
23
Cohiba Minerals Limited
Statement of changes in equity
For the year ended 30 June 2021
Consolidated
Balance at 1 July 2019
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Issue of ordinary shares, net of transaction costs
Issue of unlisted options to CHK holders
Expiry of options
Share based payments
Issued
capital
$
Reserve
$
Accumulated
losses
$
Total equity
$
9,977,262
394,181
(6,356,739)
4,014,704
-
-
-
-
-
-
(1,288,926)
-
(1,288,926)
-
(1,288,926)
(1,288,926)
897,095
142,553
-
-
-
-
(394,181)
190,750
-
-
394,181
-
897,095
142,553
-
190,750
Balance at 30 June 2020
11,016,910
190,750
(7,251,484)
3,956,176
Consolidated
Issued
capital
$
Reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2020
11,016,910
190,750
(7,251,484)
3,956,176
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
-
-
-
-
-
-
(1,393,784)
-
(1,393,784)
-
(1,393,784)
(1,393,784)
Issue of ordinary shares, net of transaction costs
Issue listed options
Exercise of options
Vesting of share-based-payments
Transfer from share based payment reserve following exercise
of options
7,807,231
6,690
289,917
-
-
-
-
505,675
114,450
(114,450)
-
-
-
-
-
7,807,231
6,690
289,917
505,675
-
Balance at 30 June 2021
19,235,198
581,975
(8,645,268) 11,171,905
The above statement of changes in equity should be read in conjunction with the accompanying notes
24
Cohiba Minerals Limited
Statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Payments to suppliers & employees
Interest received
Government grants received
Consolidated
Note
2021
$
2020
$
(927,579)
21,797
10,000
(745,657)
4,087
10,000
Net cash used in operating activities
22
(895,782)
(731,570)
Cash flows from investing activities
Payments for exploration and evaluation assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercise of options
Proceeds from issue of options
Payments for capital raising costs
Repayment of borrowings
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
(1,652,812)
(607,305)
(1,652,812)
(607,305)
7,908,830
289,917
6,690
(51,499)
(10,088)
912,619
-
142,553
(7,257)
-
8,143,850
1,047,915
5,595,256
904,285
(290,960)
1,195,245
Cash and cash equivalents at the end of the financial year
6
6,499,541
904,285
The above statement of cash flows should be read in conjunction with the accompanying notes
25
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 1. General information
The financial statements cover Cohiba Minerals Limited as a consolidated entity consisting of Cohiba Minerals Limited and
the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which
is Cohiba Minerals Limited's functional and presentation currency.
Cohiba Minerals Limited is a listed public Company limited by shares, incorporated and domiciled in Australia. Its registered
office and principal place of business is:
Level 21, 459 Collins Street
Melbourne, VIC 3000
Ph: (03) 8630 3321
A description of the nature of the consolidated entity'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 29 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 either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.
New or amended Accounting Standards and Interpretations
The consolidated entity 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.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
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 the following:
●
Investments in preference shares, which are measured at fair value.
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 consolidated entity'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 consolidated entity only.
Supplementary information about the parent entity is disclosed in note 19.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Cohiba Minerals Limited
('Company' or 'parent entity') as at 30 June 2021 and the results of all subsidiaries for the year then ended. Cohiba Minerals
Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'.
26
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity 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 consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity 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 consolidated entity.
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 consolidated entity 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
consolidated entity 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.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Cohiba Minerals 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.
Revenue recognition
The consolidated entity recognises revenue as follows:
Interest
Interest revenue is recognised as interest accrues using the effective interest method.
Accounting policy for Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis
over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an
asset, it is recognised as income in equal amounts over the expected useful life of the related asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
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
consolidated entity'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 consolidated entity'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.
27
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 2. Significant accounting policies (continued)
Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial
statements under the appropriate classifications.
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
consolidated entity 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.
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.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021. The consolidated
entity 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.
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 the nature of the staffing and
geographic regions in which the consolidated entity operates. 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 consolidated entity unfavourably as at the reporting date or subsequently as a
result of the Coronavirus (COVID-19) pandemic.
28
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Share-based payment transactions
The Company measures the cost of equity-settled transactions with employees, consultants and suppliers by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black
Scholes model taking into account the terms and conditions upon which the instruments were granted. A significant
judgement comes from the expected price volatility of the underlying share. The accounting estimates and assumptions
relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity.
During the financial year, the Company issued options with non-market based vesting conditions. The options have been
accounted for on a pro rata basis over the expected vesting period with 19% of the total expense recorded in the current
financial year.
Fair valuation assessment of preference shares investment
In the 2019 financial year, the consolidated entity invested in preference shares in a US-based financial corporation. Details
of the rights and terms of these preference shares are disclosed in note 8. At initial recognition, the preference shares were
accounted for at fair value, with changes in fair value taken to the profit or loss.
Consistent with the prior year, the directors continue to value the investment in preference shares, which had an initial cost
value of $283,688. This level 3 investment has been valued on an expected yield basis, with an expectation of nil returns for
an immediate and long-term time period. This expected yield basis valuation method has been applied due to a lack of
available market data for the valuation of the investment, including available prices for trades for other preference share
equity held in the investee. In considering the fair valuation, the Directors considered the ability of the investee to continue
to accrue and distribute an annual 8% dividend return under the terms of the investment.
Given a delay in receiving the prior year's distribution, and from an analysis of the financial performance and position of the
investee, based upon unaudited financial information provided by the investee, coupled with more broader macroeconomic
factors impacting the investee's financial performance, including the impact of the COVID pandemic, it was determined the
fair value of the investment continue to be accounted for as zero.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and carry forward losses only if the consolidated
entity considers it is probable that future taxable amounts will be available to utilise those deductible temporary differences
and carry forward losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
Impairment of exploration and evaluation costs
The consolidated entity assesses impairment of exploration and evaluation costs at each reporting date by evaluating
conditions specific to Cohiba Minerals and to the particular asset that may lead to impairment. If an impairment trigger exists,
the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations,
which incorporate a number of key estimates and assumptions.
There were no indicators for impairment on the consolidated entity's areas of interest during the financial year.
29
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 4. Operating segments
Identification of reportable operating segments
The Consolidated entity has identified its operating segments based on the investment decisions of the board and used by
the chief operating decision makers in assessing performance and in determining the allocation of resources. The
Consolidated entity operates in one segment being the evaluation and exploration of resources in the Oceania region.
Accounting policy for 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.
Note 5. Employment expenses
Director fees
Superannuation expense
Share based payment expense
Note 6. Current assets - cash and cash equivalents
Cash at bank
Consolidated
2021
$
2020
$
287,499
4,988
505,675
322,435
8,476
190,750
798,162
521,661
Consolidated
2021
$
2020
$
6,499,541
904,285
Accounting policy for 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.
Note 7. Current assets - Other receivables
Other receivables - Amounts due from investors for capital raised
GST receivable
Trade receivables
Consolidated
2021
$
2020
$
43,250
19,023
5,420
93,250
26,960
-
67,693
120,210
Accounting policy for other receivables
Other receivables are measured at amortised cost using the effective interest method, less any provision for impairment.
Impairment
Allowances for impairment are recognised using an 'expected credit loss' ('ECL') model. Impairment is measured using a 12-
month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted.
30
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 8. Current assets - investments
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
FX revaluation gain
Write off of assets
Closing fair value
Consolidated
2021
$
2020
$
-
-
-
-
283,688
7,730
(291,418)
-
During the 2019 financial year the consolidated entity invested in unlisted preference shares, at USD $1 per share, in a US
based corporation. Holders are entitled an annual 8% dividend. Holders do not have any voting rights.
As at the end of the financial year, the Directors considered the fair value of this investment, which was classified as a Level
3 investment, consistent with the prior year, due to the limited market data available to value the investment (2020: Level 3).
In considering the fair valuation, the Directors considered the ability of the investee to continue to accrue and distribute an
annual 8% dividend return under the terms of the investment.
Given a delay in receiving the prior year's distribution, and from an analysis of the financial performance and position of the
investee, based upon unaudited financial information provided by the investee, coupled with more broader macroeconomic
factors impacting the investee's financial performance, including the impact of the COVID pandemic, it was determined the
fair value of the investment continue to be accounted for as zero.
The Company has not received any distributions or a reliable fair value price during the current financial year.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted.
Fair value movements and foreign exchange gains and losses are recognised in profit or loss.
Note 9. Non-current assets - exploration and evaluation
Exploration and evaluation assets
Consolidated
2021
$
2020
$
4,637,754
2,990,360
31
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 9. Non-current assets - exploration and evaluation (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 1 July 2019
Expenditure during the year
Write off of assets
Balance at 30 June 2020
Expenditure during the year
Balance at 30 June 2021
Capitalised
exploration
and
evaluation
expenditure
$
Total
$
2,461,600
607,304
(78,544)
2,461,600
607,304
(78,544)
2,990,360
1,647,394
2,990,360
1,647,394
4,637,754
4,637,754
During the year, the consolidated entity has carried out a review of the carrying amount of exploration and evaluation assets
and recorded no impairments.
Olympic Domain Farm-in Agreement
On 7 March 2018 the Company entered into a Farm-in Agreement with Olympic Domain Pty Ltd (Arrangement) for a proposed
joint venture in respect of seven distinct exploration tenements located in South Australia. Under the present conditions of
the Arrangement, the Company will be entitled to form a joint venture upon achievement of a number of Stages in the
Arrangement.
●
●
●
Stage 1 required minimum expenditure of $500,000 (Minimum Expenditure) within one year of the execution of the
Farm-in Agreement and a maximum of $100,000 as reimbursement to Olympic Domain in connection with the previous
development of the tenements. Following completion of the Stage 1 expenditure the Company would acquire a 30%
interest in the tenements;
Stage 2 require minimum expenditure of $1,000,000 within two years of the execution of the Farm-in Agreement, and
a maximum of $100,000 as reimbursement to Olympic Domain in connection with the previous development of the
tenements. Following completion of the Stage 2 expenditure the Company would acquire a further 21% interest in the
tenements; and
Stage 3 required minimum expenditure of $1,500,000 within three years of the execution of the Farm-in Agreement.
Following completion of the Stage 3 expenditure the Company would acquire a further 29% interest in the tenements.
Stage 1 was completed in the 2019 financial year, with the Company earning its 30% interest in the tenements.
On 5 May 2020 the Company announced that it had received confirmation from Olympic Domain that Stage 2 had been
achieved. On 2 July 2020 the Company announced that the Deputy Executive Director, Mineral Resources SA had informed
the Company of the approval and subsequent transfer of 51% ownership of the Olympic Domain tenements to Cohiba
Minerals Ltd, being the Stage 2 minimum expenditure requirement.
On 16 September 2020, the Company announced that it had notified Olympic Domain Pty Ltd that it has exceeded the $1.5
million expenditure requirement to secure an 80% ownership in the Olympic Domain tenements in South Australia and is
awaiting final acknowledgement from Olympic Domain. Olympic Domain refused to acknowledge the Company’s claim for
the Stage 3 earn-in and the two parties entered a dispute. On 25 March 2021, the Company announced that it had entered
into a Deed of Settlement with Olympic Domain in relation to the dispute and the Company’s 80% interest would be
registered. Olympic Domain will be required to meet 20% of the eligible ongoing expenditure on the Olympic Domain
tenements back-dated to 15 January 2021.
Exploration and evaluation expenditure made for the purposes of the Arrangement, has been assessed as being able to be
capitalised under the Consolidated entity’s accounting policy for such expenditure.
32
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 9. Non-current assets - exploration and evaluation (continued)
Accounting policy for exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest or its sale. Alternatively, exploration activities are
continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or
otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure
incurred thereon is written off in the year in which the decision is made.
Note 10. Current liabilities - trade and other payables
Trade payables
Accrued expenses
Consolidated
2021
$
2020
$
45,541
22,172
75,569
26,569
67,713
102,138
Refer to note 13 for further information on financial instruments.
Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity 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.
Note 11. Equity - issued capital
2021
Shares
Consolidated
2020
Shares
2021
$
2020
$
Ordinary shares - fully paid
Investor options over ordinary shares
1,391,463,253
348,919,944
890,702,261 19,085,955 10,874,357
142,553
290,596,724
149,243
1,740,383,197
1,181,298,985 19,235,198 11,016,910
33
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 11. Equity - issued capital (continued)
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Rights issue
Issue of shortfall shares
Less: capital raising costs
Balance
CHKOA option conversion
CHKOA option conversion
Share issue for capital raising
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Share issue for capital raising
Share issue for capital raising
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Share Purchase Plan shares issued
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
CHKOA option conversion
Transfer from option reserve following exercise
of options
Less: capital raising costs
30 June 2019
22 May 2020
19 June 2020
30 June 2020
20 August 2020
28 August 2020
2 September 2020
22 September 2020
7 October 2020
26 October 2020
25 November 2020
1 December 2020
4 December 2020
9 December 2020
9 December 2020
17 December 2020
18 December 2020
12 January 2021
18 January 2021
22 January 2021
3 February 2021
10 February 2021
10 March 2021
6 April 2021
664,614,242
206,088,019
20,000,000
-
890,702,261
795,000
312,500
143,125,000
212,500
102,461
75,000
155,476
15,000,000
3,125,000
143,222
250,000
400,000
310,519,276
2,417,780
350,000
20,650,000
750,000
25,000
1,352,777
1,000,000
$0.004
$0.004
-
9,977,262
824,352
80,000
(7,257)
10,874,357
7,950
3,125
2,290,000
2,125
1,025
750
1,555
240,000
50,000
1,432
2,500
4,000
5,278,828
24,178
3,500
206,500
7,500
250
13,528
10,000
$0.01
$0.01
$0.016
$0.01
$0.01
$0.01
$0.01
$0.016
$0.016
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
$0.01
-
-
-
-
114,450
(51,598)
Balance
30 June 2021
1,391,463,253
19,085,955
Movements in options
Details
Balance
Issue of share options
Issue of share options
Issue of share options
Balance
Issue of share options
Issue of share options
Issue of share options
Issue of share options
Issue of share options
CHKOA options converted during the year
Date
Options
Issue price
$
1 July 2019
22 May 2020
18 June 2020
19 June 2020
30 June 2020
2 September 2020
1 December 2020
4 December 2020
4 December 2020
4 December 2020
-
138,044,050
142,552,674
10,000,000
290,596,724
71,562,492
7,500,000
1,562,500
5,189,944
1,500,000
(28,991,716)
-
$0.001
-
-
$0.001
-
$0.001
$0.001
-
-
-
142,553
-
142,553
-
-
-
5,190
1,500
-
149,243
Balance
30 June 2021
348,919,944
34
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 11. Equity - issued capital (continued)
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.
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.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity'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.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity 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 consolidated entity 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 Company seeks to ratify its placement capacity at each Annual General Meeting and General Meeting.
The capital risk management policy remains unchanged from previous financial years.
Accounting policy for issued capital
Ordinary shares are classified as equity.
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.
Note 12. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Note 13. Financial instruments
Financial risk management objectives
The Consolidated entity's activities expose it to financial risks such as market risk (foreign currency risk and price risk) and
liquidity risk. The Consolidated entity's overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the Consolidated entity. The Consolidated
entity uses different methods to measure different types of risk to which it is exposed. These methods include maturity
analysis in the case of liquidity risk.
Risk management is carried out by the Board of Directors ('the Board'). These policies include identification and analysis of
the risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits.
Market risk
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
35
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 13. Financial instruments (continued)
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities
denominated in a currency that is not the entity's functional currency. The Company was not subject to significant foreign
currency risk during the financial year.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where appropriate to
mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to
the financial statements. The consolidated entity does not hold any collateral.
The Consolidated entity has adopted a lifetime expected loss allowance in estimating expected credit losses to trade
receivables.
Current
$
31 - 60 days
past due
$
61 - 90 days
past due
$
> 91 days
past due
$
Total
$
Financial assets
Other receivables*
-
-
-
43,250
43,250
*
The current expected credit loss rate is zero, with no expected credit loss to be recorded.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity
risk management framework for the management of the Consolidated entity’s short, medium and long-term funding and
liquidity management requirements. The Consolidated entity manages liquidity risk through capital raising activities, and
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Consolidated entity did not have any undrawn facilities at its disposal as at reporting date. Vigilant liquidity risk
management requires the Consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) and
available borrowing facilities to be able to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 14. Key management personnel disclosures
Directors
The following persons were Directors of Cohiba Minerals Limited during the financial year:
Mr Mordechai Benedikt (Executive Director)
Mr Nachum Labkowski (Non-Executive Director)
Mr Andrew Graham (Chief Executive Officer and Executive
Director)
Mr Avi Kimelman (Non-Executive Chairman)
Dr Robert Beeson (Non-Executive Director)
Appointed Executive Chairman 17 June 2020
Appointed Chief Executive Officer 24 February 2020,
appointed Executive Director 17 June 2020
Resigned 17 June 2020
Resigned 28 February 2020
36
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 14. Key management personnel disclosures (continued)
Compensation
The aggregate compensation made to Directors and other members of key management personnel of the consolidated entity
is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Note 15. Remuneration of auditors
Consolidated
2021
$
2020
$
391,749
-
505,674
357,224
8,476
147,150
897,423
512,850
During the financial year the following fees were paid or payable for services provided by William Buck, the auditor of the
Company:
Audit services - William Buck
Audit or review of the financial statements
Note 16. Contingent liabilities
There are no contingent liabilities as at the end of the financial year (2020: nil).
Note 17. Commitments
Consolidated
2021
$
2020
$
32,200
32,270
The Consolidated entity has to perform minimum exploration work and expend minimum amounts of money on its tenements.
The overall expenditure requirement tends to be limited in the normal course of the Consolidated entity's tenement portfolio
management through expenditure exemption approvals and expenditure reductions through relinquishment of parts of the
whole of tenements deemed on prospective. Should the Consolidated entity wish to preserve interest in its current tenements
the amount which may be required to be expended is as follows:
Planned Exploration Expenditure
Within one year
One to five years
Total commitment
37
Consolidated
2021
$
2020
$
868,500
3,162,500
2,627,500
358,500
4,031,000
-
2,986,000
-
4,031,000
2,986,000
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 17. Commitments (continued)
Olympic Domain Farm-in Agreement
During the previous financial year, the Company entered into a Farm-in Agreement with Olympic Domain Pty Ltd (Olympic
Domain) with the right to earn up to 80% in a number of tenements located in South Australia.
The Farm-in Agreement includes 3 stages of earn-in whereby the Company will acquire a relevant interest as follows:
●
●
●
Stage 1 requires minimum expenditure of $500,000 (Minimum Expenditure) within one year of the execution of the
Farm-in Agreement and a maximum of $100,000 as reimbursement to Olympic Domain in connection with the previous
development of the tenements. Following completion of the Stage 1 expenditure the Company will acquire a 30%
interest in the tenements;
Stage 2 requires minimum expenditure of $1,000,000 within two years of the execution of the Farm-in Agreement, and
a maximum of $100,000 as reimbursement to Olympic Domain in connection with the previous development of the
tenements. Following completion of the Stage 2 expenditure the Company will acquire a further 21% interest in the
tenements; and
Stage 3 requires minimum expenditure of $1,500,000 within three years of the execution of the Farm-in Agreement.
Following completion of the Stage 3 expenditure the Company will acquire a further 29% interest in the tenements.
Stage 1 was previously achieved, which was announced on 27 February 2019.
During the previous financial year the Company achieved its Stage 2 interest in the tenements, as announced on 5 May
2020.
On 16 September 2020, the Company announced that it had notified Olympic Domain Pty Ltd that it has exceeded the $1.5
million expenditure requirement. On 25 March 2021 the Company announced that it had settled a dispute with Olympic
Domain Pty Ltd in relation to the Company's 80% ownership in the Olympic Domain tenements. Olympic Domain will be
required to meet 20% of the eligible, ongoing expenditure on the Olympic Domain tenements, back-dated to 15 January 2021
and the Company would receive its 80% interest.
Note 18. Related party transactions
Subsidiaries
Interests in subsidiaries are set out in note 20.
Key management personnel
Disclosures relating to key management personnel are set out in note 14 and the remuneration report included in the
Directors' report.
Transactions with related parties
During the previous financial year the Company incurred $87,000 in consulting fees relating to investor relations services,
provided by Carraway Corporate Pty Ltd, an entity associated with Avi Kimelman. The transactions were made at arms-
length terms.
During the financial year the Company paid $5,750 to Mineral Strategies Pty Ltd, an entity associated with Director, Mr
Andrew Graham, in connection with additional services provided to the Company. The transactions were made at arms-
length terms.
Receivable from and payable to related parties
The following balances were outstanding at the reporting date in relation to transactions with related parties.
Trade and other payables to related parties
Carraway Corporate Pty Ltd
Mineral Strategies Pty Ltd
38
Consolidated
30 June 2021 30 June 2020
-
-
7,700
8,700
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 18. Related party transactions (continued)
Andrew Graham receives his Chief Executive Officer and director fees through an associated entity, Mineral Strategies Pty
Ltd.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Note 19. 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
Total comprehensive loss
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share based payments options reserve
Accumulated losses
Total equity
Parent
2021
$
2020
$
(1,393,784)
(1,288,926)
(1,393,784)
(1,288,926)
Parent
2021
$
2020
$
7,556,592
1,847,069
11,286,324
4,115,319
67,713
112,437
67,713
112,437
19,235,198 11,016,910
190,750
(7,204,778)
581,975
(8,598,562)
11,218,611
4,002,882
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2021 (30 June 2020: nil).
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021 (30 June 2020: nil)
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (30 June 2020: nil)
39
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 20. 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
Charge Lithium Pty Ltd
Cobalt X Pty Ltd
Note 21. Events after the reporting period
Principal place of business /
Country of incorporation
Australia
Australia
Ownership interest
2020
2021
%
%
100%
100%
100%
100%
●
●
On 9 August 2021, the Company announced that it had entered into a Farm-In Agreement with Tigers Dominion Group
Pty Ltd to earn up to a 51% interest in a highly strategic IOCG target are in the Gawler Craton. The Company has
entered into a minimum commitment to spend $600,000 by drilling a 600m drill hold on the eastern part of EL6324,
followed by a 400m drill hole on either the eastern or western part of EL6324.
On 27 August 2021, the Company issued 14,000,000 unlisted options to consultants with each option being exercisable
at $0.02 (2 cents) on or before 18 December 2023.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.
Note 22. Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2021
$
2020
$
Loss after income tax expense for the year
(1,393,784)
(1,288,926)
Adjustments for:
Share-based payments
Write off of exploration and evaluation
Write off of investments
Change in operating assets and liabilities:
Decrease/ (increase) in prepayments
Decrease/ (increase) in trade and other receivables
Increase/ (decrease) in trade and other payables
Increase/ (decrease) in employee benefits
Net cash used in operating activities
Note 23. Loss per share
505,675
-
-
190,750
78,544
291,418
19,128
7,838
(34,428)
(211)
(34,859)
(12,369)
43,661
211
(895,782)
(731,570)
Consolidated
2021
$
2020
$
Loss after income tax attributable to the owners of Cohiba Minerals Limited
(1,393,784)
(1,288,926)
40
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 23. Loss per share (continued)
Weighted average number of ordinary shares used in calculating basic earnings per
share
1,198,059,822
687,237,345
Weighted average number of ordinary shares used in calculating diluted earnings
per share
1,198,059,822
687,237,345
Number
Number
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.12)
(0.12)
(0.19)
(0.19)
No options or performance rights have been included in the weighted average number of ordinary shares for the purposes
of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 “Earnings per Share”. The rights
to options are non-dilutive as the Consolidated entity is loss generating.
Accounting policy for earnings per share
Basic loss per share
Basic loss per share is calculated by dividing the profit attributable to the owners of Cohiba Minerals 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 loss per share
Diluted loss 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.
Note 24. Share-based payments
Set out below are summaries of options granted during the year and on issue at the end of the financial year from equity-
settled share-based payment transactions:
2021
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired
22/05/2020
18/12/2020
22/05/2022
01/12/2023
$0.01 35,000,000
$0.02
-
- 54,000,000
35,000,000 54,000,000
(16,000,000)
-
(16,000,000)
Balance at
the end of
the year
- 19,000,000
- 54,000,000
- 73,000,000
During the previous financial year the consolidated entity issued 35,000,000 unlisted options to directors, management and
consultants.
2020
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Expired
Balance at
the end of
the year
19/04/2017
16/03/2018
12/12/2018
22/05/2020
17/05/2020
18/04/2020
18/04/2020
22/05/2022
$0.036 20,000,000
$0.018 12,000,000
$0.18 15,000,000
$0.01
-
-
-
- 35,000,000
47,000,000 35,000,000
-
-
-
-
-
(20,000,000)
(12,000,000)
(15,000,000)
-
-
-
- 35,000,000
(47,000,000) 35,000,000
41
Cohiba Minerals Limited
Notes to the financial statements
30 June 2021
Note 24. Share-based payments (continued)
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
22/05/2020
18/12/2020
22/05/2022
18/12/2023
2021
2020
Number
Number
19,000,000 35,000,000
-
24,000,000
43,000,000 35,000,000
An additional 30,000,000 unlisted options exercisable at $0.02 on or before 18 December 2023 are subject to satisfaction of
vesting conditions. The options will vest upon the Company announcing an independently verified JORC compliant Inferred
Mineral Resource of a minimum of 2 million tonnes at a copper equivalent (CuEq) grade of not less than 0.5% Cu for at least
10,000 tonnes of copper metal equivalency across any of the Company’s tenements. The options have been accounted for
on a pro rata basis over the expected vesting period with 19% of the total expense recorded in the current financial year.
For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the
grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
Risk-free
Fair value
yield
interest rate at grant date
18/12/2020
18/12/2023
$0.021
$0.02
148.67%
-
0.11%
$0.017
Reconciliation of share based payments expense recorded in the statement of profit and loss relating to each class of share
based payment:
Consolidated
30 June 2021 30 June 2020
Options issued to directors, management, and consultants
505,675
190,750
Accounting policy for share-based payments
Equity-settled share-based compensation benefits are provided to employees, consultants and suppliers.
Equity-settled transactions are awards of shares, performance rights 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 determined using the 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 company
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 usually 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 equity-settled transactions can also be recognised as capital raising costs recorded against equity, with the same
recognition approach as above.
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.
42
Cohiba Minerals 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 consolidated entity'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
___________________________
Mordechai Benedikt
Executive Chairman
29 September 2021
43
Cohiba Minerals Limited
Independent auditor’s report to members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cohiba Minerals Limited (the Company) and its
controlled entities (together, 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 other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the 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
(including Independence Standards) (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.
CARRYING VALUE AND CAPITALISATION OF EXPLORATION AND EVALUATION ASSETS
Area of focus
How our audit addressed it
The Group has incurred exploration and evaluation
costs for exploration projects in Australia over a
number of years.
The Group holds the right to explore and evaluate
those projects through either a direct ownership of
the underlying area of interest or through Farm-in
Arrangements with third parties (who hold the
underlying right to the area of interest). During the
period there was a dispute in relation to the farm-in
joint venture tenements with Olympic Domain Pty
Ltd, ultimately resulting in Olympic Domain Pty Ltd
being required to backpay 20% of exploration and
evaluation expenditure on these sites which was
also resolved during the financial year.
There is a risk that the Group may lose or relinquish
its rights to further explore and evaluate those
areas of interest and therefore amounts capitalized
to the statement of financial position from the
current and historical periods be no longer
recoverable.
In order to meet this risk, our audit procedures
included the following:
— Understanding and vouching the underlying
contractual entitlement to explore and
evaluate each area of interest, be this
through Farm-in Arrangement and/or directly
through to the underlying tenement,
including an evaluation of the requirement to
renew that tenement at its expiry;
— Examining project spend per each area of
interest and comparing this spend to the
minimum expenditure requirements set out
in the underlying tenement expenditure plan;
— Examining project spend to each area of
interest to ensure that it is directly
attributable to that area of interest; and
— From an overall perspective, comparing the
market capitalisation of the Group to the net
carrying value of its assets on the statement
of financial position to identify any other
additional indicators of impairment.
— Correct disclosure in relation to the joint
venture operation farm-in agreement in
reference to the Olympic Domain joint
venture
We also assessed the adequacy of the Group’s
disclosures in respect of capitalised exploration
costs and the planned expenditures under either
direct tenement agreements or as applicable
under Farm-in Arrangements.
Other Information
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 the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, 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 Group 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 has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2021.
In our opinion, the Remuneration Report of Cohiba Minerals Limited for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Group 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.
William Buck Audit (Vic) Pty Ltd
ABN: 59 116 151 136
N.S. Benbow
Director
Melbourne, 29 September 2021
Cohiba Minerals Limited
Shareholder information
30 June 2021
The shareholder information set out below was applicable as at 6 September 2021.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
% of total
Options over ordinary
shares
% of total
Number
of holders
shares
issued
Number
of holders
shares
issued
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
147
11
16
1,042
1,217
-
-
0.01
3.74
96.25
2,433
100.00
Holding less than a marketable parcel
432
-
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
3
2
11
129
281
426
69
-
-
0.02
1.88
98.10
100.00
-
Ordinary
shares
Number held
ordinary
Shares
% of total
shares
issued
Jascot Rise Pty Ltd (Jascot Rise A/C)
Gefen Investments Pty Ltd
Mrs Rozette Benedikt & Mr Itzhak Benedikt (Sniders Carmel PL SF A/C)
Jamora Nominees Pty Ltd (Kaboonk Discretionary A/C)
HSBC Custody Nominees (Australia) Limited
Bnp Paribas Nominees Pty Ltd (Ib Au Noms Retailclient Drp)
Jascot Rise Pty Ltd (Jascot Rise S/F A/C)
Mr Conor John Mithcell
Erlichster Investment Pty Ltd (Erlichster Investment A/C)
Bd Penfold Pty Ltd (B Merkaz Super Fund A/C)
Citicorp Nominees Pty Limited
Mr Salvatore Di Vincenzo
Mr Nachum Labkowski
Mr Zhi Wei Yuan & Mrs Sui Shan Lu
Top Safety Australia Pty Ltd
Mr Arye Leon Shapiro
Mr Shimshon Heller
Mr Itzhak Benedikt (Benedikt Imports P/Fund A/C)
Mr Peter James Jesson
Mr Marc David Chiaruttini
89,583,737
38,492,410
34,296,599
31,764,711
27,231,537
21,904,240
15,880,000
15,000,000
14,863,680
14,795,450
13,709,014
13,227,680
13,181,750
12,200,000
12,061,171
11,764,705
11,599,806
11,499,609
11,300,000
10,000,000
6.44
2.77
2.46
2.28
1.96
1.57
1.14
1.08
1.07
1.06
0.99
0.95
0.95
0.88
0.87
0.85
0.83
0.83
0.81
0.72
424,356,099
30.51
48
Cohiba Minerals Limited
Shareholder information
30 June 2021
Jascot Rise Pty Ltd (Jascot Rise A/C)
Mr Peter Andrew Proksa
Mr David Fagan
Mr Ross Dix Harvey
Mr Ryan A Mcmahon
Mr Janto Haman
Erlichster Investment Pty Ltd (Erlichster Investment A/C)
Bd Penfold Pty Ltd (B Merkaz Super Fund A/C)
Jascot Rise Pty Ltd (Jascot Rise S/F A/C)
Attollo Investments Pty Ltd (Attollo Investment A/C)
Gefen Investments Pty Ltd
Indomain Enterprises Pty Ltd (U C Mondello Family A/C)
Mr Anthony Kur
Synod Nominees Pty Ltd
Mr Janto Haman
Mouch Pty Ltd (Mouch Family A/C)
Y & M Friedman Pty Ltd (Y & M Friedman Family A/C)
Mrs Rozette Benedikt & Mr Itzhak Benedikt (Sniders Carmel PL SF A/C)
Mr Liam Seamus Fay
Indomac Pty Ltd
Unquoted equity securities
There are no unquoted equity securities.
Substantial holders
Substantial holders in the Company are set out below:
Jascot Rise Pty Ltd
Voting rights
The voting rights attached to ordinary shares are set out below:
Options over
shares
ordinary ordinary
shares %
of total
options
22,234,527
19,253,847
18,720,000
13,158,530
10,000,000
7,614,577
6,612,213
6,607,692
5,625,000
5,334,718
5,125,000
4,700,417
4,700,000
4,650,000
4,334,408
4,250,000
4,242,355
4,178,265
4,077,139
4,050,000
6.37
5.52
5.37
3.77
2.87
2.18
1.90
1.89
1.61
1.53
1.47
1.35
1.35
1.33
1.24
1.22
1.22
1.20
1.17
1.16
159,468,688
45.72
Ordinary shares
% of total
Number held
shares
issued
100,463,737
7.22
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.
49
Cohiba Minerals Limited
Shareholder information
30 June 2021
Tenements
Description
Exploration Licence (WA)
Exploration Licence (QLD)
Exploration Licence (QLD)
Exploration Licence (QLD)
Exploration Licence (QLD)
Mining Licence (QLD)
Mining Licence (QLD)
Mining Licence (QLD)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Exploration Licence (SA)
Right to earn up to 51% - farm-in agreement
Corporate Governance Statement
Tenement number
E74/594
EPM26376
EPM26377
EPM26379
EPM26380
ML 2054
ML 2773
ML 90098
EL 6118
EL 6119
EL 6120
EL 6121
EL 6122
EL 6183
EL 6675
EL 6324
Interest
owned %
100.00
100.00
100.00
100.00
100.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
-
The Company’s 2021 Corporate Governance Statement has been released to ASX on this day and is available on the
Company’s website at: https://www.cohibaminerals.com.au/our-company/corporate-governance/
50