CVD Equipment
Annual Report 2016

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! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! CARAVEL!MINERALS!LIMITED! ACN!120!069!089! ! ! ANNUAL!REPORT! ! 30!June!2016! ! ! Corporate!Directory! ! DIRECTORS! Mr!Marcel!Hilmer!–!Executive!Director!and!Chief!Executive!Officer!(“CEO”)! Mr!James!Harris!–!Non@Executive!Director! Mr!Peter!Alexander!–!Non@Executive!Director! ! COMPANY!SECRETARY! Mr!Simon!Robertson! ! REGISTERED!AND!PRINCIPAL!OFFICE! Level!3,!18!Richardson!Street! West!Perth!6005! Western!Australia! ! Telephone:! Facsimile:!! Internet:!www.caravelminerals.com.au! ! +61!8!9426!6400! +61!8!9426!6448! SHARE!REGISTER! Security!Transfer!Registrars!Pty!Ltd! 770!Canning!Highway! Applecross!6153! Western!Australia! ! Telephone:!!! Facsimile:!!! ! +61!8!9315!2333! +61!8!9315!2233! SECURITIES!EXCHANGE!LISTING! Australian!Securities!Exchange!Limited! Home!Branch!–!Perth! Level!40,!Central!Park! 152@158!St!George’s!Terrace! Perth!!!!6000! Western!Australia! ! ASX!CODE! CVV!!!@!Fully!paid!ordinary!shares! CVVOA!@!$0.77!Listed!Options! ! SOLICITORS! Johnson!Winter!&!Slattery! Lawyers! Level!4,!Westralia!Plaza! 167!St!Georges!Terrace! Perth!6000! Western!Australia! ! AUDITOR! BDO!Audit!(WA)!Pty!Ltd! 38!Station!Street!! Subiaco!6008! Western!Australia! ! ! ! ANNUAL!REPORT!2016! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Table!of!Contents! ! ! ! ! Chief!Executive!Officer’s!Report! Directors'!Report!..............................................................................................................................!1! Remuneration!Report!......................................................................................................................!6! Auditor’s!Independence!Declaration!.............................................................................................!11! Consolidated!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income!..............................!12! Consolidated!Statement!of!Financial!Position!...............................................................................!13! Consolidated!Statement!of!Changes!in!Equity!..............................................................................!14! Consolidated!Statement!of!Cash!Flows!........................................................................................!15! Notes!to!the!Consolidated!Financial!Statements!..........................................................................!16! Directors’!Declaration!....................................................................................................................!42! Independent!Auditor’s!Report!........................................................................................................!43! Corporate!Governance!Statement!................................................................................................!45! ASX!Additional!Information!...........................................................................................................!51! ! ANNUAL!REPORT!2016! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Chief!Executive!Officer’s!Report! ! DEAR!FELLOW!SHAREHOLDER,! ! The!past!year!has!seen!a!modest!recovery!in!the!mining!sector!as!investors!tentatively!renter!the!market!and!a!limited! number!of!exploration!and!development!projects!have!been!advanced.!There!remains!significant!economic!uncertainty,! international!political!concerns!and!consequently,!modest!price!increases!in!a!limited!group!of!commodities.!However,! confidence! and! funding! availability! has! reappeared! and! the! Company! projects! have! attracted! investors! at! both! the! corporate!and!project!level.!! ! The! Company! has,! for! a! fourth! consecutive! year,! incurred! zero! LTI’s! and! the! moving! average! Lost! Time! Injury! Frequency!Rate!(LTIFR)!was!also!zero.!The!Company’s!safety!record!remains!unblemished!and!can!be!attributed!to! the! diligence! and! training! of! all! staff! and! contractors! together! with! initiatives! and! continuous! improvements! that! have! been!undertaken.! ! A! number! of! significant! milestones! were! reported! for! our! 100%@owned! flagship! development,! the! Calingiri! Copper@ Molybdenum!Project!in!Western!Australia!(“Calingiri”).!!As!background,!Calingiri!is!located!120km!NE!of!Perth,!near!the! town! of! Calingiri! and! is! potentially! one! of! the! largest! bulk! tonnage! deposits! for! copper! and! molybdenum! in! Australia.! The! project! hosts! a! regional! trend! of! copper@molybdenum@silver@gold! mineralisation! which! extends! for! 30km.! Metallurgical!test!work!at!Calingiri!supports!our!strategy!to!develop!a!large!bulk@tonnage!copper!project.!! ! We! were! pleased! to! release! the! maiden! JORC! Resource! on! 4th! April,! 2016! and! subsequently! announced! the! JORC! Scoping!Study!on!28th!June!2016.!The!CSA!Global!study!findings!showed!Calingiri!to!be!a!technically!and!financially! robust! project! with! the! potential! to! be! a! future! low@cost,! mid@tier! copper! producer! with! a! Life! of! Mine! operating! cash! surplus!of!A$1.5B!(after!tax)!from!revenue!of!A$7.1B.!Further,!the!study!estimated!LOM!Operating!Cash!Cost!(C1)!of! A$1.50/lb2! including! for! the! first! five! years! of! A$1.40/lb2! and! a! low! pre@production! Capital! Cost! of! A$440M! (3! year! Payback).! ! These! significant! milestones! were! made! possible! as! a! result! of! the! successful! Farm@In! Agreement! (“FIA”)! with! First! Quantum! Minerals! (“FQM”)! that! commenced! in! September! 2015.! In! summary,! FQM! contributed! more! than! $1.2m! towards!the!cost!of!exploration!and!resource!definition.!Under!the!FIA,!FQM!may!eventually!contribute!a!total!of!A$3.6! million!before!September!2017!for!the!right!to!acquire!50.1%!of!Calingiri!Project!tenements.! ! Subsequent! to! the! fiscal! year@end,! we! announced! that! GEM! Geophysics! have! been! contracted! to! undertake! an! extensive! moving! loop! electromagnetic! (MLTEM)! survey! at! Caravel’s! Bryah! Project.! The! Bryah! Project! is! located! ~80km!north!of!Meekatharra!–!60km!south@west!of!the!Degrussa!Copper@Gold!Deposit.!It!will!take!less!than!4!weeks!to! complete!and!the!survey!is!expected!to!identify!priority!targets!for!follow!up!RC!drilling!in!late!Q4!2016.! ! The! Company! decided! to! dispose! of! the! Wynberg! Project! and! the! Board! announced! on! 2nd! March! 2016! that! it! had! executed! a! Binding! Heads! of! Agreement! with! CopperChem! Limited! to! sell! EPM12409,! which! contains! the! Wynberg! Gold!Resource,!for!A$400,000.!On!10th!May!2016!the!Company!announced!the!completion!of!the!sale!of!the!project!to! CopperChem!Limited.! ! We!continued!to!monitor!and!closely!control!our!corporate!overhead!costs!to!meet!the!significant!challenges!mentioned! above.!In!2015!we!achieved!a!12%!reduction!in!overheads!(Administration!Services!and!Employee!Expenses)!and!in! 2016,! a! further! reduction! of! 16%! has! been! achieved.! There! were! no! changes! to! the! Board! of! directors! or! senior! management.! As! the! sole! Executive! Director! and! CEO,! it! has! been! deeply! satisfying! to! work! with! the! board! and! our! team!to!achieve!the!excellent!progress!in!the!past!year.!! ! Noting! the! above! achievements! and! regardless! of! market! uncertainties,! it! is! somewhat! disappointing! to! see! the! lacklustre! performance! of! the! Company’s! share! price.! The! Board! is! keenly! aware! of! this! and! we! believe! that! by! continuing!to!deliver!real!progress!on!the!ground!our!shareholders!will!ultimately!be!rewarded.! ! Kind!regards,!good!luck!and!thank!you!for!taking!the!time!to!consider!this!message.! ! ! Yours!faithfully,! ! ! ! ! ! Marcel!Hilmer! Executive!Director!and!CEO! ! ! ! ! ! ANNUAL!REPORT!2016! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! DIRECTORS!REPORT! The!Directors!of!Caravel!Minerals!Limited!(the!“company”)!present!their!report!on!the!consolidated!entity!(the!“group”)! consisting!of!Caravel!Minerals!Limited!and!its!subsidiaries!for!the!year!ended!30!June!2016.! DIRECTORS! The!names!of!directors!in!office!at!any!time!during!or!since!the!end!of!the!financial!year!are:! Mr!Marcel!Hilmer! Mr!James!Harris! Mr!Peter!Alexander! Unless!otherwise!indicated,!all!Directors!held!their!positions!from!the!beginning!of!the!year!to!the!date!of!this!report.!! QUALIFICATIONS,!EXPERIENCE!AND!SPECIAL!RESPONSIBILITIES!OF!DIRECTORS! MARCEL!HILMER! Executive)Director)and)CEO) Mr!Hilmer!is!a!Fellow!and!long@standing!member!of!the!Institute!of!Chartered!Accountants!in!Australia!with!more!than! 25!years'!experience!in!executive!management!of!global!public!and!private!organizations.!He!has!significant!expertise! in!international!mergers!and!acquisitions!throughout!Africa,!Europe,!Asia!and!Australia.!Mr!Hilmer!is!the!CEO!of!Forsys! Metals!Corp.,!a!TSX!listed!uranium!developer.!Immediately!prior!to!this!he!was!a!business!development!executive!with! First! Quantum! Minerals! Limited! for! six! years! where! he! was! instrumental! in! effecting! a! number! of! First! Quantum's! significant! acquisitions.! In! addition! to! Mr! Hilmer's! extensive! mining! sector! experience,! from! 1995! to! 2004! he! was! the! Director!and!Head!of!European!Operations!for!Nifco!Inc.,!a!global!automotive!parts!supplier.!Other!than!Forsys!Metals! Corp.!Mr!Hilmer!does!not!currently!hold!any!directorships!of!other!listed!companies,!nor!has!he!done!in!the!past!three! years.! JAMES!HARRIS,!FAICD! Non3Executive)Director) Mr! Harris! has! had! extensive! experience! in! both! government! and! private! enterprise! in! Australia! and! overseas.! He! worked!for!ten!years!with!both!Alcoa!of!Australia!and!the!United!Group!Limited.!His!qualifications!are!in!Legal!Studies! and!Public!Administration!and!he!is!a!Fellow!of!the!Australian!Institute!of!Company!Directors.!He!is!currently!a!Director! of!Swanline!Developments!Pty!Ltd!and!its!associated!companies.!Mr!Harris!does!not!currently!hold!any!directorships!of! other!listed!companies,!nor!has!he!done!in!the!past!three!years.! PETER!ALEXANDER) Non3Executive)Director) Peter! Alexander! is! a! geologist! by! profession! and! has! over! 40! years! experience! in! mineral! exploration! and! mining! in! Australia! and! overseas.! Peter! was! Managing! Director! and! Chief! Executive! Officer! of! Dominion! Mining! Ltd! from! 1997! until! his! retirement! in! January! 2008,! at! which! time! he! continued! as! a! Non@Executive! Director! until! the! takeover! by! Kingsgate! Consolidated! in! 2010.! Peter! is! currently! a! Non@Executive! Director! of! Kingsgate! Consolidated! Limited,! Fortunis!Resources!Limited!and!Non@Executive!Chairman!of!Doray!Minerals!Limited.!Peter!managed!the!start@up!and! operation! of! Dominion's! Challenger! gold! mine! in! South! Australia! and,! under! Peter's! management,! Dominion! won! the! Gold!Mining!Journal's!"Gold!Miner!of!the!Year"!three!years!in!succession.!Other!than!stated!above,!Mr!Alexander!does! not!currently!hold!any!directorships!of!other!listed!companies,!nor!has!he!done!in!the!past!three!years.! DIRECTORS!INTERESTS!IN!THE!SHARES!AND!OPTIONS!OF!THE!COMPANY! ! ! Marcel!Hilmer! James!Harris! Peter!Alexander! Shares! 2,109,109! 505,312! 446,221! Interest!in!Securities! at!the!date!of!this!Report! Listed!Options(1)! Unlisted!Options! 217,284! 51,200! 51,200! @! @! @! Listed!options!expired!31!May!2016! (1)! ! SIMON!ROBERTSON!B.!BUS!MAPP!FIN.! Company)Secretary) Mr!Robertson!gained!a!Bachelor!of!Business!from!Curtin!University!in!Western!Australia!and!Master!of!Applied!Finance! from! Macquarie! University! in! New! South! Wales.! He! is! a! member! of! the! Institute! of! Chartered! Accountants! and! the! Chartered! Secretaries! of! Australia.! Mr! Robertson! currently! holds! the! position! of! Company! Secretary! for! a! number! of! public! listed! companies! and! has! experience! in! corporate! finance,! accounting! and! administration,! capital! raisings! and! ASX!compliance!and!regulatory!requirements.! ! ! ANNUAL!REPORT!2016! ! 1! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! PRINCIPAL!ACTIVITIES! The! principal! activities! of! the! group! during! the! financial! year! were! the! exploration! of! mineral! tenements! in! Western! Australia!(“WA”).! DIVIDENDS! No!dividends!have!been!declared,!provided!for!or!paid!in!respect!of!the!year!ended!30!June!2016.! REVIEW!OF!OPERATIONS!AND!ACTIVITIES! Summary'Review'of'Activities'' Caravel!is!a!junior!explorer!domiciled!in!Perth,!Australia!and!listed!on!the!Australian!Securities!Exchange!(ASX:!CVV).! The! Company! is! a! copper,! molybdenum,! gold! and! base! metals! exploration! and! resource! development! company! with! projects!located!in!WA.!Caravel!has!a!technically!strong!and!well@established!exploration!and!mine!development!team.! During! the! 2016! year! the! Company! focused! on! the! Calingiri! Copper! Molybdenum! Project! in! WA! whilst! continuing! to! rationalise!its!exploration!portfolio!from!sale!or!surrender!of!a!number!of!tenements!that!were!not!considered!central!to! the!long@term!strategy.!! As! noted,! the! Company’s! focus! is! on! its! 100%@owned! Calingiri! Project! located! 120km! NE! of! Perth,! near! the! town! of! Calingiri.!Calingiri!exploration!activities!progressed!the!potential!of!the!project.!!During!the!year!the!Company!released! a! number! of! additional! news! releases! on! the! progress! at! Calingiri! which! are! available! from! the! Company! website! or! from!the!ASX.!A!quarterly!summary!of!those!announcements!related!to!the!Calingiri!Project!are!as!follows:! Quarter' Announcement' Q1!2015:! A! placement! was! completed! raising! $1.42m! and! a! $600,000! loan! and! interest! with! First! Quantum! Minerals!(“FQM”)!converted!to!shares!at!28.6c!per!share.!! A! new! drilling! program! was! announced! that! was! funded! form! cash! reserves! and! FQM! farm@in! contribution.!! ! ! Q2!2015:! A! share! consolidation! was! announced! to! consolidate! the! Companys! shares! on! a! 22:1! basis! which! was!completed!in!November.! Assay! results! from! RC! drilling! at! Calingiri! were! announced! in! November! and! December.! The! program!was!designed!to!provide!infill!coverage!to!facilitate!the!estimation!of!JORC!Resources,!as! well!as!to!test!for!extensionsat!the!Bindi!and!Dasher!exploration!targets.! ! Q3!2016:! The! Company! reported! significantly! higher! grades! and! extended! mineralisation! at! the! Calingiri! Project.!Highlighted!intersections!included:! ! 232m!@!0.32%!Cu!from!36m,!15CARC067!including:! !!!!!!!!!!!!!!!!50m!@!0.58%!Cu!from!122m!and! !!!!!!!!!!!!!!!!12m!@!1.19%!Cu!from!136m! !!26m!@!0.47%!Cu!from!160m,!15CARC060! !!20m!@!0.40%!Cu!from!260m,!15CARC061! ! ! ! Q4!2016:! Calingiri!Maiden!JORC!Resource!was!announced:!251!Mt!@!0.34%!for!844,300!tonnes!copper! The!Mineral!Resource!was!reported!above!a!0.25%!copper!cut@off,!shown!in!Table!1!below:! Table 1: Consolidated Indicated and Inferred Resource Estimate (0.25% Cut-off) Classification Indicated Inferred Total ! Tonnes (MT) 187 64 251 Cu % 0.34 0.34 0.34 Cu Eq % * 0.38 0.38 0.38 Cu Metal (T) 626,300 218,000 844,300 ! !!!!!!!!!!!!!!!*!See!News!Release!dated!4!April!for!full!disclosure!details!! ! ANNUAL!REPORT!2016! ! 2! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! An! unmarketable! parcel! share! sale! facility! announced! on! 16! February! 2016! closed! in! April! with! a! total!of!671,181!shares!sold!for!444!shareholders!at!a!price!of!$0.07!per!share.! In! May! the! Company! announced! the! completion! of! the! sale! of! EPM! 12409! (Wynberg! Project)! to! CopperChem!Limited!for!A$400,000.! The! Company! announced! the! completion! of! a! Scoping! Study! undertaken! in! conjunction! with! CSA! Global!in!June.!The!findings!as!follows:! •!!!Life!of!Mine!operating!cash!surplus!of!A$1.5B!(after!tax)!from!revenue!of!A$7.1B1!! •!!!NPV7!pre!and!post@tax!ranges!of:! !!!!!!!!!!!!!Cu!Price!!!!!!!!!!!!!!!!!Pre@Tax!!!!!!!!!!!!!!!!Post@tax! !!!! !!! !!! !!! !!! !!! !!!US$1! !!$2.20! !!$2.48! ! ! ! !!$2.75*! ! !!$3.03! !!$3.30! ! ! NPV7!A$!!!!!!!!!!!!!!!!NPV7!A$! ! $!!!250M!!!!!!!!!!!!!!!!$!!130M! $!!!520M!!!!!!!!!!!!!!!!$!!330M!!! $!!!800M(cid:1)! $!!520M! $1,070M!!!!!!!!!!!!!!!!$!!720M! $1,350M!!!!!!!!!!!!!!!!$!!930M! •!!!Estimated!LOM!Operating!Cash!Cost!(C1)!of!A$1.50/lb2!:!first!five!years!A$1.40/lb2(cid:1)! •!!!Low!pre@production!Capital!Cost!of!A$440M!–!3!year!Payback!(cid:1)! •!!!Production!of!90M/lbs!in!first!full!year!@!LOM!average!of!80M/lbs!(cid:1)! •!!!710,000t!Cu!within!the!initial!mine!plan!(310Mt!@!0.3%!CuEq)3,!plus!by@product!(cid:1)! •!!!Significant!nearby!expansion!and!organic!growth!potential!! •!!!Three!open!cut!deposits!with!a!low!LoM!ore!to!waste!ratio!of!1!:!1!! •!!!A!conventional!SAG!milling!and!flotation!circuit!@!throughput!of!15Mtpa! •!!!Pre@Feasibility!Study!approved!with!completion!expected!H1!2017!(cid:1)! 1! Based! on! production! of! 1.56B/lbs! US$2.75! copper! price,! A$/US$! exchange! rate! of! 72c.! All! amounts! in! A$! unless! otherwise!stated 2! C1!operating!costs!include!all!mining!and!processing!costs,!site!administration,!refining!and!site!rehabilitation!costs(cid:1) See!ASX!announcement!of!4!April!2016!for!JORC!Table!1!and!herein!for!further!Resource!details!(cid:1) 3! ! ! The! company’s! future! activities! will! focus! on! further! developing! the! Calingiri! Project! with! a! Pre@Feasibility! Study! and! additional!drilling!to!expand!the!resources.!Early!stage!geochemical!and!drilling!activities!will!commence!at!the!Bryah! Project!in!WA.! During! the! year! the! Company! received! R&D! rebates! from! the! Australian! Government! for! eligible! exploration! expenditure! incurred! in! the! financial! year! ending! 30! June! 2015! at! the! Calingiri! Project! being! $172,031.! An! additional! claim!for!2016!eligible!expenditure!may!be!lodged!with!the!Company!tax!return!but!no!rebate!has!been!booked!in!the! accounts!at!30!June!2016!as!it!is!subject!to!approval!by!the!Australian!Taxation!Office.!During!the!year!the!company! also!received!$26,154!from!the!WA!Government!under!the!Exploration!Incentive!Scheme.! ' ! ANNUAL!REPORT!2016! ! 3! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! CORPORATE!AND!FINANCIAL!POSITION! The!group’s!net!loss!from!operations!for!the!year!was!$892,405!(2015:!$2,718,672).! At!30!June!2016!the!group!had!a!cash!balance!of!$594,075!(2015:!$146,414).! This! report! is! prepared! on! the! going! concern! basis! which! assumes! the! continuity! of! normal! business! activity! and! the! realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of!business.! The!Group!had!net!assets!of!$3,773,945!(2015:!$2,523,382).!The!Directors!believe!there!are!sufficient!funds!to!meet! the!Group’s!working!capital!requirements!and!as!at!the!date!of!this!report!the!Group!believes!it!can!meet!all!liabilities!as! and!when!they!fall!due.!! The!Directors!have!reviewed!the!business!outlook!and!the!assets!and!liabilities!of!the!Group!and!are!of!the!opinion!that! the! going! concern! basis! of! accounting! is! appropriate! as! they! believe! the! Group! will! continue! to! be! successful! in! securing!additional!funds!through!equity!issues!as!and!when!the!need!to!raise!funds!arises.! BUSINESS!STRATEGIES!AND!PROSPECTS! The!group!currently!has!the!following!business!strategies!and!prospects!over!the!medium!to!long!term:! (i)! Seek!to!maximise!the!value!of!the!group!through!successful!exploration!activitiest! (ii)! Selectively!expand!the!group’s!portfolio!of!exploration!assetst!and! (iii)! Examine!other!new!business!development!opportunities!in!the!mining!and!resources!sector.! ! SIGNIFICANT!CHANGES!IN!THE!STATE!OF!AFFAIRS! During!the!year!the!Company!raised!additional!capital!of!$1.42m!and!a!$600,000!loan!with!FQM!converted!to!shares!at! 28.6c! per! share.! In! addition! there! were! 12,214,354! shares! issued! as! share! based! payments! of! $172,412! issued! to! drilling!contractors!for!services!received.! The!$200,000!promissory!note!was!repaid!on!28!July!2015!including!interest!of!$2,582!and!the!security!was!released.! On!27th!August!2015!at!a!General!Meeting!of!shareholders!the!Farm@In!Agreement!with!FQM!was!approved!and!FQM! has!the!right!to!acquire!a!50.1%!interest!in!the!Calingiri!Project!after!contributing!A$3.6M.!! An! unmarketable! parcel! share! sale! facility! announced! on! 16! February! 2016! closed! in! April! with! a! total! of! 671,181! shares!sold!for!444!shareholders!at!a!price!of!$0.07!per!share.! On!10!May!2016!the!Company!completed!the!sale!of!the!Wynberg!project!to!CopperChem!Limited!for!$400,000.! MATTERS!SUBSEQUENT!TO!THE!END!OF!THE!FINANCIAL!YEAR! On!18!August!2016!the!Company!announced!that!it!had!received!commitments!from!investors!to!raise!$1.25M!through! the! issue! of! 17.6m! shares! at! an! issue! price! of! $0.071! (“Placement”).! Subject! to! shareholder! approval,! investors! participating! in! the! Placement! will! be! issued! 1! free! attaching! unlisted! option! exercisable! at! $0.12! for! each! 2! shares! issued,!expiring!in!December!2018.!The!Company!announced!on!24!August!2016!that!it!had!issued!9.6m!shares!under! Tranche!1!of!the!Placement!announced!for!gross!proceeds!of!$684,000.! Except!for!the!matters!detailed!above,!at!the!date!of!this!report!there!are!no!other!matters!or!circumstances,!which!have! arisen!since!30!June!2016!that!have!significantly!affected!or!may!significantly!affect:! the!operations!in!financial!years!subsequent!to!30!June!2016!of!the!groupt! the!results!of!those!operations!in!financial!years!subsequent!to!30!June!2016!of!the!groupt!or! the!state!of!affairs!in!financial!years!subsequent!to!30!June!2016!of!the!group.! (i)! (ii)! (iii)! ! ENVIRONMENTAL!REGULATION!AND!PERFORMANCE! The! group’s! operations! are! subject! to! various! environmental! laws! and! regulations! under! the! relevant! government’s! legislation.! Full! compliance! with! these! laws! and! regulations! is! regarded! as! a! minimum! standard! for! all! operations! to! achieve.! Instances! of! environmental! non@compliance! by! an! operation! are! identified! either! by! external! compliance! audits! or! inspections! by! relevant! government! authorities.! There! have! been! no! significant! known! breaches! by! the! group! during! the!financial!period.!! LIKELY!DEVELOPMENTS!AND!EXPECTED!RESULTS!! It!is!the!Board's!current!intention!that!the!group!will!seek!to!progress!exploration!on!current!projects.!The!group!will!also! continue!to!examine!new!opportunities!in!the!mining!and!resources!sector!where!appropriate.! These!activities!are!inherently!risky!and!there!can!be!no!certainty!that!the!group!will!be!able!to!successfully!achieve!the! objectives.!! ANNUAL!REPORT!2016! ! 4! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! GREENHOUSE!GAS!AND!ENERGY!DATA!REPORTING!REQUIREMENTS! The! Directors! have! considered! compliance! with! the! National! Greenhouse! and! Energy! Reporting! Act! 2007! which! requires!entities!to!report!annual!greenhouse!gas!emissions!and!energy!use.! The!directors!have!assessed!that!there! are!no!current!reporting!requirements,!but!may!be!required!to!do!so!in!the!future.! MEETINGS!OF!DIRECTORS! The! following! table! sets! out! the! number! of! meetings! of! the! Company's! directors! held! during! the!year! ended! 30! June! 2016,!and!the!number!of!meetings!attended!by!each!director.! ! Marcel!Hilmer! James!Harris) Peter!Alexander! INSURANCE!OF!OFFICERS!AND!AUDITORS! Board!Meetings' Number!Eligible!' to!attend' Board!Meetings' Number!' attended' 6! 6! 6! 6! 5! 6! During! or! since! the! end! of! the! financial! year! the! Company! has! given! an! indemnity! or! entered! into! an! agreement! to! indemnify,!or!paid!or!agreed!to!pay!insurance!premiums!as!follows:! The!Company!has!paid!premiums!to!insure!each!of!the!directors!against!liabilities!for!costs!and!expenses!incurred!by! them! in! defending! any! legal! proceedings! arising! out! of! their! conduct! while! acting! in! the! capacity! of! director! of! the! Company,!other!than!conduct!involving!a!wilful!breach!of!duty!in!relation!to!the!Company.!The!amount!of!the!premium! was!$7,647!(2015:!$!8,036)!exclusive!of!GST.! ! SHARE!OPTIONS!ON!ISSUE!AT!THE!DATE!OF!THIS!REPORT! UNISSUED!SHARES! At!the!date!of!this!report,!the!unissued!ordinary!shares!of!Caravel!Minerals!Limited!under!option!are!as!follows! ! Grant!Date! 17!October!2013! 20!March!2014! 17!October!2014! 20!November!2014! 28!August!2015! 7!September!2015! 7!September!2015! 24!September!2015! Expiry!Date! 16!October!2016! 31!December!2016! 16!October!2016! 16!October!2016! 31!January!2017! 31!January!2017! 31!January!2017! 31!January!2017! Total! ! Exercise!Price! $0.462! $0.77! $0.44! $0.44! $0.286! $0.286! $0.286! $0.165! ! Number!under!option! 34,091) 3,787,879) 2,272,741! 244,758) 3,184,875! 1,529,229) 545,456) 200,569) 11,799,598! ! Option!holders!do!not!have!any!right,!by!virtue!of!the!option,!to!participate!in!any!share!issue!of!the!Company!or!any! related!body!corporate.! SHARES!ISSUED!AS!A!RESULT!OF!THE!EXERCISE!OF!OPTIONS! During!the!financial!year,!employees!and!executives!did!not!exercise!any!options!to!acquire!ordinary!shares.! ! NON^AUDIT!SERVICES! The!Directors!are!satisfied!that!the!provision!of!non@audit!services!during!the!period!ended!30!June!2016!by!the!auditor! (BDO!Audit!(WA)!Pty!Ltd!(“BDO”))!is!compatible!with!the!general!standard!of!independence!for!auditors!imposed!by!the! Corporations!Act!2001,!as:! (i)! There!were!no!non@audit!service!provided!during!the!yeart!and! (ii)! Details!of!amounts!paid!or!payable!to!the!auditor!for!non@audit!services!provided!during!the!period!by!the!auditor! are!outlined!in!Note!23!to!the!Consolidated!Financial!Statements.! Based!on!the!above,!the!Board!is!satisfied!that!there!were!no!non@audit!services!provided!and!so!did!not!compromise! the!auditor’s!independence.! AUDITOR’S!INDEPENDENCE!DECLARATION! The!auditor’s!independence!declaration!is!on!page!11!of!the!Annual!Report.! ! ANNUAL!REPORT!2016! ! 5! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! REMUNERATION!REPORT! (AUDITED)! This! Remuneration! Report! outlines! the! director! and! executive! remuneration! arrangements! of! the! Company! in! accordance!with!the!requirements!of!the!Corporations'Act'2001!and!its!Regulations.!For!the!purposes!of!this!report!Key! Management! Personnel! (KMP)! of! the! Group! are! defined! as! those! persons! having! the! authority! and! responsibility! for! planning,!directing!and!controlling!the!major!activities!of!the!Group,!directly!or!indirectly,!including!any!director!(whether! executive!or!otherwise)!of!the!Group.!Based!on!this!definition!the!KMP!of!Caravel!Minerals!Limited!are!the!directors!of! the!Company.! DETAILS!OF!KEY!MANAGEMENT!PERSONNEL! Directors) Mr!Marcel!Hilmer! Mr!James!Harris! Mr!Peter!Alexander! ! ! ! ! ! ! Executive!Director!and!CEO! Non@Executive!Director! Non@Executive!Director! There!were!no!changes!in!KMP!after!the!reporting!date!and!before!the!date!the!annual!financial!report!was!authorised! for!issue.! ! REMUNERATION!PHILOSOPHY! The!performance!of!the!Company!depends!upon!the!quality!of!its!Directors!and!Executives.!To!prosper,!the!Company! must!attract,!motivate!and!retain!highly!skilled!Directors!and!Executives.! To!this!end,!the!Company!embodies!the!following!principles!in!its!remuneration!framework:! •! •! Provide!competitive!rewards!to!attract!high!calibre!executivest!and! Link!executive!rewards!to!shareholder!value.! Due!to!the!early!stage!of!development!which!the!Company!is!in,!shareholder!wealth!is!directly!affected!by!the!Company! share!price,!as!the!Company!is!not!in!a!position!to!pay!dividends.!By!remunerating!Directors!and!Executives!in!part!by! share!based!payments,!the!Company!aims!to!align!the!interests!of!Directors!and!Executives!with!Shareholder!wealth,! thus! providing! individual! incentive! to! perform! and! thereby! improving! overall! Company! performance! and! associated! value.! As!the!Company!has!only!been!incorporated!since!June!2006!and!is!in!the!development!stage!of!an!inherently!risky! industry,!the!remuneration!policy!does!not!currently!take!into!account!current!or!prior!year!earnings.!Other!than!share! based!payments!made!to!the!directors!from!time!to!time,!there!is!no!specific!link!to!the!Company’s!performance!and! directors’!remuneration.! REMUNERATION!STRUCTURE! In! accordance! with! best! practice! corporate! governance,! the! structure! of! non@executive! director! and! executive! remuneration!is!separate!and!distinct.! NON^EXECUTIVE!DIRECTOR!REMUNERATION! Objective) The!Board!seeks!to!set!aggregate!remuneration!at!a!level!which!provides!the!Company!with!the!ability!to!attract!and! retain!directors!to!the!highest!calibre,!whilst!incurring!a!cost!which!is!acceptable!to!shareholders.! Structure) The! Constitution! and! the! ASX! Listing! Rules! specify! that! the! aggregate! directors'! fees! payable! to! non@executive! directors!shall!be!determined!from!time!to!time!by!a!general!meeting.!An!amount!not!exceeding!the!amount!determined! is! then! divided! between! the! directors! as! agreed.! Shareholders’! have! approved! aggregate! directors'! fees! payable! of! $300,000!per!year.! The! Board! determines! payments! to! the! non@executive! directors! and! reviews! their! remuneration! annually,! based! on! market! practice,! duties! and! accountability.! Independent! external! advice! is! sought! when! required.! Fees! for! non@ executive! directors! are! not! linked! to! the! performance! of! the! Company! or! shareholder! wealth.! However,! to! align! directors’!interests!with!shareholder!interests,!the!directors!are!encouraged!to!hold!shares!in!the!Company!and!subject! to! shareholder! approval,! have! received! or! may! receive! options! or! shares! issued! under! the! Caravel! Employee! Share! Acquisition! Plan.! This! effectively! links! directors’! performance! to! the! share! price! performance! and! therefore! to! the! interests!of!shareholders.! For!this!reason!there!are!no!performance!conditions!prior!to!grant,!but!instead!an!incentive!to!increase!the!value!to!all! shareholders.! During!the!year!ended!30!June!2016!8,000,000!pre@consolidation!(363,636!post@consolidation)!shares!(!2015:!Nil)!were! issued!to!Non@Executive!Directors!under!the!Caravel!Employee!Share!Acquisition!Plan.! ANNUAL!REPORT!2016! ! 6! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! During!the!financial!years!ended!30!June!2016!and!2015!no!options!were!granted!to!Non@Executive!Directors.!! All!remuneration!paid!to!Non@Executive!Directors!is!valued!at!cost!to!the!Company!and!expensed.! The!remuneration!of!Non@Executive!Directors!for!the!years!ended!30!June!2016!and!30!June!2015!is!detailed!on!page! 8!of!this!report.! ! EXECUTIVE!REMUNERATION! Objective) The!Company!aims!to!reward!executives!(both!directors!and!company!executives)!with!a!level!and!mix!of!remuneration! commensurate!with!their!position!and!responsibilities!within!the!Company!and!so!as!to:! •! •! •! Reward!executives!for!Company!performancet! Align!the!interest!of!executives!with!those!of!shareholderst!and! Ensure!total!remuneration!is!competitive!by!market!standards.! Structure) The! remuneration! policy! for! executives! is! to! provide! a! fixed! remuneration! component! and! a! specific! equity! related! component.! The! board! believes! that! this! remuneration! policy! is! appropriate! given! the! stage! of! development! of! the! Company!and!the!activities!which!it!undertakes!and!is!appropriate!in!aligning!director!objectives!with!shareholder!and! business!objectives.! ! The!remuneration!policy!going!forward!in!regard!to!setting!the!terms!and!conditions!for!the!executive!directors!has!been! developed!by!the!board!taking!into!account!market!conditions!and!comparable!salary!levels!for!companies!of!a!similar! size!and!operating!in!similar!sectors.! Fixed'Remuneration'' Objective) The!level!of!fixed!remuneration!is!set!so!as!to!provide!a!base!level!of!remuneration.! Fixed! remuneration! is! to! be! reviewed! annually! and! the! process! consists! of! a! review! of! company! and! individual! performance,!relevant!comparative!remuneration!in!the!market!and!internal!policies!and!practices.! Structure) Executives!are!given!the!opportunity!to!receive!their!fixed!remuneration!in!a!variety!of!forms!including!cash!and!fringe! benefits.!It!is!intended!that!the!manner!of!payment!chosen!will!be!optimal!for!the!recipient!without!creating!undue!cost! for!the!Company.! The!remuneration!policy!going!forward!in!regard!to!setting!the!terms!and!conditions!for!the!executive!directors!has!been! developed!by!the!board!taking!into!account!market!conditions!and!comparable!salary!levels!for!companies!of!a!similar! size!and!operating!in!similar!sectors.! The! remuneration! of! executives! for! the! years! ended! 30! June! 2016! and! 30! June! 2015! are! detailed! on! page! 8! of! this! report.! Variable'Remuneration' Objective) The! objective! of! variable! remuneration! provided! is! to! reward! executives! in! a! manner! which! aligns! this! element! of! remuneration!with!the!creation!of!shareholder!wealth.! Structure) Variable!remuneration!may!be!delivered!in!the!form!of!options,!shares!or!cash!bonus.!No!options!or!cash!bonuses!were! granted!during!the!year!ended!30!June!2016!or!in!the!prior!year.! During! the! year! ended! 30! June! 2016,! 16! million! pre@consolidation! (727,273! post@consolidation)! shares! (2015:! Nil)!! issued!to!the!Executive!Director!under!the!Caravel!Employee!Share!Acquisition!Plan.!! Executives!receive!a!superannuation!guarantee!contribution!required!by!the!government,!which!is!currently!9.5%!(9.5%! for! the! year! ended! 30! June! 2015)! and! do! not! receive! any! other! retirement! benefit.! Some! individuals,! however,! may! choose!to!sacrifice!part!of!their!salary!to!increase!payments!towards!superannuation.! ! ! ANNUAL!REPORT!2016! ! 7! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! EMPLOYMENT!CONTRACTS! Executive)Director)and)CEO)(current)) The! employment! conditions! of! the! Executive! Director,! Mr! Marcel! Hilmer,! are! formalised! in! a! contract! of! employment! which! commenced! on! 20! November! 2012! with! an! initial! contract! for! a! two! year! fixed! term,! which! has! now! been! extended!with!no!fixed!end!date.!The!total!current!remuneration!package!as!at!30!June!2016!was!$176,295!per!annum! inclusive!of!a!9.5%!superannuation!contribution.! Notice!of!at!least!three!months!is!required!for!either!party!to!terminate!the!contract.!! ! KEY!MANAGEMENT!PERSONNEL!REMUNERATION! REMUNERATION!FOR!THE!YEAR!ENDED!30!JUNE!2016! ! ! ! Executive!Director) Marcel!Hilmer!! Non^Executive!Directors) James!Harris) Peter!Alexander!! Short!Term! Salary,!Fees! Long!Term! Benefits! Post^employment! &! Commissions! LSL! Superannuation! Share!Based! Payments! Shares! ! ! Options' Total' $' ! $! ! $' ! $! $' ! ! $' ! 143,000! 12,480! 32,478!! 35,989! ! 16,000! 16,000! ! @! @! ! 1,520) 1,520! ! 8,997! 8,997! 53,983! ! @! @) @! ^! (1)!223,947! ! 26,517) 26,517! 276,981! Total) 35,518! (1)! Total!remuneration!varies!to!the!contract!amount!due!to!movements!in!the!annual!leave!provision! ! 175,000! 12,480! REMUNERATION!FOR!THE!YEAR!ENDED!30!JUNE!2015! ! ! ! Executive!Director) Marcel!Hilmer!! Non^Executive!Directors! James!Harris) Peter!Alexander!! Brett!McKeon!(resigned!22!May!2015)! Short!Term! Salary,!Fees! Long!Term! Benefits! &! Commissions! Termination! Payments! Post^employment! Share!Based! Payments! Superannuation! Shares! Options' Total' $' ! 174,099! ! 32,089! 32,089! 28,639! $! ! @! ! @! @! @! $' ! 37,502!! ! 3,048) 3,048! 2,721! ! $! @! ! 1,032! 1,032! 1,032! 3,096! $' ! $' ! ! @! @) @! @! ^! (1)!211,601! ! 36,169) 36,169! 32,392! 316,331! Total) 46,319! (1)! Total!remuneration!varies!to!the!contract!amount!due!to!movements!in!the!annual!leave!provision! ! ! 266,916! ^! ! ANNUAL!REPORT!2016! ! 8! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! SHARE!BASED!COMPENSATION! SHARES'ISSUED' Shareholders!approved!the!establishment!of!the!Caravel!Employee!Share!Acquisition!Plan!at!a!general!meeting!on!13! March!2013.!The!Company!believes!that!the!share!acquisition!plan!provides!eligible!employees!and!Directors!effective! incentive! for! their! ongoing! commitment! and! contribution! to! the! Company.! Eligible! employees! and! Directors! offered! shares!under!the!scheme!are!provided!a!limited!recourse,!interest!free!loan!to!be!used!to!subscribe!for!the!shares!in! the! Company.! 24,000,000! pre@consolidation! (1,090,909! post@consolidation)! shares! were! issued! to! KMP! under! the! scheme!during!the!year!ended!30!June!2016.!The!following!shares!are!held!by!KMP!under!the!terms!of!the!plan.! ! Date!shares! granted! Number!of! Shares! Granted(1)! Issue! Price! Value!of! shares! granted! Shares!vested!at! 30!June!2016(2)! Vested! %! Value!of! shares!to! be!vested! Marcel!Hilmer! 12@Nov@2015! 16,000,000! $0.004875! $78,000! 2016:!727,273! 15@Mar@2013! 7,500,000! $0.02760! $72,000! 2014:!170,455! 2013:!170,455! James!Harris! 12@Nov@2015! 4,000,000! $0.004875! $19,500! 2016:!181,818! 6@Nov@2013! 3,000,000! $0.01335! $13,875! 2015:!68,182! 2014:!68,182! Peter! Alexander! 12@Nov@2015! 4,000,000! $0.004875! $19,500! 2016:!181,818! 6@Nov@2013! 3,000,000! $0.01335! $13,875! 2015:!68,182! 2014:!68,182! 100%! 100%! 100%! 100%! 100%! 100%! @! @! @! Vesting! date! unvested! shares! @! @! @! Shares!issued!pre@consolidation! Shares!post@consolidation! (1)! (2)! ! For! details! on! the! valuation! of! the! shares,! including! models! and! assumptions! used,! please! refer! to! Note! 19! in! the! Consolidated!Financial!Statements.! OPTIONS'ISSUED' No!options!were!granted!to!Directors!or!other!KMP!for!the!years!ending!30!June!2016.! No!compensation!options!were!exercised!during!the!year.! ! ADDITIONAL!DISCLOSURES!RELATING!TO!KEY!MANAGEMENT!PERSONNEL! SHAREHOLDING' The!number!of!shares!in!the!company!held!during!the!financial!year!by!KMP!of!the!consolidated!entity,!including!their! personally!related!parties,!is!set!out!below:! ! ! Marcel!Hilmer! James!Harris! Peter!Alexander! ! Balance!at! beginning!of!year! (1)Granted!as! remuneration! 22:1!Share! Consolidation! (2)!Net!change! other! 24,554,059! 16,000,000! 6,402,565! 5,102,564! 4,000,000! 4,000,000! (44,165,236)! (10,611,539)! (9,370,629)! 5,720,286! 714,286! 714,286! Balance' 30!June!16' 2,109,109! 505,312! 446,221! 36,059,188! 24,000,000! (64,147,404)! 7,148,858! 3,060,642! (1)! Shares!granted!pre@consolidation! (2)! Shares!purchased!by!KMP! ! ! ANNUAL!REPORT!2016! ! 9! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2016! ! Option'holding' The! number! options! over! ordinary! shares! in! the! company! held! during! the! financial! year! by!KMP! of! the! consolidated! entity,!including!their!personally!related!parties,!is!set!out!below:! ! ! Balance!at! beginning! of!year! (1)Net!change! other! 22:1!Share! Consolidation! (2)Options! expired! Balance!at! end!of!year! Vested!at!30!June!2016! Exercis^ able! Not!exerc^ isable! Total! Directors! ! ! ! ! ! ! ! ! Marcel!Hilmer! 15,256,410! 2,857,143! (17,290,207)! (606,062)! 217,284! 217,284! 217,284! James!Harris! 1,427,564! 357,143! (1,703,582)! (29,925)! Peter!Alexander! 2,102,564! 357,143! (2,347,900)! (60,607)! 51,200! 51,200! 51,200! 51,200! 51,200! 51,200! ! (21,341,689)! (1)! Options!attached!to!shares!purchased!by!KMP!pre@consolidation! (2)! Listed!options!expired!post@consolidation! 18,786,538! 3,571,429! (696,594)! 319,684! 319,684! 319,684! @! @! @! ^! Other'transactions'with'KMP' During! the! year! ending! 30! June! 2016! $52,000! was! received! from! a! public! company,! of! which! Mr! Marcel! Hilmer! is! a! director,!for!provision!of!serviced!offices!(2015:!$60,000)!and!was!credited!to!the!profit!or!loss.!! USE!OF!REMUNERATION!CONSULTANTS! The!company!did!not!use!the!services!of!any!remuneration!consultants!during!the!year.! VOTING!AND!COMMENTS!MADE!AT!THE!COMPANY’S!2015!ANNUAL!GENERAL!MEETING! At!the!2015!Annual!General!Meeting!held!on!11!November!2015!the!company’s!shareholders!did!not!record!a!vote!of! more! than! 25%! against! the! Remuneration! Report! and! no! questions! were! raised! at! the! meeting! in! relation! to! the! Remuneration!Report.! ! END!OF!AUDITED!REMUNERATION!REPORT! ! ! Signed!in!accordance!with!a!resolution!of!the!directors.! ! ! ! Marcel!Hilmer! Executive!Director!&!CEO! Perth!! 15!September!2016! ! ! ! ! ! ! ANNUAL!REPORT!2016! ! 10! ! ! CARAVEL!MINERALS!LIMITED! ! Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF CARAVEL MINERALS LIMITED As lead auditor of Caravel Minerals Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Caravel Minerals Limited and the entities it controlled during the period. Jarrad Prue Director BDO Audit (WA) Pty Ltd Perth, 15 September 2016 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. ! Consolidated!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income! For!the!Year!Ended!30!June!2016! CONSOLIDATED!STATEMENT!OF!PROFIT!OR!LOSS!AND!OTHER!COMPREHENSIVE!INCOME! ! ! Revenue!from!continuing!operations! Other!income! ! Administration!services) Depreciation!expense) Employee!expenses) Exploration!expenses) Reversal!of!impairment!(impairment)!of!exploration!expenditure! Finance!expenses! Loss!on!available@for@sale!investments) Loss!from!continuing!operations!before!income!tax!expense) Income!tax!expense!relating!to!continuing!operations) Loss!from!continuing!operations) ! Profit!(loss)!from!discontinued!operations) Loss!for!the!year) Other!comprehensive!income) Items!that!may!be!reclassified!to!profit!or!loss) Foreign!currency!translation!adjustment) Unrealised!gain!on!available@for@sale!investments) Reclassification!of!unrealised!loss!on!available!for!sale! investments! Other!comprehensive!(loss)!income!for!the!year!net!of!taxes) Comprehensive!loss!attributable!to!the!shareholders!of!the! Company) Comprehensive!(loss)!income!attributable!to!the!shareholders!of! the!Company!arises!from:) Continuing!activities) Discontinued!operations) ! ! Basic!and!diluted!loss!per!share!(cents!per!share)!for!continuing! operations!attributable!to!the!shareholders!of!the!Company! Basic!and!diluted!loss!per!share!(cents!per!share)!attributable!to! the!shareholders!of!the!Company! Note' 5(a)' 5(b)' 12) 5(c)) ' ' ) 8' 7) 6' 6' ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 2016' $! 2015' $! 237,477) 13,221' 343,253) 509,353' ! ! (464,767)) (506,764)' (24,620)) (30,246)' (828,063)) (992,456)' (249,028)) (1,546,285)' 100,000! (200,000)! (6,657)! ^) (40,115)! (8,545)' ) (892,405)) (2,801,837)' ^) @' (892,405)) (2,801,837)' ! ^) ! 83,165' (892,405)) (2,718,672)' ! ^) ^) ^! ^) ! (40,025)' 5,001' 8,545! (26,479)' (892,405)) (2,745,151)' ! ! (892,405)) (2,788,291)' ^) 43,140' (892,405)) (2,745,151)' ! ! (1.91)) (8.67)' (1.91)) (8.41)' ! The' above' Consolidated' Statement' of' Profit' or' Loss' and' Other' Comprehensive' Income' should' be' read' in' conjunction' with' the' accompanying'notes.' ! ANNUAL!REPORT!2016! ! 12! ! ! CARAVEL!MINERALS!LIMITED! ! ! Consolidated!Statement!of!Financial!Position! As!at!30!June!2016! CONSOLIDATED!STATEMENT!OF!FINANCIAL!POSITION! ! Current!Assets! Cash!and!cash!equivalents) Trade!and!other!receivables) Other!current!assets) Total!Current!Assets! Non^Current!Assets) Property,!plant!and!equipment) Exploration!and!evaluation!expenditure) Total!Non^Current!Assets! TOTAL!ASSETS! ! Current!Liabilities! Trade!and!other!payables) Provisions) Interest!bearing!liabilities! Total!Current!Liabilities! TOTAL!LIABILITIES! NET!ASSETS! ! EQUITY! Share!capital) Accumulated!loss) Reserves! TOTAL!EQUITY! ! Note' ' ! 9! 10! 11) ! ! 12) 13) ! ! ! ! 14) 15) 16! ! ! ! ! ! 2016! $! 2015! $! ! ! 594,075) 146,414' 59,496) 60,200) 3,893' 59,200' 713,771) 209,507' ! ! 131,844) 73,422' 3,207,811) 3,507,811' 3,339,655! 3,581,233' 4,053,426) 3,790,740' ! ! 197,297) 82,184) ^! ! ! 393,303' 74,055' 800,000! 279,481) 1,267,358' 279,481) 1,267,358' 3,773,945) 2,523,382' ! ! ! ! 17! 38,661,548) 36,672,676' ! ! ! (37,505,577)) (36,613,172)' 2,617,974! 2,463,878! 3,773,945) 2,523,382' ! ! The'above'Consolidated'Statement'of'Financial'Position'should'be'read'in'conjunction'with'the'accompanying'notes'! ! ! ! ANNUAL!REPORT!2016! ! 13! ! ! CARAVEL!MINERALS!LIMITED! ! ! Consolidated!Statement!of!Changes!in!Equity! For!the!Year!Ended!30!June!2016! CONSOLIDATED!STATEMENT!OF!CHANGES!IN!EQUITY! ! Share!capital) Common!shares) Balance!as!at!beginning!of!year) Share!issuance!net!of!costs) Balance!as!at!end!of!year) Total!share!capital) ! Accumulated!loss) Balance!as!at!beginning!of!year) Loss!for!the!year!attributable!to!shareholders!of!the!Company) Total!accumulated!loss) ! Reserves! Share!based!payments!reserve! Balance!as!at!beginning!of!year! Share!based!compensation! Balance!as!at!end!of!year! Converted!option!reserve! Balance!as!at!beginning!of!year! Options!converted! Balance!as!at!end!of!year! Foreign!currency!translation! Balance!as!at!beginning!of!year! Currency!translation!differences!on!foreign!operations! Balance!as!at!end!of!year! AFS!reserve! Balance!as!at!beginning!of!year! Available@for@sale!investment! Balance!as!at!end!of!year! Total!reserves! ! Note' 17! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! ! ! 36,672,676) 1,988,872) 38,661,548) 38,661,548) 2015! $! ! ! 35,691,743' 980,933' 36,672,676' 36,672,676' ! ! ! (36,613,172)) (892,405)) (37,505,577)) ! (33,894,500)' (2,718,672)' (36,613,172)' ! ! ! ! 2,453,639! 2,446,585! 154,096! 7,054! 2,607,735! 2,453,639! ! ! 10,239! 10,239! ^! @! 10,239! 10,239! ! ^! ^! ^! ! ^! ^! ^! ! 40,025! (40,025)! @! ! (13,546)! 13,546! @! 2,617,974! 2,463,878! ! ! Total!comprehensive!loss!for!the!year! ! ! The'above'Consolidated'Statement'of'Changes'in'Equity'should'be'read'in'conjunction'with'the'accompanying'notes' '' ! ' (892,405)! (2,745,151)! ANNUAL!REPORT!2016! ! 14! ! ! CARAVEL!MINERALS!LIMITED! ! ! Consolidated!Statement!of!Cash!Flows! For!the!Year!Ended!30!June!2016! CONSOLIDATED!STATEMENT!OF!CASH!FLOWS! ) ! Note' Cash!flows!from!operating!activities) Interest!received) Interest!paid! Government!grants) Receipt!of!farm@in!funds! Payments!to!suppliers!and!employees) Payments!for!exploration!and!evaluation!expenditure) Net!cash!used!in!operating!activities) 9(b)! ! Cash!flows!from!investing!activities) Proceeds!from!sale!of!tenements) Proceeds!from!sale!of!available@for@sale!investments) Proceeds!from!disposal!of!plant!and!equipment) Payments!for!property,!plant!and!equipment) Net!cash!provided!by!investing!activities) ! Cash!flows!from!financing!activities) Proceeds!from!issue!of!shares) Share!issue!costs) Proceeds!from!borrowings! Repayment!of!borrowings! Net!cash!inflow!from!financing!activities) Increase(decrease)!in!cash!and!cash!equivalents!held) Cash!and!cash!equivalents!at!the!beginning!of!the!financial!year) Cash!and!cash!equivalents!at!the!end!of!the!financial!year) 9(a)! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! ! 7,634) (2,582)! 2015' $! ! 12,861' (3,560)! 198,185) 509,353' 1,364,896! @! (1,187,573)) (1,350,274)' (1,403,155)) (1,215,582)' (1,022,595)) (2,047,202)' ! ! 400,000) ^) ^) (83,042)! 316,958) ! ! 1,451,940) (98,642)) ^! (200,000)! ! ! @' 41,471' 360' @' 41,831' ! ! 720,000' (43,968)' 800,000! @! 1,153,298! 1,476,032' 447,661) (529,339)! 146,414) 594,075) 675,753! 146,414! ! ! The'above'Consolidated'Statement'of'Cash'Flows'should'be'read'in'conjunction'with'the'accompanying'notes' ANNUAL!REPORT!2016! ! 15! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! NOTES!TO!THE!CONSOLIDATED!FINANCIAL!STATEMENTS 1.! CORPORATE!INFORMATION! The!annual!report!of!Caravel!Minerals!Limited!for!the!year!ended!30!June!2016!was!authorised!for!issue!in!accordance! with!a!resolution!of!the!directors!on!15!September!2016.! Caravel!Minerals!Limited!is!a!company!limited!by!shares!incorporated!in!Australia!whose!shares!are!publicly!traded!on! the!Australian!Securities!Exchange.!! The!nature!of!operations!and!principal!activities!of!the!Company!are!described!in!the!Directors’!Report.! 2.! SUMMARY!OF!SIGNIFICANT!ACCOUNTING!POLICIES! a)! Basis!of!preparation! These!financial!statements!are!general!purpose!financial!statements!which!have!been!prepared!in!accordance!with!the! requirements!of!the!Corporations'Act'2001,!Australian!Accounting!Standards!and!other!authoritative!pronouncements! of!the!Australian!Accounting!Standards!Board.! Caravel!Minerals!Limited!is!a!for@profit!entity!for!the!purpose!of!preparing!the!financial!statements.! The!financial!report!has!been!prepared!on!a!historical!cost!basis.! The!financial!report!is!presented!in!Australian!dollars.! Compliance)with)IFRS! These! financial! statements! comply! with! Australian! Accounting! Standards! as! issued! by! the! Australian! Accounting! Standards! Board! and! International! Financial! Reporting! Standards! (IFRS)! as! issued! by! the! International! Accounting! Standards!Board.! b)! New!and!revised!accounting!standards! In!the!year!ended!30!June!2016,!the!directors!have!reviewed!all!of!the!new!and!revised!Standards!and!Interpretations! issued!by!the!AASB!that!are!relevant!to!the!Company!and!effective!for!the!current!annual!reporting!period.!!As!a!result! of! this! review,! the! directors! have! determined! that! there! is! no! material! impact! of! the! new! and! revised! Standards! and! Interpretations!on!the!Company!and,!therefore,!no!material!change!is!necessary!to!Group!accounting!policies.! ! c)! Principles!of!consolidation! Subsidiaries' The! consolidated! financial! statements! incorporate! the! assets! and! liabilities! of! all! subsidiaries! of! Caravel! Minerals! Limited! (‘company’! or! ‘parent! entity’)! as! at! 30! June! 2016! and! the! results! of! all! subsidiaries! for! the! year! then! ended.! Caravel! Minerals! Limited! and! its! subsidiaries! together! are! referred! to! in! this! financial! report! as! the! group! or! the! consolidated!entity.! 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.! A!list!of!controlled!entities!is!contained!in!note!4!to!the!financial!statements.! Intercompany! transactions,! balances! and! unrealised! gains! on! transactions! between! group! companies! are! eliminated.! Unrealised! losses! are! also! eliminated! unless! the! transaction! provides! evidence! of! the! impairment! of! the! asset! transferred.! Accounting! policies! of! subsidiaries! have! been! changed! where! necessary! to! ensure! consistency! with! the! policies!adopted!by!the!group.! The! acquisition! of! subsidiaries! is! accounted! for! using! the! acquisition! method! of! accounting.! A! change! in! ownership! interest,! without! the! loss! of! control,! is! accounted! for! as! an! equity! transaction,! where! the! difference! between! the! consideration!transferred!and!the!book!value!of!the!share!of!the!non@controlling!interest!acquired!is!recognised!directly! in!equity!attributable!to!the!parent.! ! ! ANNUAL!REPORT!2016! ! 16! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! c)! Principles!of!consolidation! Non@controlling!interest!in!the!results!and!equity!of!subsidiaries!are!shown!separately!in!the!statement!of!profit!or!loss! and! other! comprehensive! income,! statement! of! financial! position! and! statement! of! changes! in! equity! of! the! consolidated!entity.!Losses!incurred!by!the!consolidated!entity!are!attributed!to!the!non@controlling!interest!in!full,!even!if! that!results!in!a!deficit!balance.! 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.! d)! Foreign!currency!transactions!and!balances! Functional'and'presentation'currency' Items! included! in! the! financial! statements! of! each! of! the! group’s! entities! are! measured! using! the! currency! of! the! primary! economic! environment! in! which! the! entity! operates! (‘the! functional! currency’).! The! consolidated! financial! statements! are! presented! in! Australian! dollars,! which! is! Caravel! Minerals! Limited’s! functional! and! presentation! currency.! Transaction'and'balances' Foreign!currency!transactions!are!translated!into!functional!currency!using!the!exchange!rates!prevailing!at!the!date!of! the! transaction.! Foreign! currency! monetary! items! are! translated! at! the! year@end! exchange! rate.! Non@monetary! items! measured! at! historical! cost! continue! to! be! carried! at! the! exchange! rate! at! the! date! of! the! transaction.! Non@monetary! items!measured!at!fair!value!are!reported!at!the!exchange!rate!at!the!date!when!fair!values!were!determined.! Exchange!differences!arising!on!the!translation!of!monetary!items!are!recognised!in!the!profit!or!loss.! Exchange! differences! arising! on! the! translation! of! non@monetary! items! are! recognised! directly! in! equity! to! the! extent! that! the! gain! or! loss! is! directly! recognised! in! equityt! otherwise! the! exchange! difference! is! recognised! in! the! profit! or! loss.! Group'companies' The! financial! results! and! position! of! foreign! operations! whose! functional! currency! is! different! from! the! Group’s! presentation!currency!are!translated!as!follows:! @! @! @! assets!and!liabilities!are!translated!at!year@end!exchange!rates!prevailing!at!that!reporting!datet! income!and!expenses!are!translated!at!average!exchange!rates!for!the!periodt!and! retained!earnings!are!translated!at!the!exchange!rates!prevailing!at!the!date!of!the!transaction.! Exchange!differences!arising!on!translation!of!foreign!operations!are!transferred!directly!to!the!Group’s!foreign!currency! translation! reserve! in! the! statement! of! financial! position.! These! differences! are! recognised! in! the! profit! or! loss! in! the! period!in!which!the!operation!is!disposed.! e)! Investments!and!other!financial!assets! Classification' The! group! classifies! its! financial! assets! in! the! following! categories:! loans! and! receivables! and! available@for@sale! financial! assets.! The! classification! depends! on! the! purpose! for! which! the! investments! were! acquired.! Management! determines!the!classification!of!its!investments!at!initial!recognition.! Loans'and'receivables' Loans!and!receivables!are!non@derivative!financial!assets!with!fixed!or!determinable!payments!that!are!not!quoted!in!an! active! market.! They! are! included! in! current! assets,! except! for! those! with! maturities! greater! than! 12! months! after! the! reporting!period!which!are!classified!as!non@current!assets.! AvailableXforXsale'financial'assets' Available@for@sale! financial! assets,! comprising! principally! marketable! equity! securities,! are! non@derivatives! that! are! either! designated! in! this! category! or! not! classified! in! any! of! the! other! categories.! They! are! included! in! non@current! assets!unless!the!investment!matures!or!management!intends!to!dispose!of!the!investment!within!12!months!of!the!end! of!the!reporting!period.!Investments!are!designated!as!available@for@sale!if!they!do!not!have!fixed!maturities!and!fixed!or! determinable!payments!and!management!intends!to!hold!them!for!the!medium!to!long!term.! ! ! ANNUAL!REPORT!2016! ! 17! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! e)! Investments!and!other!financial!assets! Measurement' At! initial! recognition,! the! group! measures! a! financial! asset! at! its! fair! value! plus! transaction! costs! that! are! directly! attributable!to!the!acquisition!of!the!financial!asset.! Loans!and!receivables!and!held@to@maturity!investments!are!subsequently!carried!at!amortised!cost!using!the!effective! interest!method.! Available@for@sale!financial!assets!are!subsequently!carried!at!fair!value.!Gains!or!losses!arising!from!changes!in!the!fair! value!are!recognised!in!other!comprehensive!income.! Fair'value' Fair! value! is! determined! based! on! current! bid! prices! for! all! quoted! investments.! Valuation! techniques! are! applied! to! determine! the! fair! value! for! all! unlisted! securities! held! at! cost! less! impairment,! including! recent! arm’s! length! transactions,!reference!to!similar!instruments!and!option!pricing!models.! Impairment'of'assets' The! consolidated! entity! assesses! at! each! reporting! date! whether! there! is! objective! evidence! that! a! financial! asset! or! group! of! financial! assets! is! impaired.! ! In! the! case! of! equity! securities! classified! as! available@for@sale,! a! significant! or! prolonged! decline! in! the! fair! value! of! a! security! below! its! cost! is! considered! as! an! indicator! that! the! securities! are! impaired.! If! any! such! evidence! exists! for! available@for@sale! financial! assets,! the! cumulative! loss! –! measured! as! the! difference! between! the! acquisition! cost! and! the! current! fair! value,! less! any! impairment! loss! on! that! financial! asset! previously! recognised! in! profit! or! loss! –! is! removed! from! equity! and! included! in! profit! or! loss.! Impairment! losses! recognised! in! the! statement! of! comprehensive! income! on! equity! instruments! classified! as! available@for@sale! are! not! reversed!through!profit!or!loss.! Recognition'and'derecognition' Regular! purchases! and! sales! of! financial! assets! are! recognised! on! trade@date! –! the! date! on! which! the! consolidated! entity! commits! to! purchase! or! sell! the! asset.! Investments! are! initially! recognised! at! fair! value! plus! transaction! costs.! Financial!assets!are!derecognised!when!the!rights!to!receive!cash!flows!from!the!financial!assets!have!expired!or!have! been!transferred!and!the!consolidated!entity!has!transferred!substantially!all!the!risks!and!reward!of!ownership.!When! the!securities!classified!as!available@for@sale!are!sold,!the!accumulated!fair!value!adjustments!recognised!in!equity!are! included!in!profit!or!loss!as!gains!and!losses!for!investment!securities.! f)! Exploration!and!evaluation!expenditure! Exploration! and! evaluation! costs! are! expensed! as! incurred! as! an! operating! cost! of! the! Group.! Costs! related! to! the! acquisition! of! properties! that! contain! mineral! resources! are! capitalised! and! allocated! separately! to! specific! areas! of! interest.!These!costs!are!capitalised!until!the!viability!of!the!area!of!interest!is!determined.! g)! Plant!and!equipment! Plant!and!equipment!is!stated!at!historical!cost!less!accumulated!depreciation!and!any!accumulated!impairment!losses.! Subsequent!costs!are!included!in!the!asset's!carrying!amount!or!recognised!as!a!separate!asset,!as!appropriate,!only! when!it!is!probable!that!future!economic!benefits!associated!with!the!item!will!flow!to!the!Group!and!the!cost!of!the!item! can! be! measured! reliably.! All! other! repairs! and! maintenance! are! charged! to! the! statement! of!profit! or! loss! and! other! comprehensive!income!during!the!financial!period!in!which!they!are!incurred.! Depreciation' Depreciation!is!calculated!on!either!the!straight@line!basis!or!diminishing!value!basis!over!their!useful!lives!to!the!Group! commencing!from!the!time!the!asset!is!held!ready!for!use.!The!depreciation!rates!used!are!as!follows:! ! Plant!and!equipment! ! Exploration!equipment! ! Vehicles!! Leasehold!improvements! ! Computer!equipment!and!software! ! ! ! Buildings! ! ! ! ! ! ! 30%! 25%! 30%! 25%! 40%! 2.5%! ! The!assets’!residual!values,!useful!lives!and!depreciation!methods!are!reviewed,!and!adjusted!if!appropriate,!at!each! reporting!date.! Derecognition' Gains! and! losses! on! disposals! are! determined! by! comparing! proceeds! with! the! carrying! amount.! These! gains! and! losses!are!included!in!the!Statement!of!profit!or!loss!and!other!comprehensive!income.! ! ANNUAL!REPORT!2016! ! 18! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! h)! Impairment!of!assets! Caravel!Minerals!Limited!conducts!an!annual!internal!review!of!asset!values,!which!is!used!as!a!source!of!information! to!assess!for!any!indicators!of!impairment.!External!factors,!such!as!changes!in!expected!future!processes,!technology! and! economic! conditions,! are! also! monitored! to! assess! for! indicators! of! impairment.! If! any! indication! of! impairment! exists,!an!estimate!of!the!asset’s!recoverable!amount!is!calculated.! An!impairment!loss!is!recognised!for!the!amount!by!which!the!asset’s!carrying!value!exceeds!its!recoverable!amount.! Recoverable! amount! is! the! higher! of! an! asset’s! fair! value! less! costs! to! sell! and! value! in! use.! For! the! purposes! of! assessing!impairment,!assets!are!grouped!at!the!lowest!levels!for!which!there!are!separately!identifiable!cash!inflows! that! are! largely! independent! of! the! cash! inflows! from! other! assets! or! groups! of! assets! (cash@generating! units).! Non@ financial! assets! other! than! goodwill! that! suffered! an! impairment! are! tested! for! possible! reversal! of! the! impairment! whenever!events!or!changes!in!circumstances!indicate!that!the!impairment!may!have!reversed.! i)! Revenue!recognition) Revenue!is!recognised!to!the!extent!that!it!is!probable!that!economic!benefits!will!flow!to!the!Group!and!the!revenue! can! be! reliably! measured.! Revenue! is! measured! at! the! fair! value! of! the! consideration! received! or! receivable.! The! following!specific!recognition!criteria!must!also!be!met!before!revenue!is!recognised:! Interest' Interest!revenue!is!recognised!as!the!interest!accrues!(using!the!effective!interest!method,!which!is!the!rate!that!exactly! discounts!estimated!future!cash!receipts!through!the!expected!life!of!the!financial!instrument)!to!the!net!carrying!value! amount!of!the!financial!asset.! Government'Grants' Government!grant!revenue!is!measured!at!the!fair!value!of!the!consideration!received!or!receivable.!!! j)! Income!tax! The!income!tax!expense!for!the!period!is!the!tax!payable!on!the!current!period’s!taxable!income!based!on!the!national! income!tax!rate!for!each!jurisdiction!adjusted!by!changes!in!deferred!tax!assets!and!liabilities!attributable!to!temporary! differences!between!the!tax!bases!of!assets!and!liabilities!and!their!carrying!amounts!in!the!financial!statements,!and!to! unused!tax!losses.! Deferred!tax!assets!and!liabilities!are!recognised!for!temporary!differences!at!the!tax!rates!expected!to!apply!when!the! assets!are!recovered!or!liabilities!are!settled,!based!on!those!tax!rates!which!are!enacted!or!substantively!enacted!for! each! jurisdiction.! The! relevant! tax! rates! are! applied! to! the! cumulative! amounts! of! deductible! and! taxable! temporary! differences!to!measure!the!deferred!tax!asset!or!liability.!!An!exception!is!made!for!certain!temporary!differences!arising! from!the!initial!recognition!of!an!asset!or!a!liability.!No!deferred!tax!asset!or!liability!is!recognised!in!relation!to!these! temporary!differences!if!they!arose!on!goodwill!or!in!a!transaction,!other!than!a!business!combination,!that!at!the!time! of!the!transaction!did!not!affect!either!accounting!profit!or!taxable!profit!or!loss.! Deferred!tax!assets!are!recognised!for!deductible!temporary!differences!and!unused!tax!losses!only!if!it!is!probable!that! future!taxable!amounts!will!be!available!to!utilise!those!temporary!differences!and!losses.! The!carrying!amount!of!deferred!income!tax!assets!is!reviewed!at!each!reporting!date!and!reduced!to!the!extent!that!it! is!no!longer!probable!that!sufficient!taxable!profit!will!be!available!to!allow!all!or!part!of!the!deferred!income!tax!asset!to! be!utilised.! Unrecognised!deferred!income!tax!assets!are!reassessed!at!each!reporting!date!and!are!recognised!to!the!extent!that!it! has!become!probable!that!future!taxable!profit!will!allow!the!deferred!tax!asset!to!be!recovered.! Current!and!deferred!tax!balances!attributable!to!amounts!recognised!directly!in!equity!are!also!recognised!directly!in! equity.! Deferred!tax!assets!and!deferred!tax!liabilities!are!offset!only!if!a!legally!enforceable!right!exists!to!set!off!current!tax! assets! against! tax! liabilities! and! the! deferred! tax! liabilities! relate! to! the! same! taxable! entity! and! the! same! taxation! authority.! Caravel! Minerals! Limited! and! its! wholly@owned! Australian! controlled! entities! have! implemented! the! tax! consolidation! legislation!as!of!1!July!2013.!As!a!consequence,!these!entities!are!taxed!as!a!single!entity!and!the!deferred!tax!assets! and!liabilities!of!these!entities!are!set!off!in!the!consolidated!financial!statements.! k)! Cash!and!cash!equivalents! “Cash!and!cash!equivalents”!includes!cash!on!hand,!deposits!held!at!call!with!financial!institutions!and!other!short@term! highly!liquid!investments!that!are!readily!convertible!to!known!amounts!of!cash!and!which!are!subject!to!an!insignificant! risk!of!changes!in!value.!For!the!purposes!of!the!statement!of!cash!flows,!cash!and!cash!equivalents!consist!of!cash! and!cash!equivalents!as!defined!above,!net!of!any!bank!overdrafts.!! ! ! ANNUAL!REPORT!2016! ! 19! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! l)! Trade!and!other!receivables! Trade! receivables! are! initially! recognised! and! carried! at! original! invoice! amount! less! provision! for! impairment.! Trade! receivables! are! due! for! settlement! no! more! than! 30! days! from! the! date! of! recognition.! A! provision! for! impairment! is! made! when! there! is! objective! evidence! that! the! Group! will! not! be! able! to! collect! the! debts.! Bad! debts! are! written! off! when!identified.! Financial'assets'carried'at'amortised'cost'' If! there! is! objective! evidence! that! an! impairment! loss! on! loans! and! receivables! carried! at! amortised! cost! has! been! incurred,! the! amount! of! the! loss! is! measured! as! the! difference! between! the! asset’s!carrying! amount! and! the! present! value! of! estimated! future! cash! flows! (excluding! future! credit! losses! that! have! not! been! incurred)! discounted! at! the! financial! asset’s! original! effective! interest! rate! (i.e.! the! effective! interest! rate! computed! at! initial! recognition).! The! carrying!amount!of!the!asset!is!reduced!either!directly!or!through!use!of!an!allowance!account.!The!amount!of!the!loss! is!recognised!in!profit!or!loss.! m)! Leases! The!determination!of!whether!an!arrangement!is!or!contains!a!lease!is!based!on!the!substance!of!the!arrangement!and! requires! an! assessment! of! whether! the! fulfilment! of! the! arrangement! is! dependent! on! the! use! of! a! specific! asset! or! assets!and!the!arrangement!conveys!a!right!to!use!the!asset.! Company'as'a'lessee' Operating! lease! payments,! where! substantially! all! the! risk! and! benefits! remain! with! the! lessor,! are! recognised! as! an! expense!in!the!statement!of!profit!or!loss!and!other!comprehensive!income!on!a!straight@line!basis!over!the!lease!term.! Operating! lease! incentives! are! recognised! as! a! liability! when! received! and! subsequently! reduced! by! allocating! lease! payments!between!rental!expense!and!reduction!of!the!liability.! n)! Trade!and!other!payables! Trade!and!other!payables!are!carried!at!amortised!cost!and!represent!liabilities!for!the!goods!and!services!provided!to! the!Group!prior!to!the!end!of!the!financial!period!that!are!unpaid!and!arise!when!the!Group!becomes!obliged!to!make! future!payments!in!respect!of!the!purchase!of!these!goods!and!services.!The!amounts!are!unsecured!and!are!usually! paid!within!30!days.! o)! Provisions!and!employee!benefits! Provisions!are!recognised!when!the!Group!has!a!present!obligation!(either!legal!or!constructive)!as!a!result!of!a!past! event,!it!is!probable!that!an!outflow!of!resources!embodying!economic!benefits!will!be!required!to!settle!the!obligation! and!a!reliable!estimate!can!be!made!of!the!amount!of!the!obligation.! Provisions!are!measured!at!the!present!value!of!management’s!best!estimate!of!the!expenditure!required!to!settle!the! present!obligation!at!the!reporting!date!using!a!discounted!cash!flow!methodology.!The!risks!specific!to!the!provision! are!factored!into!the!cash!flows!and!as!such!a!corporate!bond!rate!relative!to!the!expected!life!of!the!provision!is!used! as!a!discount!rate.!The!increase!in!the!provision!resulting!from!the!passage!of!time!is!recognised!in!finance!costs.! Employee'leave'benefits' Liabilities!for!wages!and!salaries,!including!non@monetary!benefits,!annual!leave!and!accumulating!sick!leave!expected! to!be!settled!within!12!months!of!the!reporting!date!are!recognised!in!respect!of!employees’!services!up!to!the!reporting! date.! They! are! measured! at! the! amounts! expected! to! be! paid! when! the! liabilities! are! settled.! Expenses! for! non@ accumulating!sick!leave!are!recognised!when!the!leave!is!taken!and!are!measured!at!the!rates!paid!or!payable.! p)! Share!based!payments! The!Group!provides!benefits!to!Directors,!employees,!consultants!and!other!advisors!of!the!Group!in!the!form!of!share@ based! payments,! whereby! the! Directors,! employees,! consultants! and! other! advisors! render! services! in! exchange! for! shares!or!rights!over!shares!(equity@settled!transactions).! The!cost!of!these!equity@settled!transactions!is!measured!by!reference!to!the!fair!value!of!the!equity!instruments!at!the! date!at!which!they!are!granted.!The!fair!value!is!determined!by!an!external!valuer!using!a!Black@Scholes!model.! In!valuing!equity@settled!transactions,!no!account!is!taken!of!any!performance!conditions,!other!than!conditions!linked!to! the!market!price!of!the!shares!of!the!Company!if!applicable.! The!cost!of!equity@settled!transactions!is!recognised,!together!with!a!corresponding!increase!in!equity,!over!the!period! in!which!the!performance!and/or!service!conditions!are!fulfilled,!ending!on!the!date!on!which!the!relevant!recipient! becomes!fully!entitled!to!the!award!(the!vesting!period).! ! ! ANNUAL!REPORT!2016! ! 20! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! p)! Share!based!payments) The!cumulative!expense!recognised!for!equity@settled!transactions!at!each!reporting!date!until!vesting!date!reflects!(i)! the! extent! to! which! the! vesting! period! has! expired! and! (ii)! the! Company’s! best! estimate! of! the! number! of! equity! instruments!that!will!ultimately!vest.!No!adjustment!is!made!for!the!likelihood!of!market!performance!conditions!being! met!as!the!effect!of!these!conditions!is!included!in!the!determination!of!fair!value!at!grant!date.!The!statement!of!profit! or!loss!and!other!comprehensive!income!charge!or!credit!for!a!period!represents!the!movement!in!cumulative!expense! recognised!as!at!the!beginning!and!end!of!that!period.! No! expense! is! recognised! for! awards! that! do! not! ultimately! vest,! except! for! awards! where! vesting! is! only! conditional! upon!a!market!condition.! If!the!terms!of!an!equity@settled!award!are!modified,!as!a!minimum!an!expense!is!recognised!as!if!the!terms!had!not! been!modified.!In!addition,!an!expense!is!recognised!for!any!modification!that!increases!the!total!fair!value!of!the!share@ based!payment!arrangement,!or!is!otherwise!beneficial!to!the!recipient,!as!measured!at!the!date!of!modification.! If!an!equity@settled!award!is!cancelled,!it!is!treated!as!if!it!had!vested!on!the!date!of!cancellation,!and!any!expense!not! yet!recognised!for!the!award!is!recognised!immediately.!However,!if!a!new!award!is!substituted!for!the!cancelled!award! and!designated!as!a!replacement!award!on!the!date!that!it!is!granted,!the!cancelled!and!new!award!are!treated!as!if! they!were!a!modification!of!the!original!award,!as!described!in!the!previous!paragraph.! The!dilutive!effect,!if!any,!of!outstanding!options!is!reflected!as!additional!share!dilution!in!the!computation!of!earnings! per!share!(see!Note!6).! Under!the!employee!share!scheme,!shares!are!issued!to!employees!by!providing!interest!free!loans!and!will!vest!over! the! restriction! period.! The! shares! are! held! by! the! Trust! until! the! loan! is! repaid.! Within! the! loan! period! the! employee! must! have! paid! off! the! loan! balance,! at! which! point! the! shares! are! delivered! to! the! employee,! or! surrendered! the! shares.!Surrender!of!the!shares!by!the!employee!after!the!restriction!period,!is!treated!as!discharging!any!outstanding! amount!on!the!loan,!irrespective!of!the!value!of!the!shares.! The!effect!of!such!an!arrangement!is!equivalent!to!an!option!with!a!strike!price!per!share!equal!to!the!share!price!on! grant!date.! q)! Contributed!equity! Ordinary!shares!are!classified!as!equity.!Issued!and!paid!up!capital!is!recognised!at!the!fair!value!of!the!consideration! received!by!the!Company.! 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.! r)! Earnings!per!share!(EPS)! Basic!earnings!per!share!is!calculated!by!dividing!the!profit/loss!attributable!to!equity!holders!of!the!Group,!excluding! any! costs! of! servicing! equity! other! than! ordinary! shares,! by! the! weighted! average! number! of! ordinary! shares! outstanding!during!the!period,!adjusted!for!bonus!elements!in!ordinary!shares!issued!during!the!period.! Diluted!earnings!per!share!adjusts!the!figures!used!in!the!determination!of!basic!earnings!per!share!to!take!into!account! the! after! tax! effect! of! interest! and! other! financing! costs! associated! with! 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.! s)! Goods!and!services!tax! Revenues,!expenses!and!assets!are!recognised!net!of!the!amount!of!GST!except:! •! when! the! GST! incurred! on! a! purchase! of! goods! and! services! is! not! recoverable! from! the! taxation! authority,! in! which!case!the!GST!is!recognised!as!part!of!the!cost!of!acquisition!of!the!asset!or!as!part!of!the!expense!item!as! applicablet!and! receivables!and!payables!are!stated!with!the!amount!of!GST!included.! •! The! net! amount! of! GST! recoverable! from,! or! payable! to,! the! taxation! authority! is! included! as! part! of! receivables! or! payables!in!the!statement!of!financial!position.! Cash!flows!are!included!in!the!statement!of!cash!flows!on!a!gross!basis!and!the!GST!components!of!cash!flows!arising! from!investing!and!financing!activities,!which!are!recoverable!from,!or!payable!to,!the!taxation!authority,!are!classified! as!operating!cash!flows.! Commitments!and!contingencies!are!disclosed!net!of!the!amount!of!GST!recoverable!from,!or!payable!to,!the!taxation! authority.! ! ANNUAL!REPORT!2016! ! 21! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! t)! Segment!reporting! AASB! 8! requires! a! management! approach! under! which! segment! information! is! presented! on! the! same! basis! as! that! used! for! internal! reporting! purposes.! Operating! segments! are! now! reported! in! a! manner! that! is! consistent! with! the! internal!reporting!to!the!Chief!Executive!Officer!(“CEO”).!! u)! Government!grants! Grants!from!the!government!are!recognised!at!their!fair!value!where!there!is!a!reasonable!assurance!that!the!grant!will! be!received!and!the!Company!will!comply!with!all!attached!conditions.! v)! Non^current!assets!(or!disposal!groups)!held!for!sale!and!discontinued!operations! Non@current! assets! (or! disposal! groups)! are! classified! as! held! for! sale! if! their! carrying! amount! will! be! recovered! principally!through!a!sale!transaction!rather!than!through!continuing!use!and!a!sale!is!considered!highly!probable.!They! are!measured!at!the!lower!of!their!carrying!amount!and!fair!value!less!costs!to!sell,!except!for!assets!such!as!deferred! tax!assets,!assets!arising!from!employee!benefits,!financial!assets!and!investment!property!that!are!carried!at!fair!value! and!contractual!rights!under!insurance!contracts,!which!are!specifically!exempt!from!this!requirement.! An!impairment!loss!is!recognised!for!any!initial!or!subsequent!write@down!of!the!asset!(or!disposal!group)!to!fair!value! less! costs! to! sell.! A! gain! is! recognised! for! any! subsequent! increases! in! fair! value! less! costs! to! sell! of! an! asset! (or! disposal!group),!but!not!in!excess!of!any!cumulative!impairment!loss!previously!recognised.!A!gain!or!loss!not!previously! recognised!by!the!date!of!the!sale!of!the!non@current!asset!(or!disposal!group)!is!recognised!at!the!date!of!derecognition.! Non@current! assets! (including! those! that! are! part! of! a! disposal! group)! are! not! depreciated! or! amortised! while! they! are! classified!as!held!for!sale.!Interest!and!other!expenses!attributable!to!the!liabilities!of!a!disposal!group!classified!as!held! for!sale!continue!to!be!recognised.!! Non@current!assets!classified!as!held!for!sale!and!the!assets!of!a!disposal!group!classified!as!held!for!sale!are!presented! separately!from!the!other!assets!in!the!statement!of!financial!position.!The!liabilities!of!a!disposal!group!classified!as!held! for!sale!are!presented!separately!from!other!liabilities!in!the!statement!of!financial!position.!! A!discontinued!operation!is!a!component!of!the!entity!that!has!been!disposed!of!or!is!classified!as!held!for!sale!and!that! represents!a!separate!major!line!of!business!or!geographical!area!of!operations,!is!part!of!a!single!co@ordinated!plan!to! dispose!of!such!a!line!of!business!or!area!of!operations,!or!is!a!subsidiary!acquired!exclusively!with!a!view!to!resale.!The! results!of!discontinued!operations!are!presented!separately!in!the! statement!of!profit!or!loss!and!other!comprehensive! income.! w)! Borrowings! Borrowings! are! initially! recognised! at! fair! value,! net! of! transaction! costs! incurred.! Borrowings! are! subsequently! measured! at! amortised! cost.! Any! difference! between! the! proceeds! (net! of! transaction! costs)! and! the! redemption! amount!is!recognised!in!profit!or!loss!over!the!period!of!the!borrowings!using!the!effective!interest!method.! Certain! convertible! notes! issued! by! the! Group! which! include! embedded! derivatives! (option! to! convert! to! variable! number! of! shares! in! the! Group)! are! recognised! as! financial! liabilities! at! fair! value! through! profit! or! loss.! On! initial! recognition,!the!fair!value!of!the!convertible!note!will!equate!to!the!proceeds!received!and!subsequently!the!liability!is! measured!at!fair!value!at!each!reporting!period!until!settlement.!!The!fair!value!movements!are!recognised!on!the!profit! or!loss!as!finance!costs.! x)! Going!Concern! This! report! is! prepared! on! the! going! concern! basis! which! assumes! the! continuity! of! normal! business! activity! and! the! realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of!business.! The!Group!incurred!a!net!loss!of!$892,405!during!the!year!ended!30!June!2016!and!as!of!that!date!the!Group!had!net! assets! of! $3,773,945! (2015:! $2,523,282)! including! cash! and! cash! equivalents! of! $594,075! (2015:! $146,414)! and! tenement!retention!miniumum!exploration!of!$801,640.!! Subsequent! to! reporting! date! the! company! has! completed! tranche! 1! of! a! private! placement! which! raised! gross! proceeds! of! $684,000.! Irrevocable! acceptances! to! participate! in! the! additional! $566,000! in! tranche! 2! have! been! received!with!application!monies!to!be!received!upon!shareholder!approval!of!the!private!placement!at!the!next!Annual! General!Meeting. ! The!Directors!believe!there!are!sufficient!funds!to!meet!the!Group’s!working!capital!requirements!and!as!at!the!date!of! this!report!the!Group!believes!it!can!meet!all!liabilities!as!and!when!they!fall!due.!! The!Directors!have!reviewed!the!business!outlook!and!the!assets!and!liabilities!of!the!Group!and!are!of!the!opinion!that! the! going! concern! basis! of! accounting! is! appropriate! as! they! believe! the! Group! will! continue! to! be! successful! in! securing!additional!funds!as!and!when!the!need!to!raise!funds!arises.! ! ! ANNUAL!REPORT!2016! ! 22! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES! y)! New!accounting!standards!and!interpretations!that!are!not!yet!mandatory! Certain! new! accounting! standards! and! interpretations! have! been! published! that! are! not! mandatory! for! 30! June! 2016! reporting!periods!and!have!not!been!early!adopted!by!the!group.!The!group’s!assessment!of!the!impact!of!these!new! standards!and!interpretations!is!set!out!below.! (i)' AASB'9'Financial'Instruments' This! standard! addresses! the! classification,! measurement! and! derecognition! of! financial! assets! and! financial! liabilities! and! introduces! new! rules! for! hedge! accounting.! In! December! 2014,! the! AASB! made! further! changes! to! the! classification! and! measurement! rules! and! also! introduced! a! new! impairment! model.! These! latest! amendments! now! complete!the!financial!instruments!standard.!The!consolidated!entity!will!adopt!this!standard!from!1!July!2018!and!there! will!be!no!significant!impact!on!the!group.! (ii)! AASB'15'Revenue'from'Contracts'with'Customers'' This!new!standard!addresses!the!recognition!of!revenue!and!will!replace!AASB!118!which!covers!contracts!for!goods! and! services! and! AASB! 111! which! covers! construction! contracts.! The! new! standard! is! based! on! the! principle! that! revenue!is!recognised!when!control!of!a!good!or!service!transfers!to!a!customer,!so!the!notion!of!control!replaces!the! existing!notion!of!risks!and!rewards.!The!standard!permits!a!modified!retrospective!approach!for!the!adoption.!Under! this!approach!entities!will!recognise!any!applicable!transitional!adjustments!in!retained!earnings!on!the!date!of!the!initial! application!(i.e.!1!July!2018)!without!restating!the!comparative!period.!Entities!will!only!need!to!apply!the!new!rules!to! contracts!that!are!not!completed!as!of!the!date!of!initial!application.!The!group!will!adopt!the!standard!from!1!July!2018! and!the!impact!of!its!adoption!is!yet!to!be!assessed!by!the!consolidated!entity.! (iii)' AASB'2015X2'Amendments'to'AASB'101'–'Presentation'of'Financial'Statements' These!amendments!are!designed!to!further!encourage!companies!to!apply!professional!judgment!in!determining!what! information! to! disclose! in! the! financial! statements.! The! amendments! also! clarify! that! companies! should! use! professional! judgment! in! determining! where! and! in! what! order! in! formation! is! to! be! presented! in! the! financial! disclosures.!The!adoption!of!these!amendments!from!1!July!2016!will!not!have!a!significant!impact!on!the!group.! (iv)' AASB'16'Leases' This! standard! substantially! carries! forward! the! lessor! accounting! requirements! in! AASB! 117.! Accordingly,! a! lessor! continues! to! classify! its! leases! as! operating! leases! or! finance! leases,! and! to! account! for! those! two! types! of! leases! differently.! AASB! 16! also! requires! enhanced! disclosures! to! be! provided! by! lessors! that! will! improve! information! disclosed!about!a!lessor’s!risk!exposure,!particularly!to!residual!value!risk.!The!adoption!of!these!amendments!from!1! July!2019!will!not!have!a!significant!impact!on!the!group.! (v)' AASB'2016X1'Amendments'to'AASB'112'–'Income'Taxes' This! standard! amends! AASB! 112! Income! Taxes! to! clarify! the! requirements! on! recognition! of! deferred! tax! assets! for! unrealised!losses!on!debt!instruments!measured!at!fair!value.!The!adoption!of!these!amendments!from!1!July!2017!will! not!have!a!significant!impact!on!the!group.! (v)' AASB'2016X2'Amendments'to'AASB'107'–'Statement'of'Cash'Flows' This! standard! amends! AASB! 107! Statement! of! Cash! Flows! to! require! entities! preparing! financial! statements! in! accordance! with! Tier! 1! reporting! requirements! to! provide! disclosures! that! enable! users! of! financial! statements! to! evaluate!changes!in!liabilities!arising!from!financing!activities,!including!both!changes!arising!from!cash!flows!and!non@ cash!changes.!The!adoption!of!these!amendments!from!1!July!2017!will!not!have!a!significant!impact!on!the!group.! ! ! ANNUAL!REPORT!2016! ! 23! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 3.! !SIGNIFICANT!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!and!estimates!on!historical!experience!and!on!other!various!factors!it!believes!to!be!reasonable!under!the! circumstances,! the! results! of! which! form! the! basis! of! the! carrying! values! of! assets! and! liabilities! that! are! not! readily! apparent! from! other! sources.! Actual! results! may! differ! from! these! estimates! under! different! assumptions! and! conditions.!! Management! has! identified! the! following! critical! accounting! policies! for! which! significant! judgements,! estimates! and! assumptions!are!made.!Actual!results!may!differ!from!these!estimates!under!different!assumptions!and!conditions!and! may!materially!affect!financial!results!or!the!financial!position!reported!in!future!periods.! Further! details! of! the! nature! of! these! assumptions! and! conditions! may! be! found! in! the! relevant! notes! to! the! financial! statements.! Significant)accounting)judgements) Determination'of'mineral'resources' The! determination! of! mineral! resources! impacts! the! accounting! for! asset! carrying! values.! Caravel! Minerals! Limited! estimates!its!mineral!resources!in!accordance!with!the!Australasian'Code'for'Reporting'of'Exploration'Results,'Mineral' Resources'and'Ore'Reserves'2012!(the!‘JORC’!Code).!The!information!on!mineral!resources!was!prepared!by!or!under! the!supervision!of!Competent!Persons!as!defined!in!the!JORC!Code.!The!amounts!presented!are!based!on!the!mineral! resources!determined!under!the!JORC!Code.! There!are!numerous!uncertainties!inherent!in!estimating!mineral!resources,!and!assumptions!that!are!valid!at!the!time! of!estimation!may!change!significantly!when!new!information!becomes!available.! Significant)accounting)estimates)and)assumptions) Impairment'of'capitalised'exploration'and'evaluation'expenditure' It! is! the! Group’s! policy! to! capitalise! costs! related! to! the! acquisition! of! properties! that! contain! mineral! resources.! The! future! recoverability! of! capitalised! exploration! and! evaluation! expenditure! is! dependent! upon! a! number! of! factors,! including! whether! the! Group! decides! to! exploit! the! related! lease! itself! or,! if! not,! whether! it! successfully! recovers! the! related!exploration!and!evaluation!asset!through!sale.! Factors!that!could!impact!future!recoverability!include!the!level!of!reserves!and!resources,!future!technological!changes! which!could!impact!the!cost!of!mining,!future!legal!changes!(including!changes!to!environmental!restoration!obligations)! and!changes!to!commodity!prices.! To!the!extent!that!capitalised!exploration!and!evaluation!expenditure!is!determined!not!to!be!recoverable!in!the!future,! profits!and!net!assets!will!be!reduced!in!the!period!in!which!the!determination!is!made.! ShareXbased'payment'transactions' The!Group!measures!the!cost!of!equity@settled!share@based!payment!transactions!with!employees!by!reference!to!the! fair!value!of!the!equity!instruments!at!the!grant!date.!The!fair!value!is!determined!by!the!Company!Secretary!using!a! Black@Scholes!model,!with!the!assumptions!detailed!in!Note!20.!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!expenses!and!equity.! 4.! 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!of!entity! Country!of! incorporation! Class!of! shares! Date!of! incorporation! Equity! holding!30! June!2015! &!2016! Caravel!Resources!Netherlands!Cooperatief!U.A.! Netherlands! Ordinary! 99.999%! 16!July!2012! Quadrio!Resources!Pty!Ltd! Caravel!Employee!Share!Plan!Pty!Ltd! Australia! Australia! Ordinary! 100%! 11!June!1985! Ordinary! 100%! 13!March!2013! ! ANNUAL!REPORT!2016! ! 24! ! ! CARAVEL!MINERALS!LIMITED! ! ! ' ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! 5.! REVENUE!AND!EXPENSES! (a)'Revenue'from'continuing'operations' Interest!revenue! Management!fees! Profit!on!disposal!of!plant!and!equipment! ! (b)'Other'income' Government!EIS!Grant! Government!R&D!rebate! Gain!on!settlement!of!financial!liability! ! (c)'Employee'expenses) Directors!Fees) Salaries!and!wages) Termination!payments) Superannuation) Leave!provisions) Share!based!payments!expense) ! (d)'Other'share'based'payments' SBP!consultants!–!included!in!Administration!expenses! ! SBP!finance!costs!–!included!in!Finance!expenses!! ! SBP!drilling!contractors!–!included!in!Exploration!expenses!! 6.! LOSS!PER!SHARE! ! 2016! $! 2015! $! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 7,634! 229,843! ^! 237,477! ! 26,154! 172,031! 145,068! 343,253! 32,000! 589,719) 17,397) 57,270! 8,129! 123,548) 828,063) ! 10,148! ! ^! ! 172,412! ! 12,861' @' 360' 13,221' ! 196,884! 312,469! @! 509,353! 92,817' 817,377' @' 86,468' (11,260)' 7,054' 992,456' ! @! ! 12,000! ! 292,901! The!following!reflects!the!income!and!share!data!used!in!the!calculations!of!basic!and!diluted!loss!per!share:! Net!loss!used!in!calculating!basic!and!diluted!loss!per!share:! From!continuing!operations! From!discontinued!operations! ! ! ! ! ! ! ! Weighted!average!number!of!ordinary!shares!and!potential!ordinary!shares! used!in!calculating!basic!earnings!per!share' Effect!of!dilutive!securities!(see!below)' ! ! (892,405)! (2,801,837)! ^! 83,165! ! 2016! No.!of!Shares' (1)2015! No.!of!Shares! 46,798,821! 32,327,384' ^) @' ! ! Adjusted!weighted!average!number!of!ordinary!shares!and!potential!ordinary! shares!used!in!calculating!basic!and!diluted!earnings!per!share' 46,798,821! 32,327,384' (1)!The!Company!completed!a!22:1!equity!consolidation!effective!13!November!2015.!EPS!for!the!year!ended!30!June! 2016!and!2015!has!been!calculated!as!if!the!equity!consolidation!occurred!1!July!2014.! NonXdilutive'securities' ! As!at!reporting!date,!11,799,598!(2015:!159,467,949)!unlisted!options!and!Nil!(2015:!166,595,588)!listed!options!(which! represent!potential!ordinary!shares)!were!not!dilutive!as!they!would!decrease!the!loss!per!share.!! ! Conversions,'calls,'subscriptions'or'issues'after'30'June'2016' There!have!been!no!conversions!to,!calls!of,!or!subscriptions!for!ordinary!shares!or!issues!of!potential!ordinary!shares! since!the!reporting!date!and!before!the!completion!of!this!financial!report.! ! ! ANNUAL!REPORT!2016! ! 25! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 7.! SEGMENT!INFORMATION!! Management!has!determined!the!operating!segments!based!on!the!reports!reviewed!by!the!board!of!directors!that!are! used! to! make! strategic! decisions.! The! Group! does! not! have! any! material! operating! segments! with! discrete! financial! information.!The!Group!does!not!have!any!customers!and!all!its’!assets!and!liabilities!are!primarily!related!to!the!mining! industry!and!are!located!within!Australia.!The!Board!of!Directors!review!internal!management!reports!on!a!regular!basis! that! is! consistent! with! the! information! provided! in! the! statement! of! profit! or! loss! and! other! comprehensive! income,! statement! of! financial! position! and! statement! of! cash! flows.! As! a! result! no! reconciliation! is! required! because! the! information!as!presented!is!what!is!used!by!the!Board!to!make!strategic!decisions.! DISCONTINUED!OPERATIONS! a)! Description! On! 26! March! 2012! the! Company! entered! into! a! Farm@in! and! Joint! Venture! Heads! of! Agreement! with! Astur! Gold! Corporation!and!Exploraciones!Mineras!Del!Cantabrico!SL!in!respect!of!the!La!Codosera!Gold!Project!in!Spain.!On!1! August! 2012! the! Company! established! a! wholly! owned! Spanish! subsidiary! Recuros! Minerales! Caravel! Espana! S.L.! (“RMCE”)! to! complete! the! exploration! on! the! project.! As! a! result! of! unsatisfactory! drilling! results! from! an! extensive! exploration!program!conducted!from!August!to!December!2012,!the!Company!decided!to!cease!further!exploration!in! Spain.!The!liquidation!of!RMCE!was!completed!during!the!year!ended!30!June!2015.! Financial!information!relating!to!discontinued!operations!for!the!year!is!set!out!below.! b)! Financial!performance!and!cash!flow!information! ! Revenue! Expenses!–!reversal!of!accrued!administration!costs' Loss!before!income!tax) Income!tax!expense) Loss!from!discontinued!operations) ! Net!cash!outflow!from!ordinary!activities' Net!cash!outflow!from!investing!activities' Net!cash!outflow!from!financing!activities' Net!increase!in!cash!consumed!by!the!division! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016) $) ^) ^) ^) ^) ^) ! ^) ^) ^) ^) 2015' $) @' 83,165' 83,165' @' 83,165' ! 8,820' @' @' 8,820' ANNUAL!REPORT!2016! ! 26! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! ! 8.! INCOME!TAX! (a)'The'major'components'of'income'tax'are:! Current!income!tax) Current!income!tax!benefit! Current!income!tax!benefit!not!recognised) ! Deferred!income!tax) Relating!to!the!origination!and!reversal!of!temporary!differences' Deferred!tax!assets!not!brought!to!account!as!their!realisation!is! not!regarded!as!probable) Income!tax!(benefit)/expense!recorded!in!the!statement!of!profit! or!loss!and!other!comprehensive!income) ! (b)'A'reconciliation'between'tax'expense'and'the'product'of' accounting'loss'before'tax'multiplied'by'the'Company’s' applicable'income'tax'rate'is'as'follows:! Accounting!loss!before!tax!from!continuing!operations' Loss!before!income!tax!from!discontinued!operations) Accounting!loss!before!income!tax' At!the!Company’s!statutory!income!tax!rate!of!30%!(2015:!30%)) Non@deductible!expenses' Share!based!payments' Research!&!development!tax!offset!prior!year!adjustment' Deferred!tax!assets!not!brought!to!account!as!their! realisation!is!not!regarded!as!probable) ! Income!tax!expense!reported!in!the!consolidated!statement!of! profit!or!loss!and!other!comprehensive!income) Income!tax!attributable!to!discontinued!operations) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! ! (272,287)) 272,287! ! ! (9,629)! 2015! $! ! ! (942,738)' 942,738' ' ! (36,010)' 9,629) 36,010' ^! ! ! (892,405)) ^) (892,405)) (267,722)) 351! 37,064! (51,609)) 281,916! ^! ^! ^! ^! @' ! ! (2,801,837)' 83,165' (2,718,672)' (815,602)' 549! 2,116' (93,741)' 906,678' @) @) @) @) R&D!tax!rebate!of!$172,031!(2015:!$312,469)!has!been!recognised!in!other!income.! ! ! (c)'Deferred'income'tax! Deferred!income!tax!at!30!June!relates!to!the!following:' Deferred!Tax!Liabilities) Exploration!and!evaluation!assets' Recognition!of!losses!to!offset!future!taxable!income' ! Deferred!Tax!Assets) Accruals' Provisions' Section!40@880!deductions' Australian!losses!available!to!offset!against!future! taxable!income' Australian!capital!losses!available!to!offset!against!future! taxable!income! Foreign!losses!available!to!offset!against!future!taxable! income' Recognition!of!losses!to!offset!future!taxable!income' Deferred!tax!assets!not!brought!to!account!as!their! realisation!is!not!regarded!as!probable' ! ! ! Statement!of!Financial! Position! Statement!of!Profit!&!Loss! and!Other!Comprehensive! Income' 2016!$! ! ! (962,343)) 962,343! ^! ! 8,340! 24,655! 66,960! 2015!$! ! ! (1,052,343)' 1,052,343! @! ! 35,136! 22,217! 87,262! 2016!$! ! ! ^! ^! ^! ! 26,796) (2,438)! 20,302! 2015!$! ! ! @! @! @! ! 41,333' 3,378! 38,942! 12,266,343! 12,418,674! 152,331! (748,199)! 286,109! @! (286,109)! @! 2,480! (962,343)) 2,480! (1,052,343)' ^! (90,000)! 14,273! (83,822)! (11,692,544)) ^! (11,513,426)! @! 179,118! ^! 734,095! @! ANNUAL!REPORT!2016! ! 27! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 9.! CASH!AND!CASH!EQUIVALENTS! (a)'Reconciliation'to'the'Statement'of'Financial'Position'and' Statement'of'Cash'Flows! Cash!at!bank!and!on!hand' ! (b)'Reconciliation'of'net'loss'after'income'tax'expense'to'net' cash'outflow'from'operating'activities! Net!loss!after!income!tax!expense' Adjustment'for'nonXcash'income'and'expense'items! Share!based!payments' Depreciation!expense' Profit!on!disposal!of!plant!and!equipment' Loss!on!disposal!of!available!for!sale!assets' Impairment!of!tenements! Changes'in'assets'and'liabilities! (Increase)/decrease!in!receivables' Increase!in!other!current!assets' Decrease!in!payables' Decrease!in!advance!payments! Decrease!in!provisions' Net!cash!outflow!from!operating!activities' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! 2015! $! ! 594,075) ! ! ! 146,414' ! ! (892,405)) (2,718,672)' ! 306,108) 24,620) ^) ^) (100,000)! ! (8,707)) (1,000)) (322,195)) (37,145)! 8,129) (1,022,595)) ! 311,955' 30,246' (360)' 8,545' 200,000! ! 145,834' @' (13,490)' @! (11,260)' (2,047,202)' ! ! ! (c)'Significant'NonXCash'Financing'and'Investing'Activities! During! the! year! ended! 30! June! 2016! the! Company! issued! 12! million! pre@consolidation! (545,455! post@consolidation)! unlisted! options! to! an! advisor! for! capital! raising! services! valued! at! $20,400! using! a! black@scholes! calculation! (2015:! $Nil)!(refer!note!19(b)).! ! ! ! On!28!August!2015!the!Company!issued!48,356,154!pre@consolidation!(2,198,007!post@consolidation)!shares!to!repay! the!convertible!loan!and!interest!of!$628,630!(refer!note!16(i)).! ) (d)'Credit'Standby'Arrangements'with'Banks! At!reporting!date,!the!Group!had!no!used!or!unused!financing!facilities!(2015:!nil).! ! ! ! ! 10.! TRADE!AND!OTHER!RECEIVABLES! Trade!debtors! GST!receivable' ! 11.! OTHER!CURRENT!ASSETS! Bank!term!deposits!–!securing!guarantees! Rental!bond! Security!deposits' ! ! ! ! ! ! ! ! ! ! ! 59,496! ^! 59,496! 59,000! 1,000! 200! 60,200! @! 3,893' 3,893' 59,000! @! 200) 59,200) ANNUAL!REPORT!2016! ! 28! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 12.! PROPERTY,!PLANT!AND!EQUIPMENT! Land!and!buildings!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Computer!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Vehicles!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Exploration!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Office!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Software!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Total!property,!plant!and!equipment' Accumulated!depreciation' Net!carrying!amount) ! (a)'Reconciliations! Land!and!buildings' Balance!at!the!beginning!of!year' Additions' Depreciation!expense' Balance!at!end!of!year' ! Computer!equipment' Balance!at!the!beginning!of!year' Additions' Depreciation!expense' Balance!at!end!of!year' ! Vehicles' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! Exploration!equipment' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! 2015! $! 72,921! ^! 72,921!! ! 110,792! (101,795)! 8,997!! 208,490!! (189,116)! 19,374!! ! 182,457!! (154,492)! 27,965!! ! 16,858!! (15,713)! 1,145!! ! 54,755!! (53,313)! 1,442!! ! 646,273!! (514,429)! 131,844!! ! ! ! ^) 72,921) ^) 72,921) ! ! 4,346) 10,121) (5,470)) 8,997) ! ! 27,709) (8,335)) 19,374) ! ! 37,321) (9,356)) 27,965) @! @! @!! ! 100,671! (96,325)! 4,346!! 208,490!! (180,781)! 27,709!! ! 182,457!! (145,136)! 37,321!! ! 16,858!! (15,220)! 1,638!! ! 54,755!! (52,347)! 2,408!! ! 563,231!! (489,809)! 73,422!! ! ! ! @! @! @! @! ! ! 7,390! @! (3,044)! 4,346! ! ! 39,586! (11,877)! 27,709! ! ! 49,895! (12,574)! 37,321! ANNUAL!REPORT!2016! ! 29! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 12.! PROPERTY,!PLANT!AND!EQUIPMENT! Office!equipment' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! Software' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! Total) Balance!at!the!beginning!of!year' Additions' Depreciation!expense!–!continuing!operations' Balance!at!end!of!year) ! ! 13.! EXPLORATION!&!EVALUATION!EXPENDITURE! The!Group!has!exploration!costs!carried!forward!in!respect!of! areas!of!interest:' Areas!of!interest:' Calingiri!tenements! Wynberg!tenements! Bryah!tenements' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2016! $! ! ! 1,638) (493)) 1,145) 2,408) (966)) 1,442) ! 73,422) 83,042) (24,620)) 131,844) ! ! ! 3,107,811! ^! 100,000) 3,207,811) 2015! $! ! ! 2,783! (1,145)! 1,638! ! ! 4,014! (1,606)! 2,408! ! 103,668! @! (30,246)' 73,422! ! ! ! 3,107,811! 300,000! 100,000! 3,507,811! ! The! recoverability! of! the! carrying! amount! of! the! exploration! and! evaluation! assets! is! dependent! on! the! successful! development!and!commercial!exploitation,!or!alternatively!the!sale,!of!the!respective!areas!of!interest.!During!the!year! the! Company! disposed! of! the! Wynberg! tenements! for! $400,000! and! has! therefore! reversed! the! impairment! of! $100,000!to!reflect!the!market!value!of!the!exploration!expenditure!before!disposal.!! ! Reconciliation:! Calingiri!tenements' Balance!at!the!beginning!of!year' Change!in!purchase!related!costs!of!mining!tenements' Balance!at!end!of!year' ! Wynberg!tenements' Balance!at!the!beginning!of!year' Disposal!of!mining!tenements' Impairment' Balance!at!end!of!year' ! Bryah!tenements' Balance!at!the!beginning!of!year' Balance!at!end!of!year' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 3,107,811) ^) 3,107,811) ! 300,000) (400,000)) 100,000) ^) ! 100,000) 100,000) ! ! 3,187,218' (79,407)' 3,107,811' ! 500,000' @' (200,000)' 300,000' ! 100,000) 100,000' ANNUAL!REPORT!2016! ! 30! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 13.! EXPLORATION!&!EVALUATION!EXPENDITURE! CALINGIRI!FARM^OUT! On! 8! July! 2015! the! Group! executed! a! Farm@in! and! Joint! Venture! Agreement! (“FIA”)! with! First! Quantum! Minerals! (Australia)!Pty!Ltd!(“FQM”)!in!relation!to!the!Calingiri!Project.!During!the!year!ended!30!June!2016!the!following!earning! funds!were!received!from!FQM!and!distributed!for!earning!expenditure:! ' Funds!received! Earning!expenditure! Farm@in!manager!allowance!(including!GST)! Receivable!balance!at!year!end! ! ! ! ! ! 2016! $! 1,364,896! (1,149,214)! (252,827)! (37,145)) 2015! $! @! @! @! @! (a)!!!!!!!Accounting!for!farm^outs! The! Group! may! enter! into! transactions! whereby! a! third! party! (“Farmee”)! may! earn! a! right! to! acquire! an! interest! in! assets!owned!by!the!Group!by!meeting!certain!obligations!agreed!to!by!both!parties.!The!group!applied!the!following! accounting!policy!for!the!FQM!farm@out!arrangement!entered!into!during!the!current!reporting!period:! •! Contributions!by!FQM!pursuant!to!the!farm@in,!are!initially!classified!as!a!liability!until!such!time!as!the!expenditure! is!incurred!for!exploration!activities.! •! Caravel!does!not!recognise!any!expenditure!that!is!settled!by!FQM.! •! Should!FQM!earn!a!vested!interest!in!the!tenements,!Caravel!transfers!to!profit!or!loss!a!corresponding!proportion! of! the! costs! capitalised! by! the! Company! over! the! life! of! the! project,! in! order! to! calculate! the! gain! or! loss! on! the! disposal!that!has!occurred.! ! 14.! TRADE!AND!OTHER!PAYABLES! ! Trade!payables!(1)' Accrued!interest! Other!payables' ! ! ! ! ! ! 169,497! ^! 27,800! 197,297! ! 276,183! 24,555! 92,565! 393,303! (1)'Terms'&'Conditions' ' ' ' Trade!creditors!are!non@interest!bearing!and!are!normally!settled!on!30!days!terms.! ! 15.! PROVISIONS! Employee!benefits! ! 82,184! 74,055! Amounts!not!expected!to!be!settled!within!the!next!12!months!) The! current! provision! for! employee! benefits! includes! accrued! annual! leave! and! long! service! leave.! For! long! service! leave!it!covers!all!unconditional!entitlements!where!employees!have!completed!the!required!period!of!service!and!also! those!where!employees!are!entitled!to!pro@rata!payments!in!certain!circumstances.!The!entire!amount!of!the!provision! of! $43,869! (2015! @! $74,055)! is! presented! as! current,! since! the! group! does! not! have! an! unconditional! right! to! defer! settlement!for!any!of!these!obligations.!However,!based!on!past!experience,!the!group!does!not!expect!all!employees! to!take!the!full!amount!of!accrued!leave!or!require!payment!within!the!next!12!months.!The!following!amounts!reflect! leave!that!is!not!expected!to!be!taken!or!paid!within!the!next!12!months.' Current!leave!obligations!expected!to!be!settled!after!12!months!) 38,315! 20,647! The!measurement!and!recognition!criteria!relating!to!employee!benefits!have!been!included!in!Note!2!to!this!report.! ! ! ! ANNUAL!REPORT!2016! ! 31! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 16.! INTEREST!BEARING!LIABILITIES! Convertible!loan!(i)' ' Promissory!loan!(ii) ! ! ! ! ! 2016! $! 2015! $! ^! ^! ^! 600,000! 200,000! 800,000! Convertible'note'at'fair'value' (i)' On!17!October!2014!the!Company!completed!a!Convertible!Loan!Agreement!with!First!Quantum!Minerals!(Australia)! Pty!Ltd!(“FQM”)!to!finance!further!exploration!at!the!Calingiri!Project!specifically!the!Ninan!and!Bindi!extensions!of!the! tenements.!Details!of!the!loan!facility!are!summarised!as!follows:! Principal:! Interest:! ! Maturity:!! Conversion:! $600,000! Bank!prime!rate!plus!3%!per!annum!payable!quarterly! 1!year! FQM!can!choose!to!convert!all!or!part!of!the!principal!and!interest!to!ordinary!shares!in!the!Company! at!the!greater!of!$0.017!per!share!or!the!5!day!VWAP!prior!to!the!conversion!date.! On!15!July!2015!a!Supplementary!Deed!was!executed!with!FQM!which!changed!the!conversion!price!to!$0.013!and! irrevocable!conversion!upon!the!Effective!Date!of!the!Farm@in!and!Joint!Venture!Agreement.!The!conversion!of!the!loan! and!interest!to!shares!was!approved!by!shareholders!at!a!general!meeting!on!27!August!2015.!On!28!August!2015!the! Company!issued!pre@consolidation!48,356,154!shares!to!repay!the!loan!and!interest!of!$628,630.!The!market!value!of! the!shares!on!date!of!settlement!was!$483,562!resulting!in!a!gain!on!settlement!of!$145,068!being!credited!to!the!profit! or!loss!during!the!period.! (ii)' On!11!June!2015!Caravel!executed!a!Promissory!Note!with!RM!Poustie!which!included!the!following!conditions:! Promissory'note' $200,000! 11.75%! 31!July!2015! Principal:! Interest:! ! Maturity:!! ! The!loan!was!secured!by!a!fixed!and!floating!charge!over!the!unencumbered!assets!of!the!Company.!A!loan!facilitation! fee!of!1,500,000!pre@consolidation!ordinary!shares!in!the!Company!with!a!market!value!of!$12,000!was!expensed!to!the! profit!or!loss!at!30!June!2015.!These!shares!were!subsequently!issued!on!7!September!2015!(refer!note!20(c)).!The! loan!was!repaid!in!full!on!28!July!2015!including!interest!of!$2,582!and!the!security!was!released.! ! ! ! ANNUAL!REPORT!2016! ! 32! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 17.! CONTRIBUTED!EQUITY! (a)!Issued!and!paid!up!capital! 49,749,575!(2015:!745,938,533)!fully!paid!ordinary!shares' ! ! (b)!Movement!in!shares!on!issue! (1)'Ordinary'Shares! Balance!–!1!July!2014' Issue!of!Shares!(i)' Less!Transaction!costs' Issue!of!shares!Employee!Share!Scheme!' Balance!–!30!June!2015! Issue!of!Shares:! Capital!raising) Loan!conversion! Loan!facilitation!fee! Contractor!share!based!payments! Less!Transaction!costs) Issue!of!shares!Employee!Share!Scheme!(net!of!forfeitures)' Share!consolidation!22:1(i)! Balance!–!30!June!2016' (2)'Treasury'Shares! Shares!held!by!the!Caravel!Employee!Share!Plan!Trust' (3)'Performance'Shares' Balance!1!July!2014' Cancellation!and!conversion' Balance!–!30!June!2015' Cancellation!and!conversion' Balance!–!30!June!2016' ! ! ! ! ! ! ! ! ! ! 16(i)! ' 5(d)! ! 19(a)! ! ! ! ! ! ! ! ! ! ! 2016! $! 2015! $! 38,661,548) 36,672,676' No.! ! 664,655,072! 81,283,461! @! @! 745,938,533! ! 207,420,006! 48,356,154! 1,500,000! 12,214,354! ^! 54,336,380! (1,020,015,852)! 49,749,575! ! (3,695,244)' ! 2,000,000! @' 2,000,000! (2,000,000)' @! $! ! 35,691,743! 1,024,901!! (43,968)! @! 36,672,676! ! 1,451,940!! 483,562! ^! 172,412! (119,042)! ^! ^! 38,661,548! ! @! ! @! @' @! @' @! (i)!Approval!for!the!22:1!share!consolidation!was!obtained!at!the!AGM!held!11!November!2015.! (c)!Terms!and!conditions!of!contributed!equity! ! ! ! Ordinary'Shares! Ordinary!shares!have!the!right!to!receive!dividends!as!declared!and,!in!the!event!of!the!winding!up!of!the!Company,!to! participate!in!the!proceeds!from!the!sale!of!all!surplus!assets!in!proportion!to!the!number!of!and!amounts!paid!up!on! shares! held.! Ordinary! shares! entitle! their! holder! to! one! vote,! either! in! person! or! by! proxy,! at! a! meeting! of! the! Company.! ! ! ! 2,000,000'Unlisted'Performance'Shares'(issued'2'September'2011)! The!Performance!Shares!expired!on!30!April!2016!without!reaching!the!Verification!Milestone.' ! ! ! (d)!Listed!options! ! Outstanding!at!the!beginning!of!the!year! Consolidation!22:1! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! ! Exercisable!at!the!end!of!the!year! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! Number! ! 2016! Number! 166,595,588! 226,486,857! (159,022,997)! @! (7,572,591)! (59,891,269)! ^! ! ^! 166,595,588! ! 21,650,000! ANNUAL!REPORT!2016! ! 33! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! (e)!Unlisted!options! ! Outstanding!at!the!beginning!of!the!year! Issued! Consolidation!22:1! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! ! Exercisable!at!the!end!of!the!year! ! ! ! ! ! ! ! ! ! ! ! ! 2016! Number! ! 2015! Number! 159,467,949! 108,243,333! 120,122,507! 55,384,616! (266,881,767)! @! (909,091)! (4,160,000)! 11,799,598! 159,467,949! ! ! 11,799,598! 159,467,949! (f)!Capital!risk!management! When! managing! capital,! management’s! objective! is! to! ensure! the! entity! continues! as! a! going! concern! as! well! as! to! maintain!optimal!returns!to!shareholders!and!benefits!for!other!stakeholders.!! ! ! ! Being!at!an!exploration!stage,!the!Company!does!not!generate!cash!inflows!from!its!operations!to!fund!its!exploration! and!working!capital!requirements,!therefore,!the!Company!may!issue!shares!to!either!generate!cash!for!operations!or! to!acquire!assets!in!order!to!maintain!adequate!levels!of!cash!reserves.! During! the! financial! year! ended! 30! June! 2016,! the! Company! issued! 323,826,894! ordinary! shares! including! treasury! shares!(2015:!81,283,461!ordinary!shares).!! The!Company!is!not!subject!to!any!externally!imposed!capital!requirements.! ' ! ' ANNUAL!REPORT!2016! ! 34! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ' 18.! RELATED!PARTIES! (a)'Transactions'with'Key'Management'Personnel' Details!relating!to!key!management!personnel,!including!remuneration!paid,!are!included!in!the!audited!remuneration! report! section! of! the! directors’! report.! 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' Long!term!employee!benefits! Post@employment!benefits' Share!based!payments' Total!compensation! ! ! ! ! ! ! 2016! $! 175,000) 12,480! 35,518) 53,983! 276,981) 2015! $! 266,916' @! 46,319' 3,096' 316,331' (b)'Transactions'with'Other'Related'Parties! During!the!year!ending!30!June!2016!$52,000!was!received!from!a!public!company,!of!which!Mr!Marcel!Hilmer!is!a! director,!for!provision!of!serviced!offices!(2015:!$60,000).!! ! 19.! SHARE!BASED!PAYMENTS) (a)!Employee!Share!Acquisition!Plan! Shareholders!approved!the!establishment!of!the!Caravel!Employee!Share!Acquisition!Plan!at!a!general!meeting!on!13! March!2013.!The!Company!believes!that!the!share!acquisition!plan!provides!eligible!employees!and!Directors!effective! incentive! for! their! ongoing! commitment! and! contribution! to! the! Company.! Eligible! employees! and! Directors! offered! shares!under!the!scheme!are!provided!a!limited!recourse,!interest!free!loan!to!be!used!to!subscribe!for!the!shares!in! the! Company.! 58,500,000! pre@consolidation! (2,659,091! post@consolidation)! shares! were! issued! under! this! scheme! during! the! year! ended! 30! June! 2016! (2015:! Nil)! including! a! total! of! 24,000,000! pre@consolidation! (1,090,909! post@ consolidation)!shares!issued!to!Directors!as!approved!by!shareholders!at!the!annual!general!meeting!(“AGM”)!held!11! November! 2015.! During! the! year! a! total! of! 4,163,620! pre@consolidation! shares! were! forfeited! by! a! Director! and! an! employee!upon!ceasing!employment!with!the!company.!On!13!November!2015!the!balance!of!issued!shares!under!the! Plan!were!subject!to!a!consolidation!of!issued!capital!of!22:1!as!approved!by!the!shareholders!at!the!AGM.! ! ! Directors! Balance!1!July! 2015) Granted! during!the! period) Forfeited! during!the! period) 22:1!Share! Consolidation) Balance!at!! 30!June!2016) Vested!at!! 30!June!2016) Marcel!Hilmer) 7,500,000) 16,000,000) James!Harris) 3,000,000) 4,000,000) Peter!Alexander) 3,000,000) 4,000,000) @) @) @) Brett!McKeon) 3,000,000) Employees! ! @) ! (3,000,000)) ! (22,431,818)) 1,068,182! (6,681,818)) (6,681,818)) @) ! 318,182! 318,182! ^! ! 704,545) 227,272) 227,272) @) ! Incentive!Shares) 10,458,968) 34,500,000) (1,163,620)) (41,804,650)) 1,990,698) 1,206,607) Total) 26,958,968! 58,500,000! (4,163,620)! (77,600,104)! 3,695,244) 2,365,696! ! (i)'Employee'Share'Acquisition'Plan'shares'to'Directors) On!12!November!2015,!24,000,000!pre@consolidation!shares!were!issued!to!the!Non@Executive!Directors,!as!approved! by!shareholders!at!the!AGM!held!11!November!2015.!The!shares!were!issued!at!0.475@0.494!cents!per!share,!being!a! 1.25@5%!discount!to!VWAP,!and!corresponding!loans!totalling!$117,000!were!entered!into!by!Directors!in!accordance! with! the! Caravel! Employee! Acquisition! Plan! as! part! of! the! Director’s! remuneration! and! having! regard! for! his! future! contribution!to!the!Company.) ! Summary!of!the!key!loan!terms:) Loan!amount:!$117,000) Interest!rate:!0%) Term!of!loan:!unlimited) •! •! •! •! Vesting!conditions!50%:!remains!eligible!employee!for!one!month!from!grant!date) •! Vesting!conditions!for!balance:!remains!eligible!employee!for!three!months!from!grant!date) •! Subject!to!the!conditions!of!the!Caravel!Employee!Share!Acquisition!Plan!as!approved!by!shareholders!on!13!March! 2013) The! loans! become! non@recourse,! except! against! the! shares! held! in! trust! for! the! participant,! when! the! vesting! conditions!have!been!satisfied.) ! ! ANNUAL!REPORT!2016! ! 35! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 19.! SHARE!BASED!PAYMENTS! (a)!Employee!Share!Acquisition!Plan! (i)'Employee'Share'Acquisition'Plan'shares'to'Directors) The!fair!value!at!grant!date!of!$53,983!was!calculated!using!the!Black!Scholes!pricing!model!that!took!into!account!the! following!inputs:) •! •! •! •! •! •! exercise!price:!$0.00495!(pre@consolidation)! market!price!of!shares!at!grant!date:!$0.005! expected!volatility!of!the!Company’s!shares:!128%! risk!free!interest!rate:!1.78%! time!to!maturity:!2!years! expected!dividend!yield:!nil! The! value! of! the! instruments! has! been! expensed! to! share! based! compensation! on! a! proportionate! basis! for! each! financial! year! from! grant! to! vesting! date.! The! proportion! expensed! to! remuneration! and! accounted! for! in! the! share@ based!payments!reserve!was!$53,983!for!the!year!ended!30!June!2016!(2015:!$3,096).) The!total!director!loans!of!$404,428!have!become!non@recourse,!except!against!the!shares!held!in!trust!for!the! participant,!as!the!vesting!conditions!have!been!satisfied.! !(ii)'Employee'Share'Acquisition'Plan'shares'to'employees' On!24!September!2015,!34,500,000!pre@consolidation!shares!were!issued!to!the!employees!at!0.495!cents!per!share,! being!a!1.0%!discount!to!VWAP,!and!corresponding!loans!totalling!$170,775!were!entered!into!in!accordance!with!the! Caravel! Employee! Acquisition! Plan! as! part! of! the! employee’s! remuneration! and! having! regard! for! their! future! contribution!to!the!Company.) Summary!of!the!key!loan!terms:) Loan!amount:!$170,775) Interest!rate:!0%) Term!of!loan:!unlimited) •! •! •! •! Vesting!conditions!50%:!remains!eligible!employee!for!two!months!from!grant!date) •! Vesting!conditions!for!balance:!remains!eligible!employee!for!four!months!from!grant!date) •! Subject!to!the!conditions!of!the!Caravel!Employee!Share!Acquisition!Plan!as!approved!by!shareholders!on!13!March! 2013) The! loans! become! non@recourse,! except! against! the! shares! held! in! trust! for! the! participant,! when! the! vesting! conditions!have!been!satisfied.) The!fair!value!at!grant!date!of!$69,565!was!calculated!using!the!Black!Scholes!pricing!model!that!took!into!account!the! following!inputs:) •! •! •! •! •! •! exercise!price:!$0.00495!(pre@consolidation)! market!price!of!shares!at!grant!date:!$0.005! expected!volatility!of!the!Company’s!shares:!128%! risk!free!interest!rate:!1.78%! time!to!maturity:!2!years! expected!dividend!yield:!nil! The! value! of! the! instruments! has! been! expensed! to! share! based! compensation! on! a! proportionate! basis! for! each! financial! year! from! grant! to! vesting! date.! The! proportion! expensed! to! remuneration! and! accounted! for! in! the! share@ based!payments!reserve!was!$69,565!for!the!period!ended!30!June!2016!(2015:!$951).!! The! total! employee! loans! of! $340,990! have! become! non@recourse,! except! against! the! shares! held! in! trust! for! the! participant,!as!the!vesting!conditions!have!been!satisfied.! !(b)!Options! No!unlisted!options!were!granted!under!the!Caravel!Employee!Option!Scheme!during!the!year!ended!30!June!2016! (2015:!Nil)!and!no!options!were!on!issue!under!the!scheme!at!30!June!2016.!During!the!year!ended!30!June!2016!no! options!issued!under!the!scheme!were!cancelled!(2015:!Nil)!and!no!options!expired!(2015:!1,160,000).!The!directors! are!not!eligible!to!participate!in!this!scheme.!No!options!were!issued!to!directors!during!the!year!ended!30!June!2016! (2015:!Nil)!and!no!options!were!on!issue!to!directors!at!30!June!2016.!During!the!2015!year!3,000,000!unlisted!options! expired!which!had!been!issued!to!directors.!! In! addition,! during! the! year! ended! 30! June! 2016! 12,000,000! pre@consolidation! unlisted! options! were! issued! to! an! advisor!of!the!Company!for!capital!raising!services!(2015:!$Nil)!as!approved!by!shareholders!at!a!general!meeting!on! 27!August!2015.!The!options!granted!to!the!advisor!have!been!valued!at!$20,400!using!a!black@scholes!calculation.! Also!during!the!year!ended!30!June!2016,!4,412,500!pre@consolidation!unlisted!options!were!issued!to!a!consultant!of! the!Company!as!incentive!options!for!company!secretarial!services!(2015:!$Nil).!The!options!granted!to!the!consultant! have!been!valued!at!$10,148!using!a!black@scholes!calculation.! ANNUAL!REPORT!2016! ! 36! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 19.!!SHARE!BASED!PAYMENTS! (b)!Options! During! the! year! 40,910! post@consolidation! listed! options! which! had! been! issued! to! an! advisor! expired! (2015:! 7,000,000)! and! 909,091! post@consolidation! unlisted! options! which! had! been! issued! as! consideration! for! purchase! of! Quadrio!Resources!Pty!Ltd!expired!(2015:!$Nil).! On!13!November!2015!the!Company!completed!a!consolidation!of!issued!capital!of!22:1!as!approved!by!shareholders! at!the!AGM!held!11!November!2015.! Terms! and! conditions! of! each! grant! to! advisors! and! consultants! are! described! below.! There! were! modifications! to! options!during!2016!as!detailed!in!note!20(b)(vii).! (i)'Terms'and'conditions'of'shareXbased'payments' Terms!and!conditions!of!options!granted!during!the!year!ended!30!June!2016! Terms!and!conditions!of!Options!granted!to!an!Advisor) @! Each!Option!shall!be!issued!for!no!consideration.) @! Each!Option!entitles!the!holder!to!subscribe!for!one!Share!upon!exercise.) @! The!exercise!prices!of!the!Options!are!$0.013!($0.286!post!consolidation).) @! The!Options!are!exercisable!at!any!time!prior!to!the!Expiry!Date.) @! The!Options!expire!on!31!January!2017.) @! Shares!issued!on!exercise!of!the!Options!rank!equally!with!the!then!shares!of!the!Company.) @! No!application!for!quotation!of!the!Options!will!be!made!by!the!Company.) @! The!Options!are!non@transferable.) @! If!there!is!any!reconstruction!of!the!issued!share!capital!of!the!Company,!the!rights!of!the!Option!holders!may!be! varied!to!comply!with!the!ASX!Listing!Rules,!which!apply!to!the!reconstruction!at!the!time!of!the!reconstruction.! Terms!and!conditions!of!Options!granted!to!a!Consultant) @! Each!Option!shall!be!issued!for!no!consideration.) @! Each!Option!entitles!the!holder!to!subscribe!for!one!Share!upon!exercise.) @! The!exercise!prices!of!the!Options!are!$0.0075!($0.165!post!consolidation).) @! The!Options!are!exercisable!at!any!time!prior!to!the!Expiry!Date.) @! The!Options!expire!on!31!January!2017.) @! Shares!issued!on!exercise!of!the!Options!rank!equally!with!the!then!shares!of!the!Company.) @! No!application!for!quotation!of!the!Options!will!be!made!by!the!Company.) @! The!Options!are!non@transferable.) If! there! is! any! reconstruction! of! the! issued! share! capital! of! the! Company,! the! rights! of! the! Option! holders! may! be! varied!to!comply!with!the!ASX!Listing!Rules,!which!apply!to!the!reconstruction!at!the!time!of!the!reconstruction.! (ii)'Summary'of'options'granted' The!following!table!illustrates!the!number!(No.)!and!weighted!average!exercise!prices!(WAEP)!of,!and!movements!in,! share!options!issued!during!the!year:! ! Outstanding!at!the!beginning!of!the!year! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! Exercisable!at!the!end!of!the!year! ! ! ! Outstanding!at!the!beginning!of!the!year! Granted!during!the!year! Consolidation!(22:1)!during!the!year! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! ! Exercisable!at!the!end!of!the!year! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015' No.' 32,810,000) (11,160,000)) 21,650,000) 2015' WAEP' $0.09! $0.09! $0.09! ! ! 21,650,000) 2016' No.! 21,650,000) 16,412,500! (36,332,384)! (950,001)) 780,115! $0.09! 2016' WAEP! $0.090! $0.012! @! $2.138! $0.263! ! ! 780,115' ! $0.263! ! (iii)'Weighted'average'remaining'contractual'life' The! weighted! average! remaining! contractual! life! of! the! share! options! outstanding! as! at! 30! June! 2016! is! 0.58! years! (2015:!1.26!years).! (iv)'Range'of'exercise'prices' The!range!of!exercise!prices!for!options!outstanding!at!the!end!of!the!year!was!$0.165!@!$0.77!(2015:!$0.02!@!$0.10).! ! (v)'Weighted'average'fair'value' The!weighted!average!fair!value!of!options!granted!during!the!year!was!$0.012!(2015:!$Nil).! ! ! ! ! ! ! ! ! ! ! ! ANNUAL!REPORT!2016! ! 37! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 19.!!SHARE!BASED!PAYMENTS! (b)!Options' ! ! ! (vi)'Option'pricing'model' Options!granted!as!part!of!consultant!and!advisor!services!have!been!independently!valued!using!the!Black@Scholes! Option! Valuation! model,! which! takes! account! of! factors! including! the! option! exercise! price,! the! current! level! and! volatility!of!the!underlying!share!price,!the!risk@free!interest!rate,!expected!dividends!on!the!underlying!share,!current! market!price!of!the!underlying!share!and!the!expected!life!of!the!option.!See!below!for!the!assumptions!used!for!grants! made!during!the!year!ended!30!June!2016:) ! ! Dividend!yield!(%)! Expected!volatility!(%)! Risk!free!interest!rate!(%)! Expected!life!of!the!option!(years)! Option!exercise!price!($)!pre@consolidation! Share!price!at!grant!date!($)! 2016! 0%! 128%! 1.78%! 1.4!^!3!years! $0.0075!^!$0.013! $0.005! ! ! ! ! ! ! 2015! @! @! @! @! @! @! The!dividend!yield!reflects!the!assumption!that!the!current!dividend!payout!will!remain!unchanged.!The!expected!life!of! the! options! is! based! on! historical! data! and! is! not! necessarily! indicative! of! exercise! patterns! that! may! occur.! The! expected!volatility!reflects!the!assumption!that!the!historical!volatility!is!indicative!of!future!trends,!which!may!also!not! necessarily!be!the!actual!outcome.! (vii)'Option'modifications' ! ! ! On!13!November!2015!the!Company!completed!a!consolidation!of!issued!capital!of!22:1!and!as!a!result!there!were! changes!to!the!number!and!exercise!price!of!existing!options!during!the!year!ended!30!June!2016!as!follows:! Grant!Date! Expiry!Date! Original!Conditions! Modified!Conditions! ! 27!Mar!2013! 02!Oct!2013! 22!Oct!2013! 07!Sep!2015! 24!Sep!2015! ! (c)!Shares! ! 26!Mar!2016! 31!May!2016! 16!Oct!2016! 31!Jan!2017! 31!Jan!2017! Number! 20,000,000! 900,000! 750,000! 12,000,000! 4,412,500! Exercise!Price! $0.1000! $0.0350! $0.0210! $0.0130! $0.0075! Number! 909,091! 40,910! 34,091! 545,455! 200,569! Exercise!Price! $2.200! $0.770! $0.462! $0.286! $0.165! In!November!2015!and!January,!March!and!April!2016!shares!were!issued!to!drilling!contractors!for!drilling!services.!A! total!of!11,037,484!pre@consolidation!and!1,176,870!post@consolidation!(2015:!25,898,845)!ordinary!shares!were! issued!at!market!value!calculated!by!a!10!day!VWAP!at!the!end!of!each!invoice!month!for!a!total!consideration!of! $172,412!(2015:!$292,901).! On!7!September!2015!the!Company!issued!1,500,000!pre@consolidation!ordinary!shares!for!a!loan!facilitation!fee.!The! Promissory!Note!was!executed!on!11!June!2015!and!$12,000!was!expensed!in!the!profit!or!loss!at!30!June!2015! representing!the!market!value!of!the!shares!at!that!date.! (d)!Recognised!share!based!payment!expense!in!profit!or!loss! The!expense!recognised!for!director,!employee!and!consultant! services!received!during!the!year!is!shown!in!the!table!below:! Expense!arising!from!employee!share!plan!acquisitions!(a)! Expense!arising!from!employee!options!issued!(b)! Expense!arising!from!consultant!options!issued!(b)! Finance!expenses!(c)! Shares!issued!for!drilling!services!(c)! Total!share!based!payments!expensed!in!profit!or!loss! Share!based!payments!recognised!in!share!issue!costs!(b)! Total!share!based!payments! ! ! ! ! ! ! 2016! $! ! 123,548! ^! 10,148! ^! 172,412! 306,108! 20,400! 326,508! ! ! ! ! ! ! 2015! $! ! 4,047! 3,007! @! 12,000! 292,901! 311,955! @! 311,955! ANNUAL!REPORT!2016! ! 38! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! ! 20.! FINANCIAL!INSTRUMENTS! Financial!risk!management! The!Group’s!principal!financial!instruments!comprise!cash!and!short@term!deposits.! The!main!purpose!of!these!financial!instruments!is!to!fund!capital!expenditure!on!the!Group’s!operations.!The!Group! has!various!other!financial!assets!and!liabilities!such!as!trade!receivables!and!trade!payables,!which!arise!directly!from! its! operations.! It! is,! and! has! been! throughout! the! period! under! review,! the! Group’s! policy! that! no! trading! in! financial! instruments!shall!be!undertaken.!Being!at!an!exploration!stage,!the!Group!has!limited!exposure!to!risks!arising!from!its! financial!instruments.!! Currently! the! Group! does! not! have! any! exposure! to! commodity! price! risk! or! foreign! currency! risk! as! the! Group! has! ceased! operations! in! Spain.! As! the! Group! moves! into! development! and! production! phases,! exposure! to! commodity! price! risk,! foreign! currency! risk! and! credit! risk! are! expected! to! increase.! The! Board! will! set! appropriate! policies! to! manage!these!risks!dependent!on!market!conditions!and!requirements!at!that!time.! Details!of!the!significant!accounting!policies!and!methods!adopted,!including!the!criteria!for!recognition,!the!basis!of! measurement!and!the!basis!on!which!income!and!expenses!are!recognised,!in!respect!of!each!class!of!financial!asset! and!financial!liability!are!disclosed!in!Note!2.! (a))Credit)risk) Credit! risk! represents! the! loss! that! would! be! recognised! if! counterparties! fail! to! perform! as! contracted.! The! Group’s! maximum!exposure!to!credit!risk!at!reporting!date!in!relation!to!each!class!of!financial!asset!is!the!carrying!amount!of! those!assets!as!indicated!in!the!statement!of!financial!position.!The!majority!of!cash!and!cash!equivalents!is!held!with! one!Australian!Bank!which!has!an!AA@!long@term!credit!rating!from!Standard!and!Poor’s.! Wherever! possible,! the! Group! trades! only! with! recognised,! credit! worthy! third! parties.! There! are! no! significant! concentrations! of! credit! risk! within! the! Group.! Since! the! Group! trades! only! with! recognised! third! parties,! there! is! no! requirement!for!collateral.! (b))Liquidity)risk) Liquidity!risk!is!the!risk!that!the!Group!does!not!have!sufficient!funds!to!pay!its!debts!as!and!when!they!become!due! and! payable.! The! Group! currently! does! not! have! major! funding! in! place.! However! the! Group! continuously! monitors! forecast!and!actual!cash!flows!and!the!maturity!profiles!of!financial!assets!and!financial!liabilities!to!manage!its!liquidity! risk.! ! ! ! The! Group’s! objective! is! to! maintain! a! balance! between! continuity! of! funding! and! flexibility! through! the! use! of! bank! loans!if!and!when!required.!! Cash!at!bank!and!on!hand,!as!set!out!in!Note!9,!is!available!for!use!by!the!Group!without!restrictions.! Financial! liabilities! (note! 16)! of! the! Group! at! 30! June! 2016! and! 30! June! 2015! are! expected! to! be! settled! within! 6! months!of!year@end.! (c))Market)risk) ! ! ! ! Price'risk' The!group!is!exposed!to!equity!securities!price!risk.!This!arises!from!investments!held!by!the!group!and!classified!as! available@for@sale.!The!group!is!not!exposed!to!commodity!price!risk.!The!sensitivity!of!movements!in!the!price!has!not! been!disclosed!as!it!is!not!material!to!the!Group.! Foreign'currency'risk' The! carrying! amount! of! financial! assets! and! financial! liabilities! recorded! in! the! financial! statements! represents! their! respective!net!fair!values,!determined!in!accordance!with!the!accounting!policies!disclosed!in!Note!2.! ! ! ! ! ! ! Interest'rate'risk' The! following! tables! summarise! the! sensitivity! of! the! Group’s! financial! assets! to! interest! rate! risk.! Had! the! relevant! variables,!as!illustrated!in!the!tables,!moved,!with!all!other!variables!held!constant,!post!tax!loss!and!equity!would!have! been! affected! as! shown.! The! analysis! has! been! performed! on! the! same! basis! for! 2016! and! 2015,! and! represents! management’s!judgement!of!a!reasonably!possible!movement.! ! ! 30!June!2016! ! Financial'assets' Cash!and!cash!equivalents! Other!current!assets! ! ! Carrying! Amount! $! 594,075! 60,000! ! Interest!Rate!Risk! Interest!Rate!Risk! ^1%! +1%! Net!Loss! $! ! (5,941)! (600)! Equity! $! (5,941)! (600)! ! Net!Gain! $! Equity! $! ! ! 5,941! 600! 5,941! 600! ANNUAL!REPORT!2016! ! 39! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! ! ! ! ! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! 20.!!FINANCIAL!INSTRUMENTS! ! 30!June!2015! ! Financial'assets' Cash!and!cash!equivalents! Other!current!assets! Financial'liabilities' Interest!bearing!liabilities! ! Carrying! Amount! $! 146,414! 59,000! 800,000! ! ! ! Interest!Rate!Risk! Interest!Rate!Risk! ^1%! +1%! Net!Loss! $! (1,464)! (590)! 8,000! ! ! ! Equity! $! (1,464)! (590)! 8,000! ! ! ! Net!Gain! $! 1,464! 590! (8,000)! ! ! ! Equity! $! 1,464! 590! (8,000)! ! ! ! None!of!the!Group’s!financial!liabilities!in!2015!were!interest!bearing.! Fair)value)of)financial)instruments) Unless!otherwise!stated,!the!carrying!amounts!of!financial!instruments!reflect!their!fair!value.! ! 21.! FAIR!VALUE!MEASUREMENT! Recurring!fair!value!measurements! The!following!financial!instruments!are!subject!to!recurring!fair!value!measurements:! ! 30!June!2016! $! 30!June!2015! $! Financial!liabilities!at!fair!value!through!profit!or!loss!–!Level!3! ! ^! (800,000)! Valuation!techniques!used!to!derive!level!3!fair!values:! The!fair!value!of!convertible!notes!not!traded!in!an!active!market!is!determined!using!an!internally!prepared!discounted! cash! flow! valuation! technique! using! observable! inputs! (such! as! share! price! and! the! terms! and! conditions! of! the! convertible!notes!as!disclosed!per!note!16)!and!release!of!the!initial!calibration!adjustment!to!the!profit!or!loss.!At!30! June!2015,!the!fair!value!of!the!convertible!note!equates!to!its!carrying!(redemption)!amount,!as!the!conversion!option! is!out!of!the!money.!! Fair!values!of!financial!instruments!not!measured!at!fair!value! Due!to!their!short@term!nature,!the!carrying!amounts!of!current!receivables!and!current!trade!and!other!payables!is! assumed!to!approximate!their!fair!value.! ! 22.! COMMITMENTS!AND!CONTINGENCIES! ! (a)'Operating'lease'commitments' Non@cancellable! operating! leases! contracted! for! but! not! capitalised! in! the! financial!statements! Payable!—!minimum!lease!payments! ! @!not!later!than!1!year! @!later!than!1!year!but!not!later!than!5!years! ! ! ! ! ! The! property! lease! is! a! non@cancellable! operating! lease! expiring! on! 31! May! 2018,!with!rent!payable!monthly!in!advance.!The!lease!allows!for!subletting!of! all!lease!areas!with!the!consent!of!the!lessee.! (b)'Contingencies' The!Group!has!no!contingent!liabilities!at!reporting!date.! 23.! REMUNERATION!OF!AUDITORS! ! ! The!auditor!of!Caravel!Minerals!Limited!is!BDO!Audit!(WA)!Pty!Ltd.! Amounts'received'or'due'and'receivable'by'BDO'Audit'(WA)'Pty'Ltd'for:' An!audit!or!review!of!the!financial!reports!of!the!Group! ! ! ! ! ! ! ! 2016! $! ! ! ! 108,066) 108,066) 216,132) ! ! ! ! ! 33,000) 33,000) 2015! $! ! ! 121,790! @! 121,790! ! ! ! ! ! ! 33,000! 33,000! ANNUAL!REPORT!2016! ! 40! ! ! CARAVEL!MINERALS!LIMITED! ! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2016! 24.! PARENT!ENTITY!INFORMATION! ! The! following! information! relates! to! the! parent! entity,! Caravel! Minerals! Limited.! The! information! presented! has! been! prepared!using!accounting!policies!that!are!consistent!with!those!presented!in!Note!2.! ! ! ! Current!assets! Non@current!assets! Total!assets! ! Current!liabilities! Non@current!liabilities! Total!liabilities! ! Contributed!equity! Accumulated!losses! Available@for@sale!reserve! Converted!option!reserve! Share@based!payment!reserve! Total!equity! ! Loss!for!the!year!from!continuing!operations! Other!comprehensive!income!for!the!year! Total!comprehensive!loss!for!the!year! ! Guarantees!in!relation!to!subsidiaries! ! ! ! ' ! ! ! ! ! ! ! ! ! ! ! ! ! ' ! ! Parent! 2016! $! 624,733! 3,266,331! 3,891,064! 102,363! ^! 2015! $! 158,801! 3,352,308! 3,511,109! ! 987,728! @! 102,363! 987,728! 38,661,548! 36,660,676! ! (37,490,821)!! (36,601,173)!! ^! 10,239! 2,607,735! 3,788,701! @! 10,239! 2,453,639! 2,523,381! ! (892,405)! ! (2,737,880)! ^! 13,546! (892,405)! (2,724,334)! ! ! ! ! Caravel!Minerals!Limited!has!not!issued!any!guarantees!on!behalf!of!subsidiaries.! Commitments! Parent!has!operating!lease!commitments!as!detailed!in!note!22(a).! Contingent!liabilities! As!at!30!June!2016!Caravel!Minerals!Limited!has!no!contingent!liabilities.! ! 25.! EVENTS!OCCURING!AFTER!THE!REPORTING!PERIOD! ! ! ! On!8!August!2016!the!Company!announced!that!it!had!received!commitments!from!investors!to!raise!$1.25M!through! the! issue! of! 17.6m! shares! at! an! issue! price! of! $0.071! (“Placement”).! Subject! to! shareholder! approval,! investors! participating! in! the! Placement! will! be! issued! 1! free! attaching! unlisted! option! exercisable! at! $0.12! for! each! 2! shares! issued,!expiring!in!December!2018.!The!Company!announced!on!24!August!2016!that!it!had!issued!9.6m!shares!under! Tranche!1!of!the!Placement!announced!for!gross!proceeds!of!$684,000.! Other!than!the!matters!above,!at!the!date!of!this!report!there!are!no!other!matters!or!circumstances!which!have!arisen! since!30!June!2016!that!have!significantly!affected!or!may!significantly!affect:! @! @! @! ! ! ! the!operations,!in!financial!years!subsequent!to!30!June!2016,!of!the!Groupt! the!results!of!those!operations,!in!financial!years!subsequent!to!30!June!2016,!of!the!Groupt!or! the!state!of!affairs,!in!financial!years!subsequent!to!30!June!2016,!of!the!Group.! ! ANNUAL!REPORT!2016! ! 41! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Directors’!Declaration! ! DIRECTORS’!DECLARATION! ! In!accordance!with!a!resolution!of!the!directors!of!Caravel!Minerals!Limited,!I!state!that:! ! (1)! ! In!the!opinion!of!the!directors:! (a)! the! financial! statements,! notes! and! the! additional! disclosures! included! in! the! directors’! report! designated!as!audited,!of!the!Group!are!in!accordance!with!the!Corporations'Act'2001!including:! ! ! ! ! ! (i)! (ii)! ! giving! a! true! and! fair! view! of! the! Group’s! financial! position! as! at! 30! June! 2016! and! of! its! performance!for!the!period!ended!on!that!datet!and! complying!with!Accounting!Standards,!the!Corporations!Regulations!2001!and!other!! mandatory!professional!reporting!requirements,!and! (b)! there!are!reasonable!grounds!to!believe!that!the!Company!will!be!able!to!pay!its!debts!as!and!when! they!become!due!and!payable.! ! (2)! ! (3)! The! Company! has! included! in! the! notes! to! the! financial! statements! an! explicit! and! unreserved! statement!of!compliance!with!International!Financial!Reporting!Standards.! This! declaration! has! been! made! after! receiving! the! declarations! required! to! be! made! to! the! directors!in!accordance!with!section!295A!of!the!Corporations'Act'2001!for!the!year!ended!30!June! 2016.! ! ! On!behalf!of!the!Board.! ! ! ! Marcel!Hilmer! Executive!Director!&!CEO! ! Perth,!!! 15!September!2016! ANNUAL!REPORT!2016! ! 42! ! ! CARAVEL!MINERALS!LIMITED! ! Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR’S REPORT To the members of Caravel Minerals Limited Report on the Financial Report We have audited the accompanying financial report of Caravel Minerals Limited, which comprises the consolidated statement of financial position as at 30 June 2016, 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, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Caravel Minerals Limited, would be in the same terms if given to the directors as at the time of this auditor’s report. Opinion In our opinion: (a) the financial report of Caravel Minerals Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 2. Report on the Remuneration Report We have audited the Remuneration Report included in pages 6 to 10 of the directors’ report for the year ended 30 June 2016. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Caravel Minerals Limited for the year ended 30 June 2016 complies with section 300A of the Corporations Act 2001. BDO Audit (WA) Pty Ltd Jarrad Prue Director Perth, 15 September 2016 ! ! Corporate!Governance!Statement! ! The!Board!of!Directors!of!Caravel!Minerals!Limited!(the!“Company”)!is!responsible!for!the!corporate!governance!of!the! Company.!The!Board!guides!and!monitors!the!business!and!affairs!of!the!Company!on!behalf!of!the!shareholders!by! whom!they!are!elected!and!to!whom!they!are!accountable.! ! This!statement!sets!out!the!main!corporate!governance!practices!in!place!throughout!the!financial!year!in!accordance! with!3rd!edition!of!the!ASX!Principles!of!Good!Corporate!Governance!and!Best!Practice!Recommendations.! ! Further! information! about! the! Company’s! corporate! governance! practices! is! set! out! on! the! Company’s! website! at! www.caravelminerals.com.au.!! ! This!Statement!was!approved!by!the!Board!of!Directors!and!is!current!as!at!20!September!2016.! ! PRINCIPLE!1:!LAY!SOLID!FOUNDATIONS!FOR!MANAGEMENT!AND!OVERSIGHT! ! ASX! Recommendation! 1.1:! a! listed! entity! should! establish! the! functions! reserved! to! the! board! and! those! delegated!to!senior!executives!and!disclose!those!functions! ! The!Company!has!complied!with!this!recommendation.! ! The! Board! has! adopted! a! formal! charter! that! details! the! respective! board! and! management! functions! and! responsibilities.!!A!copy!of!this!board!charter!is!available!in!the!corporate!governance!section!of!the!Company's!website! at!www.caravelminerals.com.au.! ! ASX!Recommendation!1.2:!a!listed!entity!should!undertake!appropriate!checks!before!appointing!a!person,!or! putting!forward!to!security!holders!a!candidate!for!election!as!a!director!and!provide!security!holders!with!all! material!information!relevant!to!a!decision!on!whether!or!not!to!elect!or!re^elect!a!director! ! The!Company!has!complied!with!this!recommendation.! ! The!Company!did!not!elect!any!new!Directors!during!the!year.! ! Information! in! relation! to! Directors! seeking! reappointment! is! set! out! in! the! Directors! report! and! Notice! of! Annual! General!Meeting.! ! ASX! Recommendation! 1.3:! a! listed! entity! should! have! a! written! agreement! with! each! Director! and! senior! executive!setting!out!the!terms!of!their!appointment.! ! The!Company!has!complied!with!this!recommendation.! ! The!Company!has!in!place!written!agreements!with!each!Director.! ! ASX! Recommendation! 1.4:! the! company! secretary! of! a! listed! company! should! be! accountable! directly! to! the! board,!through!the!chair,!on!all!matters!to!do!with!the!proper!functioning!of!the!board.! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!Charter!provides!for!the!Company!Secretary!to!be!accountable!directly!to!the!board!through!the!Chair.! ! ASX!Recommendation!1.5:!a!listed!entity!should:! •! •! •! •! have!a!diversity!policy!which!includes!the!requirement!for!the!board!to!set!measurable!objectives!for! achieving!gender!diversity!and!assess!annually!the!objectives!and!the!entity’s!progress!to!achieving! themi! disclose!the!!policy!or!a!summary!of!iti! disclose!the!measurable!objectives!and!progress!towards!achieving!themi!and! disclose!the!respective!proportions!of!men!and!women!on!the!board!and!at!each!level!of!management! and!the!company!as!a!whole! ! The!Company!partly!complies!with!this!recommendation.! The!Company!has!adopted!a!Diversity!Policy!which!is!available!in!the!corporate!governance!section!of!the!Company's! website!at!www.caravelminerals.com.au.! The! Board! considers! that,! due! to! the! size,! nature! and! stage! of! development! of! the! Company,! setting! measurable! objectives!for!the!Diversity!Policy!at!this!time!is!not!appropriate.!The!Board!will!consider!setting!measurable!objectives! as!the!Company!increases!in!size!and!complexity.! There! are! no! women! on! the! Board! or! in! senior! Management! positions.! The! company! currently! has! one! female! employee!which!represents!13%!of!the!total!workforce!including!Directors.! ANNUAL!REPORT!2016! ! 45! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Corporate!Governance!Statement! ! ASX! Recommendation! 1.6:! a! listed! entity! should! disclose! the! process! for! evaluating! the! performance! of! the! board,! its! committees! and! individual! directors! and! whether! a! performance! evaluation! was! carried! out! during! the!reporting!period!in!accordance!with!that!process.! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!has!adopted!a!self@evaluation!process!to!measure!its!performance,!and!that!of!individual!directors,!during! each!financial!year.!! A!performance!review!was!undertaken!during!the!reporting!period.! ! ASX! Recommendation! 1.7:! a! listed! entity! should! have! and! disclose! a! process! for! periodically! evaluating! the! performance! of! its! senior! executives! and! disclose! in! relation! to! each! reporting! period! where! a! performance! evaluation!was!undertaken!in!accordance!with!a!process.! ! The!Company!has!complied!with!this!recommendation.! Arrangements!put!in!place!by!the!Board!to!monitor!the!performance!of!the!Company’s!executives!include:! •! •! a!review!by!the!Board!of!the!Company’s!financial!performancet!and! appraisal!meetings!incorporating!analysis!of!key!performance!indicators!with!each!individual.! The!company!conducted!ongoing!performance!reviews!of!senior!executives!during!the!year.! ! PRINCIPLE!2:!STRUCTURE!THE!BOARD!TO!ADD!VALUE! ! ASX!Recommendation!2.1:!The!board!of!a!listed!entity!should!establish!a!nomination!committee:! •! with!at!least!three!members!the!majority!of!which!are!independent!directors! •! •! chaired!by!an!independent!Directori!and! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times! the! committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given!the!present!size!and!complexity!of!the!Company!the!Board!has!not!constituted!a!Nomination!Committee!with!the! full!Board!carrying!out!the!role!of!a!Nomination!Committee.! ! ASX!Recommendation!2.2:!a!listed!entity!should!have!and!disclose!a!board!skills!matrix!setting!out!the!mix!of! skills!and!diversity!that!the!board!currently!has!or!is!looking!to!achieve!in!its!membership! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!has!established!a!skill!matrix.!On!a!collective!basis!the!Board!has!the!following!skills:! ! Strategic!expertise!@!ability!to!identify!and!critically!assess!strategic!opportunities!and!threats!and!develop!strategies.! Specific! Industry! knowledge! –! members! of! the! Board! have! either! specific! qualifications! and! experience! in! the! resources!sector!or!a!general!background!and!experience!in!the!resources!sector.!! Accounting!and!finance!@!members!of!the!Board!have!either!specific!qualifications!and!experience!in!accounting!and! finance! or! the! ability! to! read! and! comprehend! the! company’s! accounts,! financial! material! presented! to! the! board,! financial!reporting!requirements!and!an!understanding!of!corporate!finance.! Risk!management!@!Identify!and!monitor!risks!to!which!the!Company!is,!or!has!the!potential!to!be!exposed!to.! Experience!with!financial!markets!@!Experience!in!working!in!or!raising!funds!from!the!equity!or!capital!markets.! Investor! relations! ^! Experience! in! identifying! and! establishing! relationships! with! Shareholders,! potential! investors,! institutions!and!equity!analysts.! ! ASX!Recommendation!2.3:!a!listed!entity!should!disclose!the!names!of!the!directors!considered!by!the!board! to!be!independent!directors!and!provide!details!in!relation!to!the!length!of!service!of!each!Director! ! The!Company!has!complied!with!this!recommendation.! Messrs! Harris! and! Alexander! are! considered! to! be! independent! directors.! Mr! Hilmer! is! an! executive! of! the! Company! and!is!therefore!not!considered!to!be!independent.! The!appointment!date!of!Directors!is!as!follows:! ! •! Mr!Marcel!Hilmer! ! •! Mr!James!Harris! ! •! Mr!Peter!Alexander!! 19!November!2012! 6!June!2006! 29!April!2013! ANNUAL!REPORT!2016! ! 46! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Corporate!Governance!Statement! ! ASX!Recommendation!2.4:!the!majority!of!the!board!of!a!listed!entity!should!be!independent!directors! ! The!Company!has!complied!with!this!recommendation.! Two!of!the!three!members!of!the!Board!are!considered!to!be!independent.!! ! ASX! Recommendation! 2.5:! The! Chair! of! a! listed! entity! should! be! an! independent! director! and,! in! particular,! should!not!be!the!same!person!as!the!CEO!of!the!entity! The! Company! has! not! appointed! a! chairman! at! this! time! however! two! out! of! the! three! members! of! the! Board! are! considered! to! be! independent.! When! available! to! attend! Board! meetings! Mr! James! Harris! chairs! the! meetings.! Mr! Harris!is!considered!to!be!an!independent!Director.! Mr!Hilmer!is!Chief!Executive!Officer!of!the!Company.! ASX! Recommendation! 2.6:! a! listed! entity! should! have! a! program! for! inducting! new! directors! and! provide! appropriate!professional!development!opportunities! ! The!Company!has!complied!with!this!recommendation.! ! The! Board! is! responsible! for! providing! new! directors! with! an! induction! to! the! Company! and! for! the! program! for! providing!adequate!professional!development!opportunities!for!directors!and!management.! ! PRINCIPLE!3:!ACT!ETHICALLY!AND!RESPONSIBLY! ! ASX! Recommendation! 3.1:! a! listed! entity! should! establish! a! code! of! conduct! and! disclose! the! code! or! a! summary!of!the!code.! ! The!Company!has!complied!with!this!recommendation.! The!Company!has!established!a!code!of!conduct!which!requires!all!business!affairs!to!be!conducted!legally,!ethically! and!with!integrity.!! A!copy!of!the!Company’s!code!of!conduct!is!available!in!the!corporate!governance!section!of!the!Company's!website!at! www.caravelminerals.com.au.! ! ! PRINCIPLE!4:!SAFEGUARD!INTEGRITY!IN!FINANCIAL!REPORTING! ! ASX!Recommendation!4.1:!The!Board!of!a!listed!entity!should!establish!an!audit!committee:! •! with! at! least! three! members,! all! of! whom! are! non^executive! directors! and! a! majority! of! which! are! •! •! independent!directors! chaired!by!an!independent!Directori!and! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times! the! committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given!the!present!size!and!complexity!of!the!Company!the!Board!has!not!constituted!an!Audit!Committee!with!the!full! Board!carrying!out!the!role!of!an!Audit!Committee.! ! The!qualifications!of!the!members!of!the!Board!are!set!out!in!the!Directors!report.!! ! ASX! Recommendation! 4.2:! The! Board! of! a! listed! entity! should,! before! it! approves! the! entity’s! financial! statements! for! a! financial! period,! receive! from! its! CEO! and! CFO! a! declaration! that,! in! their! opinion,! the! financial!records!of!the!entity!have!been!properly!maintained!and!that!!the!financial!statements!comply!with!the! appropriate!accounting!standards!and!give!a!true!and!fair!view!of!the!financial!position!and!performance!of!the! entity!and!that!the!opinion!has!been!formed!on!the!basis!of!a!sound!system!of!risk!management!and!internal! control!which!is!operating!effectively.! ! The!Company!partly!complies!with!this!recommendation.! ! The!Board!has!received!the!assurance!required!by!ASX!Recommendation!4.2!in!respect!of!the!financial!statements!for! the! half! year! ended! 31! December! 2015! and! the! full! year! ended! 30! June! 2016.! Given! the! size! and! nature! of! the! Company’s! operations! the! Board! has! not! received! the! assurance! in! respect! of! the! quarterly! cash! flow! statements! believing!that!the!provision!of!the!assurance!for!the!half!and!full!year!financial!statements!is!sufficient.! ! ! ANNUAL!REPORT!2016! ! 47! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Corporate!Governance!Statement! ! ASX! Recommendation! 4.3:! a! listed! entity! should! ensure! that! the! external! auditor! attends! its! Annual! General! Meeting!and!is!available!to!answer!questions!from!security!holders!relevant!to!the!audit.! ! The!Company!has!complied!with!this!recommendation.! ! The! external! auditor! attends! the! Annual! General! Meeting! and! is! available! to! answer! questions! from! shareholders! relevant! to! the! audit! and! financial! statements.! The! external! auditor! will! also! be! allowed! a! reasonable! opportunity! to! answer!written!questions!submitted!by!shareholders!to!the!auditor!as!permitted!under!the!Corporations!Act.! ! PRINCIPLE!5:!MAKE!TIMELY!AND!BALANCED!DISCLOSURE! ! ASX!Recommendation!5.1:!a!listed!entity!should!establish!written!policies!designed!to!ensure!compliance!with! ASX! Listing! Rule! disclosure! requirements! and! to! ensure! accountability! at! a! senior! executive! level! for! that! compliance!and!disclose!those!policies!or!a!summary!of!those!policies.! ! The!Company!has!complied!with!this!recommendation.! The!Company!has!established!a!continuous!disclosure!policy!which!is!designed!to!guide!compliance!with!ASX!Listing! Rule! disclosure! requirements! and! to! ensure! that! all! Directors,! senior! executives! and! employees! of! the! Company! understand! their! responsibilities! under! the! policy.! The! Board! has! designated! the! Managing! Director! as! the! person! responsible!for!ensuring!that!this!policy!is!implemented!and!enforced!and!that!all!required!price!sensitive!information!is! disclosed!to!the!ASX!as!required.! In! accordance! with! the! Company's! continuous! disclosure! policy,! all! information! provided! to! ASX! for! release! to! the! market!is!posted!to!its!website!at!www.caravelminerals.com.au!after!ASX!confirms!an!announcement!has!been!made.! A!copy!of!the!continuous!disclosure!policy!is!available!in!the!corporate!governance!section!of!the!Company's!website!at! www.caravelminerals.com.au.! ! PRINCIPLE!6:!RESPECT!THE!RIGHTS!OF!SHAREHOLDERS! ! ASX! Recommendation! 6.1:! a! listed! entity! should! provide! information! about! itself! and! its! governance! to! investors!via!its!website! ! The!Company!has!complied!with!this!recommendation.! The!Company’s!website!at!www.caravelminerals.com.au!contains!information!about!the!Company’s!projects,!Directors! and!management!and!the!Company’s!corporate!governance!practices,!policies!and!charters.!All!ASX!announcements! made!to!the!market,!including!annual!and!half!year!financial!results!are!posted!on!the!website!as!soon!as!they!have! been!released!by!the!ASX.!The!full!text!of!all!notices!of!meetings!and!explanatory!material,!the!Company’s!Annual! Report!and!copies!of!all!investor!presentations!are!posted!on!website.!! ! ASX! Recommendation! 6.2:! a! listed! entity! should! design! and! implement! an! investor! relations! program! to! facilitate!effective!two^way!communication!with!investors! ! The!Company!has!complied!with!this!recommendation.! The! Company’s! Managing! Director! is! the! Company’s! main! contact! for! investors! and! potential! investors! and! make! himself!available!to!discuss!the!Company’s!activities!when!requested!together!with!other!Directors!or!senior!executives! as!required.!In!addition!to!announcements!made!in!accordance!with!its!continuous!disclosure!obligations!the!Company,! from!time!to!time,!prepares!and!releases!general!investor!updates!about!the!Company.! The! Company! has! engaged! the! services! of! an! Investor! Relations! company! to! assist! the! company! with! its! investor! relations!program.! Contact!with!the!Company!can!be!made!via!an!email!address!provided!on!the!website!and!investors!can!subscribe!to! the!Company’s!electronic!mailing!list.! ! ASX!Recommendation!6.3:!a!listed!entity!should!disclose!the!policies!and!processes!it!has!in!place!to!facilitate! and!encourage!participation!at!meetings!of!security!holders! ! The!Company!has!complied!with!this!recommendation.! The!Company!encourages!participation!of!shareholders!at!any!general!meetings!and!its!Annual!General!Meeting!each! year.!Shareholders!are!encouraged!to!lodge!direct!votes!or!proxies!subject!to!the!adoption!of!satisfactory!authentication! procedures!if!they!are!unable!to!attend!the!meeting.!! The! full! text! of! all! notices! of! meetings! and! explanatory! material! are! posted! on! the! Company’s! website! at! www.caravelminerals.com.au.! ! ! ANNUAL!REPORT!2016! ! 48! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Corporate!Governance!Statement! ! ASX! Recommendation! 6.4:! a! listed! entity! should! give! security! holders! the! option! to! receive! communications! from,!and!send!communications!to,!the!entity!and!its!security!register!electronically! ! The!Company!has!complied!with!this!recommendation.! Contact!with!the!Company!can!be!made!via!the!facility!or!the!email!address!provided!on!the!website!and!investors!can! subscribe!to!the!Company’s!electronic!mailing!list.! The! Company’s! share! register! provides! a! facility! whereby! investors! can! provide! email! addresses! to! receive! correspondence!from!the!Company!electronically!and!investors!can!contact!the!share!register!via!telephone,!facsimile! or!email.! ! PRINCIPLE!7:!RECOGNISE!AND!MANAGE!RISK! ! ASX!Recommendation!4.1:!The!Board!of!a!listed!entity!should!have!a!committee!to!oversee!risk:! •! with! at! least! three! members,! all! of! whom! are! non^executive! directors! and! a! majority! of! which! are! •! •! independent!directors! chaired!by!an!independent!Directori!and! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times! the! committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given! the! present! size! and! complexity! of! the! Company! the! Board! has! not! constituted! a! Risk! Committee! with! the! full! Board!responsible!for!risk!management.! ! ASX!Recommendation!7.2:!The!Board!or!a!committee!of!the!Board,!of!a!listed!entity!should!review!the!entity’s! risk! management! framework! at! least! annually! to! satisfy! itself! that! it! continues! to! be! sound! and! disclose! in! relation!to!each!reporting!period!whether!such!a!review!was!undertaken! ! The!Company!has!complied!with!this!recommendation.! ! The! ! Board! ! is! ! responsible! ! for! ! the! ! oversight! ! of! ! the! ! Company’s! ! risk! ! management! ! and! control! ! framework.!! Responsibility!!for!!control!!and!!design!!of!!risk!!management!!is!delegated!!to!!the!!appropriate!!level!!of!!management!! within!!the!!Company!!with!!the!Managing!Director!and!Chief!Financial!Officer!being!responsible!to!the!Board!for!the!risk! management!and!control!framework.! ! The!Board!conducted!a!review!during!the!reporting!period.! ! ASX!Recommendation!7.3:!a!listed!entity!should!disclose!if!it!has!an!internal!audit!function!and!if!it!does!not! have!an!internal!audit!function!that!fact!and!the!processes!it!employs!for!evaluating!and!continually!improving! the!effectiveness!of!risk!management!and!internal!control!processes! ! The!Company!has!complied!with!this!recommendation.! Given!the!Company’s!current!size!and!level!of!operations!it!does!not!have!an!internal!audit!function.! The! ! Board! ! is! ! responsible! ! for! ! the! ! oversight! ! of! ! the! ! Company’s! ! risk! ! management! ! and! control! ! framework.!! Responsibility!!for!!control!!and!!design!!of!!risk!!management!!is!delegated!!to!!the!!appropriate!!level!!of!!management!! within!!the!!Company!!with!!the!Managing!Director!and!Chief!Financial!Officer!being!responsible!to!the!Board!for!the!risk! management!and!control!framework.! ! ! ANNUAL!REPORT!2016! ! 49! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Corporate!Governance!Statement! ! ASX!Recommendation!7.4:!a!listed!entity!should!disclose!whether!it!has!any!material!exposure!to!economic,! environmental!and!social!sustainability!risks!and!if!it!does!how!it!manages!or!intends!to!manage!those!risks.! ! The!Company!has!complied!with!this!recommendation.! The!Company!has!exposure!to!economic!risks,!including!general!economy!wide!economic!risks!and!risks!associated! with!the!economic!cycle.!! There!will!a!requirement!in!the!future!for!the!Company!to!raise!additional!funding!to!pursue!its!business!objectives.!!The! Company’s!ability!to!raise!capital!may!be!effected!by!these!economic!risks.! The!Company!has!in!place!risk!management!procedures!and!processes!to!identify,!manage!and!minimise!its!exposure! to!these!economic!risks!where!appropriate! The!current!operations!of!the!Company!are!subject!to!State!and!Federal!laws!and!regulations!concerning!the! environment.!As!with!most!exploration!projects!and!mining!operations,!the!Company’s!activities!are!expected!to!have! an!impact!on!the!environment,!particularly!if!advanced!exploration!or!mine!development!proceed.!It!is!the!Company’s! intention!to!conduct!its!activities!to!the!highest!standard!of!environmental!obligation,!including!compliance!with!all! environmental!laws.! The!Board!currently!considers!that!the!Company!does!not!have!any!material!exposure!to!social!sustainability!risk.!The! Company’s!Corporate!Code!of!Conduct!outlines!the!Company’s!commitment!to!integrity!and!fair!dealing!in!its!business! affairs.!The!code!sets!out!the!principles!covering!appropriate!conduct!in!a!variety!of!contexts!and!outlines!the!minimum! standard!of!behavior!expected!from!employees!when!dealing!with!stakeholders.! ! PRINCIPLE!8:!REMUNERATE!FAIRLY!AND!RESPONSIBLY! ! ASX!Recommendation!8.1:!The!board!of!a!listed!entity!should!establish!a!remuneration!committee:! •! with!at!least!three!members!the!majority!of!which!are!independent!directors! •! •! chaired!by!an!independent!Directori!and! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times! the! committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given!the!present!size!and!complexity!of!the!Company!the!Board!has!not!constituted!a!Remuneration!Committee.! ! ASX! Recommendation! 8.2:! a! listed! entity! should! separately! disclose! its! policies! and! practices! regarding! the! remuneration! of! non^executive! directors! and! the! remuneration! of! executive! directors! and! other! senior! executives! The!Company!has!complied!with!this!recommendation.! Directors! are! paid! a! fixed! annual! fee! for! their! service! to! the! Company! as! a! Non@Executive! Director.! Non@Executive! Directors!may,!subject!to!shareholder!approval,!be!granted!equity!based!remuneration.! Executives!of!the!Company!typically!receive!remuneration!comprising!a!base!salary!component!and!other!fixed!benefits! based!on!the!terms!of!their!employment!agreements!with!the!Company!and!potentially!the!ability!to!participate!in!bonus! arrangements!and!may,!subject!to!shareholder!approval,!if!appropriate,!be!granted!equity!based!remuneration.! ! ASX! Recommendation! 8.3:! a! listed! entity! which! has! an! equity! based! remuneration! scheme! should! have! a! policy! on! whether! participants! are! permitted! to! enter! into! transactions! which! limit! the! economic! risk! of! participating!in!the!scheme!and!disclose!the!policy!or!a!summary!of!that!policy.! ! The!Company!has!complied!with!this!recommendation.! A!participant!in!an!equity!based!remuneration!plan!operated!by!the!Company!must!not!enter!into!a!transaction!(whether! through! the! use! of! derivatives! or! otherwise)! which! limit! the! economic! risk! of! participating! in! the! equity! based! remuneration!plan.! ! ANNUAL!REPORT!2016! ! 50! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! ASX!Additional!Information! 1.! TWENTY!LARGEST!SHAREHOLDERS! The!names!of!the!twenty!largest!holders!of!each!class!of!listed!securities!are!listed!below:! ORDINARY!SHARES! Name! FIRST!QUANTUM!MINERALS!(AUSTRALIA)!Pty!Ltd! SHUN!Christopher!K! CARAVEL!EMPLOYEE!SHARE!PLAN!Pty!Ltd! J!P!MORGAN!NOMINEES!AUSTRALIA!Ltd! NEWSTEAD!SOUTH!HOLDINGS!Pty!Ltd! EYEON!INVESTMENT!Pty!Ltd! LEVY!Geoffrey! GOLDFIRE!ENTERPRISES!Pty!Ltd! RETZOS!INVESTMENT!Pty!Ltd! CLARKSON’S!BOATHOUSE!Pty!Ltd! CORPORATE!PROPERTY!SERVICES!Pty!Ltd! HEALY!Robert!A!&!H!M! POUSTIE!Anthony!&!R!M! BEEBEE!HOLDINGS!Pty!Ltd! HEALY!Robert!Anthony! WARATAH!INVESTMENTS!Ltd! CALAMA!HOLDINGS!Pty!Ltd! BROWN!William!Richard! SBD!DRILLING!Pty!Ltd! WARATAH!AUSTRALIA!Pty!Ltd! Total!Top!20! Others! No!of!Ordinary! Shares!Held! Percentage!of! Issued!Shares! 5,985,886! 4,290,494! 3,695,244! 3,511,261! 2,268,212! 2,190,140! 2,184,026! 1,881,297! 1,690,140! 1,506,623! 1,395,263! 1,298,702! 1,289,676! 1,169,676! 1,119,319! 1,012,094! 880,520! 854,847! 850,411! 681,819! 10.01%! 7.18%! 6.18%! 5.87%! 3.79%! 3.66%! 3.65%! 3.15%! 2.83%! 2.52%! 2.33%! 2.17%! 2.16%! 1.96%! 1.87%! 1.69%! 1.47%! 1.43%! 1.42%! 1.14%! 39,755,650! 20,018,734! 66.48%! 33.52%! Total!Ordinary!Shares!on!Issue! 59,774,384! 100.00%! ! ! ! ANNUAL!REPORT!2016! ! 51! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! ASX!Additional!Information! ! 2.! DISTRIBUTION!OF!EQUITY!SECURITIES! (a)! Analysis!of!security!by!size!holding!as!at!19!September!2016:! ! ! Number!of!Security!Holders! Number!of!Securities!Held! Ordinary!Shares! 1!–!1,000! 1,001!–!5,000! 5,001!–!10,000! 10,001!–!100,000! 100,001!–!and!over! ! 58! 74! 106! 237! 63! 538! 17,657! 242,508! 836,112! 8,333,552! 50,344,555! 59,774,384! (b)! Number!of!holders!of!unmarketable!parcels!–!Ordinary!shares! Unmarketable!Parcels!–!134! 3.! SUBSTANTIAL!SHAREHOLDERS! The!names!of!the!substantial!shareholders!listed!in!the!company’s!register!at!19!September!2016!are:! Name! FIRST!QUANTUM!MINERALS!(AUSTRALIA)!Pty!Ltd! SHUN!Christopher!K! Number!of!Shares!Held! 5,985,886! 4,240,494! 4.! UNQUOTED!SECURITIES! As!at!19!September!2016,!the!following!unquoted!securities!are!on!issue:! Unquoted!Securities! Number!on!Issue! Number!of!Holders! Name!of!Holders! $0.462!Options!expiring!16/10/2016! $0.44!Options!expiring!16/10/2016! $0.77!Options!expiring!31/12/2016! $0.286!Options!expiring!31/01/2017! $0.286!Options!expiring!31/01/2017! $0.165!Options!expiring!31/01/2017! Total!unquoted!securities! 34,091! 2,517,499! 3,787,879! 1,298,702! 3,960,858! 200,569! 11,799,598! 1! 32(1)! 1! 1! 30(1)! 1! ! ROBWARD!Pty!Ltd! Various! FIRST!QUANTUM!MINERALS! (AUSTRALIA)!Pty!Ltd! TAYCOL!NOMINEES!Pty!Ltd! Various! ROBWARD!Pty!Ltd! ! (1)! No!individual!holder!in!excess!of!20%!of!the!issued!securities! ! 5.! VOTING!RIGHTS! The!voting!rights!of!the!ordinary!shares!are!as!follows:! Subject!to!any!rights!or!restrictions!for!the!time!being!attached!to!any!shares!or!class!of!shares!of!the!Company,!each! member!of!the!Company!is!entitled!to!receive!notice!of,!attend!and!vote!at!a!general!meeting.!Resolutions!of!members! will!be!decided!by!a!show!of!hands!unless!a!poll!is!demanded.!On!a!show!of!hands!each!eligible!voter!present!has!one! vote.! However,! where! a! person! present! at! a! general! meeting! represents! personally! or! by! proxy,! attorney! or! representation!more!than!one!member,!on!a!show!of!hands!the!person!is!entitled!to!one!vote!only!despite!the!number! of!members!the!person!represents.!! On!a!poll!each!eligible!member!has!one!vote!for!each!fully!paid!share!held.!! There!are!no!voting!rights!attached!to!any!of!the!options!that!the!Company!currently!has!on!issue.!Upon!exercise!of! these!options,!the!shares!issued!will!have!the!same!voting!rights!as!existing!ordinary!shares.!! 6.! ON^MARKET!BUY!BACK! There!is!currently!no!on@market!buy!back!program!for!any!of!Caravel!Minerals!Limited’s!listed!securities.! ! ! ANNUAL!REPORT!2016! ! 52! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! ASX!Additional!Information! ! 7.! TENEMENTS! The!following!tenements!were!held!at!30!June!2016:! Prospect!Name!and!Location! Tenements! Bryah!(WA)! Calingiri!(WA)! 8.! MINERAL!RESOURCES! E51/1290! E70/2343! E70/2788,!E70/2789,!E70/3674,!E70/3680,!E70/3755,!E70/4327,! E70/4476,!E70/4517,!E70/4674,!E70/4675,!E70/4676,!E70/4732,! E70/4746,!P70/1576,!P70/1593! Ownership! Interest! 92.5%! 80%! ! 100%' At! 30! June! 2016! the! Company! has! an! Indicated! and! Inferred! Mineral! Resource! at! its! Calingiri! Project! of! 251! million! tonnes!at!0.34%!Cu!for!844,300!tonnes!copper!using!a!0.25%!Cu!Cut@off!(!Inidicated!187!million!tonnes!at!0.34%!Cu!for! 626,300!tonnes!copper!and!Inferred!64!million!tonnes!at!0.34%!Cu!for!218,000!tonnes!copper)!.!The!maiden!resource! was!announced!on!4!April!2016!and!a!subsequent!Scoping!Study!was!completed!and!released!on!28!June!2016.! ! The! Company! engaged! independent! consultants! to! prepare! the! Resource! estimate.! In! the! course! of! doing! so! the! consultants!have:! ! •! Reviewed!the!Company’s!assay!and!QA/QC!datat! •! Generated!digital!models!that!represent!the!interpreted!geology,!mineralisation!and!oxidisation!profiles!based! on!drilling!and!geological!information!supplied!by!the!Companyt! •! Completed!statistical!analysis!and!variography!of!economic!elementst! •! Estimated!grades!of!economic!elements!using!ordinary!kriging!and!completed!model!validity!checkst! •! Classified!the!Mineral!Resource!estimate!in!accordance!with!the!2012!Edition!of!the!JORC!Codet!and! •! Reported! the! estimates! and! compiled! supporting! documentation! in! accordance! with! the! 2012! Edition! of! the! JORC!code!guidelines.! ! Competent!Person!Statements! The! information! in! this! report! that! relates! to! the! Calingiri! Mineral! Resource! estimates! is! extracted! from! an! ASX! Announcement! dated! 4! April! 2016,! (see! ASX! Announcement! –! 4! April! 2016! “Calingiri! Maiden! JORC! Resource”,! www.caravelminerals.com.au! and! www.asx.com.au! ).! The! Company! confirms! that! it! is! not! aware! of! any! new! information! or! data! that! materially! affects! the! information! included! in! the! original! market! announcement! and! that! all! material! assumptions! and! technical! parameters! underpinning! the! Mineral! Resource! estimates! in! the! relevant! market! announcement!continue!to!apply!and!have!not!materially!changed.!The!Company!confirms!that!the!form!and!context!in! which! the! Competent! Person’s! findings! are! represented! have! not! been! materially! modified! from! the! original! market! announcement.! The! information! in! this! report! that! relates! to! the! Calingiri! Mineral! exploration! results! is! extracted! from! an! ASX! Announcement!dated!19!Jnauary!2016,!(see!ASX!Announcement!–!19!January!2016!“Caravel!reports!significant!higher! grades! and! exended! miniralisatin! at! its! Calingiri! Project”,! www.caravelminerals.com.au! and! www.asx.com.au! ).! The! Company!confirms!that!it!is!not!aware!of!any!new!information!or!data!that!materially!affects!the!information!included!in! the!original!market!announcement.!The!Company!confi!reported!the!estimates!and!compiled!supporting!documentation! in!accordance!rms!that!the!form!and!context!in!which!the!Competent!Person’s!findings!are!represented!have!not!been! materially!modified!from!the!original!market!announcement.! Production!Targets!and!Financial!Information! Information! in! relation! to! the! Calingiri! Project! Scoping! Study,! including! production! targets! and! financial! information,! included! in! this! report! is! extracted! from! an! ASX! Announcement! dated! 28! June! 2016,! (see! ASX! Announcement!@! 28! June! 2016,! “Scoping! Study! Confirms! Outstanding! W.A.! Copper! Project”,! www.caravelminerals.com.au! and! www.asx.com.au.”! The! Company! confirms! that! all! material! assumptions! underpinning! the! production! target! and! financial!information!set!out!in!the!announcement!released!on!28!June!2016!continue!to!apply!and!have!not!materially! changed.! ANNUAL!REPORT!2016! ! 53! ! ! CARAVEL!MINERALS!LIMITED! !

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