ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
ABN: 80 609 094 653
Page 1
CORPORATE DIRECTORY
80 609 094 653
Level 2/8 Richardson Street
West Perth WA 6005
PRINCIPAL PLACE OF BUSINESS & REGISTERED OFFICE
Computershare Investor Services
Pty Ltd
Level 17, 221 St Georges Tce
Perth WA 6000
Phone: +61 8 9323 2000 (AUS)
+61 3 9415 4000 (INT'L)
Fax:
+61 3 9473 2500
SHARE REGISTER
National Australia Bank
100 St Georges Tce
Perth WA 6000
BANKERS
Phone: +61 8 6118 1627
Email: info@cygnusmetals.com
Website: www.cygnusmetals.com
CONTACT INFORMATION
David Southam
Executive Chairman
Ernest Mast
President & Managing Director
Kevin Tomlinson
Lead Independent Non-Executive Director
Mario Stifano
Non-Executive Director
Brent Omland
Non-Executive Director
Raymond Shorrocks Non-Executive Director
DIRECTORS
Maddison Cramer
Carl Travaglini
JOINT COMPANY SECRETARIES
Australian Securities Exchange
ASX: CY5
TSX Venture Exchange
TSXV: CY5
OTCQB® Venture Market
OTCQB: CYGGF
STOCK EXCHANGE LISTINGS
AUSTRALIAN BUSINESS NUMBER
BDO Audit Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
AUDITORS
Hamilton Locke
Central Park, Level 39
152-158 St Georges Tce
Perth WA 6000
SOLICITORS
Page 2
CONTENTS
CORPORATE DIRECTORY
1
CHAIR AND PRESIDENT'S LETTER
3
CORPORATE HIGHLIGHTS
6
OPERATIONS REVIEW
7
ANNUAL MINERAL RESOURCE STATEMENT
62
AUDITOR'S INDEPENDENCE DECLARATION
65
FINANCIAL REPORTS
66
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND
OTHER COMPREHENSIVE INCOME
67
CONSOLIDATED OF FINANCIAL POSITION
68
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
69
CONSOLIDATED STATEMENT OF CASH FLOWS
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
71
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
93
DIRECTOR'S DECLARATION
94
INDEPENDENT AUDITOR'S REPORT
95
ASX ADDITIONAL SHAREHOLDER INFORMATION
100
TENEMENT SCHEDULE
103
Page 3
Dear Fellow Shareholder,
We are pleased to present the 2024 Annual Report for Cygnus Metals.
This is your Company’s first annual report since it merged with TSXV-listed Doré Copper Mining Corp on December
31, 2024.
Shareholders will recall that during 2024 we outlined a strategy of looking for new assets to complement our
lithium projects in James Bay, Quebec and tenements in Western Australia. This strategy was prompted in part by
the prolonged softness in the lithium price as well as the growing opportunity posed by metals which we believe
enjoy a highly favourable supply-demand outlook.
These considerations led to us assessing a host of corporate and asset transactions. The process was governed
by our commitment to driving shareholder value by leveraging the competitive advantage of our Company and
advisors in project reviews, brownfields exploration and ability to access capital.
Your Company identified Doré Copper’s assets as presenting the ideal opportunity to apply the proven formula
already utilised by FireFly Metals (ASX:FFM) and Andean Silver (ASX:ASL), which have common directors, major
shareholders and advisors to Cygnus. The complementary strengths of Cygnus and Doré Copper were obvious
from the initial discussions and following a period of mutual due diligence, we announced a recommended
merger of equals on 15 October 2024.
As a result of the transaction, Cygnus has established itself as a critical metals company focused on copper, gold
and lithium with the majority of its assets in Quebec, Canada and the remainder in Western Australia. Both
jurisdictions are tier-one for mining and have some of the most mining-supportive governments and communities
in the world. With the addition of Doré’s Chibougamau copper-gold assets, Cygnus now has exposure to three key
commodities, providing diversity and multiple sources of newsflow and growth.
The Chibougamau copper project is in a well-established greenstone belt which extends from central Quebec
westwards into Ontario. Cygnus has the only milling infrastructure for base metals in a 250km radius and is
established as one of the principal companies in the Chibougamau mining camp. There is potential for resource
growth through both brownfields and greenfields discoveries within a world-class mineral terrane that has
produced over 945,000t of copper and 3.5Moz of gold across 16 former producing mines.1 Doré has digitised well
over 120,000 historic geological drawings, exploration results and plans, and we continue to compile and review
the data in some of the most prospective areas. This compilation work has already resulted in the identification
of some excellent drill targets that will be tested early over coming months.
Chair and President's Letter
Page 4
Chair and President's Letter
At the end of 2024, as the merger process was proceeding, Cygnus, together with the Doré team, completed a
small drilling program in the vicinity of the Corner Bay deposit at Chibougamau. This resulted in a stellar intercept
of 7.3m @ 4.2% Cu, 0.3g/t Au & 16.6g/t Ag (from 317.8m), only 250 metres east of the main Corner Bay Resource.5
The outstanding result highlighted the huge scope to grow the resource by extending the known mineralisation. It
also demonstrated the effectiveness of down-hole geophysics as an exploration tool at Chibougamau.
While the upside at Chibougamau is increasingly clear, we continue to progress our lithium assets. Over the past
year, the focus of the lithium exploration effort was Auclair, where a highlight intercept of 43.7m (true width) of
1.15% Li2O (from 46.4m) was obtained.6 This was followed by an intercept of 24.5m @ 0.8% Li2O from 27.5m.13
The width and grade of these results is comparable to major lithium deposits in James Bay, Quebec. At Pontax,
where we have an inferred JORC Mineral Resource Estimate ("MRE") of 10Mt at 1.04% Li2O, mineralisation re-
mains open in all directions, and we are reviewing a detailed gravity survey of the area which was undertaken
towards the end of 2024. At Sakami, a surface sampling program reported in March 2024 identified numerous
outcrops with indicator metals and fractionation similar to that seen at Auclair.
Notwithstanding the advances made on our lithium properties, given the current market conditions, the key
focus of our exploration campaign over coming months will be Chibougamau.
In Western Australia, Cygnus holds more than 1,000sqkm of highly prospective ground within the prolific Yilgarn
Craton. This includes granted tenements covering interpreted and known greenstone belts where previous
explorers identified numerous prospects with widespread high-grade, near-surface rare earths, gold and/or base
metals mineralisation. Given our copper focus in Quebec, Cygnus is assessing options for realising the value of
these assets, while maintaining tenements in good order.
Cygnus is well-funded to continue its exploration programs in Canada and Australia through 2025, finishing 2024
with a cash balance of A$14.9 million. During 2024, the Company received funding or confirmation of funding
from the WA Exploration Investment Scheme, the Quebec Mineral Exploration Support Program for Critical and
Strategic Minerals and the Canadian Minerals Infrastructure Fund, indicating the Company is well positioned to
continue to participate in these programs.
On behalf of the Board, we would like to thank our Shareholders for the strong support you have shown for our
growth strategy and the capital raising activities which help underpin it. This strong financial position means we
will be able to take full advantage of the huge opportunity we have at Chibougamau.
We look forward to reporting to you as we unlock the full value of this project over 2025.
David Southam
Executive Chair
Cygnus Metals Limited
Ernest Mast
Managing Director & President
Cygnus Metals Limited
Page 5
Page 6
Highlights
CORPORATE HIGHLIGHTS
Chibougamau Copper-Gold Project
High-grade copper-gold in mining friendly Quebec
M&I 3.6Mt at 3.0% CuEq + Inf of 7.2Mt at 3.8% CuEq2
One of the highest-grade CuEq resources on the ASX
Excellent infrastructure with 900,000tpa processing facility
2 drill rigs on site
Resource extensions and brownfield exploration
District production of 945,000t of Copper and 3.5Moz of Gold1
Lack of modern exploration & geophysics
Upside and Growth Opportunities
Team with Strong Track Record
Strong Cu and Au project building experience
Proven record of exploration and development success:
Bellevue Gold, FireFly Metals, Mincor Resources and Inmet
(Cobre Panama)
Well Funded with Access to Capital
Funded to execute on current exploration strategy
Financial support from key shareholders
Investment through either ASX or TSXV
2 The Mineral Resource estimate at the Chibougamau Project is a foreign estimate prepared in accordance with CIM
Standards and is not reported in accordance with the JORC Code. A competent person has not done sufficient work to
classify the foreign estimate as a mineral resource in accordance with the JORC Code, and it is uncertain that following
evaluation and/or further exploration work that the foreign estimate will be able to be reported as a mineral resource
or ore reserve in accordance with the JORC Code.
Page 7
Management's Discussion and Analysis of Operations
Cygnus Metals Ltd (ASX:CY5, TSXV:CYG, OTCQB:CYGGF) is a diversified critical minerals explorer with key assets
located in Tier 1 mining jurisdictions, including Quebec, Canada and Western Australia.
The Company’s primary focus is on its Canadian assets and advancing the Chibougamau Copper-Gold Project
alongside the James Bay Lithium Projects (Figure 1). The Company sees this focus as the key to driving returns for
shareholders.
Figure 1: Assets located in Quebec close to major hydropower and rail infrastructure.
The Directors of Cygnus Metals Limited (“Cygnus” or “the Company”) and its controlled entities (“Group”) present
their report, together with the financial statements for the year ended 31 December 2024.
The following Management's Discussion and Analysis (“MD&A”) of Cygnus Metals Limited’s operations should
be read in conjunction with the audited consolidated financial statements for the year ended 31 December
2024 and the notes thereto. The Company’s audited consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (“IFRS”) and International Accounting Standards
as issued by the International Accounting Standards Board (“IASB”) and Interpretations (collectively, “IFRS
Accounting Standards”). Unless otherwise stated, all amounts discussed herein are denominated in Australian
dollars. This MD&A was prepared as of 31 March 2025 and all information is current as of such date. Readers are
encouraged to read the Company’s public information filings on SEDAR at www.sedarplus.ca.
This discussion provides management's analysis of the Company’s historical financial and operating results and
provides estimates of the Company’s future financial and operating performance based on information currently
available. Actual results will vary from estimates and the variances may be significant. Readers should be aware
that historical results are not necessarily indicative of future performance.
Directors' Report
Page 8
Directors' Report | Management's Discussion and Analysis of Operations
CHIBOUGAMAU COPPER-GOLD PROJECT, QUEBEC
Cygnus acquired the Chibougamau copper-gold project (“Chibougamau Project”) as part of its merger with Doré
Copper Mining Corp. (“Doré”), which completed on 31 December 2024. The Chibougamau Project is located
in central Quebec, Canada approximately 480km due north of Montreal. The province of Quebec has been
recognised as a top ten global mining investment jurisdiction in the 2023 Fraser Institute Annual Survey of Mining
Companies. The project has excellent infrastructure with a local mining town, sealed highway, airport, regional
rail infrastructure and access to hydro power via installed powerlines.
The Chibougamau Project is centred on the Chibougamau pluton with district-wide mining between the early
1900s and 2008. Over this long mining history, the area has produced over 945,000t of copper and 3.5Moz of gold
from 16 former producing mines.1
The Company has a clear strategy to:
•
Rapidly grow the existing resource through brownfield exploration and investment in drilling; and
•
Advance the project towards development through study work and utilising existing infrastructure.
The Company sees a substantial opportunity to create shareholder value via an established high-grade resource
with immense growth potential, excellent infrastructure, 900,000tpa processing facility and clear pathway to
production, all within a quality endowed mineral terrane that has seen minimal modern exploration.
Chibougamau Project Resources
The Chibougamau Project has a very high-grade Mineral Resource Estimate including an Indicated Mineral
Resource of 3.6Mt at 3.0% CuEq and an Inferred Mineral Resource of 7.2Mt at 3.8% CuEq for 306kt Cu and 314koz
Au.2
This Resource base, which Cygnus is looking to grow as quickly as possible, is a combination of four assets located
within 50km of the central 900ktpa processing facility (Figures 2 and 3), being:
•
Corner Bay;
•
Devlin;
•
Cedar Bay; and
•
Joe Mann.
Figure 2: Distribution of the high-grade Corner Bay, Devlin, Cedar Bay and Joe Mann deposits which together
comprise the Chibougamau Project.
CANADIAN PROJECTS
Page 9
Corner Bay is the key deposit (making up 79% of the Chibougamau Project resource) and is a classic intrusive
related ‘Chibougamau style’ vein hosted copper-gold system, like many of the former producing mines in the
area. While the Corner Bay deposit has never been mined, a shallow ramp, which will require minor dewatering,
and three levels were established in 2008 down to 115m (vertical depth) to take bulk samples for metallurgical
testing. The deposit has been defined to a vertical depth of 1,350m with excellent geotechnical characteristics
and remains open in numerous directions with immediate scope for additional resource growth.
Cedar Bay is also an intrusive related ‘Chibougamau style’ vein hosted copper-gold deposit located within 5km
of the central processing facility. Cedar Bay is a historical mine that produced 3.9Mt at 4.1% CuEq (1.6% Cu and
3.2g/t Au) for 61kt Cu and 402koz Au1 and remains open at depth with intersections (sitting outside of current
resources) including:
•
3.4m at 16.8% CuEq; and
•
3.4m at 9.6% CuEq.
Cedar Bay is a priority follow up target for exploration and resource growth.
Devlin is a shallow dipping vein system that is located 10km west of Corner Bay and shares similar mineralization
and metallurgical characteristics. A ramp has already been established that accesses the deposit to a depth of
approximately 80 meters.
Joe Mann is located 50km to the south of the main Chibougamau project and is an orogenic, high grade gold
system that historically produced 1.3Moz at 8.3g/t.1 The Joe Mann mine closed in 2007, with Doré acquiring 100%
of the property in 2023. Doré completed drilling at depth in 2020, proving depth extensions remain open and
resulting in a Mineral Resource Estimate.
Chibougamau Processing Facility
The Chibougamau processing facility is a 900,000t per annum plant consisting of a conventional circuit that
produced a high-quality clean concentrate. The processing facility is located 10km from the town of Chibougamau
and was last operated in 2008.
The Chibougamau processing facility is the only remaining processing plant within the Chibougamau district and
the only base metal processing facility within a 250km radius that contains a number of other advanced copper
and gold projects.
Figure 3: Processing plant infrastructure
Page 10
Directors' Report | Management's Discussion and Analysis of Operations
Preliminary Economic Assessment (“PEA”)
The outcomes of the PEA were first announced by Doré on 10 May 2022 and the comprehensive technical report
underpinning the PEA was announced by Doré in accordance with the requirements of NI 43-101 on 15 June
2022. The Technical Report was prepared by BBA Inc. with several consulting firms contributing to sections of the
study, including SLR Consulting (Canada) Ltd., SRK Consulting (Canada) Inc. and WSP Inc. The Technical Report and
the announcement are available on SEDAR+ (www.sedarplus.ca).
Cygnus cautions that the PEA is a preliminary technical, conceptual and economic study undertaken by Doré of
the initial evaluation and potential development of the Chibougamau Project. It is at scoping study level only,
which is based on a lower level of technical assessment that is not sufficient to support the estimation of Ore
Reserves and is inherently uncertain. The production targets and forecast financial information disclosed in
the PEA are underpinned by Measured Mineral Resources (approximately 1.17%), Indicated Mineral Resources
(approximately 32.10%) and Inferred Mineral Resources (approximately 66.73%). However, Cygnus is not able
to disclose the outcomes of the PEA as the significant proportion of Inferred Resources included in the Life
of Mine means that pursuant to ASX and ASIC guidance there is not considered to be sufficiently reasonable
grounds for the production targets and forecast financial information disclosed in the PEA. Accordingly, Cygnus
is not disclosing the production targets and forecast financial information reported in the PEA and cautions
investors against making investment decisions based on such targets and forecasts.
Opportunity and Strategy
The Chibougamau Project has a high-grade resource, excellent infrastructure, 900ktpa processing facility and
pathway to production all within a quality endowed mineral terrane that has seen minimal modern exploration.
Cygnus believes this presents an excellent platform and opportunity to create significant shareholder value through
both brownfield and greenfield exploration, resource growth and advancing the project towards development.
Cygnus’ exploration strategy in CY2025 is focused on:
•
Resource Extension Drilling: Initially targeting Corner Bay and Cedar Bay. The Corner Bay resource
remains open at depth and along strike, while Cedar Bay demonstrates untested down plunge
continuity. At Cedar Bay mutiple high-grade intersections sit outside of the current resources. This
includes intersections3 such as:
»
3.4m at 16.8% CuEq; and
»
3.4m at 9.6% CuEq.
Both deposits exhibit optimal mineralisation styles for detection through downhole electromagnetics
(DHEM), an exploration tool that hasn’t been effectively ultilised across the camp.
•
Brownfield Targeting: Exploration focused around the seven existing deposits/mines within the
consolidated land position, including high quality deposits such as Copper Rand which produced 14.9Mt
at 3.9% CuEq for 268kt Cu and 1.3Moz Au and Henderson & Portage which produced 15.6Mt at
3.7% CuEq for 285kt Cu and 1.2Moz Au.1 Significant opportunity also exists in compiling and
digitising data across the mining camp with only approximately 5% of the data digitised at the
time of the merger.
•
Near Mine Targeting: Although the area has a long history of production, minimal
modern exploration techniques have been used to target new discoveries in the
camp. Opportunity exists for both blind potential and near surface mineralisation,
with multiple high-grade intersections in the top 200m with little follow up
exploration. This includes intersections3 of up to:
»
5.9m at 26.4% CuEq from 115.8m;
»
4.5m at 16.8% CuEq from 155.8m; and
»
8.4m at 9.9% CuEq from 138.6m.
Page 11
•
Utilising Modern Geophysics: With massive sulphide mineralisation and a historical discovery record
across the camp using EM and IP, the application of modern geophysics has not been fully utilised.
Airborne EM conducted in 2002 will be reinterpreted and followed up with both surface and downhole
EM highlighting the opportunity for additional discovery.
•
Infill Drilling: Following on from the base PEA, drilling to increase resource confidence is planned to
accelerate the Chibougamau Project toward a feasibility study whilst conducting exploration drilling to
build upon the current resource.
Cygnus envisages a hub-and-spoke model operation starting first with the underground development of the
Devlin deposit via the existing ramp and secondly with the underground development of the Corner Bay deposit
(main asset) via the existing ramp. Once the Devlin deposit is mined out, production at the Joe Mann mine would
start and be funded out of cash flow from operations. The Joe Mann deposit benefits from an existing headframe
and shaft, including all surface infrastructure. Implementing a hub-and-spoke model provides opportunity for
regional consolidation which will become a focus for Cygnus.
Figure 4: Location of the Chibougamau Project relative to other major deposits and processing facilities.4
Corner Bay Exploration
Prior to the closing of the merger between Cygnus and Doré, the combined team executed a targeted exploration
program to test the immediate areas around the Corner Bay deposit, looking for both additional structures and
extensions to the current resource.
The first drillhole from this program returned an intersection of 7.3m at 4.2% Cu, 0.3g/t Au & 16.6g/t Ag, including
2.5m at 9.1% Cu, 0.5g/t Au & 31.4g/t Ag from a potential new lode ~250m east of the existing resource in the
footwall of the Corner Bay deposit.5
Page 12
Directors' Report | Management's Discussion and Analysis of Operations
Figure 5: High grade drill core from CB-24-
100 intersecting 7.3m at 4.2% Cu, 0.3g/t Au
& 16.6g/t Ag. Image showing core between
321.9m and 322.6m.5
Figure 6: Long section of the Corner Bay deposit with potential new lode in the footwall of the main deposit.
Large 530mx460m untested EM plate along with further untested EM plates to the south.5
The result highlights the potential for multiple sub-parallel
lodes at the Corner Bay deposit analogous to other well-
known deposits in the region. This new structure sits 250m
to the east of the Main Lode at Corner Bay in an area with
very little drilling. This presents an exciting target for follow up
drilling and an opportunity to add to the existing resources at
Corner Bay.
Follow up downhole electromagnetics has since defined a
significant off-hole electromagnetic (EM) anomaly (530m
x 460m) to the north and down dip of the intersection that
has yet to be tested by drilling (Figures 6 and 7).5 EM is
known to correspond well with the mineralisation style at
the Chibougamau mining camp, being primarily composed
of chalcopyrite with minor amounts of pyrite and pyrrhotite.
Historically, airborne EM has been used to make some of the
discoveries in the region, although ground and downhole EM
has been under-utilised in more recent times. The large EM
plate provides a priority target for follow up exploration along
this structure.
Page 13
Figure 7: Plan view of the Corner Bay deposit with potential new lode to the east of the Main
Lode at Corner Bay. Also illustrating other untested EM plates.5
Page 14
Directors' Report | Management's Discussion and Analysis of Operations
JAMES BAY LITHIUM PROJECTS, QUEBEC
Cygnus is exploring for lithium in the world-class James Bay lithium region of Quebec, with three key projects for
a total 696km2. Cygnus is focused on generating shareholder value by exploring the:
•
Pontax Lithium Project – JORC compliant Inferred Mineral Resource of 10.1Mt at 1.04% Li2O (NI 43-101
compliant Inferred Mineral Resource of 8.27Mt at 1.02% Li2O)
•
Auclair Lithium Project – Significant drill intersection of 43.7m at 1.15% Li2O6
•
Sakami Project - An early-stage lithium exploration project in the La Grande greenstone belt which hosts
the substantial Shaakichiuwaanaan deposit
The James Bay Lithium projects are located within the Superior Province of Quebec, within the James Bay region.
This region is one of the most endowed lithium terranes in the world with significant discoveries and exploration
activity over the last couple of years.
Advanced significant lithium projects of northern Quebec7 include:
•
NAL Lithium (M&I 72.1Mt at 1.1% Li2O) - Sayona Mining Limited/Piedmont Lithium Inc;
•
James Bay (Ind 54.3Mt at 1.3% Li2O) - Rio Tinto (post-acquisition of Arcadium Lithium);
•
Shaakichiuwaanaan (Ind 80.1Mt at 1.4% Li2O) - Patriot Battery Metals Inc;
•
Whabouchi (M&I 38.2Mt at 1.45% Li2O) - Nemaska Lithium Inc;
•
Rose (Prob Res 26.3Mt at 0.9% Li2O) - Critical Elements Lithium Corp; and
•
Moblan (M&I 65.1Mt at 1.2% Li2O) - Sayona Mining/SOQUEM Inc.
Figure 8: Location of the Pontax, Auclair and Sakami Lithium Projects in relation to other significant lithium
deposits in the James Bay Area and major access routes through the region.7
Page 15
AUCLAIR LITHIUM PROJECT (100% CY5)
During 2024, the Company completed several exploration programs at Auclair including drilling, prospecting, till
sampling and geophysics.
Drill results from Maiden Pegasus Campaign
In early 2024, the Company announced first drilling results from the Pegasus discovery at its Auclair Lithium
Project in James Bay. This drilling returned a highlight intersection of 43.7m at 1.15% Li2O from 46.4m, including
4m at 3.0% Li2O which includes 1m at 5.9% Li2O.6
This program was the first campaign of drilling in this newly identified area following the discovery of the Pegasus
and Lyra outcrops late in 2023. Initial visual observations confirmed Pegasus as a large continuous pegmatite
body which is up to 76.6m in width (true width), which has since been defined over 300m of strike and remains
open. Subsequent drilling returned multiple shallow +40m spodumene-bearing pegmatite intersections with an
average width of 38m (true width), most of which are within 100m of surface.6
The significant widths and grades received from diamond drillhole 1557-24-041 indicate substantial potential for
a large system at Auclair which shows an optimal fractionation trend over at least 10km of strike with multiple
Figure 9: 43.7m at 1.15% Li2O in moderately, north-westerly dipping Pegasus pegmatite.6,7 Mineralisation is
open at depth and concealed beneath shallow glacial cover.
Page 16
Directors' Report | Management's Discussion and Analysis of Operations
Figure 10: 43.7m at 1.15% Li2O from 46.4m, including 4m at 3.0% Li2O which includes 1m at 5.9% Li2O in
diamond drillhole 1557-24-041.6
Follow up results for additional holes drilled at Pegasus in late 2023 also confirmed lithium mineralisation in line
with expectations based on visual spodumene estimates. Generally, these other intervals were associated with
coarser spodumene mineralisation which resulted in a nuggety grade distribution. While there is some initial
variability and potential zonation of the pegmatite, the initial drilling identified a definite trend of increased
spodumene mineralisation and fractionation moving further along strike north-east from the Pegasus outcrop.
Additional significant results8 included:
•
1557-24-037: 8.0m at 0.9% Li2O from 28.6m, incl. 6.0m at 1.1% Li2O;
•
1557-24-032: 7.6m at 0.8% Li2O from 87.4m, incl. 2.5m at 1.2% Li2O;
•
1557-24-028: 1.5m at 1.24% Li2O from 32.5m;
•
1557-24-035: 2.0m at 1.3% Li2O from 41.8m; and
•
1557-24-040: 13.7m at 0.6% Li2O from 111.2m, incl. 2.0m at 1.3% Li2O.
Page 17
Geophysics at Pegasus
Following the return of all drill results from the first drill campaign at Pegasus, the Company embarked on the next
field season with geophysics. Ground gravity survey data was collected in May, in order to test its applicability to
detect pegmatites under shallow glacial cover at the Auclair Project. Initially, the survey was undertaken as a trial
over the main Pegasus discovery outcrop.
Results from the survey highlighted a gravity low seeming to correlate with the known extent of the Pegasus
pegmatite (drilled over 300m).9
Ground gravity has been successfully applied in lithium projects in the region and was demonstrated during the
discovery of Adina by Winsome Resources Limited (ASX: WB1). In this instance the ground gravity helped to
delineate the mineralisation which is almost entirely undercover.
Figure 11: Gravity anomaly associated with the Pegasus pegmatite.9 Refer to ASX releases dated 8 April and
26 February 2024 for previous drill results.
Till Sampling Results
Till samples were collected across the main fractionation trend at Auclair to assist in identifying anomalies
undercover. During 2024 results were received from 257 till samples, which revealed numerous new anomalies
outside existing known spodumene-bearing pegmatite discoveries of Auriga, Lyra and Pegasus.10
The new anomalies are thought to represent multiple spodumene-bearing pegmatites beneath glacial cover,
indicative of a large and unexplored lithium system. Shallow glacial cover is widespread across the Auclair
Project, and with minimal outcrop, till geochemistry and mineralogy may be effective exploration tools to detect
spodumene pegmatite sources beneath glacial overburden.
The till samples have undergone both geochemical and mineralogical analysis. The anomalies demonstrate strong
coincident elevations across multiple geochemical pathfinder elements as well as anomalous mineralogy. Known
spodumene-bearing pegmatites of Auriga, Lyra and Pegasus provide an excellent reference point for up and down
ice dispersion and associated pathfinder elements. This proof of concept and signature of elements has been
applied to other anomalies across the project which have now been prioritised for next stage exploration such as
detailed prospecting and gravity surveys.
Page 18
Directors' Report | Management's Discussion and Analysis of Operations
Summer Drill Campaign at Auclair
During the September Quarter, the Company undertook a second round of drilling at Auclair to follow-up on
results from the first drill program and initial ground gravity survey results at Pegasus.
During this program 17 helicopter-supported diamond drill holes were completed at Auclair for a total of 3,099
metres. Of these drillholes, 13 holes were completed targeting the extension to the Pegasus pegmatite and four
holes were completed targeting the Lyra pegmatite.
At Pegasus, drilling was designed to test initial ground gravity results which indicated a potential extension to
the pegmatite. The gravity survey undertaken in May 2024 indicated a distinct gravity low correlating with the
known extent of the Pegasus pegmatite (defined over 300m).9 The follow up drill program did not intersect
significant mineralisation outside the previously known extents of the Pegasus pegmatite. Only drillhole 1557-
24-049 returned any mineralisation of width, being drilled within the previously defined 300m of strike length,
intersecting:
•
24.5m at 0.8% Li2O from 27.5m, incl. 5.0m at 1.08% Li2O and 5.5m at 1.02% Li2O
At Lyra, no significant pegmatites were intersected by the limited drilling.
Location and Infrastructure
The Auclair property is ideally located just 80km northeast of the Nemiscau airport and 50km northeast of
Whabouchi (M&I 38.2Mt at 1.4% Li2O), which is owned and operated by Nemaska Lithium.7 The property can
be accessed all-year round by all-weather roads and has Hydro Quebec high-voltage transmission lines running
north-south through the project area.
Figure 12: Till analysis has identified numerous potential sources of lithium mineralisation undercover within
the project outside of existing discoveries at Auriga, Lyra and Pegasus. Scale and number of anomalies indicate
potential for a large fertile lithium system.
Refer to ASX releases dated 28 November 2023, 10 January 2024, 26 February 2024, 8 April 2024 and 17 May
2024 for previous results.
Page 19
PONTAX LITHIUM PROJECT (51% CY5, EARNING UP TO 70%)
During 2024, the focus of the exploration team was at Auclair with little work completed at Pontax due to a lack of
available resources and short field season. Towards the end of 2024 the Company completed an airborne gravity
geophysical survey to map the undercover mafic units within the prospective greenstone belt. Results from this
program are still pending but will assist the Company in designing follow up drill programs to target extensions to
the Pontax resource under glacial cover.
The Pontax Project has an Inferred Resource of 10.1Mt at 1.04% Li2O reported in accordance with JORC 2012
(refer ASX release dated 14 August 2023), or 8.27Mt at 1.02% Li2O reported in accordance with NI 43-101. This
includes significant pegmatite intersections11 of:
•
23.4m at 1.4% Li2O from 367.8m including 11.8m at 1.9% Li2O and 2.9m at 2.3% Li2O;
•
16.5m at 1.1% Li2O from 239.8m (including an interval of 6.0m at 1.8% Li2O) and 4.3m at 1.8% Li2O
from 227.6m;
•
13.3m at 1.3% Li2O from 300.2m (including an interval of 3.7m at 2.1% Li2O) and 5.7m at 1.4% Li2O
from 194.3m; and
•
11.1m at 1.2% Li2O from 146.3m (including 2.5m at 2.6% Li2O), 3.6m at 1.4% Li2O from 65.6m and
6.3m at 1.0% Li2O from 94.9m.
Table 1: Maiden Mineral Resource Estimate for Pontax Central reported in accordance with JORC 2012.
Resource
Category
Cut-off Grade
(Li2O)
Tonnes (Mt)
Grade (Li2O)
Contained
Li2O (Tonnes)
Grade (Ta2O5
ppm)
Inferred
0.5%
10.1
1.04%
105,280
74.79
Table 2: Pontax JORC 2012 Resource grade and tonnage reporting above a range of cut-off grades.
Cut-off Grade (Li2O)
Tonnes (Mt)
Grade (Li2O)
Grade (Ta2O5 ppm)
0.5%
10.1
1.04%
74.79
0.7%
9.3
1.07%
74.46
1.0%
5.2
1.23%
75.15
Table 3: CIM Standards (NI 43-101) Mineral Resource Estimate for Pontax Central.
Resource
Category
Deposit
Cut-Off Grade
(Li2O)
Tonnes (Mt)
Grade (Li2O)
Contained Li2O
(Tonnes)
Inferred
Open Pit
0.4%
5.14
1.07%
54,800
Underground
0.6%
3.13
0.93%
29,200
Total
0.4% and 0.6%
8.27
1.02%
84,000
The Pontax Project is well situated in the emerging James Bay territory in northern Quebec, which is the focus
of significant investment from the Quebec government under Quebec’s “Plan Nord” economic development
strategy that offers significant tax incentives for mining companies to invest in and explore the province’s vast
northern mineral wealth.
Pontax is situated just 4km off the James Bay Road (State Route 109) which connects Matagami, 350km to the
south, to the village of Radisson, 240km to the north. Matagami has both an airport and major railway which
connects directly to major infrastructure throughout North America. Major development projects surround
the Pontax Project including James Bay, Rose and Whabouchi which only enhances the viability of commercial
production from the area with continued investment from major lithium companies.
In addition, Quebec is strategically well-positioned regarding the critical transitioning energy and e-mobility
markets in Europe and the United States and boasts excellent infrastructure, including low cost and low carbon
electricity through Hydro-Quebec.
Page 20
Directors' Report | Management's Discussion and Analysis of Operations
Figure 13: Cross section though Pontax Central looking towards the NE, showing both shallow historic drillholes
and the latest deeper drillholes completed by Cygnus.10,11 Observed geology illustrating multiple spodumene-
bearing pegmatites focused over a 75m wide zone. The latest drilling is the deepest drilling on the project to
date stepping out over 100m from existing drilling with mineralisation remaining open at depth.
Figure 14: Mineralisation at Pontax Central is completely OPEN with limited drilling along a highly prospective
trend.10,11 Spodumene mineralisation confirmed over 9km.
Page 21
SAKAMI LITHIUM PROJECT (100% CY5)
The Sakami Project comprise 231 claims covering 118sqkm and is located in the La Grande greenstone belt, just
44km west of Patriot Battery Metals’ Shaakichiuwaanaan Project which hosts the outstanding CV5 discovery.
Sakami is also directly adjacent to Winsome Resources’ Cancet Project, another significant discovery in this new
and previously unrecognised lithium province. The only drilling undertaken on the property was for gold and base
metals in 1976, comprising 5 diamond drill holes. No specifically targeted lithium exploration had been recorded
on the project.
During 2024 the Company completed several prospecting campaigns at Sakami with promising results from the
first campaign highlighting strong geochemical indicators for LCT (lithium-caesium-tantalum) pegmatites over
4km of strike.
During the first program, 85 pegmatite rock chip samples were collected over a brief 10-day period on wide
spaced regional traverses. Results from this work identified highly fractionated pegmatites forming a coherent
trend over 4km of strike with LCT pegmatite pathfinder results of up to 130ppm Ta, 154ppm Sn and 261ppm Cs
alongside favourable K/Rb fractionation ratios as low as 22.12
These results are similar to fractionation results from the Auclair Project which form a 10km fractionation trend,
hosting three separate spodumene-bearing outcrops. Follow up exploration on the fractionation trend at Auclair
led to the subsequent discovery of the Lyra and Pegasus spodumene-bearing pegmatite outcrops, demonstrating
this application of fractionation geochemistry to be a positive targeting vector for prospecting.
Follow up prospecting campaigns completed later in the season received no additional material results and
generally confirmed results in line with the first campaign.
Figure 15: Top – Overview of the Sakami Project; much of the project remains unexplored. Bottom – Inset of 4km
fractionation trend with highly anomalous LCT pegmatite indicator geochemistry and low fractionation ratios.12
Page 22
Directors' Report | Management's Discussion and Analysis of Operations
Page 23
EXPLORATION - AUSTRALIA
Cygnus’ Australian exploration activities are focused in the Southwest Terrane, an underexplored region of highly
prospective geology within the prolific Yilgarn Craton in Western Australia.
The Company has approximately 1,024km2 (100% Cygnus) granted tenements covering interpreted and known
greenstone belts where previous explorers identified numerous prospects with widespread high grade, near
surface gold and/or base metals mineralisation.
Cygnus is actively exploring key prospective tenure for lithium as well as rare earth elements (“REEs”), nickel,
copper, gold and platinum group elements (“PGEs”).
Figure 16: Cygnus Australian tenure with background geology from GSWA mapped regional geology
(1:500,000).
Page 24
Directors' Report | Management's Discussion and Analysis of Operations
SNAKE ROCK PROJECT (100% CY5)
The Snake Rock Project is located 230km east of Perth, Western Australia in the South West
Terrane of the Yilgarn Craton. The project covers 448km² of an area considered highly prospective for
Ni, Cu and PGEs; covering the south eastern extent of the same mobile belt which hosts Chalice Mining’s
Julimar Ni-Cu-PGE discovery. The Snake Rock Project is also prospective for gold mineralisation, located just 30km
south west and along the same structural lineament as Ramelius Resources’ 700koz Tampia gold deposit.
In 2024 the Company was successful in its application for EIS Funding, with $115,000 awarded for the drilling of a
significant copper-gold target identified at the Snake Rock Project, in the Central Yilgarn. The Company continued
to design drilling to follow-up on the initial anomalous drillhole which returned 75m at 0.15g/t Au & 0.1% Cu
(including 6.2m at 0.7g/t Au & 0.3% Cu and 3m at 1.1g/t Au & 0.4% Cu) in a previously unknown ultramafic
terrain.13 Samples from the previous drilling have been petrographically analysed and undergone geophysical
testing including downhole EM. The Cygnus team has completed ground magnetics and gravity over the region
to assist in target refining. This drilling, scheduled for Q1 2025, will be co-funded under the WA Exploration
Incentive Scheme (“EIS”).
Figure 17: Initial diamond hole SRRCDD007 displaying the downhole copper and gold results.13
Page 25
BENCUBBIN PROJECT (100% CY5)
The ~800km² Bencubbin Project is located ~220km northeast of Perth and covers the Bencubbin Greenstone Belt,
an underexplored greenstone sequence extending for over 70km of strike, and up to 5km in width. Greenstone
belts such as Bencubbin are highly prospective for gold, lithium-caesium-tantalum (“LCT”) pegmatites, nickel,
volcanic massive sulphides (“VMS”) and REEs.
The Company had previously defined rare earth mineralisation over 22km with drilling campaign conducted in
2023 and 2022 with results14 including:
•
79m at 1,576ppm total rare earth oxide (“TREO”) from 32m, including 8m at 7,243ppm TREO;
•
40m at 1,628ppm TREO from 8m;
•
19m at 1,959ppm TREO from 4m, including 4m at 4,743ppm TREO;
•
25m at 2,745ppm TREO from 52m, including 8m at 5,617ppm TREO;
•
51m at 1,108ppm TREO from 39m, including 14m at 2,032ppm TREO; and
•
23m at 1,862ppm TREO from 12m including 12m at 2,405ppm TREO.
During the year, the Company received REE results for metallurgical testwork for samples submitted for analysis
with industry leading laboratory ANSTO Minerals (Australian Nuclear Science and Technology Organisation).
A diagnostic desorption test was completed on all pulverised samples under the following conditions, 0.5M
(NH4)2SO4 as lixiviant, pH4, 0.5hrs, ambient temperature and 4 wt% solids density. Diagnostic leach tests were
conducted on two samples (pulverised) with 25 g/L H2SO4 (0.26M) and 50 g/L H2SO4 (0.52M) under the following
standard test conditions, 25 g/L or 50 g/L H2SO4, 80 g pulverised ore, 6hrs, ambient temperature and 4 wt% slurry.
Analysis of the results show improved recoveries in both TREO and magnetic rare earth oxides (“MREO”) using
higher acidity levels, longer residence times and higher temperatures.8 At this stage, Cygnus will assess how best
to monetise this prospect, however for the time being no further drilling nor material testwork is scheduled for
this project.
Cygnus has been invited to participate in the Accelerating Development of Australia's Rare Earth Resources
(“ADARER”) Research Project, currently in development by ANSTO, CSIRO and Geoscience Australia. Further
work on the Bencubbin REE project would be directed towards understanding the extraction of REE metals and
completed in conjunction with these three leading academic bodies.
Figure 18: Significant clay profile up to 79m developed over rare earth enriched granite.14 Mineralisation is high
grade and near surface with very low stripping. Vertical exaggeration x2.
Page 26
Directors' Report | Management's Discussion and Analysis of Operations
Directors’ Report
Annual Report | 27
Management’s Discussion and Analysis of Operations (continued)
CORPORATE
Board and Executive Team Restructure
On 27 March 2024, the Company announced that it had made changes to the Board and management team structure and
remuneration effective 1 April 2024 to reflect current market conditions and its ongoing commitment to maximise the funds
available for exploration at its Canadian lithium projects.
Effective 1 April 2024, the changes included:
•
Managing Director David Southam transitioned to Executive Chair. Mr Southam volunteered to reduce his remuneration
pro rata to three days per week, one-third of which was to be paid in CY5 equity. This reverted to four days per week on
1 September 2024;
•
Existing Independent Non-Executive Chairman Kevin Tomlinson transitioned to Lead Independent Non-Executive
Director. Mr Tomlinson’s remuneration to be paid 50% in cash and 50% in CY5 equity;
•
All other Non-Executive Directors director fees to be paid 50% in cash and 50% in CY5 equity; and
•
Other members of the management team also elected to receive a portion of their cash remuneration in CY5 equity.
Shareholders approved the issue of equity in lieu of directors’ fees at the annual general meeting on 16 May 2024. This salary
sacrifice scheme ended on 31 December 2024.
Non-Executive Director Resignation
On 21 September 2024, Michael Naylor resigned as a Non-Executive Director. As a Cygnus founder and supportive major
shareholder, Mr Naylor continues as a consultant to Cygnus, ensuring the Company continues to benefit from his vast skills
and experience in the corporate and resource development space.
Change of Auditor
On 25 June 2024, the Company announced that BDO Audit Pty Ltd (“BDO”) had been appointed as auditor of the Company.
This appointment follows the resignation of Ernst & Young (“EY”) and required consent from ASIC, in accordance with section
329(5) of the Corporations Act 2001 (Cth).
In accordance with section 327C of the Corporations Act 2001 (Cth), a resolution to confirm the appointment of BDO as the
Company’s external auditor will be put to shareholders at the Company’s next Annual General Meeting.
$3,000,000 Traditional Placement
On 15 July 2024, the Company announced a placement to institutional and sophisticated investors to raise $3,000,000 (before
costs) through the issue of 85,600,001 fully paid ordinary shares in the Company at an issue price of $0.035 per share. The
Company issued 72,685,715 shares under the first tranche of the placement on 19 July 2024, with the second tranche of
12,914,286 shares issued 11 September 2024 following receipt of shareholder approvals at the general meeting held on 6
September 2024.
Merger with Doré Copper Mining Corp., Equity Raise and Board Changes
On 15 October 2024, the Company entered into a definitive arrangement agreement (“Agreement”) with Doré Copper Mining
Corp. (“Doré”) to combine the respective businesses in a merger of equals transaction, pursuant to which Cygnus agreed to
acquire 100% of the issued and outstanding common shares of Doré by way of a court approved plan of arrangement under
the Canada Business Corporation Act (the “Merger”).
Directors’ Report
Annual Report | 28
Management’s Discussion and Analysis of Operations (continued)
The strategic rationale for the Merger is supported by a shared commitment to growth and value creation. The merged
company will leverage the exploration and development expertise of Cygnus and Doré to expand resources at the
Chibougamau Project while advancing the lithium exploration program in James Bay. With Québec recognised as a leading
jurisdiction for critical minerals exploration, the merged entity is well-positioned to benefit from strong government and
community support. Cygnus will also benefit from enhanced access to capital markets through its dual listing on the ASX and
the TSXV and subsequent quotation on the OTCQB, which is expected to increase liquidity and broaden its shareholder base.
Pursuant to the terms of the Agreement, holders of Doré Shares received 1.8297 ordinary shares of Cygnus (“Cygnus Shares”)
in exchange for each Doré Share (the “Exchange Ratio”) held immediately prior to completion of the Merger. The Exchange
Ratio was based on an approximate 5-day volume-weighted average price of Doré Copper Shares on the TSX Venture Exchange
(“TSXV”) and Cygnus Shares on the Australian Securities Exchange (“ASX”) as at October 11, 2024. This represented an implied
value of CAD$0.141 per Doré Share and an implied equity value for Doré of CAD$24 million.
As of the date of the Agreement, existing shareholders of Doré (“Doré Shareholders”) and shareholders of Cygnus would own
approximately 45% and 55%, respectively, of the outstanding Cygnus Shares following completion of the Merger (before
considering the Cygnus Equity Raise described below).
In connection with the Merger, on 17 October 2024, the Company announced a placement to institutional and sophisticated
investors to raise $11,000,000 (before costs) through the issue of 152,777,778 fully paid ordinary shares in the Company at an
issue price of $0.072 per share (“Equity Raise”). Cygnus issued 94,864,785 shares on 23 October 2024 under the first tranche
of the Equity Raise, and a further 57,912,993 shares on 20 December 2024 under the second tranche following receipt of
approvals at the respective shareholder meetings of Cygnus and Doré.
The Merger completed effective 31 December 2024 following the receipt of required Doré Shareholder approvals and final
orders from the Ontario Superior Court of Justice, and Cygnus Metals Limited began trading on the TSXV on 3 January 2025
(TSXV: CYG).
In connection with the Merger, Doré directors Ernest Mast, Mario Stifano and Brent Omland were appointed to the Cygnus
board of directors on 31 December 2024, with Mr Mast appointed Managing Director and President, and Mr Stifano and Mr
Omland as Non-Executive Directors. Non-Executive Director Michael Bohm resigned from the board of directors on the same
date.
Outlook
In 2025, the Company is planning drilling at a number of targets in the Chibougamau project area which includes follow-up on
hole CB-24-100 and on some of the newly identified electromagnetic plates at Corner Bay and other prospects near Cedar Bay
SW, and other historic mining areas which have seen minimal systematic exploration. The Company is also planning to conduct
downhole geophysics at the holes drilled during 2024 at Cedar Bay SW as well as surface and airborne geophysics at various
other targets on the Company’s mineral properties.
The Company is looking to apply artificial intelligence technology to speed up the scanning of the over 100,000 historical
geological drawings and maps that have yet to be reviewed.
With the copper and gold price gains seen in early 2025 and the increasing copper demand from sectors related to the clean
energy transition, the Company anticipates accelerating the development of its proposed hub-and spoke operation. The
completion of a feasibility study will require an infill drilling program of over 30,000 meters at its flagship Corner Bay and Devlin
high-grade copper project.
Directors’ Report
Annual Report | 29
Management’s Discussion and Analysis of Operations (continued)
Overall Performance
Total comprehensive loss of the Group for the year ended 31 December 2024, after providing for income tax, amounted to
$3,772,569 (2023: $13,500,296). At 31 December 2024 net assets of the Company were $71,467,357 (2023: $26,977,396).
At 31 December 2024 the Group had $14,869,835 in cash and cash equivalents (2023: $9,316,782).
The following tables provide selected financial information that should be read in conjunction with the Company’s audited
financial statements for the current reporting year ended 31 December 2024 and the comparative reporting year ended
31 December 2023.
Quarterly financial data has not been prepared for the reporting years ended 31 December 2024 and 2023 as Cygnus only
became a reporting entity on the TSX-V on 31 December 2024, before which quarterly financial data was not compiled in the
format required for the purposes of MD&A disclosures. The following table sets out the equivalent interim financial data for
half-year periods for the current and comparative reporting years and the most recent fourth quarter ended 31 December
2024:
2024
Q4
$
2024
HY2
$
2024
HY1
$
2023
HY2
$
2023
HY1
$
Total finance and other income
648,505
1,294,485
1,470,234
1,730,636
1,263,187
Total operating expenses
(1,045,106)
(2,083,500)
(3,104,902)
(6,280,560)
(8,195,027)
Loss for the year after income tax
(396,601)
(1,425,946)
(2,346,623)
(5,536,695)
(7,963,601)
Total comprehensive loss for the year
(502,313)
(1,214,522)
(2,550,932)
(5,861,665)
(7,948,303)
Basic and diluted loss per share (cents per share)
(0.09)
(0.28)
(0.80)
(4.85)
(0.99)
Distributions or cash dividends declared per share
-
-
-
-
-
There were no unusual operating activities during the fourth quarter of 2024 aside from recognition of the asset acquisition of
Doré Copper Mining Corp. on 31 December 2024. There was an immaterial value of transaction related costs incurred on a
cash flow basis during the quarter, with the majority of the transaction related costs accrued at 31 December 2024 with the
related liabilities settled in the first quarter of 2025.
There were no unusual investing or financing activities during the fourth quarter of 2024 aside from the $11,000,000 placement
announced on 15 October 2024 in connection with the Doré acquisition. Proceeds from the placement have been (and will be)
applied to accelerate resource growth, both brownfields and greenfields exploration, pathway to production at the
Chibougamau Project (including continuing permitting and studies), advancing the lithium exploration pipeline in James Bay
and general working capital, including costs of the Doré acquisition transaction and associated share placement.
Selected Financial Information
The following selected financial information has been extracted from the Company’s general purpose financial statements
which have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements and the
Corporations Act 2001 (Cth).
The financial statements of Cygnus Metals Limited also comply with International Financial Reporting Standards (“IFRS”) and
international Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and Interpretations
(collectively, “IFRS Accounting Standards”).
These financial statements have been prepared under the historical cost convention except for investments held at fair value
through other comprehensive income.
The functional currency of each entity within the group is measured using the currency of the primary economic environment
in which that entity operates, being Australian dollars for group entities domiciled in Australia and Canadian dollars for group
entities domiciled in Canada. The consolidated financial statements are presented in Australian dollars which is the parent
entity’s functional and presentation currency.
Directors’ Report
Annual Report | 30
Management’s Discussion and Analysis of Operations (continued)
2024
$
2023
$
2022
$
Operations
Total finance and other income
2,764,719
2,993,823
690,326
Total operating expenses
(5,188,402)
(14,475,586)
(3,010,782)
Loss for the year after income tax
(3,772,569)
(13,500,296)
(2,761,229)
Total comprehensive loss for the year
(3,765,451)
(13,809,967)
(2,875,097)
Basic and diluted loss per share (cents per share)
(1.08)
(5.84)
(0.45)
Distributions or cash dividends declared per share
-
-
-
Balance Sheet
Excess of current assets over current liabilities
12,452,251
5,175,778
11,751,495
Total assets
78,875,452
35,085,182
21,401,670
Total liabilities
7,408,095
8,107,786
3,999,229
Cash Flows
Net cash flows used in operating activities
(1,923,096)
(3,554,201)
(2,108,273)
Net cash flows used in investing activities
(5,874,660)
(13,004,601)
(5,066,996)
Net cash flows provided by financing activities
13,322,224
12,504,080
18,200,871
Net change in cash and cash equivalents
5,524,468
(4,054,722)
11,025,602
Cash and cash equivalents at the beginning of the year
9,316,782
13,530,678
2,811,336
Effect of movements in exchange rates on cash held
28,585
(159,174)
(306,260)
Cash and cash equivalents at the end of the year
14,869,835
9,316,782
13,530,678
Results of Operations
Operations
-
Income comprises interest income and flow through share premiums which are reasonably consistent between periods.
-
Operating expenses have decreased in the current period due to a significant reduction in share-based payment expenses
of $2,016,732 compared to $10,185,535 in 2023.
-
Basic and diluted loss per share has decreased dramatically in the current year due to the aforementioned decrease in
share-based payment and its impact on the total comprehensive loss for the period.
-
Transaction costs incurred by Cygnus in the current year in relation to the acquisition of Doré Copper Mining Corp.
(“Doré”) do not impact on current year results as these costs are capitalised to the balance sheet.
Balance Sheet
-
Total assets have significantly increased at the end of the current reporting year compared to the end of the comparative
reporting period due largely to the acquisition of Doré on 31 December 2024 which included an inflow of cash and cash
equivalents of $2,457,306 and the recognition of approximately $31,000,000 in capitalised exploration assets including
approximately $1,300,000 in capitalised transaction costs.
-
The excess of current assets over current liabilities has improved at the current reporting date due to both a reduction in
trade and other payables, a decrease in overall expenditure in 2024 compared to 2023 and the recognition of Doré cash
upon acquisition on 31 December 2024.
Directors’ Report
Annual Report | 31
Management’s Discussion and Analysis of Operations (continued)
Cash Flows
-
Net cash flows used in operating activities have decreased in the current reporting period largely due to both the
reduction in staff numbers and also the issuance of share rights in lieu of a portion of cash salaries and fees under salary
sacrifice arrangements. Further administration cost saving initiatives have resulted in decreased operating cash flows
compared to the comparative reporting period.
-
Net cash flows used in investing activities have decreased significantly from the comparative reporting period due to
approximately $1,500,000 less spent on project acquisitions and $2,800,000 less spent on capitalised exploration
expenditure activities in the current reporting period. The recognition of $2,457,306 in Doré cash and cash equivalents
upon acquisition on 31 December 2024 has also reduced net cash used in investing activities in the current reporting
period.
Exploration and Evaluation Assets
Movements in exploration and evaluation assets with respect to the Company’s interest in mineral properties owned, leased
or under option consists of the following for the years ended 31 December:
2024
2023
$
$
Opening balance
23,926,379
5,538,857
Expenditure incurred during the year – Australian tenements
495,731
1,319,326
Expenditure incurred during the year – Canadian tenements
6,039,180
11,207,656
Acquisition costs – Canadian tenements
437,038
6,495,477
Dore Acquisition
31,109,527
-
Exploration expenditure written off
(630,056)
(634,937)
R&D Refund
(68,534)
-
Closing balance
61,309,265
23,926,379
There has been a significant reduction in project acquisition costs incurred in the current reporting period compared to the
comparative which included a significant number of shares issued to project vendors as consideration under various option
acquisition agreements. Approximately $31,000,000 in additional capitalised exploration assets was also recognised on the
balance sheet in relation to the acquisition of Doré on 31 December 2024.
Breakdown of exploration and evaluation assets by project area for the years ended 31 December:
2024
2023
$
$
Australian gold and rare earth project areas
2,675,470
2,872,205
Canadian Projects:
Pontax lithium project area
13,612,228
12,741,138
Sirios lithium project area
2,054,437
1,900,352
Auclair lithium project area
9,361,574
4,783,408
Sakami lithium project area
1,750,073
920,412
Noranda lithium project area
745,955
708,864
Chibougamau copper-gold project area
31,109,527
-
Totals
61,309,265
23,926,379
The majority of exploration activities in 2024 occurred on the Auclair and Sakami lithium project areas. The market sentiment
for lithium remained depressed throughout 2024 resulting in somewhat restrained expenditure on these project areas.
Directors’ Report
Annual Report | 32
Liquidity and Capital Resources
As at 31 December 2024 the Group had current assets of $16,125,095 (2023: $10,824,258), including cash and cash equivalents
of $14,869,835 (2023: $9,316,782), and current liabilities of $3,599,903 (2023: $5,648,480).
The Group’s cashflow forecast through to 31 March 2026 reflects that the Group will be required to raise additional capital
during this period to enable it to continue to meet its operational and planned exploration activities.
The Directors are satisfied that there is a reasonable basis to conclude that the Group can raise additional capital as and when
required and thus it is appropriate to prepare the consolidated financial report on a going concern basis as the Group has
potential options available to manage liquidity, including one or a combination of, a placement of shares, option conversion,
entitlement offer or a change in the Company’s expenditure profile.
In the event that all of the funding options available to the Group do not transpire and there is no change to the forecasted
spending pattern, there is material uncertainty about whether the Group is able to continue as a going concern and, therefore,
realise its assets and discharge its liabilities in the normal course of business at the amounts stated in the financial report.
The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset
amounts or to the amounts or classification of liabilities that might be necessary should the Group not be able to continue as
a going concern.
Restricted Cash
The Company did not have any restricted cash balances at 31 December 2024 or 31 December 2023.
Contractual Obligations and Contingent Liabilities
Promissory Notes
In 2019, Doré Copper Mining Corp. (“Doré”) issued promissory notes to Ocean Partners Investments Limited (“OPIL”), a related
party, in the aggregate amount of CAD$7,500,000, plus accrued interest. These promissory notes are considered a financial
liability under IFRS 9 and were initially measured at fair value with subsequent measurement at amortized cost. The obligations
of the Corporation under the promissory notes are guaranteed by Doré’s wholly owned subsidiary CBay Minerals Inc. (“CBay”)
with such guarantee secured against the property and assets of CBay. Each of the promissory notes bears interest at a rate of
6% per annum, with CAD$1,000,000 maturing on the commencement of commercial production, CAD$2,000,000 maturing on
the first anniversary of the commencement of commercial production, CAD$2,000,000 maturing on the second anniversary of
the commencement of commercial production, and CAD$2,500,000 maturing on the third anniversary of the commencement
of commercial production. The settlement of the obligation, both principal and interest, is contingent upon the timing of
commencement of commercial production. Given the lack of certainty at this time as to whether Cygnus will reach the
operational and economic milestones needed to achieve commercial production, and the estimated timeline to do so, the
notes currently have nominal or no fair value.
On 10 October 2024, Cygnus and OPIL executed a Limited Waiver waiving the accrual of interest on the promissory notes for
the period commencing on 1 October 2024 and ending on 31 December 2026.
The accrued interest as at 31 December 2024 would be valued at CAD$2,456,875 (2023: $2,095,000). Cygnus will reassess the
amount, timing and probability of future cash flows at each reporting date to determine any required adjustments to the
amortized cost balance of $Nil. As at 31 December 2024, no adjustments had been made.
Financial Instruments
The Company’s principal financial instruments comprise cash and short-term deposits, other receivables, investments and
trade and other payables. There has been no significant change in the nature of the Company’s financial instruments during
the current reporting period.
The Company holds 1,650,000 shares in TSX Venture Exchange listed Stria Lithium Inc. The Company has recognised a net fair
value loss on revaluation of the Stria Lithium Inc. common shares of $123,183 for the current reporting period as a result of a
decrease in the share price of Stria Lithium Inc.
Directors’ Report
Annual Report | 33
Management’s Discussion and Analysis of Operations (continued)
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future
effect on the Company’s financial performance.
Related Party Transactions
The Company’s related party transactions consist of transactions with key management personnel. Transactions with key
management personnel are disclosed in the Directors’ Report and Note 14 to the Company’s audited annual financial
statements for the year ended 31 December 2024.
Proposed Transactions
From time to time, in the normal course of business, the Company considers potential acquisitions, joint ventures, and other
opportunities. The Company will disclose such an opportunity if and when required under applicable securities rules. Except as
elsewhere disclosed in this document, there are no other proposed transactions under consideration.
Outstanding Share Data
The Company’s share capital consists of ordinary shares without par value. As at 31 March 2025, there were 849,231,671
ordinary shares issued and outstanding. In addition, there were 25,710,210 share options, 21,278,809 performance rights and
3,343,006 share rights on issue under the Company’s incentive plan.
Critical Accounting Estimates
The Company’s critical accounting estimates are included in its audited annual financial statements and are summarised below,
along with details of changes in estimates (if any) during the period.
Exploration and Evaluation Assets – Recognition
The entity carries exploration and evaluation expenditure as assets for expenditure accumulated on areas of interest where it
is considered likely to be recoverable. The Group judges this to be the case where the Group has right of tenure over an area
of interest, has substantive expenditure budgeted for the area of interest and the exploration activities have not yet resulted
in sufficient information that would indicate the amounts are not recoverable up to the asset carrying value.
Exploration and Evaluation Assets – Impairment
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s
accounting policy requires estimates and assumptions as to future events and circumstances; in particular, whether successful
development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to
this assessment is estimates and assumptions as to the presence of mineral reserves, timing of expected cash flows, exchange
rates, commodity prices and future capital requirements.
Changes in these estimates and assumptions as new information about the presence or recoverability of a mineral reserve
becomes available, may impact the assessment of the recoverable amount of exploration and evaluation assets. If, after having
capitalised the expenditure, a judgement is made that recovery of the expenditure is unlikely, an impairment loss is recorded
in the statement profit or loss and other comprehensive income.
Share-Based Payments
Share-based compensation benefits are provided to employees via the Cygnus Employee Securities Incentive Plan.
Performance rights are issued for nil consideration and the term of the performance rights is determined by the Board in its
absolute discretion but will ordinarily have a three-year term up to a maximum of five years. Performance rights are subject to
lapsing if performance conditions are not met by the relevant measurement date or expiry date (if no other measurement date
is specified) or if employment is terminated. The fair value of performance rights has been calculated at the grant date and
allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of
fair value of the rights allocated to this reporting period.
Directors’ Report
Annual Report | 34
Management’s Discussion and Analysis of Operations (continued)
The valuation models used to fair value options and performance rights take into account the exercise price (where applicable),
the term to expiry, the vesting period, the impact of dilution, the non-tradeable nature of the options or performance rights,
the share price at grant date and assumptions on the expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the options and performance rights. Expected share price volatility was
determined with reference to actual share price volatility over the historic term of the Company’s share price at grant date
commensurate with the length of the related option or performance right’s future vesting period.
Additionally, assumptions are made about the number of options and performance rights that are expected to vest, which
could change from period to period. A change in any, or a combination, of these assumptions used in the valuation model could
have a material impact on the total valuation of the options and performance rights.
Asset Acquisitions
Judgment was required to determine that the acquisition of all of the issued capital of Doré was not a business combination,
but rather an asset acquisition. The Chibougamau Copper-Gold Project has been on care and maintenance since 2008 and the
substantive process that had the ability to convert inputs to outputs was not present and therefore the acquisition during the
year was treated as an asset acquisition.
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying amount
based on their relative fair values. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset. Estimates and judgements are required by the group, taking into consideration all
available information at the acquisition date, to assess the fair values of assets acquired and liabilities assumed.
Risk Factors
Companies in the exploration, development and mining stage face a variety of risks and, while unable to eliminate them all,
the Company aims for managing and reducing such risks as much as possible. Cygnus faces a variety of risk factors such as
project feasibility and practicability, risks related to determining the validity of mineral property title claims, commodities
prices, and changes in laws and the regulatory environment.
The Board oversees management’s establishment and execution of the Company’s rick management framework through its
Audit Committee. Management has implemented and monitors compliance with risk management policies. The Company’s
risk management policies are established to identify, analyse and monitor the risks faced by the Company, and to set
appropriate risk limits and controls, and monitor their effectiveness in managing and reducing risks.
Refer to the Company’s Annual Information Form and the audited financial statements for the year ended 31 December 2024,
available on SEDAR+ at www.sedarplus.ca, for further details on the principal risk factors that apply to the Company and that
may have a material adverse effect on its financial condition, results of operations or the trading price of the Company’s shares.
Controls and Procedures
Disclosure Controls and Procedures
The Company’s management has evaluated the design of the Company’s disclosure controls and procedures. Based on the
results of that evaluation, management have concluded that, as of 31 December 2024, the Company’s disclosure controls and
procedures framework provides reasonable assurance that the information required to be disclosed by the Company in reports
it files is recorded, processed, summarised and reported, within the appropriate time periods and is accumulated and
communicated to management as appropriate, to allow timely decisions regarding required disclosure.
Internal Control over Financial Reporting
The Managing Director and President, and Chief Financial Officer are responsible for establishing and maintaining adequate
internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with AASB and IAS.
There have been no material changes in the Company’s internal controls over financial reporting during 2024.
Directors’ Report
Annual Report | 35
Management’s Discussion and Analysis of Operations (continued)
All internal control systems have inherent limitations and may become ineffective because of changes in conditions. Therefore,
even those systems that are determined to be effective can provide only reasonable, not absolute, assurance with respect to
the preparation and presentation of the financial statements.
Approval
The Board oversees management’s responsibility for financial reporting and internal control systems through the Audit
Committee. The Audit Committee meets with the Company’s independent auditors half-yearly to review the scope and results
of the annual and half-yearly reviews and to review the financial statements and related financial reporting and internal control
matters before the financial statements are approved by the Board and released. The Board has approved the audited annual
financial statements and disclosure contained in this MD&A as at 31 March 2025.
Qualified Persons & Disclosure of Technical Information
Foreign Estimates of Mineralisation and Exploration Results – Canadian Projects
The scientific and technical information in this report has been reviewed and approved by Mr Louis Beaupre, the Quebec
Exploration Manager of Cygnus, a “qualified person” as defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects. The information in this report that relates to the foreign estimates of mineralisation for the Chibougamau
Project and the Pontax Project, and the Exploration Results for the Company’s Canadian projects, is based on and fairly
represent information and supporting documentation compiled by Mr Beaupre. Mr Beaupre is an employee of the Company
and holds options in Cygnus. Mr Beaupre is a member of the Ordre des ingenieurs du Quebec (P. Eng.), a Registered Overseas
Professional Organisation as defined in the ASX Listing Rules, and has sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Mr Beaupre consents to the inclusion in this release of the matters based on the information in
the form and context in which they appear.
Mineral Resources prepared in accordance with JORC Code – Pontax Project and Exploration Results – Australian Projects
The information in this report that relates to the Mineral Resource Estimate at the Pontax Project prepared in accordance with
the JORC Code (2012 edition) and Exploration Results in Australia is based on and fairly represents information and supporting
documentation compiled by Mr Duncan Grieve, a Competent Person who is a member of The Australian Institute of
Geoscientists. Mr Grieve is Vice President of Exploration and Corporate Development, and a full-time employee of Cygnus. He
also holds shares, share rights and performance rights in the Company. Mr Grieve has sufficient experience relevant to the
style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 edition of the JORC Code. Mr Grieve consents to the inclusion in this announcement of the matters based
on this information in the form and context in which it appears.
Metal Equivalents – Chibougamau Project
Metal equivalents for the foreign estimate of mineralisation have been calculated at a copper price of US$8,750/t, gold price
of US$2,350/oz, with copper equivalents calculated based on the formula CuEq (%) = Cu(%) + (Au (g/t) x 0.77258). Individual
grades for the metals included in the metal equivalents calculations for the foreign estimate of mineralisation in this report are
contained in the Annual Mineral Resource Statement.
Metal equivalents for exploration results have been calculated at a copper price of US$8,750/t, gold price of US$2,350/oz and
silver price of US$25/oz, with copper equivalents calculated based on the formula CuEq(%) = Cu(%) + (Au(g/t) x
0.77258)+(Ag(g/t) x 0.00822). Individual grades for the metals included in the metal equivalents calculations for the exploration
results in this report are contained in the Company’s ASX releases as noted in the text and End Notes.
Metallurgical recovery factors have been applied to the copper equivalents calculations, with copper metallurgical recovery
assumed at 95% and precious metal (gold and silver) metallurgical recovery assumed at 85% based upon historical production
at the Chibougamau Processing Facility, and the metallurgical results contained in Cygnus’ announcement dated 28 January
2025. It is the Company’s view that all elements in the copper equivalent calculations in respect of the foreign estimate and
exploration results have a reasonable potential to be recovered and sold.
Directors’ Report
Annual Report | 36
Management’s Discussion and Analysis of Operations (continued)
Compliance Statements and Disclaimers
This report has been prepared by Cygnus Metals Ltd based on information from its own and third-party sources and is not a
disclosure document. No party other than the Company has authorised or caused the issue, lodgement, submission, despatch
or provision of this report, or takes any responsibility for, or makes or purports to make any statements, representations or
undertakings in this report. Except for any liability that cannot be excluded by law, the Company and its related bodies
corporate, directors, employees, servants, advisers and agents disclaim and accept no responsibility or liability for any
expenses, losses, damages or costs incurred by you relating in any way to this report including, without limitation, the
information contained in or provided in connection with it, any opinions contained in it, any errors or omissions from it however
caused, lack of accuracy, completeness, currency or reliability or you or any other person placing any reliance on this report,
its accuracy, completeness, currency or reliability.
This report is not a prospectus, disclosure document or other offering document under Australian law or under any other law.
It is provided for information purposes and is not an invitation nor offer of shares or recommendation for subscription,
purchase or sale in any jurisdiction. This report does not purport to contain all the information that a prospective investor may
require in connection with any potential investment in the Company. Each recipient must make its own independent
assessment of the Company before acquiring any shares in the Company.
Cautionary Note Regarding Forward-Looking Statements
This report contains forward-looking statements. Wherever possible, words such as “intends”, “expects”, “scheduled”,
“estimates”, “anticipates”, “believes”, and similar expressions or statements that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify these forward-looking
statements. Although the forward-looking statements contained in this report reflect management’s current beliefs based
upon information currently available to them and based upon what they believe to be reasonable assumptions, the Company
cannot be certain that actual results will be consistent with these forward-looking statements.
Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may
cause the Company’s actual results, events, prospects and opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although the Company has attempted to identify important risks and factors that could
cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be
other factors and risks that cause actions, events or results not to be anticipated, estimated or intended, including those risk
factors discussed in the Company’s public filings. There can be no assurance that the forward-looking statements will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking
statements are made as of the date of this report, and the Company assumes no obligation to update or revise them to reflect
new events or circumstances, unless otherwise required by law. This report may contain certain forward-looking statements
and projections regarding: estimated resources and reserves; planned production and operating costs profiles; planned capital
requirements; and planned strategies and corporate objectives.
Additional Information
Additional information pertaining to the Company is available on SEDAR+ at www.sedarplus.ca, the ASX at www.asx.com.au
and the Company’s website at www.cygnusmetals.com/.
Directors’ Report
Annual Report | 37
Management’s Discussion and Analysis of Operations (continued)
END NOTES
1. Sources for historic production figures: Economic Geology, v. 107, pp. 963–989 - Structural and Stratigraphic Controls on
Magmatic, Volcanogenic, and Shear Zone-Hosted Mineralization in the Chapais-Chibougamau Mining Camp, Northeastern
Abitibi, Canada by François Leclerc et al. (Lac Dore/Chibougamau mining camp).
2. The Mineral Resource estimate at the Chibougamau Project is a foreign estimate prepared in accordance with CIM
Standards and is not reported in accordance with the JORC Code. A competent person has not done sufficient work to
classify the foreign estimate as a mineral resource in accordance with the JORC Code, and it is uncertain that following
evaluation and/or further exploration work that the foreign estimate will be able to be reported as a mineral resource or
ore reserve in accordance with the JORC Code.
3. Refer to Cygnus’ ASX release dated 15 October 2024.
4. For regional Mineral Reserves and Resources in Quebec listed in Figure 4: (a) at Monster Lake and Nelligan as of 31
December 2023, refer to IAMGOLD Corporation’s news release dated 15 February 2024; (b) at Windfall, refer to Osisko
Mining’s NI 43-101 Technical Report filed with SEDAR on 10 January 2023; (c) at Lamaque Complex as of 30 September
2024, refer to Eldorado Gold’s news release dated 11 December 2024 (d) at Canadian Malartic Complex as of 30 September
2024, refer to Agnico Eagle’s news release dated 15 February 2024; (e) at Opemiska, refer to XXIX’s news release dated 8
January 2024; (f) at Roger, refer to the SOQUEM and Enforcer Gold Corp’s NI 43-101 Technical Report dated 9 October
2018; and (g) at Chevrier, refer to Northern Superior Resources’s news release dated 24 January 2022; and (h) at Troilus
refer to Troilus Gold news release dated 15 January 2024
5. Refer Cygnus’ ASX releases dated 23 and 28 January 2025.
6. Refer Cygnus’ ASX release dated 8 April 2024.
7. For: NAL Lithium (Measured and Indicated Resources of 72.1Mt at 1.14% Li2O) operated by Sayona Mining Ltd/Piedmont
Lithium Inc, refer to Sayona’s ASX release dated 27 August 2024; James Bay (Indicated Resources of 54.3Mt at 1.3% Li2O),
refer to Allkem Ltd’s ASX release dated 11 August 2023; Shaakichiuwaanaan (Indicated Resources 80.1Mt at 1.4% Li2O)
refer to Patriot Battery Metals’ ASX release dated 6 August 2024; Whabouchi (Measure and Indicated Resources of 38.2Mt
at 1.45% Li2O), refer to Nemaska Lithium Inc’s NI 43-101 dated 31 May 2019; Rose (Probable Reserves of 26.3Mt at 0.9%
Li2O), refer to Critical Elements Lithium Corp’s NI 43-101 dated 11 October 2023; Moblan (Measured and Indicated
Resources of 65.1Mt at 1.2% Li2O) operated by Sayona Mining Ltd/SOQUEM Inc, refer to Sayona’s ASX release dated 27
August 2024; and Adina (Indicated Resources of 61.4Mt at 1.1% Li2O), refer Winsome Resources Ltd’s ASX Announcement
dated 28 May 2024.
8. Refer Cygnus’ ASX release dated 19 July 2024.
9. Refer Cygnus’ ASX release dated 2 July 2024.
10. Refer Cygnus’ ASX release dated 17 May 2024.
11. Refer Cygnus’ ASX releases dated 29 July 2022, 18 January 2023, 14 February 2023, 21 March 2023, and 19 April 2023.
12. Refer Cygnus’ ASX release dated 21 March 2024.
13. Refer Cygnus’ ASX release dated 31 January 2023.
14. Refer Cygnus’ ASX releases dated 7 June 2023, 20 June 2023, 22 September 2023 and 8 January 2024.
Directors’ Report
Annual Report | 37
DIRECTORS
The names and details of the Group’s directors in office during the financial year and until the date of this report (unless
otherwise stated) are as follows:
DAVID SOUTHAM
Position
Executive Chair
Qualifications
B.Comm, FCPA, MAICD
Appointment date
1 April 2024, previously appointed Managing Director on 13 February 2023 and Non-Executive
Director on 1 November 2022
Resignation date
N/A
Length of service
2 years 5 months
Biography
David Southam is a FCPA with more than 30 years’ experience in operations, capital markets and
finance across the resources and industrial sectors. Prior roles include Managing Director of
Mincor Resources NL (ASX: MCR), Executive Director of Western Areas Limited (ASX: WSA), Non-
Executive Director of Kidman Resources, and he has held senior executive roles within Brambles
Group, ANZ Investment Bank and WMC Resources. David is currently a non-executive director of
Ramelius Resources Ltd and non-executive chair of Andean Silver Limited.
Current ASX listed
directorships
Ramelius Resources Ltd – July 2018 to present
Andean Silver Limited – April 2024 to present
Former ASX listed
directorships in the last
three years
Mincor Resources NL – February 2019 to August 2022
ERNEST MAST
Position
Managing Director and President
Qualifications
B.Eng, M.Eng, P.Eng
Appointment date
31 December 2024
Resignation date
N/A
Length of service
3 months
Biography
Ernest Mast has 30 years of experience in various technical and executive roles in the mining
industry, across a wide range of commodities, geographies and development stages. Mr Mast is
the former President, CEO and director of Doré Copper Mining Corp. and currently sits on the
board of directors of Scottie Resources Corp., Libero Copper Corp., and First Lithium Minerals
Corp. Mr Mast previously held the positions of President and Chief Executive Officer at Primero
Mining Corp., Vice President of Corporate Development at Copper Mountain Mining Corporation,
Vice President of Operations at New Gold Inc. and President and CEO of Minera Panama S.A.,
Inmet Mining Corporation’s subsidiary, developing the $6B Cobre Panama project.
Mr Mast is a member of l’Ordre des ingénieurs du Québec and has Bachelor’s and Master’s
degrees in metallurgical engineering from McGill University. Mr Mast also received post-
secondary business training at Henley College in the UK and at the Universidad Catolica in Chile.
Current ASX and TSX-V
listed directorships
Scottie Resources Corp. – February 2018 to present
Libero Copper Corporation – January 2021 to present
Former ASX listed
directorships in the last
three years
None
Directors’ Report
Annual Report | 38
RAYMOND SHORROCKS
Position
Non-Executive Director, member of the Audit Committee
Qualifications
BA (Hons), MBA (Finance)
Appointment date
3 April 2023, previously appointed Non-Executive Director on 30 June 2020, Executive Chair on 8
November 2021 and Non-Executive Chair on 25 May 2022
Resignation date
N/A
Length of service
4 years 10 months
Biography
Ray Shorrocks has over 30 years’ experience working in corporate finance in the mining sector and
has advised a diverse range of resources companies during his career at one of Australia’s largest
investment banking and stockbroking/financial services firms. He is highly conversant and
experienced in all areas of mergers and acquisitions and equity capital markets, including a
significant track record of transactions in the metals and mining sectors. He was previously Chair
of ASX-listed Bellevue Gold Limited, Republic Gold Limited and FireFly Metals Ltd, and is the former
director and head of the Corporate Finance Department of a major Australian investment services
company based in Sydney.
Mr Shorrocks is currently Non-Executive Director of Andean Silver Limited (ASX: ASL), Interim
Executive Chair of Alicanto Minerals Limited (ASX: AQI), Executive Chair of Galilee Energy Limited,
Non-Executive Director of Hydrocarbon Dynamics Ltd and a number of private companies.
Current ASX listed
directorships
Galilee Energy Limited – December 2013 to present
Hydrocarbon Dynamics Limited – January 2016 to present
Alicanto Minerals Limited – August 2020 to present
Andean Silver Limited – February 2023 to present
Former ASX listed
directorships in the
last three years
FireFly Metals Limited – January 2020 to March 2024
BRENT OMLAND
Position
Non-Executive Director, Chair of the Audit Committee
Qualifications
B.Comm, CA, CPA
Appointment date
31 December 2024
Resignation date
N/A
Length of service
3 months
Biography
Brent Omland is a Chartered Professional Accountant with 20 years of experience in the mining,
metals and trading business. He is a former director of Doré Copper Mining Corp. and has served
as the Chief Financial Officer and as a director of Ocean Partners Holdings Limited, an international
base and precious metals trader, since 2013. In 2023, Mr Omland was appointed to the role of co-
CEO of Ocean Partners Holdings Limited. Before joining Ocean Partners, Mr Omland was the Chief
Financial Officer for Ivernia Inc. and Enirgi Metals Group, companies focused on lead mining and
secondary lead smelting in Australia. Mr Omland is currently a director of Galantas Gold
Corporation, Nicola Mining Inc, Canadian Copper Inc and DynaResource Inc.
Current ASX and TSX-V
listed directorships
Galantas Gold Corporation – June 2021 to present
Nicola Mining Inc – February 2023 to present
Former ASX listed
directorships in the last
three years
None
Directors’ Report
Annual Report | 39
KEVIN TOMLINSON
Position
Lead Independent Non-Executive Director, member of the Audit Committee
Qualifications
HSBc. MSc. Geology, Grad Dip. Finance and Investment, Banking, Corporate Finance and
Securities Law
Appointment date
1 April 2024, previously appointed Independent Non-Executive Chair on 3 April 2023
Resignation date
N/A
Length of service
2 years
Biography
Kevin Tomlinson has more than three decades’ experience in major discoveries, exploration and
resource growth, mine development and financing of mining projects globally. He has also played
leading roles in many successful mergers and acquisitions in multiple jurisdictions including
Canada, Australia, Africa and the UK.
Mr Tomlinson is currently Independent Non-Executive Chair of FireFly Metals Limited and
Bellevue Gold Ltd, and a Non-Executive Director of Kodiak Copper Corp. Mr Tomlinson was
previously Managing Director of Investment Banking at Westwind Partners and Stifel Nicolaus
(2006-2012), raising significant equity and providing M&A corporate advice, and is the former
Chair of ASX/TSX-listed Cardinal Resources Ltd, leading its C$587 million sale to Shandong Gold.
He was also a Non-Executive Director at Centamin Plc, which discovered and built a significant
gold mine in Egypt.
Mr Tomlinson is a Fellow of the Charted Institute of Directors and a Liveryman of the Worshipful
Company of International Bankers (UK).
Current ASX and TSX-V
listed directorships
FireFly Metals Limited – December 2022 to present
Bellevue Gold Ltd - September 2019 to present
Kodiak Copper Corp – December 2020 to present
Former ASX and TSX
listed directorships in
the last three years
Churchill Resources Inc (TSX listed) – June 2021 to March 2023
C3 Metals Inc (TSX listed) – January 2021 to June 2022
MARIO STIFANO
Position
Non-Executive Director
Qualifications
CPA
Appointment date
31 December 2024
Resignation date
N/A
Length of service
3 months
Biography
Mario Stifano is a seasoned mining executive and Certified Public Accountant with over 20 years
of experience working with exploration, development and producing mining companies. Mr
Stifano is the former Executive Chairman of Doré Copper Mining Corp. and is currently the Chief
Executive Officer and a director of Galantas Gold Corporation, Chief Financial Officer of Lake Shore
Gold and a director of Bell Copper Corporation and Lupaka Gold Corp. Mr Stifano has held a
number of senior executive positions including Chief Executive Officer of Cordoba Minerals Corp.
and Executive Chairman with Mega Precious Metals Inc.
Current ASX and TSX-V
listed directorships
Galantas Gold Corp – June 2021 to present
Bell Copper Corporation – September 2020 to present
Lupaka Gold Corp. – May 2018 to present
Former ASX listed
directorships in the last
three years
None
Directors’ Report
Annual Report | 40
MICHAEL NAYLOR
Position
Non-Executive Director
Qualifications
B.Com, CA
Appointment date
1 March 2023, previously appointed Executive Director on 25 May 2022
Resignation date
21 September 2024
Length of service
2 years 4 months
Biography
Michael Naylor has 27 years’ experience in corporate advisory and public company management
since commencing his career and qualifying as a Chartered Accountant with Ernst & Young. He
has been involved in the financial management of mineral and resources focused public
companies, serving on both the Board and Executive Management Team. He has significant
experience in focusing on advancing and developing mineral resource assets and business
development.
Michael has worked in Australia and Canada and has extensive experience in financial reporting,
capital raisings, debt financings and treasury management of resource companies.
MICHAEL BOHM
Position
Non-Executive Director
Qualifications
B.AppSc (Mining Eng), MAusIMM, MAICD
Appointment date
8 November 2021, previously appointed Non-Executive Chairman on 30 September 2016
Resignation date
31 December 2024
Length of service
8 years 3 months
Biography
Michael Bohm is a qualified mining professional with significant corporate and operations
experience. He has had extensive minerals industry experience in Australia, South East Asia,
Africa, Chile, Canada and Europe. A graduate of WA School of Mines, Mr Bohm has worked as a
mining engineer, mine manager, study manager, project manager, project director and
managing director and has been directly involved in a number of new mine developments.
Mr Bohm currently serves as a Director of a number of ASX-listed companies and sits on their
Audit Risk and Sustainability Committees and Chairs their Remuneration Committees. Prior to
this, he has held a number of directorships including those with Perseus Mining Limited, Argyle
Diamonds Mines, Sally Malay Mining Limited and Ashton Mining of Canada.
INTERESTS IN THE SHARES AND EQUITY INSTRUMENTS OF THE COMPANY
As at the date of this report, the interests of the directors in the shares (direct and indirect) of the Company were:
Director
Ordinary
fully paid shares
Unlisted
share options
Unlisted
performance rights
Unlisted
share rights
David Southam
7,142,858
-
17,178,809
2,445,906
Ernest Mast
6,394,455
5,306,129
-
-
Kevin Tomlinson
1,138,784
-
700,000
-
Raymond Shorrocks
7,996,073
-
-
-
Brent Omland
256,158
137,227
-
-
Mario Stifano
5,972,049
2,470,095
-
-
Directors’ Report
Annual Report | 41
COMPANY SECRETARIES
MADDISON CRAMER
Qualifications
LLB, BA (Hons)
Appointment date
1 November 2022
Resignation date
N/A
Length of service
2 years 5 months
Biography
Maddison Cramer is a co-founder and managing director of boutique corporate services
business Belltree Corporate and has over 10 years’ experience as a corporate lawyer and
company secretary to ASX-listed companies. Ms Cramer is a corporate lawyer and currently
a company secretary of a number of ASX-listed mining and resources companies. Ms Cramer
is a former company secretary of ASX300 company Bellevue Gold Limited (ASX:BGL) and
prior to this was an associate at Bellanhouse Legal and HWL Ebsworth Lawyers.
CARL TRAVAGLINI
Qualifications
CA, ACG (CS)
Appointment date
1 February 2023
Resignation date
N/A
Length of service
2 years 2 months
Biography
Carl Travaglini is a Chartered Accountant and Chartered Company Secretary with over 15
years’ experience in the resources sector, having served in various finance and company
secretarial roles in Australia, Canada and Africa. Mr Travaglini is currently Chief Financial
Officer of Bellavista Resources Ltd and Midas Minerals Limited and a Non-Executive Director
of Andean Silver Limited.
OPERATING RESULTS
The Group’s consolidated net loss for the year ended 31 December 2024 after providing for income tax amounted to
$3,772,569 (2023: $13,500,296).
The loss included the following more significant items:
Share-based payments of $2,016,732 (2023: $10,185,535), refer Note 10
Exploration and evaluation expenditure written off of $630,056 (2023: $634,937), refer Note 19
REVIEW OF FINANCIAL POSITION
The Group held net assets of $71,467,357 as at 31 December 2024 (2023: $26,977,396).
At year end the Group remains well financed with $14,869,835 in cash and cash equivalents (2023: $9,316,782).
PRINCIPAL ACTIVITIES
Cygnus Metals Limited’s principal activities consist development of the Chibougamau Copper-Gold Project in Quebec, Canada,
exploration and development of lithium deposits in the James Bay lithium district in Quebec, Canada, and rare earth and base
metals deposits in Western Australia.
There have been no significant changes in the nature of these activities during the period.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group is committed to:
exploration and development of the Group’s copper gold assets in Chibougamau and lithium assets in the James Bay
district of Quebec, Canada;
exploration of the Group’s assets in the Wheatbelt region of Western Australia; and
implementing a strategy to seek out further exploration, acquisition and joint venture opportunities.
Directors’ Report
Annual Report | 42
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no changes in the state of affairs of the Group other than those outlined in the Operations Review.
POST REPORTING DATE EVENTS
On 3 January 2025, the Company commenced trading on the TSX Venture Exchange under the ticker symbol ‘CYG’.
On 7 February 2025, the Company announced that it had received conditional approval from the Critical Minerals Infrastructure
FUND (“CMIF”) for up to a CAD$1,300,000 investment to complete pre-construction milestones, pending final due diligence by
Natural Resources Canada and the execution of a definitive contribution agreement.
On 17 February 2025, the Company commenced trading on the OTCQB Venture Market, a U.S. marketplace operated by OTC
Markets Group Inc, under the ticker symbol ‘CYGGF’.
There have not been any events that have arisen between 31 December 2024 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations
of the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with
all regulations when carrying out any exploration work. The Directors believe that the Company has adequate systems in place
for environmental management and are not aware of any breach of environmental requirements as they apply to the Company.
CORPORATE GOVERNANCE
The directors of Cygnus believe that effective corporate governance improves company performance, enhances corporate
social responsibility and benefits all stakeholders. Changes and improvements are made in a substance over form manner,
which appropriately reflect the changing circumstances of the Company as it grows and evolves. Accordingly, the Board has
established a number of practices and policies to ensure that these intentions are met and that all shareholders are fully
informed about the affairs of the Group.
The Company reviews all of its corporate governance practices and policies on an annual basis against the ASX Corporate
Governance Council’s Principles and Recommendations (4th edition) to ensure they are appropriate for the Company’s current
stage of exploration.
The Board has reviewed and approved its Corporate Governance Statement on 31 March 2025, and this is available on the
Company’s website at https://www.cygnusmetals.com/corporate/#corporate-governance.
The Company has a corporate governance section on the website which includes details on the Company’s governance
arrangements and copies of relevant policies and charters.
CAPITAL STRUCTURE
SHARE PLACEMENTS
On 19 July 2024, the Company completed the first tranche of a two tranche Placement to sophisticated and professional
investors raising $2,544,000 (before costs) through the issue of 72,685,715 fully paid ordinary shares at an issue price of $0.035
per share.
On 11 September 2024, the Company completed the second tranche of the Placement to directors of the Company and non-
related parties raising a further $452,000 (before costs) through the issue of 12,914,286 fully paid shares at an issue price of
$0.035 per share following receipt of shareholder approvals at a General Meeting on 6 September 2024.
On 15 October 2024, the Company entered into a definitive arrangement agreement with Doré Copper Mining Corp. (“Doré”),
pursuant to which Cygnus agreed to acquire 100% of the issued and outstanding common shares of Doré by way of a court
approved plan of arrangement under the Canada Business Corporation Act (the “Merger”).
Directors’ Report
Annual Report | 43
In connection with the Merger, the Company announced a placement to institutional and sophisticated investors to raise
A$11,000,000 (before costs) through the issue of 152,777,778 fully paid ordinary shares in the Company at an issue price of
A$0.072 per share.
On 23 October 2024, the Company completed the first tranche of the two tranche Placement in connection with the Merger,
raising $6,830,264 (before costs) through the issue of 94,864,785 fully paid ordinary shares at an issue price of $0.072.
On 20 December 2024, the Company completed the second tranche of the Placement to directors of the Company and non-
related parties raising a further $4,169,735 (before costs) through the issue of 57,912,993 fully paid shares at an issue price of
$0.072 following receipt of shareholder approvals at a General Meeting on 16 December 2024.
As at the date of this report, the Company had 849,231,671 fully paid ordinary shares on issue (ASX: CY5, TSXV: CYG) (2023:
291,559,139).
SHARE BASED PROJECT ACQUISITIONS
On 17 May 2024, the Company issued 1,800,000 fully paid ordinary shares to project vendors under the terms of existing option
acquisition agreements.
On 16 August 2024, the Company issued 500,000 fully paid ordinary shares to project vendors under the terms of existing
acquisition agreements.
On 18 November 2024, the Company issued 486,600 fully paid ordinary shares to project vendors under the terms of existing
option acquisition agreements.
On 31 December 2024, the Company issued 310,662,984 fully paid ordinary shares to Doré shareholders as consideration for
the Merger and 4,166,667 fully paid ordinary shares to the Company’s corporate advisor as part of a success fee upon
completion of the Merger.
SHARES ISSUED UPON EXERCISE OF PERFORMANCE RIGHTS
There were 100,000 vested performance rights converted to 100,000 fully paid ordinary shares during 2024 (2023: 29,850,000).
UNQUOTED SHARE OPTIONS
There were no unquoted share options exercised during 2024 (2023: 27,400,000).
5,000,000 unquoted share options expired and were cancelled during 2024 (2023: 2,100,000). A further 3,500,000 unquoted
share options expired and were cancelled on 20 January 2025.
On 31 December 2024, the Company issued 16,210,210 replacement options to holders of Doré options that were cancelled
in connection with the Merger.
SHARE RIGHTS ISSUED AND CONVERTED
On 9 July 2024, the Company issued 1,387,434 vested Share Rights to KMP and other employees in lieu of a portion of their
cash salary or consulting fees for the quarter ended 30 June 2024 and a further 1,333,334 vested Share Rights to the Executive
Chair as short term incentive bonus for 2023 in lieu of a cash payment.
On 22 July 2024, the Company issued 325,750 fully paid ordinary shares to KMP and other employees upon the conversion of
325,750 vested Share Rights.
On 30 October 2024, the Company issued 1,459,153 vested Share Rights to KMP and other employees in lieu of a portion of
their cash salary or consulting fees for the quarter ended 30 September 2024.
On 22 November 2024, the Company issued 340,731 fully paid ordinary shares to KMP and other employees upon the
conversion of 340,731 vested Share Rights.
Directors’ Report
Annual Report | 44
SHARES UNDER OPTION OR TO BE ISSUED UPON CONVERSION OF PERFORMANCE RIGHTS OR SHARE RIGHTS
Details of share options, performance rights and share rights on issue as at the date of this report are:
Security type
Number
Exercise
price
Expiry date
Class of
shares
Issuing entity
Share Option
1,500,000
AUD$0.25
21/10/2025
Ordinary
Cygnus Metals Limited
Share Option
1,500,000
AUD$0.50
21/10/2025
Ordinary
Cygnus Metals Limited
Share Option
1,500,000
AUD$0.75
21/10/2025
Ordinary
Cygnus Metals Limited
Share Option
1,500,000
AUD$1.00
21/10/2025
Ordinary
Cygnus Metals Limited
Share Option
1,257,001
CAD$0.3607
30/04/2025
Ordinary
Cygnus Metals Limited
Share Option
43,912
CAD$0.1025
05/06/2025
Ordinary
Cygnus Metals Limited
Share Option
123,504
CAD$0.1025
06/06/2025
Ordinary
Cygnus Metals Limited
Share Option
54,891
CAD$0.5247
01/09/2025
Ordinary
Cygnus Metals Limited
Share Option
365,940
CAD$0.1558
16/02/2026
Ordinary
Cygnus Metals Limited
Share Option
1,920,264
CAD$0.6012
22/04/2026
Ordinary
Cygnus Metals Limited
Share Option
82,336
CAD$0.4318
19/08/2026
Ordinary
Cygnus Metals Limited
Share Option
43,912
CAD$0.0574
26/09/2026
Ordinary
Cygnus Metals Limited
Share Option
123,504
CAD$0.3826
17/01/2027
Ordinary
Cygnus Metals Limited
Share Option
1,225,898
CAD$0.3225
12/05/2027
Ordinary
Cygnus Metals Limited
Share Option
109,782
CAD$0.3006
13/06/2027
Ordinary
Cygnus Metals Limited
Share Option
1,829,700
CAD$0.2241
19/08/2027
Ordinary
Cygnus Metals Limited
Share Option
1,482,056
CAD$0.1093
12/05/2028
Ordinary
Cygnus Metals Limited
Share Option
7,410,283
CAD$0.0547
19/04/2029
Ordinary
Cygnus Metals Limited
Share Option
137,227
CAD$0.0547
16/09/2029
Ordinary
Cygnus Metals Limited
Performance Right
250,000
N/A
30/07/2025
Ordinary
Cygnus Metals Limited
Performance Right
100,000
N/A
30/11/2026
Ordinary
Cygnus Metals Limited
Performance Right
3,000,000
N/A
21/10/2027
Ordinary
Cygnus Metals Limited
Performance Right
300,000
N/A
3/04/2028
Ordinary
Cygnus Metals Limited
Performance Right
14,400,000
N/A
13/02/2028
Ordinary
Cygnus Metals Limited
Performance Right
3,178,809
N/A
5/09/2028
Ordinary
Cygnus Metals Limited
Performance Right
150,000
N/A
4/05/2028
Ordinary
Cygnus Metals Limited
Share Right
3,343,006
N/A
31/07/2029
Ordinary
Cygnus Metals Limited
The holders of these share options and performance rights do not have the right, by virtue of the option or right, to participate
in any share issue or interest issue of the Company or of any other body corporate or registered scheme.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to
the date of this report.
ENVIRONMENT AND SOCIAL
The Company is committed to protecting and respecting the environment and local communities within which it operates and
looks forward to enhancing its positive impact in these areas. As the Company advances its strategies, it will be sharing its
environmental and social efforts and impact regularly, in line with its annual reporting cycle.
Directors’ Report
Annual Report | 45
SUSTAINABILITY
Cygnus intends to actively explore its Projects safely and responsibly. The Company’s primary objectives are to create value for
its shareholders while giving back to the host communities culturally and through employment and job training and to excel in
environmental responsibility.
SUSTAINABLE DEVELOPMENT POLICY
Cygnus is committed to complying with the laws and regulations applicable to the mining industry throughout the exploration,
mining and closure phases. The Company’s approach to project development focuses on optimization and innovation to
minimize the physical and environmental footprints.
The health and safety of employees, contractors and the host community are an integral part of the Company’s decision-
making processes and the management of its current and future projects.
Cygnus supports its host communities by implementing local procurement programs, setting up recruitment and training
programs, and actively participating in various aspects of community activities.
Transparent communication between Cygnus and all stakeholders is crucial to the successful development of the Chibougamau
mining camp. Cygnus intends to collaborate with all stakeholders to develop open communication channels to encourage
dialogue on future projects, and the Company will address any issues raised during these exchanges to the best of its ability.
STAKEHOLDERS AND COMMUNITY
Cygnus intends to develop its projects in synergy with its host communities, employees and all contractors and consultants
involved. Cygnus believes that building relationships on a foundation of trust, transparency, and mutual advantage is essential
to Cygnus’ business success. Our commitment is to create a mutual benefit in all our relationships so that Cygnus is a preferred
partner for local businesses, suppliers, municipalities, towns and Indigenous communities and groups. Over the next few years,
the Company plans to contribute to the integration and training of the local workforce.
Cygnus acknowledges that mining activities and mineral exploration can affect a wide range of individuals, businesses,
indigenous communities, municipalities, organizations, and interest groups. Cygnus is committed to seeking public and
community input to ensure that potential influences on traditional, land use, social and economic factors in the region are
considered. We will engage communities, businesses and organizations to identify and mitigate potential effects, and harness
opportunities to ensure mutual benefits for all.
ENVIRONMENT
Cygnus develops its projects in the manner best adapted to their available resources while respecting the environment. The
Company will investigate options to keep its environmental footprint as small as possible, such as using the Company’s Copper
Rand Mill as a single ore processing plant for all its Chibougamau properties. In the future, the mill may also process ore from
other properties located within a reasonable distance.
HEALTH AND SAFETY
Our management team emphasizes a culture of health and safety in all current and future decision-making aspects. Cygnus
keeps its subcontractors, workers and management informed of each other’s activities to ensure a safe workplace for all. The
Company also promotes awareness and training among its subcontractors and employees.
Our management team emphasizes a culture of health and safety in all current and future decision-making aspects. Cygnus
keeps its subcontractors, workers and management informed of each other’s activities to ensure a safe workplace for all. The
Company also promotes awareness and training among its subcontractors and employees.
Occupational health and safety is regulated in Quebec and CNESST is the agency responsible for its administration (Commission
des normes de l’équité salariale ou la santé et de la sécurité du travail).
Directors’ Report
Annual Report | 46
MATERIAL BUSINESS RISKS
The following describes the material business risks that could affect the Company, including any material exposure to
environmental and social sustainability risks, and how the Company seeks to manage them.
EXPLORATION, DEVELOPMENT AND OPERATING RISKS
The successful exploration and development of mineral properties is speculative. There is no assurance that exploration of the
Projects in which Cygnus has an interest will result in the discovery of a mineral deposit that can be economically mined or the
increase in any current mineral resource or conversion of mineral resources to ore reserves. The exploration costs of Cygnus
are based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and
assumptions are subject to significant uncertainties and, accordingly, the actual costs may differ materially from these
estimates and assumptions.
The exploration for and development of mineral deposits involves significant financial risks which even a combination of careful
evaluation, experience and knowledge may not eliminate. While the discovery of an orebody may result in substantial rewards,
few properties which are explored are ultimately developed into producing mines. Mining involves various types of risks and
hazards, including environmental hazards; unusual or unexpected geological operating conditions, such as rock bursts, seismic
activity, structural cave-ins, pit-well failures, or slides; flooding, earthquakes, and fires; labour disruptions; industrial accidents;
unexpected mining dilution; metallurgical and other processing problems; and/or metal losses and periodic interruptions due
to inclement or hazardous weather conditions.
These risks could result in damage to, or destruction of, mineral properties, production facilities or other properties, personal
injury or death, environmental damage, delays in mining, increased production costs, monetary losses, and possible legal
liability. Major expenditures may be required to establish ore reserves, to develop metallurgical processes and to construct
mining and processing facilities at a site. As a result, Cygnus cannot provide assurance that its exploration or development
efforts will result in mining operations.
FUTURE CAPITAL REQUIREMENTS AND MARKET RISKS
As an exploration entity, the Company is not generating net cash flow, meaning it is reliant on raising funds from investors or
lenders in order to continue to fund its operations and to scale growth. The Company will require further funding in the future.
The Company is exposed to external market forces that impact on specific commodity prices and overarching market sentiment
that may restrict the Company’s access to new flows of capital if the Company’s project pipeline is not ascribed value in the
market at any given time. The Company manages this risk by ensuring a constant focus on the Company’s current financial
position and forecast working capital requirements. Discretionary exploration activities are focused on commodities and in
jurisdictions that will ensure access to higher levels of capital in times of broader market depression.
Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the current market
price or may involve restrictive covenants which limit the Company's operations and business strategy. Debt financing (while
not currently a focus), if available, may involve restrictions on financing and operating activities.
Although the Company believes that additional capital can be obtained, no assurances can be made that appropriate capital
or funding, if and when needed, will be available on terms favourable to the Company or at all. If the Company is unable to
obtain additional financing as needed, the Company may be required to reduce the scope of its activities, which could have a
material adverse effect on the Company's activities and could affect the Company's ability to continue as a going concern.
TENURE, ACCESS AND GRANT OF LICENCES / PERMITS
The Company’s operations are subject to receiving and maintaining licences and permits from appropriate governmental
authorities in a timely and cost-effective manner and subject to economically viable terms and conditions. There is no
assurance that delays will not occur in connection with obtaining all necessary grants or renewals of licences / permits for the
proposed operations, additional licences / permits for any possible future changes to operations, or additional permits
associated with new legislation.
Directors’ Report
Annual Report | 47
Prior to any development on any of its properties, subsidiaries of the Company must receive licences / permits from appropriate
governmental authorities. There is no certainty that the Company will hold all licences / permits necessary to develop or
continue operating at any particular property.
Additionally, the occurrence of unforeseen circumstances or events may impact Cygnus’ ability to maintain compliance with
the conditions, commitments and obligations of existing approvals, mining rights, licenses and permits. Consequently, Cygnus
could lose title to or its interest in mining rights or a project if these conditions, commitments and obligations are not met as
and when they arise.
LAND ACCESS RISK
Consistent land access is critical to the operations of Cygnus. Immediate and continuing access to land within Cygnus’ mining
right, license and permit areas cannot be guaranteed in all cases as Cygnus may be required to obtain or renew the consent of
the owners and occupiers of the relevant land or surrounding land. Compensation may be required to be paid to the owners
and occupiers by Cygnus in order to carry out its operations. Various aspects of Cygnus’ future performance and profitability
are dependent on the outcome of future negotiations with third parties. In addition to the outcome of negotiations on land
access arrangements, future negotiation with the government is expected in respect of license renewals, developing related
infrastructure and work obligations and security for rehabilitation of areas of operation within Cygnus’ mining rights, licenses
and permits. Potential claims by community members and stakeholders, who may have concerns over the social or
environmental impacts of Cygnus’ operations, have the potential to cause community unrest and activism, which may diminish
Cygnus’ reputation.
NATIVE TITLE AND INDIGENOUS PEOPLES
In Quebec, Canada, the Chibougamau Project is within the Eeyou Istchee Territory of the Oujé Bougoumou Cree First Nation,
and on the traditional trapping territories of the Oujé Bougoumou Cree First Nation. With the Environmental and Social Impact
Assessment process still at an early stage and the project concept being refined, there have been no formal consultations with
Oujé Bougoumou. However, the Company keeps good relations and has regular communications with Oujé Bougoumou
representatives to provide them with updates on the Chibougamau Project.
Australia and Canada recognize certain rights of indigenous peoples over land where those rights have not been extinguished.
These rights, where they exist, may impact the ability of Cygnus to carry out exploration or obtain production tenements.
Cygnus must observe the provisions of native title legislation, where applicable, and aboriginal heritage legislation which
protects aboriginal sites and objects of significance. In certain circumstances the consent of registered native title claimants
must be obtained prior to carrying out certain activities on land to which their claim relates. It is possible that the conditions
imposed by native title claimants on such consent may be on terms unacceptable to Cygnus. If any known, or currently
undiscovered, aboriginal heritage sites are present on the tenements and mining rights of Cygnus there is a risk that the
presence of such sites may limit or prevent exploration or mining activity on the affected areas of those tenements or mining
rights. The failure to obtain the approval of the relevant minister to impact the aboriginal heritage sites can result in offences
being committed and significant fines or orders to stop work being made.
REGULATORY ENVIRONMENT
The risk of failing to adapt and adhere to rapidly evolving regulatory environments in Australia and Canada. The laws include
those relating to mining, prospecting, development permit and licensing requirements, industrial relations, environment, land
use, water, royalties, native title and cultural heritage, mine safety and occupational health. Changes in these laws and
regulations can result in the increased complexity and cost of doing business and the risk of forfeiture of exploration and mining
claims due to a failure to comply with these complex regulatory environments. The Company’s risk management strategy is
designed to monitor and limit the adverse consequences of existing and new regulations in a way that is efficient and minimizes
compliance costs.
Directors’ Report
Annual Report | 48
CONTRACT RISKS
The Company is party to various option and acquisition agreements to acquire interests in mining claims (“Mining Claims”) in
James Bay, Canada (“Agreements”), which require further option exercise or deferred consideration payments to be made in
the future in order to secure the rights to the Mining Claims, by way of further share issues and/or payments in cash. Some of
the share issues are subject to future shareholder approvals. In the event that the Company is unable to satisfy the option
exercise payments or issue the deferred consideration (including in circumstances where shareholder vote down proposed
shareholder approvals), or the Company is unable to meet the mandatory expenditure obligations under the Agreements, the
Company may not be able to complete some or all of the Agreements, which may reduce the number of Mining Claims in
Canada it is able to acquire, or alternatively, reduce the interest it holds in these claims.
Cygnus is also subject to the risk that changes in the status of any of Cygnus’ joint ventures, including changes caused by
financial failure or default by a participant in the joint venture, may adversely affect the operations and performance of Cygnus.
Cygnus may continue to use external contractors or service providers for many of its activities and as such, the failure of any
current or proposed service providers to perform their contractual obligations may negatively impact the business and
operations of Cygnus. There is no guarantee that Cygnus would be successful in enforcing any of its contractual rights through
legal action or that any legal remedies obtained will place Cygnus in a similar position to that which it would have been in had
the relevant parties performed their obligations in accordance with their contractual obligations. Any insolvency or managerial
failure by any such contractors or other service providers may adversely impact Cygnus’ business, operations and financial
performance. Further, certain contracts to which Cygnus is a party may require renewal from time to time and no assurance
can be given that these such contracts will be renewed in a timely manner on terms that are as favourable to Cygnus as the
existing terms.
PEOPLE CAPABILITY
The risk that the Company fails to attract and retain the talent and leadership required to execute the Company’s strategies
and objectives, including the technical expertise to explore for and discover economic mineral deposits, and the corporate
talent to achieve value for shareholders via corporate activities, including project acquisitions, project divestments and joint
venture activities. The intention of the Company’s remuneration framework is to ensure remuneration and reward structures
are aligned with shareholders’ interests by being market competitive to attract and retain high calibre individuals, rewarding
superior individual performance, recognising the contribution of each executive to the continued growth and success of the
Company, and linking long-term incentives to shareholder value.
GENERAL ECONOMIC CLIMATE
Factors such as inflation, foreign currency fluctuations, metal prices, interest rates, legislative changes, political decisions and
industrial disruption have an impact on operating costs. The Company’s future income, asset values and share price can be
affected by these factors, which are beyond Cygnus’ control.
Current global financial conditions have been characterized by increased volatility, particularly the markets for commodities,
including precious and base metals. Access to public financing has been negatively impacted by several factors which may
impact the ability of Cygnus to obtain equity or debt financing in the future on terms favourable to Cygnus. Additionally, these
factors, as well as other related factors, may cause decreases in asset values that are deemed to be other than temporary,
which may result in impairment losses. If Cygnus had to delay development of any project, there is no assurance that it would
be able to restart development without undue delay, if at all. If such increased levels of volatility and market turmoil continue,
Cygnus’ operations could be adversely impacted, and the trading price of its common shares may be adversely affected.
Directors’ Report
Annual Report | 49
DATA MANAGEMENT
Any IT failure pertaining to availability, access or system security could result in disruption for personnel and could adversely
affect the reputation, operations or financial performance of Cygnus. A cyber security incident resulting in a security breach or
failure to identify a security threat, could disrupt business and could result in the loss of business sensitive, confidential or
personal information or other assets, as well as litigation, regulatory enforcement, violation of privacy and security laws and
regulations and remediation costs. The Company has implemented a number of company-wide controls to manage these risks,
including the continuous review and updating of security controls on the Company’s network based on known security threats
and the latest intelligence.
OCCUPATIONAL HEALTH AND SAFETY
Cygnus’ operations are subject to a variety of industry specific health and safety laws and regulations which are formulated to
improve and to protect the safety and health of employees. Mining and mining-related operations and activities can potentially
be hazardous and workplace incidents may occur for various reasons, including as a result of non-compliance with occupational
health and safety laws and regulations in Québec or in Western Australia. Whilst Cygnus seeks to implement appropriate
practice systems and procedures in respect of occupational health and safety, the Company may be liable for workplace
incidents including industrial accidents, workplace incidents and any fatalities that occur to Cygnus’ employees or other persons
under such applicable occupational health and safety laws. If Cygnus is liable under such laws, in whole or part, Cygnus may be
liable for significant penalties, which may adversely impact Cygnus’ operations, financial performance and financial position as
well as negatively affecting Cygnus’ reputation. Such workplace incidents may not be covered, or may be inadequately covered,
by Cygnus’ insurance policies. Additionally, any accidents or injuries that occur at any of Cygnus’ operations could result in
delays or stoppages to operations and activities.
Any changes to the occupational health and safety laws and regulations in the jurisdictions in which Cygnus operates may result
in increased costs of or uncertainties in relation to compliance with such laws and regulations.
CLIMATE CHANGE
There are a number of climate-related factors, both physical and non-physical, that may affect the Company's assets, its
productivity, the markets in which it sells its products and the communities in which Cygnus operates. Climate change or
prolonged periods of adverse weather and climatic conditions (including rising sea levels, floods, hail, drought, water scarcity,
temperature extremes, frosts, earthquakes and pestilences) may have an adverse effect on the ability of the Company to
physically access and utilise its tenements and therefore the Company's ability to carry out operations.
Non-physical risks arise from changes in policy, technological innovation, and consumer or investor preferences, which could
adversely impact the Company's business strategy and costs and operational efficiency, particularly in the event of a transition
(which may occur in unpredictable ways) to a lower-carbon economy.
While Cygnus intends to manage these risks and limit any consequential impacts, there can be no guarantee that Cygnus will
not be adversely impacted by these occurrences.
Directors’ Report
Annual Report | 50
ENVIRONMENTAL RISK
The operations and activities of Cygnus are subject to the environmental laws and regulations of Canada, Australia and any
other places in which it may conduct business in the future. As with all mining operations and exploration projects, Cygnus’
operations and activities are expected to have an impact on the environment. Cygnus currently intends to conduct its
operations and activities to high standards of environmental obligation, including compliance with all environmental laws and
regulations. Nevertheless, significant liability could be imposed on Cygnus for damages, clean-up costs or penalties in the event
of any non-compliance with environmental laws or regulations. This could have an adverse impact on Cygnus’ business,
operations and financial performance.
Any properties Cygnus acquires may be subject to increased costs and liabilities, including environmental liabilities. Although
Cygnus reviews properties prior to acquisition in a manner consistent with industry practices, such reviews are not capable of
identifying all potential adverse conditions. Therefore, Cygnus may be unable to determine existing or potential environmental
problems associated with the acquired properties or obtain adequate protection from sellers against such inherited liabilities.
Additionally, environmental laws and regulations are increasingly evolving to require stricter standards and enforcement
behaviours, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects
and a heightened degree of responsibility and liability for companies and their officers, directors and employees. Changes in
environmental laws and regulations deal with air quality, water and noise pollution and other discharges of materials into the
environment, plant and wildlife protection, the reclamation and restoration of mining properties, greenhouse gas emissions,
the storage, treatment and disposal of wastes, the effects of mining on the water table and groundwater quality. Changes in
environmental legislation could increase the cost of Cygnus’ exploration, development and mining activities or delay or
preclude those activities altogether.
Cygnus cannot predict the effect of additional environmental laws and regulations which may be adopted in the future,
including whether any such laws or regulations would materially increase Cygnus’ cost of doing business or affect its operations
in any area. However, there can be no assurances that new environmental laws, regulations or stricter enforcement policies,
once implemented, will not oblige Cygnus to incur significant expenses and undertake significant investments which could have
material adverse effect on Cygnus’ business, financial condition and performance.
Directors’ Report
Annual Report | 51
AUDITED REMUNERATION REPORT
This remuneration report for the year ended 31 December 2024 outlines the remuneration arrangements of the Company and
its controlled entities (“Group”) in accordance with the requirements of the Corporations Act 2001 (Cth) (“Corporations Act”)
and its Regulations. This information has been audited as required by section 300A of the Corporations Act.
The remuneration report details the remuneration arrangements for Directors and other Key Management Personnel (“KMP”),
who are defined as those persons having authority and responsibility for planning, directing, and controlling the major activities
of the Company and Group, directly or indirectly, including any director (whether executive or otherwise) of the parent entity.
The table below outlines the Directors and other KMP of the Company during the financial year ended 31 December 2024.
Unless otherwise indicated, the individuals were Directors or other KMP for the entire financial year.
For the purposes of this report, the term “Executive” includes the executive directors and senior executives of the Company.
Non-Executive Directors
Kevin Tomlinson
Lead Independent Non-Executive Director (appointed 1 April 2024, previously appointed
Independent Non-Executive Chair on 3 April 2023)
Raymond Shorrocks
Non-Executive Director
Mario Stifano
Non-Executive Director (appointed 31 December 2024)
Brent Omland
Non-Executive Director (appointed 31 December 2024)
Michael Bohm
Non-Executive Director (resigned 31 December 2024)
Michael Naylor
Non-Executive Director (resigned 21 September 2024)
Executive Directors
David Southam
Executive Chair (appointed 1 April 2024, previously appointed Managing Director on 13 February
2023 and Non-Executive Director on 1 November 2022)
Ernest Mast
Managing Director and President (appointed 31 December 2024)
Other KMP
Carl Travaglini
Chief Financial Officer and Joint Company Secretary
There were no changes to Directors or other KMP after reporting date and before the date the financial report was authorised
for issue.
REMUNERATION GOVERNANCE
Due to the current size of the Group, it is more efficient and effective for the functions otherwise undertaken by a remuneration
committee to be performed by the Board. All directors are therefore responsible for determining and reviewing compensation
arrangements for key management personnel, including periodically assessing the appropriateness of the nature and amount
of remuneration by reference to relevant market conditions and prevailing practices. Directors excuse themselves from
discussions that are specific to their individual remuneration components and are not in relation to the remuneration of the
group of non-executive directors as a collective.
The Board may obtain professional advice where necessary to ensure that the Group attracts and retains talented and
motivated directors, executives and employees who can enhance Group performance through their contributions and
leadership.
USE OF REMUNERATION CONSULTANTS
During the year ended 31 December 2024, the Board did not engage the services of remuneration consultants (2023: None).
This was considered appropriate whilst the Group is in the exploration phase.
Directors’ Report
Annual Report | 52
AUDITED REMUNERATION REPORT (Continued)
REMUNERATION FRAMEWORK
The Board recognises that the Group’s performance and ultimate success in project delivery depends on many factors including
its ability to attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must
be transparent to shareholders and be fair and competitive, taking into account the nature and size of the organisation and its
current stage of activities, funding and general market conditions.
The approach to remuneration has been structured with the following objectives:
•
Fairness: provide a fair level of reward to all employees;
•
Transparency: establish transparent links between reward and performance;
•
Alignment: promote mutually beneficial outcomes by aligning employee, and shareholder interests; and
•
Culture: drive leadership performance and behaviours that promote safety, diversity and employee engagement.
The remuneration for executives may have several components, including:
•
Fixed remuneration, inclusive of superannuation and allowances;
•
Short Term Incentives (“STI”) under a performance-based cash or equity bonus incentive plan; and
•
Long Term Incentives (“LTI”) through participation in the Company’s approved equity incentive plan.
These three components comprise each executive’s total annual remuneration.
To link executive remuneration with the Group’s performance, the Company’s policy is to endeavour to provide a portion of
each executive’s total remuneration as “at risk”.
2024 MIX OF REMUNERATION FOR DIRECTORS AND OTHER KMP - PERCENTAGE OF TOTAL REMUNERATION
As demonstrated above, the mix of remuneration for executive KMP is weighted towards variable long-term incentives in the
interests of preserving cash and aligning KMP performance outcomes with the growth of shareholder wealth. Long-term
incentive remuneration is comprised of the accounting based valuation of performance rights. These valuations are calculated
at the time of grant and are based on the Company’s share price and other market factors evident at that time. For clarity, the
components of David Southam’s share-based (LTI) remuneration for 2024 includes the following:
•
$1,690,123 in remuneration relates to 10,000,000 performance rights that were valued at between 46.3c and 50c at
the time of grant. As at the date of this report, the related vesting conditions have been met for 5,000,000 of these
performance rights are convertible into shares. The remaining 5,000,000 performance rights have not yet vested and
are not yet convertible into shares.
•
$150,798 in remuneration relates to 2,119,206 performance rights that were valued at 18.5c at the time of grant. As
at the date of this report, the vesting conditions have not yet been met and these performance rights are not yet
convertible into shares.
Directors’ Report
Annual Report | 53
AUDITED REMUNERATION REPORT (Continued)
OVERVIEW OF COMPANY PERFORMANCE
In considering the Company’s performance and benefits for shareholder wealth, the Board has regard to the following indices
in respect of the current and the previous four financial years:
2024
2023
2022
2021
2020
Other income
$2,536,814
$2,875,304
$685,203
$30,311
$439,311
Net loss after tax
$3,772,569
$13,500,296
$2,761,228
$2,081,181
$7,720,430
Share price at 31 December
$0.100
$0.135
$0.380
$0.175
$0.180
Currently, there is a portion of remuneration of certain executive KMP that is linked to share price performance. The rationale
for this approach is that the Group is in the exploration phase, and it is currently not appropriate to link remuneration to any
other factors such as profitability.
KMP REMUNERATION
A combination of fixed and variable reward may be provided to KMPs, based on their responsibility within the Group in relation
to the achievement of its strategic objectives and their capacity to contribute to the generation of long-term shareholder value.
The components of KMP remuneration may consist of:
Fixed Remuneration
KMP receive either an annual fixed base cash salary or fee and other associated benefits depending on the nature of their
contract. Fixed remuneration includes statutory superannuation guarantee contributions required by Australian legislation,
which increased to 11.5% on 1 July 2024. Directors and KMP do not receive any other retirement benefits.
Fixed remuneration of KMP will be set by the Board each year and is based on a number of factors. In setting fixed remuneration
for KMP, individual performance, skills, expertise and experience are taken into account as well as the Group’s current level of
activity and funding.
Where appropriate, external remuneration consultants may be engaged to assist the Board. External remuneration consultants
were not engaged in the current or comparative reporting periods.
On 27 March 2024, the Company announced that it had made changes to the Board and management team structure and
remuneration effective 1 April 2024 to reflect current market conditions and its ongoing commitment to maximise the funds
available for exploration at its Canadian lithium projects.
Effective 1 April 2024, the changes included:
•
Managing Director David Southam transitioned to Executive Chair. Mr Southam volunteered to reduce his remuneration
pro rata to three days per week, one-third of which was to be paid in CY5 equity, this reverted to four days per week on
1 September 2024;
•
Existing Independent Non-Executive Chairman Kevin Tomlinson transitioned to Lead Independent Non-Executive
Director. Mr Tomlinson’s remuneration to be paid 50% in cash and 50% in CY5 equity;
•
All other Non-Executive Directors director fees to be paid 50% in cash and 50% in CY5 equity; and
•
Other members of the management team also elected to receive a portion of their cash remuneration in CY5 equity.
Shareholders approved the issue of equity in lieu of directors’ fees at the annual general meeting on 16 May 2024. This salary
sacrifice scheme ended on 31 December 2024.
Directors’ Report
Annual Report | 54
AUDITED REMUNERATION REPORT (Continued)
Short-Term Incentives
Under the Company’s remuneration policy, employees are eligible to participate in the Company’s Short-Term Incentive
Program (“STIP”) and earn short-term bonuses of up to a fixed percentage of their fixed total remuneration package, subject
to achievement of STIP hurdles.
The objective of the STIP is to provide the opportunity to earn a cash or equity bonus by rewarding those employees who
successfully achieve, in the opinion of the Board, the critical short-term objectives of the Company over a twelve-month period.
Those short-term objectives for each employee are pre-determined and approved by the Board as being aligned with the
Company’s stated strategy to derive shareholder return.
For an employee who resigns or is terminated for cause before the end of the financial year, no STI is awarded for that year.
Similarly, any deferred STI awards are forfeited, unless otherwise determined by the Board.
If an employee ceases employment during the performance period by reason of redundancy, ill health, death, or other
circumstance approved by the Board, the employee will be entitled to a pro-rata cash payment based on an assessment of
performance up to the date of ceasing employment for that year and any deferred STI awards will be retained (subject to Board
discretion).
2024 STI Awarded
Towards the end of the current reporting period the Board agreed to award Mr Southam an STI bonus of $60,003 including
superannuation upon the successful achievement of the following critical short-term performance targets (numbers 1 and 3)
by 31 December 2024:
Target #
Performance Target Summary
% of total
fixed
remuneration
Weighting
Maximum
Cash Value
1
The Company’s shares achieving a 20-Day VWAP of
$0.10 or greater prior to 31 December 2024.
8.33%
33.33%
$29,997
2
The Company announcing successful drill results at the
Auclair Project that significantly increase the value of
that project
8.33%
33.33%
$29,997
3
The Company announcing a funding solution for a
meaningful exploration program in Quebec, Canada
8.34%
33.34%
$30,006
Totals
25%
100%
$90,000
The Company’s shares achieved a 20-Day VWAP of $0.10 or greater over a 20-day period on 17 October 2024.
On 15 October 2024, the Company announced the proposed merger with Dore Copper Mining Corp. and a two-tranche capital
raise of up to A$11,000,000 (before costs) to fund resource growth and advance the pathway to production at Chibougamau
whilst also advising the lithium exploration pipeline in James Bay. The capital raise and significant transaction are important
for the Company to advance its projects in Quebec.
The Board resolved that Mr Southam did not successfully achieve performance target number 2 by 31 December 2024.
Accordingly, $29,997 was forfeited by Mr Southam for the 2024 reporting period.
Directors’ Report
Annual Report | 55
AUDITED REMUNERATION REPORT (Continued)
Long-Term Incentives
The Group also awards its KMP with Long-Term Incentives (“LTIs”). LTIs are issued under the Company’s Employee Incentives
Securities Plan which was approved by Shareholders on 31 January 2023. The objective of LTIs is to provide potential rewards
to KMP in a manner which aligns this element of remuneration with the creation of shareholder wealth. As such LTIs can be
awarded to KMP who are able to influence the generation of shareholder wealth and thus have an impact on the Group’s
performance.
If an employee resigns or is terminated for cause before the end of the financial year, no LTIs will vest for that year. Similarly,
any vested and unexercised LTI awards are forfeited, unless otherwise determined by the Board.
If an employee ceases employment during the performance period by reason of redundancy, ill health, death, or other
circumstance approved by the Board, the employee will be entitled to receive any vested but unexercised LTIs as at the date
of ceasing employment, subject to Board discretion.
The treatment of vested and unexercised awards in all other circumstances will be determined by the Board with reference to
the circumstances of cessation.
The Company prohibits directors or employees from entering into arrangements to protect the value of any Company shares,
options or performance rights that the director or employee has become entitled to as part of their remuneration package.
This includes entering into a contract to hedge their exposure.
Unlisted Share Options
There were no unlisted share options issued in 2024 other than 16,210,210 unlisted share options issued as replacement
options to Doré option holders upon completion of the acquisition of Doré on 31 December 2024. Refer Note 19 for further
details.
Performance Rights
There were no performance rights issued in 2024.
NON-EXECUTIVE DIRECTOR REMUNERATION
Non-Executive Director fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are determined in accordance with the rules set out in the Group’s Constitution and the
Corporations Act at the time of the director’s retirement or termination.
Non-Executive Director remuneration may include an incentive portion consisting of performance rights and/or share options,
as considered appropriate by the Board, which is subject to shareholder approval in accordance with the ASX Listing Rules.
The aggregate remuneration, and the manner in which it is apportioned amongst Non-Executive Directors, is reviewed
annually. The Board considers the amount of director fees being paid by comparable companies with similar responsibilities
and levels of experience of the Non-Executive Directors when undertaking the annual review process.
The maximum amount of Non-Executive Director fees payable is fixed at $600,000 in total, for each 12-month period
commencing 1 January each year, until varied by ordinary resolution of shareholders. This amount of $600,000 was approved
by shareholders in January 2023, up from $300,000. Non-Executive Directors are not entitled to any termination payments.
Director Fees
2024 Fees Per Non-Executive
Director Inclusive of
Superannuation
$A Per Annum
2023 Fees Per Non-Executive
Director Inclusive of Superannuation
$A Per Annum
Lead Independent Non-Executive Director
95,000
N/A
Other Non-Executive Directors
55,249
55,249
Directors’ Report
Annual Report | 56
AUDITED REMUNERATION REPORT (Continued)
THE REMUNERATION OF THE DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL
The Directors and other KMP of the Company, alongside their remuneration for the period, are set out in the following tables:
Fixed remuneration
Variable remuneration
Total
$
Performance
based
%
2024
Base Salary
and Fees
$
Annual
leave
$
Super-
annuation
$
Share
rights
(non-cash)
$
Bonus
$
Performance
rights/options
(non-cash)
$
Non-Executive Directors
K Tomlinson6
73,196
-
-
35,625
-
46,819
155,640
30%
R Shorrocks
31,109
-
5,600
18,665
-
-
55,374
-
M Bohm1
30,466
-
4,231
20,739
-
-
55,436
-
M Naylor2
24,887
-
4,169
12,444
-
-
41,500
-
M Stifano3
-
-
-
-
-
16,1235
16,123
100%
B Omland3
-
-
-
-
-
-
-
-
Executive Directors
D Southam
326,733
3,598
28,666
83,529
60,003
1,840,921
2,343,450
81%
E Mast3
-
-
-
-
-
36,7295
36,729
100%
Other KMP
C Travaglini4
132,898
-
4,125
22,500
-
-
159,523
-
Totals
619,289
3,598
46,791
193,502
60,003
1,940,592
2,863,775
70%
Notes:
1.
Mr Bohm resigned on 31 December 2024.
2.
Mr Naylor resigned on 21 September 2024.
3.
Mr Mast, Mr Stifano and Mr Omland were appointed on 31 December 2024.
4.
Mr Travaglini ceased to be an employee on 31 March 2024 and began providing CFO and Company Secretarial services through CCM Corporate Pty Ltd
from 1 April 2024, a company that Mr Travaglini is a director of and has a beneficial interest in.
5.
Amounts relate to the remaining vesting expense of Doré share options held by Mr Mast and Mr Stifano that were cancelled upon completion of the
Company’s acquisition of Doré Copper Mining Corp. on 31 December 2024.
6.
Mr Tomlinson was appointed Lead Independent Non-Executive Director on 1 April 2024.
Fixed remuneration
Variable remuneration
Total
$
Performance
based
%
2023
Base Salary
and Fees
$
Annual
leave
$
Super-
annuation
$
Bonus
(non-cash)
$
Performance
rights
(non-cash)
$
Non-Executive Directors
K Tomlinson1
149,889
-
-
-
101,818
251,707
40%
R Shorrocks
57,956
-
4,044
-
193,109
255,109
76%
M Bohm
55,375
-
-
-
-
55,375
-
M Naylor
93,356
2,564
9,730
-
1,544,872
1,650,522
94%
S Hardcastle2
13,750
-
-
-
-
13,750
-
Executive Directors
D Southam3
422,429
29,053
32,179
120,000
3,767,541
4,371,202
89%
Other KMP
C Travaglini4
137,500
5,433
14,813
-
245,000
402,746
61%
S Field4
6,0005
-
-
-
240,837
246,837
98%
Totals
936,255
37,050
60,766
120,000
6,093,1776
7,247,248
86%
Notes:
1.
Mr Tomlinson was appointed Non-Executive Chairman on 3 April 2023.
2.
Mr Hardcastle resigned 3 April 2023. During 2023 Mr Hardcastle’s non-executive director fees were paid up until his resignation date.
3.
Mr Southam was appointed as Managing Director on 13 February 2023, previously appointed Non-Executive Director 1 November 2022.
4.
Ms Field resigned and Mr Travaglini was appointed as Chief Financial Officer and Joint Company Secretary on 1 February 2023.
5.
Ms Field’s fees were paid by the Company to Blue Leaf Corporate Pty Ltd, a company controlled by Mr Naylor.
6.
The share price used in the valuation of share-based remuneration reported in the current period was required to be set at the time of the grant of the
related performance right. The Company’s share price at the time of each grant of performance rights to KMP was as follows:
Kevin Tomlinson 22c, Ray Shorrocks 25c, Michael Naylor 25c, David Southam 50c, Carl Travaglini 49c, Sue Field 24c.
Directors’ Report
Annual Report | 57
AUDITED REMUNERATION REPORT (Continued)
SHARES HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Balance at the
start of the year
Acquired upon
conversion of
share rights
Acquired through
participation in
share placements
Held upon
commencement
as KMP
Held upon
cessation as
KMP
Balance at the
end of the year
Directors
David Southam
4,285,715
-
2,857,143
-
-
7,142,858
Ernest Mast
-
-
-
6,394,455
-
6,394,455
Kevin Tomlinson
375,000
-
285,714
-
-
660,714
Ray Shorrocks
4,388,449
-
2,857,143
-
-
7,245,592
Mario Stifano
-
-
-
5,972,049
-
5,972,049
Brent Omland
-
-
-
256,158
-
256,158
Michael Naylor
16,518,894
-
1,714,286
-
(18,233,180)
-
Michael Bohm
7,860,036
-
710,318
-
(8,570,354)
-
Other KMP
Carl Travaglini
550,000
236,836
138,889
-
-
925,725
Totals
33,978,094
236,836
8,563,493
12,622,662
(26,803,534)
28,597,551
SHARES ISSUED ON EXERCISE OF EQUITY OPTIONS
During 2024, there were no shares issued from the conversion of performance rights (2023: 13,800,000) and 236,836 shares
issued from the conversion of share rights (2023: None) by KMP.
UNLISTED OPTIONS HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Grant date
Expiry date
Fair value
Exercise price
Balance
1 Jan 2024
Held on
appointment/
(resignation)
Balance
31 Dec
2024
Vested and
exercisable
31 Dec 2024
Ray Shorrocks
23/12/21
20/01/25
AUD$0.0917
AUD$0.1600
3,500,000
-
3,500,000
3,500,000
Michael Naylor
07/11/21
15/11/24
AUD$0.9500
AUD$0.1600
2,250,000
(2,250,000)
-
-
Ernest Mast
31/12/24
30/04/25
AUD$0.0004
CAD$0.3610
-
384,237
384,237
384,237
Ernest Mast
31/12/24
22/04/26
AUD$0.0070
CAD$0.6012
-
576,355
576,355
576,355
Ernest Mast
31/12/24
12/05/27
AUD$0.0324
CAD$0.3225
-
457,425
457,425
457,425
Ernest Mast
31/12/24
19/08/27
AUD$0.0432
CAD$0.2241
-
914,850
914,850
914,850
Ernest Mast
31/12/24
12/05/28
AUD$0.0638
CAD$0.1093
-
457,425
457,425
457,425
Ernest Mast
31/12/24
19/04/29
AUD$0.0814
CAD$0.0547
-
2,515,837
2,515,837
2,515,837
Mario Stifano
31/12/24
30/04/25
AUD$0.0004
CAD$0.3607
-
219,564
219,564
219,564
Mario Stifano
31/12/24
22/04/26
AUD$0.0070
CAD$0.6012
-
329,346
329,346
329,346
Mario Stifano
31/12/24
12/05/27
AUD$0.0324
CAD$0.3225
-
256,158
256,158
256,158
Mario Stifano
31/12/24
12/05/28
AUD$0.0638
CAD$0.1093
-
256,158
256,158
256,158
Mario Stifano
31/12/24
19/04/29
AUD$0.0814
CAD$0.0547
-
1,408,869
1,408,869
1,408,869
Brent Omland
31/12/24
30/04/25
AUD$0.0004
CAD$0.3607
-
54,891
54,891
54,891
Brent Omland
31/12/24
22/04/26
AUD$0.0070
CAD$0.6012
-
82,336
82,336
82,336
Totals
5,750,000
5,663,451
11,413,451
11,413,451
PERFORMANCE RIGHTS HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Grant date
Expiry date
Fair
value
Exercise
price
Balance
1 Jan 2024
Additions/
disposals
Balance
31 Dec
2024
Vested and
convertible
31 Dec
2024
Maximum
value for
future
years
K Tomlinson
26/03/2023
3/04/2028
$0.2200
N/A
300,000
-
300,000
-
$8,306
K Tomlinson
26/03/2023
13/02/2028
$0.1723
N/A
400,000
-
400,000
-
$43,978
D Southam
31/01/2023
13/02/2028
$0.5000
N/A
5,000,000
-
5,000,000
5,000,000
-
D Southam
31/01/2023
13/02/2028
$0.5000
N/A
4,000,000
-
4,000,000
-
-
D Southam
31/01/2023
13/02/2028
$0.4750
N/A
2,500,000
-
2,500,000
-
$740,724
D Southam
31/01/2023
13/02/2028
$0.4630
N/A
2,500,000
-
2,500,000
-
$722,011
D Southam
28/08/2023
5/09/2028
$0.1850
N/A
1,059,603
-
1,059,603
-
$78,282
D Southam
28/08/2023
5/09/2028
$0.1704
N/A
2,119,206
-
2,119,206
-
$72,104
Totals
17,878,809
-
17,878,809
5,000,000
$1,665,405
Directors’ Report
Annual Report | 58
AUDITED REMUNERATION REPORT (Continued)
SHARE RIGHTS HELD BY DIRECTORS AND OTHER KMP, INCLUDING THEIR RELATED PARTIES
Grant date
Expiry date
Fair value
$
Exercise
price
Balance
1 Jan
2024
Granted as
remuneration
Converted
Balance
31 Dec 2024
Vested and
convertible
31 Dec 2024
C Travaglini
28/03/24
31/07/29
7,500
N/A
-
115,928
(115,928)
-
-
C Travaglini
28/03/24
31/07/29
7,500
N/A
-
120,908
(120,908)
-
-
D Southam
16/05/24
31/07/29
120,000
N/A
-
1,333,334
-
1,333,334
1,333,334
D Southam
16/05/24
31/07/29
30,344
N/A
-
419,598
-
419,598
419,598
D Southam
16/05/24
31/07/29
24,783
N/A
-
447,658
-
447,658
447,658
K Tomlinson
16/05/24
31/07/29
11,875
N/A
-
183,550
-
183,550
183,550
K Tomlinson
16/05/24
31/07/29
11,875
N/A
-
191,438
-
191,438
191,438
R Shorrocks
16/05/24
31/07/29
6,222
N/A
-
96,170
-
96,170
96,170
R Shorrocks
16/05/24
31/07/29
6,222
N/A
-
100,301
-
100,301
100,301
M Bohm
16/05/24
31/07/29
8,296
N/A
-
96,170
-
96,170
96,170
M Bohm
16/05/24
31/07/29
6,222
N/A
-
100,301
-
100,301
100,301
M Naylor
16/05/24
31/07/29
6,222
N/A
-
96,170
-
96,170
96,170
M Naylor
16/05/24
31/07/29
6,222
N/A
-
101,392
-
101,392
101,392
Totals
253,283
-
3,402,918
(236,836)
3,166,082
3,166,082
SERVICE AGREEMENTS
Remuneration and other terms of employment for Executive Directors are formalised in service agreements. The service
agreements specify the components of remuneration, benefits and notice periods. Participation in short term and long-term
incentives are at the discretion of the Board. Other major provisions of the agreements relating to remuneration are set out
below.
Name and Position
Term of Agreement
Base Salary Including
Superannuation
Company/Employee
Termination Notice
Period
Termination
Benefit
David Southam
Executive Chair
Ongoing commencing
13 February 2023
AUD$484,344 p.a.
(80% utilisation)
6 / 3 months
6 months’ base
salary plus
superannuation
Ernest Mast
Managing Director &
President
Ongoing commencing
31 December 2024
CAD$300,000 p.a.
3 / 3 months
12 months’ base
salary
LOANS TO DIRECTOR RELATED PARTIES
There were no loans to Directors of the Company, including their personally related parties, as at 31 December 2024 (2023:
None).
Directors’ Report
Annual Report | 59
AUDITED REMUNERATION REPORT (Continued)
OTHER TRANSACTIONS WITH DIRECTOR RELATED PARTIES
The following transactions and arrangements with Director related parties occurred during the current and comparative
reporting periods:
Belltree Corporate Pty Ltd, a company that former director Michael Naylor is a director of and has an indirect interest in,
provided company secretarial services to the Company during the year ended 31 December 2024 totalling $80,500 (2023:
$89,500). There were no amounts owing to Belltree Corporate Pty Ltd by the Company at 31 December 2024 (2023: Nil).
Exia-IT Pty Ltd, of which Belltree Corporate Pty Ltd holds an interest and former director Michael Naylor holds an interest in
Belltree Corporate Pty Ltd, provided information technology management services to the Company during the year ended
31 December 2024 totalling $55,118 (2023: $68,923). There were no amounts owing to Exia-IT Pty Ltd by the Company at
31 December 2024 (2023: Nil).
During the year ended 31 December 2024 the Company paid $151,318 (2023: $196,960) for shared administrative, head office
rent and head office fit-out costs to FireFly Metals Limited, of which Ray Shorrocks and former director Michael Naylor were
directors in 2024. $16,098 was owing to FireFly Metals Limited by the Company at 31 December 2024 (2023: $25,385).
Bellavista Resources Ltd, a company that former director Michael Naylor was a director of during 2024, recharged shared office
costs to the Company during 2024 totalling $48,987 (2023: $64,987). $3,740 was owing to Bellavista Resources Ltd by the
Company at 31 December 2024 (2023: $3,399).
Blue Leaf Corporate Pty Ltd, a company owned by former director Michael Naylor, provided corporate consulting services to
the Company during 2024 to the value of $16,148 (2023: $42,000). There were no amounts owing to Blue Leaf Corporate Pty
Ltd by the Company at 31 December 2024 (2023: Nil).
Bellevue Gold Limited, a company that Kevin Tomlinson and former director Michael Naylor are directors of, recharged shared
administrative costs to the Company during the comparative year ended 31 December 2023 of $20,480. Bellevue Gold Limited
did not recharge any costs to the Company during 2024. There were no amounts owing to Bellevue Gold Limited by the
Company at 31 December 2024 (2023: $14,440).
Andean Silver Limited, a company that David Southam and Ray Shorrocks are directors of, recharged shared office costs to the
Company during the year ended 31 December 2024 totalling $25,112 (2023: $8,325). There were no amounts owing to Andean
Silver Limited by the Company at 31 December 2024 (2023: Nil).
Terms and conditions of transactions with related parties
Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. The value of
these related party transactions are considered minor and save Cygnus Metals significant costs should these services had been
sourced directly. Outstanding balances at year-end are unsecured and interest-free and settlement occurs in cash and are
presented as part of trade payables. There have been no bank guarantees provided for any related party payables. Amounts
shown are net of GST paid or payable.
VOTING AND COMMENTS MADE AT THE COMPANY’S LAST ANNUAL GENERAL MEETING
Cygnus received 90.99% “yes” votes on its Remuneration Report for the year ended 31 December 2023.
END OF AUDITED REMUNERATION REPORT
Directors’ Report
Annual Report | 60
MEETINGS OF DIRECTORS
During the financial year, seven meetings of directors were held and attendances by each director during the year were as
follows:
Number eligible
to attend
Number
attended
David Southam
6
6
Ernest Mast
-
-
Kevin Tomlinson
6
6
Ray Shorrocks
6
6
Mario Stifano
-
-
Brent Omland
-
-
Michael Bohm
6
6
Michael Naylor
5
5
On 31 December 2024 the Board of Directors resolved to establish an Audit Committee comprised of Brent Omland as chair,
and Kevin Tomlinson and Raymond Shorrocks as members. The first Audit Committee meeting was held on 28 March 2025.
INDEMNIFYING OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act, every officer of the Company shall
be indemnified out of the property of the Company against any liability incurred by him in his capacity as officer or agent of
the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending
any proceedings, whether civil or criminal. The terms of the policy prevent disclosure of the amount of the premium payable
and the level of indemnification under the insurance contract.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify its auditors, BDO Audit Pty Ltd, as part of the terms of
its audit engagement agreement, against claims by third parties arising from the audit (for an unspecified amount). No
payments have been made to indemnify BDO Audit Pty Ltd to the date of this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these
proceedings.
The Company was not a party to any such proceedings during the year.
NON-AUDIT SERVICES
BDO Audit Pty Ltd, the Company’s auditors, have not performed any other services in addition to their statutory audit duties.
The total remuneration for audit services provided during the current and prior financial years is set out in note 12 of the
financial statements.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 31 December 2024 has been received and is attached to this
Directors’ Report.
Directors’ Report
Annual Report | 61
DIRECTORS’ DECLARATION
This report is made in accordance with a resolution of the directors.
David Southam
Managing Director
Dated in Perth this 31st day of March 2025.
Annual Report | 62
Annual Mineral
Resource Statement
The Annual Mineral Resource Statement is based on, and fairly represents, information and supporting documentation
prepared by Duncan Grieve, and the Annual Mineral Resources Statement as a whole has been approved by Duncan Grieve.
Mr Grieve is a Competent Person as defined in the 2012 Edition of the JORC Code, who is a Member of the Australian Institute
of Geoscientists. He is employed full-time by the Company as Vice President of Exploration and Corporate Development, and
holds securities in the Company.
CHIBOUGAMAU COPPER-GOLD PROJECT
The Mineral Resource Estimate at the Chibougamau Project is a foreign estimate prepared in accordance with Canadian
National Instrument 43-101 (“NI 43-101”). A competent person has not done sufficient work to classify the foreign estimate as
a mineral resource in accordance with the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (“JORC Code”), and it is uncertain whether further evaluation and exploration will result in an
estimate reportable under the JORC Code.
Cygnus first announced the foreign estimate of mineralisation for the Chibougamau Project on 15 October 2024. The Company
confirms that the supporting information included in the announcement of 15 October 2024 continues to apply and has not
materially changed, notwithstanding the clarification announcement released by Cygnus on 28 January 2025 (“Clarification”).
Cygnus confirms that (notwithstanding the Clarification) it is not aware of any new information or data relating to the foreign
estimate that materially affects the information included in the original announcement and that all material assumptions and
technical parameters underpinning the estimates in the original announcement continue to apply and have not materially
changed. Cygnus confirms that it is not in possession of any new information or data relating to the foreign estimate that
materially impacts on the reliability of the estimates or Cygnus’ ability to verify the foreign estimates as mineral resources in
accordance with the JORC Code. The Company confirms that the form and context in which the Competent Persons’ findings
are presented have not been materially modified from the original market announcement.
The Mineral Resource Estimate at the Chibougamau Project as at 31 December 2024 is presented in the table below:
Deposit
Category
Tonnes
(k)
Cu Grade
(%)
Au Grade
(g/t)
Cu Metal
(kt)
Au Metal
(koz)
CuEq Grade
(%)
Corner Bay
Indicated
2,700
2.7
0.3
71
22
2.9
Inferred
5,900
3.4
0.3
201
51
3.6
Devlin
Measured
120
2.7
0.3
3
1
2.9
Indicated
660
2.1
0.2
14
4
2.3
Measured &
Indicated
780
2.2
0.2
17
5
2.4
Inferred
480
1.8
0.2
9
3
2.0
Joe Mann
Inferred
610
0.2
6.8
1
133
5.5
Cedar Bay
Indicated
130
1.6
9.4
2
39
8.9
Inferred
230
2.1
8.3
5
61
8.5
Total
Measured
& Indicated
3,600
2.5
0.6
90
66
3.0
Inferred
7,200
3.0
1.1
216
248
3.8
Notes:
1.
The effective date of the Mineral Resources for Corner Bay, Devlin and Joe Mann is 30 March 2022, and the effective date of the Mineral
Resources for Cedar Bay is 31 December 2018.
2.
Mineral resources have been reported at a cut-off grades of 2.6g/t Au at Joe Mann, 1.3% Cu at Corner Bay, 2.9g/t Au at Cedar Bay and
1.2% Cu at Devlin.
3.
Bulk density ranges by deposit and vein from 2.84 t/m3 to 3.1 t/m3.
4.
Mineral Resources that are not Ore Reserves have not demonstrated economic viability and an Inferred Mineral Resource carries a lower
level of confidence than that applying to Indicated Mineral Resource and must not be converted to an Ore Reserve.
5.
Figures may not add up due to rounding.
Annual Report | 63
Annual Mineral
Resource Statement
Metal equivalents
Metal equivalents for the foreign estimate of mineralisation have been calculated at a copper price of US$8,750/t, gold price
of US$2,350/oz. Copper equivalent was calculated based on the formula CuEq(%) = Cu(%) + (Au(g/t) x 0.77258). Metallurgical
recovery factors have been applied to the copper equivalents calculation, with copper metallurgical recovery assumed at 95%
and precious metal (gold) metallurgical recovery assumed at 85% based upon historical production at the Chibougamau
Processing Facility and the metallurgical results contained in Cygnus’ announcement dated 28 January 2025. It is the Company’s
view that all elements in the copper equivalent calculations have a reasonable potential to be recovered and sold.
Progress and status of evaluating foreign estimates
Cygnus acquired the Chibougamau Project as part of the Merger with Doré which completed on 31 December 2024. Prior to
the Merger closing, both teams executed a targeted exploration program to test the immediate areas around the Corner Bay
deposit, looking for both additional structures and extensions to the current resource. Cygnus announced the initial results
from this first exploration program in early 2025.
Cygnus’s intention is to continue undertaking further exploration work at the Chibougamau Project to underpin a mineral
resource estimate prepared in accordance with the JORC Code (2012 Edition). The work plan outlined by the Company to
achieve an updated resource estimation includes:
• Additional resource extension and confirmatory diamond drilling;
• Updated interpretation and geological modelling of the known mineralisation; and
• Review and sign off by an independent geological expert.
Cygnus is continuing to drill the Chibougamau Project with an emphasis on resource extension and localised infill drilling to
improve confidence in the resource categories. Geologic modelling will be progressed concurrently with drilling activity to
expedite mineral resource estimation work following completion of planned drilling activity. Independent consulting group,
SLR Consulting Group (“SLR”) has been engaged to deliver an updated mineral resource at its Chibougamau Project. SLR is an
internationally recognised mining services provider specialising in mineral resource estimation and is led by Mr Luke Evans. Mr
Evans completed the foreign estimate prepared in accordance with NI 43-101 for the Chibougamau Project and has an in-depth
knowledge of the camp having completed multiple site visits. Cygnus plans to complete the next mineral resource update in
accordance with both the JORC Code and NI 43-101.
Review of material changes
The acquisition of the Chibougamau Project on 31 December 2024 increased the Company’s total mineral resource estimates
by the following amount since 31 December 2023:
Category
Tonnes
(k)
Cu Grade
(%)
Au Grade
(g/t)
Cu Metal
(kt)
Au Metal
(koz)
CuEq Grade
(%)
Measured & Indicated
3,600
2.5
0.6
90
66
3.0
Inferred
7,200
3.0
1.1
216
248
3.8
Governance controls
The foreign estimate of mineralisation has been prepared by Qualified Persons using data that they have reviewed and consider
to have been collected using industry standard practices and which, to the most practical degree possible are representative,
unbiased, and collected with appropriate QA/QC practices in place.
Annual Report | 64
Annual Mineral
Resource Statement
PONTAX PROJECT
The Mineral Resource Estimate for the Pontax Central Project was prepared in accordance with the JORC Code (2012 edition)
by Mr Brian Wolfe at reputable Australian consultancy International Resource Solutions Pty Ltd with oversight from Cygnus
personnel. The Mineral Resource Estimate, prepared in accordance with the JORC Code (2012 edition) as at 31 December 2024,
which was first released on 14 August 2023, is presented in the table below:
Resource Category
Cut-off Grade
(Li2O)
Tonnes
(Mt)
Grade
(Li2O)
Contained Li2O
(Tonnes)
Grade
(Ta2O5 ppm)
Inferred
0.5%
10.1
1.04%
105,280
74.79
Notes: Figures may not add up due to rounding. Mineral Resource has been reported at a 0.5% Li2O lower cut-off grade to reflect assumed
exploitation by open pit mining. The average bulk density assigned to the mineralised pegmatite is 2.8g/cm3
The resource has been independently estimated by consultancy International Resource Solutions Pty Ltd. The estimate has
been produced by 3D modelling of the pegmatites and block model grade estimation using Ordinary Kriging (OK).
Classification
The Mineral Resource Estimate has been classified as Inferred, based on the level of geological understanding of the deposit
and current drill spacing. Material classified as Inferred was considered sufficiently informed by geological and sampling data
to imply geological, grade and quality continuity between data points. Mineral Resources that are not Ore Reserves have not
demonstrated economic viability and an Inferred Mineral Resource carries a lower level of confidence than that applying to
Indicated Mineral Resource and must not be converted to an Ore Reserve. The estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Review of material changes
As part of Cygnus’ annual review of resources, the economic assumptions outlined in accordance with principles of the JORC
Code (2012 edition) have been reviewed, and no material changes have been applied. Furthermore, the Company is not in
possession of any new information or data relating to the previously announced resource estimate, as such there are no
material changes to the resource estimate and no comparison of estimates is necessary.
As part of Cygnus’ Merger with Doré, the Company also released a foreign estimate of mineralisation for the Pontax Central
Project on 22 November 2024 (effective as of 16 October 2024), prepared in accordance with CIM Standards (NI 43-101). No
additional data was included in the foreign resource estimate, however the total resource and grade are less than the JORC
Resource due to the application of mining parameters and metal prices to the estimate. The Company does not consider the
CIM Standards affect the material assumptions and technical parameters utilised in the Mineral Resource Estimate reported in
accordance with the JORC Code.
The Mineral Resource Estimate prepared in accordance with the CIM Standards (NI 43-101), effective as of 16 October 2024,
which was first released on 22 November 2024, is presented in the table below:
Resource Category
Deposit
Cut-Off Grade (Li2O)
Tonnes (Mt)
Grade (Li2O)
Contained Li2O (Tonnes)
Inferred
Open Pit
0.4%
5.14
1.07%
54,800
Underground
0.6%
3.13
0.93%
29,200
Total
Variable
8.27
1.02%
84,000
No further update to the resource estimate has been completed following the annual review of mineral resources completed
for the financial year ended 30 June 2024.
Governance controls
The Mineral Resource Estimates quoted above have been prepared by Competent Persons (or Qualified Persons in the case of
the foreign estimate of mineralisation) using data that they have reviewed and consider to have been collected using industry
standard practices and which, to the most practical degree possible are representative, unbiased, and collected with
appropriate QA/QC practices in place. An annual review of the Mineral Resource has been undertaken by the named
Competent Persons.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050 110 275 Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 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
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF CYGNUS METALS
LIMITED
As lead auditor of Cygnus Metals Limited for the year ended 31 December 2024, 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 Cygnus Metals Limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit Pty Ltd
Perth
31 March 2025
Annual Report | 66
Financial Report
For the year ended 31 December 2024
CONTENTS
Consolidated Statement of Profit or Loss and Other Comprehensive Income
67
Consolidated Statement of Financial Position
68
Consolidated Statement of Changes in Equity
69
Consolidated Statement of Cash Flows
70
Notes to the Consolidated Financial Statements
71
Consolidated Entity Disclosure Statement
93
Directors’ Declaration
94
Independent Auditor’s Report
95
These financial statements are the consolidated financial statements of the consolidated entity consisting of Cygnus
Metals Limited and its subsidiaries. The financial statements are presented in Australian dollars, which is Cygnus Metals
Limited’s presentation currency.
Cygnus Metals Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business is:
Cygnus Metals Limited
Level 2, 8 Richardson Street
WEST PERTH WA 6005
A description of the nature of the consolidated entity's operations and its principal activities is included in pages 4 to 37
of the Directors’ report, which is not part of these financial statements.
The financial statements were authorised for issue by the directors on 31 March 2025.
Through the use of the internet, the Company has ensured that its corporate reporting is timely, complete, and available
globally at minimum cost to the Company. All press releases, financial statements and other information are available
on our website: www.cygnusmetals.com.
Annual Report | 67
Consolidated Statement of Profit or
Loss & Other Comprehensive Income
For the year ended 31 December 2024
Notes
2024
$
2023
$
OTHER INCOME
3
2,536,814
2,875,304
2,536,814
2,875,304
EXPENSES
Audit and accounting
(107,010)
(86,297)
Compliance expenses
(98,711)
(130,884)
Consultants and contractors
(480,916)
(486,979)
Corporate costs
(369,154)
(561,864)
Depreciation – Property, plant and equipment
(42,105)
(51,482)
Employee benefits expense
(723,490)
(1,208,644)
Exploration expenditure written off
19
(630,056)
(634,937)
Exploration expensed
(351,536)
(62,041)
Interest expense
(40,384)
-
Office rent & outgoings
(136,183)
(155,479)
Payroll Tax expense
(105,165)
(419,510)
Share-based payments
10(d)
(2,016,732)
(10,185,535)
Travel and accommodation
(136,263)
(249,301)
Foreign exchange gains/(losses)
49,303
(242,633)
(5,188,402)
(14,475,586)
Results from operating activities
(2,651,588)
(11,600,282)
Finance income
227,905
118,519
Loss before income tax
(2,423,683)
(11,481,763)
Income tax expense
23
(1,348,886)
(2,018,533)
Loss after income tax for the year attributable to equity holders
of the Company
(3,772,569)
(13,500,296)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
130,301
(113,473)
Items that will not be reclassified subsequently to profit or loss:
Changes in fair value of financial assets
(123,183)
(196,198)
Total comprehensive loss for the year, net of tax attributable to
equity holders of the Company
(3,765,451)
(13,809,967)
Loss per share attributable to equity holders of the Company
Basic and diluted loss per share (cents per share)
11
(1.08)
(5.84)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
Notes to the Consolidated Financial Statements.
Annual Report | 68
Consolidated Statement
of Financial Position
As at 31 December 2024
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Consolidated
Financial Statements.
Notes
2024
$
2023
$
ASSETS
Current assets
Cash and cash equivalents
4
14,869,835
9,316,782
Other receivables
5
1,255,260
1,507,476
Total current assets
16,125,095
10,824,258
Non-current assets
Exploration and evaluation
19
61,309,265
23,926,379
Property, plant and equipment
20
1,362,577
132,847
Investments
78,515
201,698
Total non-current assets
62,750,357
24,260,924
TOTAL ASSETS
78,875,452
35,085,182
LIABILITIES
Current liabilities
Trade and other payables
6
3,458,792
5,528,242
Provisions
141,111
120,238
Total current liabilities
3,599,903
5,648,480
Non-current liabilities
Deferred tax liabilities
7
3,808,192
2,459,306
Total non-current liabilities
3,808,192
2,459,306
TOTAL LIABILITIES
7,408,095
8,107,786
NET ASSETS
71,467,357
26,977,396
EQUITY
Contributed equity
8
92,739,029
47,607,870
Reserves
9
10,435,742
7,779,313
Accumulated losses
(31,707,414)
(28,409,787)
TOTAL EQUITY
71,467,357
26,977,396
Annual Report | 69
Consolidated Statement of
Changes in Equity
For the year ended 31 December 2024
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Consolidated
Financial Statements.
Notes
Share
Capital
$
Share-based
Payment
Reserve
$
Investment
Revaluation
Reserve
$
Foreign
Currency
Translation
Reserve
$
Accumulated
Losses
$
Total Equity
$
Balance at 1 January 2023
25,260,644
7,108,222
(56,934)
-
(14,909,491)
17,402,441
Loss for the year
-
-
-
-
(13,500,296)
(13,500,296)
Other comprehensive loss:
Fair value adjustment of financial assets
-
-
(196,198)
-
-
(196,198)
Exchange differences on foreign operations
-
-
-
(113,473)
-
(113,473)
Total comprehensive loss
-
-
(196,198)
(113,473)
(13,500,296)
(13,809,967)
Transactions with owners:
Placement of ordinary shares
3,000,000
-
-
-
-
3,000,000
Placement of Flow-Through shares
8,022,721
-
-
-
-
8,022,721
Flow-Through share placement premium
(3,858,181)
-
-
-
-
(3,858,181)
Issue of shares – Project acquisitions
4,552,486
-
-
-
-
4,552,486
Issue of shares - Option conversions
2,192,000
-
-
-
-
2,192,000
Issue of shares - Exercise of performance rights
9,119,251
(9,119,251)
-
-
-
-
Share issue expense
(710,620)
-
-
-
-
(710,620)
Share-based payments
29,569
10,156,947
-
-
-
10,186,516
Balance at 31 December 2023
8
47,607,870
8,145,918
(253,132)
(113,473)
(28,409,787)
26,977,396
Loss for the year
-
-
-
-
(3,772,569)
(3,772,569)
Other comprehensive loss:
Exchange differences on foreign operations
-
-
-
130,301
-
130,301
Fair value adjustment of financial assets
-
-
(123,183)
-
-
(123,183)
Total comprehensive loss
-
-
(123,183)
130,301
(3,772,569)
(3,765,451)
Transactions with owners:
Placement of ordinary shares
13,996,000
-
-
-
-
13,996,000
Issue of shares and options to Doré Shareholders
31,066,298
867,081
-
-
-
31,933,379
Issue of shares – Project acquisition milestones
239,259
-
-
-
-
239,259
Issue of shares – Merger transaction fee
416,668
-
-
-
-
416,668
Issue of shares - Exercise of performance rights
48,500
(48,500)
-
-
-
-
Issue of shares - Exercise of share rights
38,210
(38,210)
-
-
-
-
Issue of share rights
-
327,150
-
-
-
327,150
Unlisted share option expiry
-
(474,942)
-
-
474,942
-
Share issue expense
(673,776)
-
-
-
-
(673,776)
Share-based payments
-
2,016,732
-
-
-
2,016,732
Balance at 31 December 2024
8
92,739,029
10,795,229
(376,315)
16,828
(31,707,414)
71,467,357
Annual Report | 70
Consolidated Statement of
Cash Flows
For the year ended 31 December 2024
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Consolidated Financial
Statements.
Notes
2024
$
2023
$
Operating activities
Payments to suppliers and employees
(1,867,205)
(3,188,633)
Payments for exploration expenditure
(327,583)
(63,155)
Interest received
169,700
57,094
Interest payments
(40,384)
-
Other income
-
33,000
Net refundable sales tax payments made
142,376
(392,507)
Net cash used in operating activities
13
(1,923,096)
(3,554,201)
Investing activities
Payments for project acquisitions
(272,629)
(1,848,054)
Payments for capitalised exploration expenditure
(8,097,891)
(10,998,818)
Purchase of property plant and equipment
(7,662)
(28,779)
Payments to establish security deposits
-
(128,950)
Government incentives received
46,216
-
Cash received on completion of Doré acquisition
19
2,457,306
-
Net cash used in investing activities
(5,874,660)
(13,004,601)
Financing activities
Proceeds from shares issued
8
13,996,000
11,022,700
Proceeds from exercise of options
-
2,192,000
Share issue costs
(673,776)
(710,620)
Net cash provided by financing activities
13,322,224
12,504,080
Net change in cash and cash equivalents
5,524,468
(4,054,722)
Effect of movement in exchange rates on cash held
28,585
(159,174)
Cash and cash equivalents, beginning of period
9,316,782
13,530,678
Cash and cash equivalents, end of year
4
14,869,835
9,316,782
Annual Report | 71
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
1.
Summary of Material Accounting Policies
The material accounting policies adopted in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to the financial years presented, unless otherwise stated. These financial
statements cover Cygnus Metals Limited as a consolidated, for-profit entity consisting of Cygnus Metals Limited and its
subsidiaries (“the consolidated entity” or “the Group”).
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other
authoritative pronouncements and the Corporations Act.
(i)
Compliance with IFRS
The financial statements of Cygnus Metals Limited also comply with International Financial Reporting Standards (“IFRS”) and
International Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and Interpretations
(collectively, “IFRS Accounting Standards”).
(ii)
Historical cost convention
These financial statements have been prepared under the historical cost convention except for investments held at fair value
through other comprehensive income.
(iii)
Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business
activities and the realisation of assets and settlement of liabilities in the normal course of business.
As disclosed in the financial report, the Group achieved a net loss of $3,772,569 and net operating cash outflows of $1,923,096
for the year ended 31 December 2024. As at 31 December 2024, the Company had cash of $14,869,835 and a net current asset
position of $12,525,192.
The ability of the Group to continue as a going concern is principally dependent upon the following conditions:
•
the ability of the Company to successfully raise capital, as and when necessary; and
•
the ability to complete the successful development and commercialisation of its projects.
These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a
going concern.
The Directors believe that the going concern basis of preparation is appropriate due to being satisfied that there is a reasonable
basis to conclude that the Group can raise additional capital as and when required as the Group has potential options available
to manage liquidity, including one or a combination of, a placement of shares, option conversion, entitlement offer or a change
in the Company’s expenditure profile.
Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities
other than in the ordinary course of business, and at amounts that differ from those stated in the financial report.
This financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be
unable to continue as a going concern
Principles of consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities (subsidiaries)
at year end is contained in note 15. The financial statements of subsidiaries are prepared for the same reporting period as the
parent entity, using consistent accounting policies.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
Annual Report | 72
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
1.
Summary of Material Accounting Policies (continued)
Parent entity disclosure
The financial information for the parent entity, Cygnus Metals Limited, disclosed in Note 16 has been prepared on the same
basis as the consolidated financial statements, other than investments in subsidiaries, which have been recorded at cost less
impairments.
(b)
Other income
Settlement of Flow-Through Share Liability
The issue of Flow-Through Shares (“FTS”) includes an issue of ordinary shares and the sale of tax deductions. At the time the
FTS are issued, the sale of tax deductions is deferred and presented as current liabilities in the statement of financial position
because the Company has not yet fulfilled its obligations to pass on the tax deductions to the investor. When the Company
fulfills its obligation the sale of tax deductions is recognised in the income statement as other income.
(c)
Equity and reserves
Share capital represents the fair value of consideration received for shares that have been issued. Any transaction costs
associated with the issuing of shares are deducted from share capital, net of any related income tax benefits.
Retained earnings include all current and prior period retained profits.
Refer to Note 1(m) for the Group’s accounting policy on Flow-Through Shares.
The Group maintains a share base payments reserve which accumulates the value recognised as a result of share-based awards
issued to employees or contractors for services rendered. Where amounts have accumulated in the reserve and the underlying
instruments expire, amounts are transferred from the reserve to retained earnings. Where amounts have accumulated in the
reserve and the underlying instruments have vested or been exercised, amounts are transferred from the reserve to share
capital. In the event that awards are forfeited, balances that have accumulated in the reserve are reversed through the profit
or loss.
(j)
Exploration and evaluation expenditure
Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest.
These costs are only capitalised to the extent that they are expected to be recovered through the successful development of
the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area
according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in
relation to that area of interest.
Costs of site restoration are provided over the life of the project from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of permits.
Such costs have been determined using estimates of future costs, current legal requirements and technology on an
undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning
the site.
Annual Report | 73
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
1.
Summary of Material Accounting Policies (continued)
(k)
Share-based payments
The Group operates equity-settled share-based remuneration plans for its employees.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where
employees have been rewarded using share-based payments, the fair values have been determined indirectly by reference to
the fair value of the equity instruments granted. Where consultants have been rewarded using share-based payments, the
Group determines the fair value with direct reference to the fair value of the service unless this cannot be determined at which
point the fair value is determined indirectly by reference to the fair value of the equity instrument granted. In the circumstances
for this financial report, for consultants, the fair value of the services could not be readily determined with reference to a
service contract and the contracts have no defined period of service to which the award pertains. Therefore, the fair value has
been determined indirectly by reference to the fair value of the equity instrument granted. Fair value with reference to the
equity instrument is appraised at the grant date and excludes the impact of non-market vesting conditions (for example
profitability and sales growth targets and performance conditions).
All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to the share-
based payment reserve. Where vesting periods exist, the total expense is recognised straight-line over the vesting period.
Where vesting conditions are non-market based, the expense is based on the best available estimate of the number of
instruments expected to vest. Where the vesting conditions are market based, the Group uses a pricing model to determine
the fair value of each instrument.
The fair value of share-based payments to asset vendors is determined with reference to the fair value of the equity
instruments issued as consideration for the assets acquired per the terms of the relevant asset purchase agreement. If the fair
value of the transactions cannot be estimated with direct reference to the fair value of the asset received given limited fair
value information over the asset available at the time of the transaction, the fair value of each instrument is estimated using
the latest trading price of the shares relative to the date of completion of the sale.
(l)
Property, plant and equipment
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Costs
include expenditures that are directly attributable to the acquisition of the asset.
Subsequent Costs
Subsequent expenditure is only capitalised when it is probable that the future economic benefits associated with the
expenditure will flow to the Group.
Ongoing repairs and maintenance are expensed as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of
property, plant and equipment. The expected useful lives in the current and comparative period are as follows:
IT equipment
2 – 3 years
Plant and equipment
2 – 5 years
Motor vehicles
5 years
Leasehold improvements
5 years
The estimated useful lives, depreciation methods and residual values are reviewed at the end of each reporting period.
Annual Report | 74
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
1. Summary of Material Accounting Policies (continued)
(m) Flow-Through Shares
Flow-through shares may be issued to finance a portion of an exploration program. A flow-through share agreement transfers
the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company divides the flow-through share
into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature,
which is recognised as a liability, and ii) issued capital. Share capital for shares issued is recongised at fair value with the residual
value, or flow-through share premium, recognised as current liabilities.
The Company has elected to apply the renunciation process prospectively and has relied upon the “look-back” rule which
allows the Company to renounce eligible expenditures incurred up to an entire calendar year (i.e. 2024) following the last day
of the calendar year in which the FTS are issued (i.e. 2023)
At initial recognition the sale of tax deductions is deferred and presented as other liabilities in the balance sheet as the entity
has not yet fulfilled its obligations to pass on the tax deductions to the investor.
Upon expenses being incurred, the Company derecognises the liability and the premium is recognised as other income. The
exploration spend also gives rise to a deferred tax liability which is recognised as the difference between the carrying value
and tax base of the qualifying expenditure for the amount of the tax reduction renounced to the investors.
(n) Asset Acquisitions
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying amount
based on their relative fair values. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset. Estimates and judgements are required by the group, taking into consideration all
available information at the acquisition date, to assess the fair values of assets acquired and liabilities assumed.
(o) New and amended accounting standards and interpretations issued but not yet effective
Certain new and amended accounting standards and interpretations have been published that are not mandatory for
31 December 2024 reporting periods and have not been early adopted by the Company.
The Group has assessed these new and amended standards and has determined that they do not have a material impact on
the current reporting period and are not expected to have a material impact on the Company when adopted in future reporting
periods.
2.
Critical Accounting Estimates and Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing this Annual Financial Report, the significant judgements and estimates made by management in applying the
Entity’s accounting policies and the key sources of estimation uncertainty are detailed below.
Critical Estimates
Exploration and Evaluation Expenditure – Impairment
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s
accounting policy requires estimates and assumptions as to future events and circumstances. In particular, whether successful
development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to
this assessment is estimates and assumptions as to the presence of mineral reserves, timing of expected cash flows, exchange
rates, commodity prices and future capital requirements.
Annual Report | 75
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
2.
Critical Accounting Estimates and Judgements (continued)
Changes in these estimates and assumptions as new information about the presence or recoverability of a mineral reserve
becomes available, may impact the assessment of the recoverable amount of exploration and evaluation assets. If, after having
capitalised the expenditure a judgement is made that recovery of the expenditure is unlikely, an impairment loss is recorded
in the statement profit or loss and other comprehensive income.
Share-Based Payments
Share-based compensation benefits are provided to employees via the Cygnus Employee Securities Incentive Plan.
Performance rights are issued for nil consideration and the term of the performance rights is determined by the Board in its
absolute discretion but will ordinarily have a three-year term up to a maximum of five years. Performance rights are subject to
lapsing if performance conditions are not met by the relevant measurement date or expiry date (if no other measurement date
is specified) or if employment is terminated. The fair value of performance rights has been calculated at the grant date and
allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of
fair value of the rights allocated to this reporting period.
The valuation models used to fair value options and performance rights take into account the exercise price (where applicable),
the term to expiry, the vesting period, the impact of dilution, the non-tradeable nature of the options or performance rights,
the share price at grant date and assumptions on the expected price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the options and performance rights. Expected share price volatility was
determined with reference to actual share price volatility over the historic term of the Company’s share price at grant date
commensurate with the length of the related option or performance right’s future vesting period.
Additionally, assumptions are made about the number of options and performance rights that are expected to vest, which
could change from period to period. A change in any, or a combination, of these assumptions used in the valuation model could
have a material impact on the total valuation of the options and performance rights.
Critical Judgments
Exploration and Evaluation Expenditure
The entity carries exploration and evaluation expenditure as assets for expenditure accumulated on areas of interest where it
is considered likely to be recoverable. The Group judges this to be the case where the Group has right of tenure over an area
of interest, has substantive expenditure budgeted for the area of interest and the exploration activities have not yet resulted
in sufficient information that would indicate the amounts are not recoverable up to the asset carrying value.
Asset Acquisition
Judgment was required to determine that the acquisition of all of the issued capital of Doré Copper Mining Corp. was not a
business combination, but rather an asset acquisition. In assessing the appropriate accounting approach for an acquisition
transaction, management was required to determine whether the acquisition meets the definition of a business within the
scope of AASB 3 Business Combinations, or was instead an asset or group of assets that did not constitute a business with the
transaction being outside the scope of AASB 3. This assessment required differentiating the accounting requirements for a
business combination accounted for in accordance with AASB 3 and an asset acquisition.
Based on a review of the acquisition agreement and other relevant documents, it was management’s view that the acquisition
did not fall within the scope of AASB 3 and is therefore treated as an asset acquisition. This is supported by the following:
-
There were no outputs from the asset; and
-
There was no substantive process in place which would allow the inputs to be converted into outputs as the
Chibougamau Copper-Gold Project has been in care and maintenance since 2008. The Project was also considered to be
in the early stages of development.
Annual Report | 76
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
2.
Critical Accounting Estimates and Judgements (continued)
Amendments to AASB 3 which became effective from 1 January 2020 included the introduction of ‘the concentration test’. The
purpose of this concentration test is to permit a simplified assessment of whether an acquired set of activities and assets is not
a business.
If the concentration test is met, the set of activities and assets is determined not to be a business and no further assessment
is required. The concentration test is met if substantially all of the fair value of the gross assets acquired (excluding cash and
cash equivalents) is concentrated into a single identifiable asset or group of similar identifiable assets. If the concentration test
is not met, or if the entity elects not to apply for the test, the entity shall then perform the full assessment of whether the asset
constitutes a business.
The concentration test is satisfied for this acquisition as the gross assets acquired (excluding cash and cash equivalents) is
substantially concentrated into one group of similar identifiable assets being Exploration and Evaluation Assets, and therefore
a full assessment of whether the asset constitutes a business is not required.
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying amount
based on their relative fair values. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset. Estimates and judgements are required by the group, taking into consideration all
available information at the acquisition date, to assess the fair values of assets acquired and liabilities assumed.
3.
Other income
2024
$
2023
$
Provision of geology and administrative services
-
8,700
Settlement of 2022 flow-through share liability
-
1,477,659
Settlement of 2023 flow-through share liability
2,469,236
1,388,945
MERN Grant proceeds received
59,108
-
R&D refund received – operating activities
8,470
-
Other income
2,536,814
2,875,304
4.
Cash and cash equivalents
2024
$
2023
$
Cash at bank and on hand
14,869,835
1,883,853
Short-term deposits
-
7,432,929
Cash and cash equivalents
14,869,835
9,316,782
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made and have original
maturities of less than 3 months, depending on the immediate cash requirements of the Group, and earn interest at the
respective short-term deposit rates.
Annual Report | 77
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
5.
Other receivables
2024
$
2023
$
Trade and other receivables1
903,513
546,130
Security deposits
149,433
149,165
Prepayments
202,3144
812,1812
Trade and other receivables
1,255,260
1,507,476
Note:
1 - Relates to GST/QST receivables and amounts owing from the recharged of shared administration costs.
2 - $799,994 of the comparative period amount relates to a deposit paid to the Company’s Canadian contractor responsible for undertaking the Company’s
Canadian exploration campaigns.
3 – Includes $514,666 recongised upon completion of Doré asset acquisition
4 – Includes $96,566 recongised upon completion of Doré asset acquisition
All amounts are short-term. The carrying values of trade and other receivables are considered to be a reasonable approximation
of fair value.
6.
Trade and other payables
Notes:
1 – Includes $1,602,764 recognised upon completion of Doré asset acquisition.
2 – Recognised upon completion of Doré asset acquisition.
All amounts are short-term. The carrying values of trade and other payables are considered to be a reasonable approximation
of fair value.
7.
Non-current liabilities – Deferred tax liabilities
2024
$
2023
$
Trade payables
2,287,5031
1,931,448
Other payables
579,517
1,127,558
Flow-through share premium liability
591,7722
2,469,236
Trade and other payables
3,458,792
5,528,242
Deferred tax liability comprises temporary differences attributable to:
2024
$
2023
$
Opening balance
2,459,306
440,773
Temporary difference on relinquishment of qualifying expenditure to investors
1,348,886
2,018,533
Deferred tax liability
3,808,192
2,459,306
Annual Report | 78
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
8.
Share capital and other contributed equity
The share capital of Cygnus consists only of fully paid ordinary shares; the shares do not have a par value. All shares are equally
eligible to receive dividends and the repayment of capital and represent one vote at the shareholder meetings of the Company.
9.
Reserves
2024
$
2023
$
Share-based payment reserve
10,795,229
8,145,918
Investment revaluation reserve
(376,315)
(253,132)
Foreign currency translation reserve
16,828
(113,473)
Total reserves
10,435,742
7,779,313
2024
Shares
on issue
2023
Shares
on issue
2024
$
2023
$
Issued capital net of share issue costs
848,319,650
291,259,139
92,739,029
47,607,870
Date
Shares
Issue Price $
Total $
Opening balance 1 January 2023
183,874,212
25,260,644
Share issue – Project acquisition Instalment
11/04/23
3,250,000
0.2450
796,250
Share issue – Option conversion
02/05/23
22,800,000
0.0800
1,824,000
Share issue – Project acquisition Instalment
18/05/23
4,216,500
0.2500
1,054,125
Share issue – Project acquisition Instalment
06/07/23
9,129,825
0.2475
2,265,140
Share issue – Project acquisition Instalment
25/08/23
500,000
0.2000
100,000
Share issue - Placement
29/08/23
13,333,333
0.2250
3,000,000
Share issue – Flow-through share placement
24/08/23
18,934,273
0.4275
8,022,721
Share issue – Performance right conversion
06/09/23
28,950,000
-
8,796,751
Share issue – Performance right conversion
22/09/23
300,000
-
145,500
Share issue – Option conversion
22/09/23
4,600,000
0.0800
368,000
Share issue – Performance right conversion
22/09/23
154,496
-
66,000
Share issue – Project acquisition Instalment
17/11/23
1,216,500
0.2770
336,971
Share issue – Performance right conversion
30/11/23
300,000
-
140,569
Less flow-through share premium
-
-
(3,858,181)
Less share issue costs
-
-
(710,620)
Closing balance at 31 December 2023
291,559,139
47,607,870
Share issue – Project acquisition Instalment
17/05/24
1,800,000
0.0860
154,800
Share issue – Placement T1
19/07/24
72,685,715
0.0350
2,544,000
Share issue – Share right conversion
22/07/24
325,750
0.0649
21,125
Share issue – Project acquisition Instalment
16/08/24
500,000
0.0570
28,500
Share issue – Placement T2
11/09/24
12,914,286
0.0350
452,000
Share issue – Placement T1
23/10/24
94,864,785
0.0720
6,830,264
Share issue – Project acquisition Instalment
18/11/24
486,600
0.1150
55,959
Share issue – Share right conversion
22/11/24
340,731
0.0501
17,085
Share issue – Performance right conversion
05/12/24
100,000
0.4850
48,500
Share issue – Placement T2
20/12/24
57,912,993
0.0720
4,169,736
Issue of shares to Doré shareholders
31/12/24
310,662,984
0.1000
31,066,298
Share issue – Merger assistance fee
31/12/24
4,166,667
0.1000
416,668
Less share issue costs
-
-
(673,776)
Closing balance at 31 December 2024
848,319,650
92,739,029
Each share has the same right to receive dividend and the repayment of capital and represents one vote at the shareholders’ meeting of Cygnus Metals
Limited.
Annual Report | 79
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
10.
Share-based payments
(a) Share options
The share-based payment reserve records items recognised on valuation of director, employee and contractor share options
and performance rights. Information relating to options issued, exercised and lapsed during the current and comparative
financial year and outstanding at the end of the current and comparative financial year, is set out below.
Grant Date
Expiry date
Exercise price
Balance at start
of year
Issued
Exercised
Lapsed
Balance at
the end of
the period
Vested and
exercisable at end
of the period
2024
07/11/2021
15/11/2024
$0.1600
5,000,000
-
-
(5,000,000)
-
-
23/12/2021
20/01/2025
$0.1600
3,500,000
-
-
-
3,500,000
3,500,000
21/10/2022
21/10/2025
$0.2500
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$0.5000
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$0.7500
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$1.0000
1,500,000
-
-
-
1,500,000
1,500,000
31/12/2024
30/04/2025
$0.40461
-
1,257,001
-
-
1,257,001
1,257,001
31/12/2024
5/06/2025
$0.11501
-
43,912
-
-
43,912
43,912
31/12/2024
6/06/2025
$0.11501
-
123,504
-
-
123,504
123,504
31/12/2024
1/09/2025
$0.58851
-
54,891
-
-
54,891
54,891
31/12/2024
16/02/2026
$0.17481
-
365,940
-
-
365,940
365,940
31/12/2024
22/04/2026
$0.67431
-
1,920,264
-
-
1,920,264
1,920,264
31/12/2024
19/08/2026
$0.48431
-
82,336
-
-
82,336
82,336
31/12/2024
26/09/2026
$0.06441
-
43,912
-
-
43,912
43,912
31/12/2024
17/01/2027
$0.42911
-
123,504
-
-
123,504
123,504
31/12/2024
12/05/2027
$0.36171
-
1,225,898
-
-
1,225,898
1,225,898
31/12/2024
13/06/2027
$0.33721
-
109,782
-
-
109,782
109,782
31/12/2024
19/08/2027
$0.25141
-
1,829,700
-
-
1,829,700
1,829,700
31/12/2024
12/05/2028
$0.12261
-
1,482,056
-
-
1,482,056
1,482,056
31/12/2024
19/04/2029
$0.06141
-
7,410,283
-
-
7,410,283
7,410,283
31/12/2024
16/09/2029
$0.06441
-
137,227
-
-
137,227
137,227
14,500,000
16,210,210
-
(5,000,000)
25,710,210
25,710,210
Weighted average exercise price:
$0.30
$0.22
-
$0.16
$0.14
$0.14
Weighted average remaining contractual life:
1.64 years
Note:
1 – Converted from a Canadian Dollar exercise price at the closing rate on 31 December 2024 of CAD:AUD = 0.891533
Annual Report | 80
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
10.
Share-based payments (continued)
Grant Date
Expiry date
Exercise price
Balance at start
of year
Issued
Exercised
Lapsed
Balance at
the end of
the period
Vested and
exercisable at end
of the period
2023
22/09/2020
22/09/2023
$0.08
29,500,000
-
(27,400,000)
(2,100,000)
-
-
07/11/2021
15/11/2024
$0.16
5,000,000
-
-
-
5,000,000
5,000,000
23/12/2021
20/01/2025
$0.16
3,500,000
-
-
-
3,500,000
3,500,000
21/10/2022
21/10/2025
$0.25
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$0.50
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$0.75
1,500,000
-
-
-
1,500,000
1,500,000
21/10/2022
21/10/2025
$1.00
1,500,000
-
-
-
1,500,000
1,500,000
44,000,000
-
(27,400,000)
(2,100,000)
14,500,000
14,500,000
Weighted average exercise price:
$0.20
$0.08
$0.08
$0.34
$0.34
Weighted average remaining contractual life:
1.26 years
Fair value of unlisted options granted
Grant Date
Expiry date
Issued
Exercise price
Risk free
rate
Volatility
Value per
option
Capitalised to
acquisition
costs
$
31/12/2024
30/04/2025
1,257,001
$0.4046
4.292%
105%
$0.0004
503
31/12/2024
5/06/2025
43,912
$0.1150
4.247%
105%
$0.0225
998
31/12/2024
6/06/2025
123,504
$0.1150
4.245%
105%
$0.0227
2,804
31/12/2024
1/09/2025
54,891
$0.5885
4.135%
105%
$0.0014
77
31/12/2024
16/02/2026
365,940
$0.1748
3.969%
105%
$0.0278
10,173
31/12/2024
22/04/2026
1,920,264
$0.6743
3.921%
105%
$0.0070
13,442
31/12/2024
19/08/2026
82,336
$0.4843
3.874%
105%
$0.0162
1,334
31/12/2024
26/09/2026
43,912
$0.0644
3.860%
105%
$0.0625
2,745
31/12/2024
17/01/2027
123,504
$0.4291
3.847%
105%
$0.0247
3,051
31/12/2024
12/05/2027
1,225,898
$0.3617
3.834%
105%
$0.0324
39,719
31/12/2024
13/06/2027
109,782
$0.3372
3.833%
105%
$0.0355
3,897
31/12/2024
19/08/2027
1,829,700
$0.2514
3.830%
105%
$0.0432
79,043
31/12/2024
12/05/2028
1,482,056
$0.1226
3.023%
100%
$0.0638
94,555
31/12/2024
19/04/2029
7,410,283
$0.0614
3.095%
100%
$0.0814
603,197
31/12/2024
16/09/2029
137,227
$0.0644
3.123%
100%
$0.0842
11,555
16,210,210
867,081
Annual Report | 81
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
10.
Share-based payments (continued)
(b)
Share rights
Information relating to share rights issued and converted during the current financial year and outstanding at the end of the
current financial year, is set out below.
Issue Date
Expiry date
Balance at
start of
year
Issued as
remuneration
Converted
Balance at end
of year
Vested and
convertible at end
of the period
Value of rights
expensed during
the year
$
9/07/24
31/07/29
-
2,720,768
(325,750)
2,395,018
2,395,018
95,083
30/10/24
31/07/29
-
1,459,153
(340,731)
1,118,422
1,118,422
83,409
-
4,179,921
(666,481)
3,513,440
3,513,440
178,492
(c)
Performance rights
Information relating to performance rights issued and lapsed during the current financial year and outstanding at the end of
the current financial year, is set out below.
Tranche
Grant Date
Vesting
date
Expiry date
Balance at
start of year
Exercised
Balance at end
of year
Vested and
exercisable at
end of the period
Value of rights
expensed during
the year
$
A
15/08/22
29/08/23
21/10/27
1,500,000
-
1,500,000
1,500,000
-
B
15/08/22
29/08/23
21/10/27
1,500,000
-
1,500,000
1,500,000
-
H
16/11/22
15/06/24
30/07/25
250,000
-
250,000
250,000
35,094
I
16/11/22
30/11/24
30/11/26
100,000
(100,000)
-
-
21,809
M
31/01/23
01/11/24
13/02/28
5,000,000*
-
5,000,000
5,000,000
1,220,096
P
31/01/23
13/02/28
13/02/28
4,000,000*
-
4,000,000
-
-
Q
31/01/23
13/02/28
13/02/28
2,500,000*
-
2,500,000
-
238,020
R
31/01/23
13/02/28
13/02/28
2,500,000*
-
2,500,000
-
232,007
V
26/03/23
13/02/28
13/02/28
400,000
-
400,000
-
14,131
W
26/03/23
03/04/25
03/04/28
300,000
-
300,000
-
32,687
X
02/03/23
24/02/24
04/05/28
50,000
-
50,000
50,000
2,681
Y
02/03/23
24/02/25
04/05/28
50,000
-
50,000
-
8,834
Z
02/03/23
24/02/26
04/05/28
50,000
-
50,000
-
5,876
A4
28/08/23
31/12/25
05/09/28
1,059,603*
-
1,059,603
-
72,302
A5
28/08/23
31/12/25
05/09/28
1,059,603*
-
1,059,603
-
-
A6
28/08/23
31/12/25
05/09/28
1,059,603*
-
1,059,603
-
78,496
21,378,809
(100,000)
21,278,809
8,300,000
1,962,033
Note * Approval for the issue of these securities was obtained under Listing Rule 10.14.
There were no performance rights issued during the current reporting period.
Annual Report | 82
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
10.
Share-based payments (continued)
The terms of performance rights on issue during the year include:
Tranche
Vesting conditions
A
The Company reporting a JORC compliant Inferred Mineral Resource of 5MT at a minimum grade of 0.8% Li2O on or
before 21 October 2026.
B
The Company reporting a JORC compliant Inferred Mineral Resource of 10MT at a minimum grade of 0.8% Li2O on or
before 21 October 2026.
H
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 15 June 2024.
I
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 30 November 2024.
M
2 years’ continuous employment with the Company from the date of appointment (ie. up to and including 1 November
2024).
P
The Company reporting a JORC compliant Inferred Mineral Resource of 20MT at a minimum grade of 0.8% Li2O on or
before 13 February 2028.
Q,V
The Company achieving a market capitalisation of at least $150,000,000 over a period of not less than 10 consecutive
trading days on which trades in the Company’s shares actually occur.
R
The Company’s share price having a 10-day VWAP of at least $1.00 or a market capitalisation of at least $250,000,000 over
a period of not less than 10 consecutive trading days on which trades in the Company’s shares actually occur.
W
Remaining engaged by the Company as a Director for a continuous period of 24 months from the date of appointment (ie.
up to and including 3 April 2025).
X
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2024.
Y
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2025.
Z
Remaining an officeholder, employee or consultant of the Company (or a wholly owned subsidiary) at all times up to and
including 24 February 2026.
A4
The Company’s TSR exceeds the median TSR of the Peer Group for the Performance Period (1/07/23 – 31/12/25). The
proportion to vest will be calculated as:
- If TSR >50th percentile – 100% vesting
- If TSR between 25th and 50th percentile – 50% vesting
- If TSR <25% percentile – 0% vesting
A5
The Company reporting the discovery or acquisition of a JORC compliant Inferred Mineral Resource of 5MT on any project
(excluding the Pontax Project) at a minimum grade of 0.8% Li2O on or before 31 December 2025.
A6
Continuous employment with the Company up to and including 31 December 2025.
(d)
Share-based payment expense
The following table includes a breakdown of share-based payment expense for the current and comparative reporting periods:
2024
$
2023
$
Performance rights
1,962,033
10,185,535
Cancelled Doré options – Remaining expense
54,699
-
2,016,732
10,185,535
Annual Report | 83
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
11.
Loss per share
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the Company as
the numerator (i.e. no adjustments to loss were necessary in either 2024 or 2023).
2024
$
2023
$
Net loss attributable to ordinary equity holders of the Company
(3,772,569)
(13,500,296)
Weighted average number of ordinary shares outstanding during the year used in
calculating basic and diluted loss per share
349,580,579
231,027,237
Basic and diluted loss per share (cents per share)
(1.08)
(5.84)
As at 31 December 2024, the Group had 25,710,210 unlisted share options exercisable (2023: 14,500,000) and 21,278,809
performance rights (2023: 21,378,809), which are not included in diluted loss per share since they are antidilutive for the
periods presented.
12.
Auditor remuneration
2024
$
2023
$
Audit and review of financial statements
BDO Audit Pty Ltd
45,000
-
Ernst & Young
-
85,000
Total auditor remuneration
45,000
85,000
13.
Reconciliation of cash flows from operating activities
2024
$
2023
$
Loss for the period
(3,772,569)
(13,500,297)
Depreciation and amortisation
42,105
51,482
Exploration and evaluation costs written-off
630,056
634,937
Share-based payment expense
2,016,732
10,185,535
Unrealised foreign exchange (gains)/losses
(49,303)
242,633
Deferred tax expense
1,348,886
2,018,533
Net movement in Flow-Through Share liability
-
(2,866,604)
Other
(342,641)
184,363
Net changes in working capital:
Decrease in trade and other receivables
252,215
271,797
Increase in provisions
20,873
92,279
Decrease in trade and other payables
(2,069,450)
(868,859)
Net cash used in operating activities
(1,923,096)
(3,554,201)
Annual Report | 84
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
–
14.
Related party transactions
KMP remuneration
2024
$
2023
$
Short term employee benefits
682,890
1,093,305
Post-employment benefits
46,789
60,766
Share-based payments
2,134,096
6,093,177
Total
2,863,775
7,247,248
Individual Directors’ and executives’ compensation disclosures
Information regarding individual directors and executive’s compensation and some equity instruments disclosures as required
by Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report on pages 51 to
59.
Apart from the details disclosed in this note, no Director has entered into a material contract with the Company since the end
of the previous financial year and there were no material contracts involving directors’ interests existing at the end of the
current period.
14.1 Other related party transactions and arrangements
The following transactions and arrangements with Director related parties occurred during the current and comparative
reporting periods:
Belltree Corporate Pty Ltd, a company that former director Michael Naylor is a director of and has an indirect interest in,
provided company secretarial services to the Company during the year ended 31 December 2024 totalling $80,500 (2023:
$89,500). There were no amounts owing to Belltree Corporate Pty Ltd by the Company at 31 December 2024 (2023: Nil).
Exia-IT Pty Ltd, of which Belltree Corporate Pty Ltd holds an interest and former director Michael Naylor holds an interest in
Belltree Corporate Pty Ltd, provided information technology management services to the Company during the year ended
31 December 2024 totalling $55,118 (2023: $68,923). There were no amounts owing to Exia-IT Pty Ltd by the Company at
31 December 2024 (2023: Nil).
During the year ended 31 December 2024 the Company paid $151,318 (2023: $196,960) for shared administrative, head office
rent and head office fit-out costs to FireFly Metals Limited, of which Ray Shorrocks and former director Michael Naylor were
directors in 2024. $16,098 was owing to FireFly Metals Limited by the Company at 31 December 2024 (2023: $25,385).
Bellavista Resources Ltd, a company that former director Michael Naylor was a director of during 2024, recharged shared office
costs to the Company during 2024 totalling $48,987 (2023: $64,987). $3,740 was owing to Bellavista Resources Ltd by the
Company at 31 December 2024 (2023: $3,399).
Blue Leaf Corporate Pty Ltd, a company owned by former director Michael Naylor, provided corporate consulting services to
the Company during 2024 to the value of $16,148 (2023: $42,000). There were no amounts owing to Blue Leaf Corporate Pty
Ltd by the Company at 31 December 2024 (2023: Nil).
Bellevue Gold Limited, a company that Kevin Tomlinson and former director Michael Naylor are directors of, recharged shared
administrative costs to the Company during the comparative year ended 31 December 2023 $20,480. Bellevue Gold Limited
did not recharge any costs to the Company during 2024. There were no amounts owing to Bellevue Gold Limited by the
Company at 31 December 2024 (2023: $14,440).
Andean Silver Limited, a company that David Southam and Ray Shorrocks are directors of, recharged shared office costs to the
Company during the year ended 31 December 2024 totalling $25,112 (2023: $8,325). There were no amounts owing to Andean
Silver Limited by the Company at 31 December 2024 (2023: Nil).
Annual Report | 85
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
14.
Related party transactions (continued)
Terms and conditions of transactions with related parties
Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. The value of
these related party transactions are considered minor and save Cygnus Metals significant costs should these services had been
sourced directly. Outstanding balances at year-end are unsecured and interest-free and settlement occurs in cash and are
presented as part of trade payables. There have been no bank guarantees provided for any related party payables. Amounts
shown are net of GST paid or payable.
15.
Subsidiaries
16.
Parent entity disclosure
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity and its subsidiaries are not party to a deed of cross guarantee under which each company guarantees
the debts of the others. All subsidiary balance sheets include a deficiency of assets at reporting date.
Contingent liabilities
The parent entity had no contingent liabilities as at 31 December 2024 and 31 December 2023.
Name of Entity
Country of
Incorporation
2024
% equity interest
2023
% equity interest
Parent Entity
Cygnus Metals Limited
Australia
100
100
Subsidiaries
Deneb Resources Pty Ltd
Australia
100
100
Cygnus Gold (Projects) Pty Ltd
Australia
100
100
Cygnus (JV Projects) Pty Ltd
Australia
100
100
Avenir Metals (Australia) Pty Ltd
Australia
100
100
Avenir Metals (Canada) Limited
Canada
100
100
Doré Copper Mining Corp.
Canada
100
-
CBay Minerals Inc.
Canada
100
-
Result of the parent entity
2024
$
2023
$
Loss for the year after tax
3,687,163
27,464,733
Other comprehensive loss
(7,117)
309,672
Total comprehensive loss for the year
3,680,046
27,774,405
Financial position of the parent entity at year end:
Current assets
12,974,997
10,469,508
Non-current assets
65,685,658
25,842,007
Total assets
78,660,655
36,311,515
Current liabilities
1,376,185
5,553,081
Non-current liabilities
19,302,209
17,217,088
Total liabilities
20,678,394
22,770,169
Total equity of the parent entity comprising of:
57,982,261
13,541,346
Contributed equity
92,739,029
47,607,870
Reserves
10,418,914
7,892,787
Accumulated losses
(45,175,681)
(41,959,311)
Annual Report | 86
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
17. Financial risk management
Credit risk
The carrying amount of the Group’s financial assets represents the Group’s maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
2024
$
2023
$
Cash and cash equivalents
14,869,835
9,316,782
Trade and other receivables
1,255,260
1,507,476
The Group’s cash and cash equivalents and term deposits at call are held with bank and financial institution counterparties,
which are rated at least AA-, based on rating agency S&P Global Ratings.
For trade receivables, the Group applies a simplified approach in calculating Expected Credit Losses (“ECLs”). Therefore, the
Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting
date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic environment.
As at 31 December 2024, no receivables were more than 30 days past due (2023: Nil). No receivables are considered to have
a material credit risk.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its
obligations related to financial liabilities.
The Group manages liquidity risk by monitoring forecast cash flows, only investing surplus cash with major financial institutions;
and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
The Board meets on a regular basis to analyse financial risk exposure and evaluate treasury management strategies in the
context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks to assist
the Group in managing its cash flows. Financial liabilities are expected to be settled on the following basis:
2024
$
2023
$
Not later than 45 days
2,801,771
3,059,900
Greater than 45 days and less than 12 months
657,021
2,469,236
Total
3,458,792
5,528,242
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
Annual Report | 87
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
17. Financial risk management (continued)
Foreign exchange rate risk
The Group is exposed to foreign exchange rate risk arising from equity investments listed on the Toronto Stock Exchange
(TSXV), although given the size of these investments the directors do not anticipate that significant fluctuations in related
foreign currencies would result in a material change to the valuation of these assets at the end of the current reporting period.
The Group is also exposed to foreign exchange rate risk arising from cash and deposits held in Canadian dollars. At the reporting
date the sensitivity for the Group’s foreign exchange exposures was:
Carrying Amount
31 December
2024
$
Carrying Amount
31 December
2023
$
Cash on deposit – CAD$2,453,742 (2023: CAD$5,097,476)
2,752,272
5,649,187
Deposits with suppliers – Nil (2023: CAD$543,000)
-
601,770
Listed investments – CAD$70,000 (2023: CAD$182,000)
78,515
201,698
Totals
2,830,787
6,452,655
A change of 10% in CAD:AUD foreign exchange rates at the end of the reporting period would have increased/(decreased)
profit and loss and equity by the amounts shown below.
The analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2023:
10% increase
283,078
645,265
10% decrease
(283,078)
(645,265)
Capital management policies and procedures
The Board policy is to maintain a capital base to maintain investor, creditor and market confidence and to sustain future
development of the business. Capital consists of ordinary shares and retained earnings (or accumulated losses). The Board of
Directors manages the capital of the Group to ensure that the Group can fund its operations and continue as a going concern.
There are no externally imposed capital requirements.
Annual Report | 88
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
18. Commitments and contingent assets and liabilities
Promissory Notes
In 2019, Doré Copper Mining Corp. (“Doré”) issued promissory notes to Ocean Partners Investments Limited (“OPIL”), a related
party, in the aggregate amount of CAD$7,500,000, plus accrued interest. These promissory notes are considered a financial
liability under IFRS 9 and were initially measured at fair value with subsequent measurement at amortized cost. The obligations
of the Corporation under the promissory notes are guaranteed by Doré’s wholly owned subsidiary CBay Minerals Inc. (“CBay”)
with such guarantee secured against the property and assets of CBay. Each of the promissory notes bear interest at a rate of
6% per annum, with CAD$1,000,000 maturing on the commencement of commercial production, CAD$2,000,000 maturing on
the first anniversary of the commencement of commercial production, CAD$2,000,000 maturing on the second anniversary of
the commencement of commercial production, and CAD$2,500,000 maturing on the third anniversary of the commencement
of commercial production. The settlement of the obligation, both principal and interest, is contingent upon the timing of
commencement of commercial production. Given the lack of certainty at this time as to whether Cygnus will reach the
operational and economic milestones needed to achieve commercial production, and the estimated timeline to do so, the
notes currently have nominal or no fair value.
On 10 October 2024, Cygnus and OPIL executed a Limited Waiver waiving the accrual of interest on the promissory notes for
the period commencing on 1 October 2024 and ending on 31 December 2026.
The accrued interest as at 31 December 2024 would be valued at CAD$2,456,875 (2023: $2,095,000). Cygnus will reassess the
amount, timing and probability of future cash flows at each reporting date to determine any required adjustments to the
amortized cost balance of $Nil. As at 31 December 2024, no adjustments had been made.
Rehabilitation Liability
As at the reporting date, the Company does not have a present obligation to incur rehabilitation costs related to its mining
operations. However, the Company will be required to recognise a rehabilitation liability in the future upon the submission and
approval of a mine closure plan. Until such a plan is submitted and approval is obtained, any obligation for rehabilitation costs
remains contingent. Once the mine closure plan is submitted and approved, the Company will become legally obligated to
undertake the rehabilitation activities associated with its mining operations. The timing and amount of the rehabilitation
liability are dependent on the scope and approval of the mine closure plan and any associated regulatory requirements.
19. Exploration and evaluation assets
2024
$
2023
$
Opening balance
23,926,379
5,538,857
Expenditure incurred during the year – Australian tenements
495,731
1,319,326
Expenditure incurred during the year – Canadian tenements
6,039,180
11,207,656
Acquisition costs – Canadian tenements
437,038
6,495,477
Additions through asset acquisition
31,109,527
-
R&D refund
(68,534)
-
Exploration expenditure written off
(630,056)
(634,937)
Closing balance
61,309,265
23,926,379
Annual Report | 89
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
19. Exploration and evaluation assets (continued)
Asset Acquisition - Doré Copper Mining Corp.
On 15 October 2024, the Company entered into a definitive arrangement agreement (“Agreement”) with Doré Copper Mining
Corp. (“Doré”), pursuant to which Cygnus agreed to acquire 100% of the issued and outstanding common shares of Doré by
way of a court approved plan of arrangement under the Canada Business Corporation Act (the “Acquisition”).
Pursuant to the terms of the Acquisition Agreement, holders of Doré Shares received 1.8297 ordinary shares of Cygnus
(“Cygnus Shares”) in exchange for each Doré Share (the “Exchange Ratio”) held immediately prior to completion of the
Acquisition. The Exchange Ratio was based on an approximate 5-day volume-weighted average price of Doré Shares on the TSX
Venture Exchange (“TSXV”) and Cygnus Shares on the Australian Securities Exchange (“ASX”) as at October 11, 2024.
As of the date of the Acquisition Agreement, existing shareholders of Doré and shareholders of Cygnus would own
approximately 45% and 55%, respectively, of the outstanding Cygnus Shares following completion of the Acquisition (before
considering the Cygnus Equity Raise described below).
In connection with the Acquisition, on 17 October 2024, the Company announced a placement to institutional and
sophisticated investors to raise $11,000,000 (before costs) through the issue of 152,777,778 fully paid ordinary shares in the
Company at an issue price of $0.072 per share (“Equity Raise”). Cygnus issued 94,864,785 shares on 23 October 2024 under
the first tranche of the Equity Raise, and a further 57,912,993 shares on 20 December 2024 under the second tranche following
receipt of approvals at the respective shareholder meetings of Cygnus and Doré.
The Acquisition completed effective 31 December 2024 following the receipt of required Doré Shareholder approvals and final
orders from the Ontario Superior Court of Justice, and Cygnus Metals Limited began trading on the TSXV on 3 January 2025
(TSXV: CYG) and the OTCQB Market on 14 February 2025 (OTC: CYGGF).
Management has determined that as the assets of Doré do not meet the definition of a business in IFRS 3, Business
Combinations, the Acquisition is not within the scope of IFRS 3, Business Combinations. As such the acquisition has been
accounted for as an asset acquisition whereby the fair value of the consideration is allocated to net identifiable assets acquired
on a relative fair basis.
Asset Acquisition - Purchase consideration
Consideration paid and the net assets acquired are summarized as follows:
The consideration paid is calculated as 31,066,298 ordinary shares of Cygnus valued at $0.10 per share and 16,210,210 Cygnus
share options valued at $867,081.
31 December 2024
$
Consideration paid
310,662,984 fully paid ordinary shares of Cygnus
31,066,298
16,210,210 Cygnus share options
867,081
Cygnus’ transaction costs
1,314,222
Total consideration paid
33,247,701
Asset Acquisition – Assets acquired and liabilities assumed
The identifiable assets and liabilities acquired as at the date of acquisition, inclusive of transaction costs are:
31 December 2024
$
Cash and cash equivalents
2,457,306
Trade and other receivables
611,232
Exploration and evaluation assets
31,109,527
Property, plant & equipment
1,264,172
Trade and other payables
(2,194,536)
Total net assets acquired
33,247,701
Annual Report | 90
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
19. Exploration and evaluation assets (continued)
Project earn-in and acquisition milestones
The following outlines the remaining terms of existing project option earn-in or acquisition agreements that the Group was a
party to prior to the commencement of the current reporting period.
Pontax Lithium Project (CY5 51%)
The Company may earn a further 19% interest (to 70%) in the Project (“Stage 2 Earn-In") from Stria Lithium Inc by expending
C$6,000,000 on exploration in the 30-month period commencing on the date that the Company satisfies the Stage 1 Earn-in
(i.e. by January 2026) and making a cash payment to Stria of C$3,000,000.
Pontax Extension Lithium Project (Canadian Mining House)
In order to complete the acquisition of the project claims, the Company must also incur total expenditure of C$1,000,000
(C$250,000 on or before 18 November 2023 (completed in 2022), C$750,000 on or before 18 November 2025 and C$1,000,000
on or before 18 November 2026), issue a further 486,600 shares and pay a further C$30,000 in cash.
Beryl Lake Lithium Project
On 28 March 2023, Cygnus entered into an Option Agreement with Canadian Mining House, Anna Rosa Giglio and Steve
Labranche. On 20 May 2024, Cygnus issued 900,000 shares for Stage 2 consideration (12 months from the Beryl Approval Date).
Stage 3 of the Option Agreement requires a further 900,000 shares to be issued 24 months from the Beryl Approval Date (May
2025). Cygnus must also spend C$1,000,000 in the first 36 months of the Beryl Approval Date, which may be settled through
cash payment in the event that the company does not meet this condition.
Sakami Lithium Project
On 28 March 2023, Cygnus entered into an Option Agreement with Canadian Mining House, Anna Rosa Giglio and Steve
Labranche. On 20 May 2024, Cygnus issued 900,000 shares for Stage 2 consideration (12 months from the Sakami Approval
Date). Stage 3 of the Option Agreement requires a further 900,000 shares to be issued 24 months from the Sakami Approval
Date (May 2025). Cygnus must also spend C$1,000,000 in the first 36 months of the Sakami Approval Date, which may be
settled through cash payment in the event that the company does not meet this condition.
Fair Value of Share-Based Payments
The fair value of share-based payments to asset vendors, which includes the shares issued as described and valued above, have
been determined with reference to the fair value of the equity instruments. For shares granted, the fair value of each
instrument has been estimated using the latest trading price of the shares relative to the date of completion of the sale. The
fair value of the transactions could not be estimated with direct reference to the fair value of the asset received given limited
fair value information over the asset available at the time of the transaction.
Capitalised expenditure written off
Impairment of specific exploration and evaluation assets during the year have occurred where Directors have concluded that
capitalised expenditure is unlikely to be recovered by sale or future exploitation.
During the year indicators of impairment were identified on certain exploration and evaluation assets in accordance with AASB
6 Exploration for and Evaluation of Mineral Resources. As a result of this review, write-offs totalling $630,056 have been
recognised (2023: $634,937) in relation to areas of interest where the directors have concluded that capitalised expenditure is
unlikely to be recovered by sale or future exploitation.
20.
Property, plant and equipment
2024
$
2023
$
Assets at cost
355,282
347,619
Asset acquisition
1,264,172
-
Accumulated depreciation
(256,877)
(214,772)
Carrying value 31 December
1,362,577
132,847
Annual Report | 91
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
20. Property, plant and equipment (continued)
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the
current year, is as follows:
IT equipment
$
Plant and
equipment
$
Motor vehicles
$
Leasehold
improvements
$
Total
$
Balance at 1 January 2024
7,976
241
1,163
123,467
132,847
Additions
7,664
1,264,172
-
-
1,271,836
Disposals
-
-
-
-
-
Depreciation expense
(9,865)
(241)
(1,154)
(30,846)
(42,106)
Balance at 31 December 2024
5,775
1,264,172
9
92,621
1,362,577
21.
Operating segments
The Group has identified the Executive Chair and the President and Managing Director in consultation with the full board of
directors as the chief operating decision maker (“CODM”). The CODM receives details of expenditure incurred across two
segments being exploration in Canada and Western Australia.
Entity-wide disclosures
2024
2023
Canada
$
Australia
$
Canada
$
Australia
$
Finance and other income
1,052
2,763,667
102
2,993,721
Exploration and evaluation assets written off
-
630,056
629,696
5,241
Loss after income tax expense
155,440
3,617,129
797,802
12,702,494
Total assets
51,368,878
27,506,574
10,123,635
24,961,548
Total liabilities
2,223,606
5,184,489
95,068
8,012,718
Geographical information
2024
2023
Canada
$
Australia
$
Canada
$
Australia
$
Sales to external customers
-
-
-
-
Total non-current assets
59,976,482
2,773,875
21,205,010
3,055,913
22.
Post reporting date events
On 7 February 2025, the Company announced that it had received conditional approval from the Critical Minerals Infrastructure
FUND (“CMIF”) for up to a CAD$1,300,000 investment to complete pre-construction milestones, pending final due diligence by
Natural Resources Canada and the execution of a definitive contribution agreement.
On 17 February 2025 the Company commenced trading on the OTCQB Venture Market, a U.S. marketplace operated by OTC
Markets Group Inc.
There have not been any events that have arisen between 31 December 2024 and the date of this report or any other item,
transaction or event of a material and unusual nature likely, in the opinion of the directors, to materially affect the operations
of the Group, the results of those operations or the state of affairs of the Group, in subsequent financial years.
Annual Report | 92
Notes to the Consolidated
Financial Statements
For the year ended 31 December 2024
23. Income tax expense
The major components of tax expense and the reconciliation of the expected tax expense based on the effective tax rate of
Cygnus Metals Limited at 25% (2023: 25%) and the reported tax expense in profit or loss are as follows:
2024
$
2023
$
Tax expense comprises:
Deferred tax expense
1,348,886
2,018,533
Tax expense
1,348,886
2,018,533
Accounting loss excluding income tax
(2,423,683)
(11,481,763)
Total income tax expense
(598,845)
(2,870,440)
Non-deductible expenses for tax purposes:
Share-based payments expense
517,637
2,539,271
Foreign expenditure
288,918
9,233
Other
(12,385)
19,164
Non-assessable income – flow-through shares
(617,309)
(716,651)
Settlement of flow-through share liability
1,348,886
2,018,533
Deferred tax:
Losses not brought to account
391,437
1,482,770
Temporary differences not brough to account
33,073
(451,352)
Subsidiary tax rate differential
(2,525)
(11,996)
Income tax expense attributable to entity
1,348,886
2,018,532
Recognised deferred tax balances:
Deferred tax asset temporary differences:
Trade and other receivables
-
(12,642)
Prepayments
(17,748)
(16,826)
Receivables - Assets
33,756
(47,681)
Other
-
323,418
Exploration assets
(668,868)
(718,124)
Employee entitlements
32,182
35,794
Accrued expenses and provisions
7,246
2,875
Deferred tax asset losses
311,412
433,185
Deferred tax expense
32,182
-
Recognised deferred taxes
-
-
Deferred taxes arising from temporary differences and unused tax losses not brough to account:
Deferred tax asset losses – Australian activities
4,098,115
3,882,826
Deferred tax asset losses – Canadian activities
-
239,020
Total deferred tax assets not brought to account
4,098,115
4,121,846
Annual Report | 93
Consolidated Entity
Disclosure Statement
As at 31 December 2024
Name of entity
Type of
entity
Trustee,
partner or
participant in
joint venture
% of share
capital held
Country of
incorporation
Australian
resident or
foreign
resident (for
tax purposes)
Foreign tax
jurisdiction(s)
of foreign
residents
Cygnus Metals Limited
Body
Corporate
N/A
N/A
Australia
Australian
N/A
Deneb Resources Pty Ltd
Body
Corporate
N/A
100
Australia
Australian
N/A
Cygnus Gold (Projects)
Pty Ltd
Body
Corporate
N/A
100
Australia
Australian
N/A
Cygnus (JV Projects) Pty
Ltd
Body
Corporate
N/A
100
Australia
Australian
N/A
Avenir Metals (Australia)
Pty Ltd
Body
Corporate
N/A
100
Australia
Australian
N/A
Avenir Metals (Canada)
Limited
Body
Corporate
N/A
100
Canada
Foreign
Canada
Doré Copper Mining
Corp.
Body
Corporate
N/A
100
Canada
Foreign
Canada
CBay Minerals Inc.
Body
Corporate
N/A
100
Canada
Foreign
Canada
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act. It includes
certain information for each entity that was part of the consolidated entity at the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporations Act defines tax residency as having the same meaning in the Income Tax Assessment Act
1997. The determination of tax residency involves judgement as there are currently several different interpretations that could
be adopted, and which could give rise to a different conclusion on residency.
In determining tax residency, the consolidated entity has applied the following interpretations:
Australian Tax Residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax
Commissioner’s public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
The consolidated entity has applied current legislation and, where available, judicial precedent in the determination of foreign
tax residency. In addition, the foreign tax authorities have accepted the tax residency status disclosed above.
Annual Report | 94
Directors’ Declaration
For the year ended 31 December 2024
In the opinion of the Directors of Cygnus Metals Limited:
a.
The financial statements and notes of Cygnus Metals Limited are in accordance with the Corporations Act 2001 (Cth),
including:
I.
Giving a true and fair view of its consolidated financial position as at 31 December 2024 and of its
performance for the year ended on that date; and
II.
Complying with Australian Accounting Standards (including the Australian Accounting Interpretations)
and the Corporations Act 2001 (Cth); and
b.
There are reasonable grounds to believe that Cygnus Metals Limited will be able to pay its debts as and when they
become due and payable.
c.
The information disclosed in the attached Consolidated Entity Disclosure Statement is true and correct.
The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 (Cth) from the Executive
Chair and Chief Financial Officer for the year ended 31 December 2024.
The financial statements and notes also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board as described in note 1 to the financial statements.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001 (Cth).
David Southam
Managing Director
Perth, Western Australia, 31 March 2025
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of A.C.N. 050 110 275 Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit Pty Ltd and A.C.N. 050 110 275 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
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
INDEPENDENT AUDITOR'S REPORT
To the members of Cygnus Metals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Cygnus Metals Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 31 December 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
i)
Giving a true and fair view of the Group’s financial position as at 31 December 2024 and of its
financial performance for the year ended on that date; and
ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Recoverability of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
At 31 December 2024, we note that the carrying value
of exploration and evaluation assets represents a
significant asset to the consolidated financial
statements, as disclosed in note 19.
The Group’s accounting policies and significant
judgements applied to capitalised exploration and
evaluation expenditure are detailed in note 1 to the
financial report.
As a result, we considered it necessary to assess
whether any facts or circumstances exist to suggest
that the carrying amount of this asset may exceed its
recoverable amount.
The determination as to whether there are any
indicators to require an exploration and evaluation
asset to be assessed for impairment, involves a
number of judgements including whether the Group has
tenure, will be able to perform ongoing expenditure
and whether there is sufficient information for a
decision to be made that the area of interest is not
commercially viable.
Given the size of the balance and the judgemental
nature of impairment indicator assessments associ-
ated with exploration and evaluation assets, we con-
sider this a key audit matter.
Our procedures included, but were not limited to:
Obtaining a schedule of the areas of interest held
by the Group and assessing whether the rights to
tenure of those areas of interest remained current
at balance date;
Considering the Group’s intention to carry out
ongoing exploration activities in the respective
areas of interest by holding discussions with
management, and reviewing the Group’s
exploration budgets, public announcements and
directors’ minutes;
Considering whether any such areas of interest had
reached a stage where a reasonable assessment of
economically recoverable reserves existed;
Considering whether any facts of circumstances
existed to suggest impairment testing was
required; and
Assessing the adequacy of the related disclosures
in note 19 of the Consolidated Financial
Statements.
Acquisition accounting
Key audit matter
How the matter was addressed in our audit
As disclosed in note 19 of the Consolidated Financial
Statements, the Group completed an acquisition
during the period, acquiring 100% of the issued capital
in Doré Copper Mining Corp.
The Group classified the transaction as an asset
acquisition, after evaluating the criteria set out in
AASB 3 Business Combinations (“AASB 3”).
The accounting treatment of the acquisition is
considered a key audit matter due to the significant
value of the acquisition and the significant judgements
and assumptions made by management, including:
Determining that the acquisition did not meet
the criteria of a business combination under
AASB 3 and therefore qualified as an asset
acquisition;
Evaluating the fair value of the consideration
paid; and
Evaluating the relative fair value of the
assets acquired and liabilities assumed as of
the acquisition date.
Our audit procedures included, but were not limited
to:
Reviewing key transaction documents to
understand the key terms and conditions;
Assessing management’s evaluation of the
acquisition as an asset acquisition and ensuring
compliance with accounting standards;
Assessing how the Group estimated the fair
value of consideration paid;
Assessing how the Group estimated the relative
fair value of the assets and liabilities acquired;
Challenging the methodology and assumptions used
by management to identify and determine the fair
value of assets and liabilities acquired;
Assessing the competency and objectivity of
external experts engaged by management; and
Assessing the appropriateness of the related
disclosures in note 19 of the Consolidated
Financial Statements.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 31 December 2024, but does not include
the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Other matter
The financial report of Cygnus Metals Limited, for the year ended 31 December 2023 was audited by
another auditor who expressed an unmodified opinion on that report on 28 March 2024.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/media/bwvjcgre/ar1_2024.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 51 to 59 of the directors’ report for the
year ended 31 December 2024.
In our opinion, the Remuneration Report of Cygnus Metals Limited, for the year ended 31 December
2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Phillip Murdoch
Director
Perth, 31 March 2025
Annual Report | 100
ASX Additional Information
In accordance with ASX Listing Rule 4.10, the following information is provided as at 19 March 2025:
Top 20 holders of ordinary shares
Rank
Name
No. of Shares
% of issued
capital
1
CDS & CO
220,547,507
25.97
2
EXCHANGES CONTROL FOR CLASS M01
95,498,177
11.25
3
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
36,042,708
4.24
4
UBS NOMINEES PTY LTD
34,344,363
4.04
5
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
29,955,414
3.53
6
CERTANE CT PTY LTD
19,373,017
2.28
7
SYMORGH INVESTMENTS PTY LTD
16,500,000
1.94
8
GOLD LEAF CORPORATE PTY LTD
14,925,790
1.76
9
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
12,745,983
1.5
10
SYMORGH INVESTMENTS PTY LTD
12,581,747
1.48
11
PALM BEACH NOMINEES PTY LIMITED
10,523,810
1.24
12
STRIA LITHIUM INC
9,129,825
1.08
13
CAMPBELL KITCHENER HUME & ASSOCIATES PTY LTD
9,083,763
1.07
14
CG NOMINEES (AUSTRALIA) PTY LTD
8,166,667
0.96
15
PRECISION OPPORTUNITIES FUND LTD
7,817,948
0.92
16
SYMORGH INVESTMENTS PTY LTD
7,559,199
0.89
17
SPRING STREET HOLDINGS PTY LTD
7,331,763
0.86
18
MS LYNNETTE EDWARDS
7,142,858
0.84
19
MS CHARMAINE LINDA LOBO
6,697,780
0.79
20
CITICORP NOMINEES PTY LIMITED
5,224,396
0.62
Totals: Top 20 holder of Ordinary Fully Paid Shares
571,192,715
67.26
Total Shares on Issue
849,231,671
100.00
Substantial Holders
The names of substantial shareholders, and the number of fully paid ordinary shares to which each substantial
holder and their associates have a relevant interest, as disclosed in substantial shareholding notices given to the
Company are:
No. of Shares
% of issued capital
Equinox Partners Investment Management LLC
105,278,039
12.40%
Ocean Partners Holdings Limited
89,559,019
10.55%
Spread of Holdings
Fully Paid Ordinary Shares
Range
Total holders
No. of Shares
% of issued capital
1 - 1,000
60
17,715
0.00
1,001 - 5,000
231
737,675
0.09
5,001 - 10,000
209
1,701,319
0.20
10,001 - 100,000
732
29,802,083
3.51
100,001 and over
512
816,972,879
96.20
Total
1,744
849,231,671
100.00
Annual Report | 101
ASX Additional Information
Options
Range
Total holders
No. of options
% of issued options
1 - 1,000
-
-
-
1,001 - 5,000
-
-
-
5,001 - 10,000
-
-
-
10,001 - 100,000
5
266,218
1.20%
100,001 Over
19
21,943,992
98.80%
Total
24
22,210,210
100.00%
Performance Rights
Range
Total holders
No. of
performance rights
% of issued
performance rights
1 - 1,000
-
-
-
1,001 - 5,000
-
-
-
5,001 - 10,000
-
-
-
10,001 - 100,000
-
-
-
100,001 and over
5
21,278,809
100.00%
Total
5
21,278,809
100.00%
Share Rights
Range
Total holders
No. of share rights
% of issued share rights
1 - 1,000
-
-
-
1,001 - 5,000
-
-
-
5,001 - 10,000
-
-
-
10,001 - 100,000
-
-
-
100,001 and over
4
3,343,006
100.00%
Total
4
3,343,006
100.00%
Unmarketable Parcels
There were 241 shareholders with less than a marketable parcel of shares, based on the closing price $0.110.
Restricted and Escrowed Securities
The Company currently has no restricted securities on issue, nor are there any securities subject to voluntary
escrow.
On-Market Buy Back
The Company has not initiated an on-market buy back.
Voting Rights
In accordance with the Company’s constitution, on a show of hands every member present in person or by proxy
or attorney or duly appointed representative has one vote. On a poll every member present or by proxy or attorney
or duly authorised representative has one vote for every fully paid share held. There are no voting rights attached
to unexercised options, performance rights or share rights.
Joint Company Secretaries
Ms Maddison Cramer and Mr Carl Travaglini
Annual Report | 102
ASX Additional Information
Unquoted Securities
Note: Details of holders of options, performance rights and share rights issued under an employee incentive scheme are
exempt from disclosure under Chapter 4 of the ASX Listing Rules.
Options
Expiry Date
Exercise Price
No. of Options
No. of Holders
21/10/2025
A$0.25
1,500,000
1*
21/10/2025
A$0.50
1,500,000
1*
21/10/2025
A$0.75
1,500,000
1*
21/10/2025
A$1.00
1,500,000
1*
30/04/2025
C$0.3607
1,257,001
11
05/06/2025
C$0.1025
43,912
1
06/06/2025
C$0.1025
123,504
1
01/09/2025
C$0.5247
54,891
1
16/02/2026
C$0.1558
365,940
1
22/04/2026
C$0.6012
1,920,264
13
19/08/2026
C$0.4318
82,336
1
26/09/2026
C$0.0574
43,912
2
17/01/2027
C$0.3826
123,504
1
12/05/2027
C$0.3225
1,225,898
8
13/06/2027
C$0.3006
109,782
1
19/08/2027
C$0.2241
1,829,700
2
12/05/2028
C$0.1093
1,482,056
11
19/04/2029
C$0.0547
7,410,283
10
16/09/2029
C$0.0574
137,227
1
* CG Nominees (Australia) Pty Ltd holds 100% of this class of options.
Performance rights
Class
Expiry Date
No. of Performance Rights
No. of Holders
F
21/10/2027
1,500,000
1*
G
21/10/2027
1,500,000
1*
I
30/07/2025
250,000
1
P
13/02/2028
5,000,000
1
S
13/02/2028
4,000,000
1
T
13/02/2028
2,900,000
2
U
13/02/2028
2,500,000
1
V
03/04/2028
300,000
1
W
04/05/2028
150,000
1
X
05/09/2028
1,059,603
1
Y
05/09/2028
1,059,603
1
Z
05/09/2028
1,059,603
1
* Mr Samuel Richard Brooks holds 100% of this class of performance rights.
Share Rights
Class
Expiry Date
No. of Share Rights
No. of Holders
A
31/07/2029
3,343,006
4
Corporate Governance Statement
In accordance with Listing Rule 4.10.3, the Company’s Corporate Governance Statement can be found on the
Company’s website. Refer to https://www.cygnusmetals.com/corporate/#corporate-governance
Annual Report | 103
Schedule of Tenements
As at 31 December 2024
Notes: CM = Mining Concession; BM = Mining Lease; CDC = Exploration Claim.
Chibougamau Project - Quebec, Canada
Copper Rand Property - 100% owned by CBay Minerals Inc. (99058)
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Cedar Bay
2099682
CDC
Copper Rand
2436121
CDC
Portage
2436148
CDC
Cedar Bay
2436154
CDC
Copper Rand
2436129
CDC
Portage
2436152
CDC
Cedar Bay
440
CM
Copper Rand
2436132
CDC
Portage
2436155
CDC
Cedar Bay
461
CM
Copper Rand
2436141
CDC
Portage
2436158
CDC
Copper Cliff
2436098
CDC
Copper Rand
2436147
CDC
Portage
2436161
CDC
Copper Cliff
2436099
CDC
Copper Rand
2436160
CDC
Portage
2436162
CDC
Copper Cliff
2436100
CDC
Copper Rand
2436163
CDC
Portage
2436167
CDC
Copper Cliff
2436101
CDC
Copper Rand
2436165
CDC
Portage
2436168
CDC
Copper Cliff
2436108
CDC
Copper Rand
2436182
CDC
Portage
2436169
CDC
Copper Cliff
2436110
CDC
Copper Rand
66PTA
CM
Portage
2436173
CDC
Copper Cliff
2436119
CDC
Copper Rand
66PTB
CM
Portage
2436176
CDC
Copper Cliff
2436123
CDC
Copper Rand
430
CM
Portage
2436177
CDC
Copper Cliff
2436124
CDC
Copper Rand
439
CM
Portage
2436179
CDC
Copper Cliff
2436126
CDC
Copper Rand
491PTA
CM
Portage
2436180
CDC
Copper Cliff
2436127
CDC
Copper Rand
491PTB
CM
Portage
2436181
CDC
Copper Cliff
2436130
CDC
Copper Rand
497
CM
Portage
2436184
CDC
Copper Cliff
2436131
CDC
Jaculet
2436102
CDC
Portage
2696599
CDC
Copper Cliff
2436134
CDC
Jaculet
2436103
CDC
Portage
2696600
CDC
Copper Cliff
2436136
CDC
Jaculet
2436105
CDC
Portage
2696601
CDC
Copper Cliff
2436137
CDC
Jaculet
2436109
CDC
Portage
2696602
CDC
Copper Cliff
2436138
CDC
Jaculet
2436111
CDC
Portage
2696603
CDC
Copper Cliff
2436139
CDC
Jaculet
2436112
CDC
Portage
2696604
CDC
Copper Cliff
2436140
CDC
Jaculet
2436117
CDC
Portage
2696605
CDC
Copper Cliff
2436142
CDC
Jaculet
2436144
CDC
Portage
2696606
CDC
Copper Cliff
2436145
CDC
Jaculet
2436149
CDC
Portage
2696607
CDC
Copper Cliff
2436150
CDC
Jaculet
2436183
CDC
Portage
2696608
CDC
Copper Cliff
2436151
CDC
Jaculet
435
CM
Portage
2696609
CDC
Copper Cliff
2436153
CDC
Portage
2436066
CDC
Portage
2696610
CDC
Copper Cliff
2436156
CDC
Portage
2436067
CDC
Portage
2696611
CDC
Copper Cliff
2436157
CDC
Portage
2436068
CDC
Portage
2696612
CDC
Copper Cliff
2436159
CDC
Portage
2436069
CDC
Portage
2696613
CDC
Copper Cliff
2436164
CDC
Portage
2436070
CDC
Portage
2696614
CDC
Copper Cliff
2436166
CDC
Portage
2436071
CDC
Portage
2696615
CDC
Copper Cliff
2436170
CDC
Portage
2436072
CDC
Portage
2818686
CDC
Copper Cliff
2436171
CDC
Portage
2436073
CDC
Portage
2818687
CDC
Copper Cliff
2436172
CDC
Portage
2436074
CDC
Portage
2818688
CDC
Copper Cliff
2436174
CDC
Portage
2436075
CDC
Portage
2818689
CDC
Copper Cliff
2436175
CDC
Portage
2436104
CDC
Portage
27
CM
Copper Cliff
2436178
CDC
Portage
2436120
CDC
Portage
28
CM
Copper Rand
2436106
CDC
Portage
2436122
CDC
Portage
29
CM
Copper Rand
2436107
CDC
Portage
2436125
CDC
Portage
30
CM
Copper Rand
2436113
CDC
Portage
2436128
CDC
Portage
31
CM
Copper Rand
2436114
CDC
Portage
2436133
CDC
Rampe Doré
2436185
CDC
Copper Rand
2436115
CDC
Portage
2436135
CDC
Rampe Doré
2436186
CDC
Copper Rand
2436116
CDC
Portage
2436143
CDC
Rampe Doré
2436187
CDC
Copper Rand
2436118
CDC
Portage
2436146
CDC
Rampe Doré
2436188
CDC
Rampe Doré
2436189
CDC
Lac Chibougamau
2837803
CDC
Bord du Lac
2837930
CDC
Rampe Doré
2436190
CDC
Lac Chibougamau
2837804
CDC
Bord du Lac
2837931
CDC
Annual Report | 104
Schedule of Tenements
As at 31 December 2024
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Rampe Doré
2436191
CDC
Lac Chibougamau
2837805
CDC
Bord du Lac
2837932
CDC
Rampe Doré
2436192
CDC
Lac Chibougamau
2837806
CDC
Bord du Lac
2837933
CDC
Rampe Doré
2436193
CDC
Lac Chibougamau
2837807
CDC
Bord du Lac
2837934
CDC
Rampe Doré
2436194
CDC
Lac Chibougamau
2837808
CDC
Bord du Lac
2837935
CDC
Rampe Doré
2436195
CDC
Lac Chibougamau
2837809
CDC
Bord du Lac
2837936
CDC
Rampe Doré
2436196
CDC
Lac Chibougamau
2837814
CDC
Bord du Lac
2837937
CDC
Rampe Doré
2436197
CDC
Lac Chibougamau
2837815
CDC
Bord du Lac
2837938
CDC
Rampe Doré
2436198
CDC
Lac Chibougamau
2837816
CDC
Bord du Lac
2837939
CDC
Rampe Doré
2436199
CDC
Lac Chibougamau
2837817
CDC
Bord du Lac
2837940
CDC
Rampe Doré
2436200
CDC
Lac Chibougamau
2837818
CDC
Bord du Lac
2837941
CDC
Rampe Doré
2436201
CDC
Lac Chibougamau
2837822
CDC
Bord du Lac
2837942
CDC
Rampe Doré
2436202
CDC
Lac Chibougamau
2837823
CDC
Bord du Lac
2837943
CDC
Rampe Doré
2436203
CDC
Lac Chibougamau
2837824
CDC
Bord du Lac
2837944
CDC
Rampe Doré
2436204
CDC
Lac Chibougamau
2837825
CDC
Bord du Lac
2837945
CDC
Rampe Doré
2436205
CDC
Lac Chibougamau
2837826
CDC
Bord du Lac
2837946
CDC
Rampe Doré
2436206
CDC
Lac Chibougamau
2837827
CDC
Bord du Lac
2837947
CDC
Rampe Doré
2436207
CDC
Lac Chibougamau
2837832
CDC
Bord du Lac
2837948
CDC
Rampe Doré
2436208
CDC
Lac Chibougamau
2837833
CDC
Bord du Lac
2837949
CDC
Rampe Doré
2436209
CDC
Lac Chibougamau
2837834
CDC
Bord du Lac
2837950
CDC
Rampe Doré
2436210
CDC
Lac Chibougamau
2837835
CDC
Bord du Lac
2837951
CDC
Rampe Doré
2436211
CDC
Bord du Lac
2837810
CDC
Bord du Lac
2837952
CDC
Rampe Doré
2436212
CDC
Bord du Lac
2837811
CDC
Bord du Lac
2837953
CDC
Rampe Doré
2436213
CDC
Bord du Lac
2837812
CDC
Bord du Lac
2838001
CDC
Lac Chibougamau
2594023
CDC
Bord du Lac
2837813
CDC
Bord du Lac
2838002
CDC
Lac Chibougamau
2594024
CDC
Bord du Lac
2837819
CDC
Bord du Lac
2838003
CDC
Lac Chibougamau
2594025
CDC
Bord du Lac
2837820
CDC
Bord du Lac
2838004
CDC
Lac Chibougamau
2594026
CDC
Bord du Lac
2837821
CDC
Bord du Lac
2838005
CDC
Lac Chibougamau
2594027
CDC
Bord du Lac
2837828
CDC
Bord du Lac
2838006
CDC
Lac Chibougamau
2594028
CDC
Bord du Lac
2837829
CDC
Bord du Lac
2838007
CDC
Lac Chibougamau
2594029
CDC
Bord du Lac
2837830
CDC
Bord du Lac
2838008
CDC
Lac Chibougamau
2594030
CDC
Bord du Lac
2837831
CDC
Bord du Lac
2838009
CDC
Lac Chibougamau
2594031
CDC
Bord du Lac
2837836
CDC
Bord du Lac
2838010
CDC
Lac Chibougamau
2594032
CDC
Bord du Lac
2837837
CDC
Bord du Lac
2838011
CDC
Lac Chibougamau
2594033
CDC
Bord du Lac
2837914
CDC
Bord du Lac
2838012
CDC
Lac Chibougamau
2594034
CDC
Bord du Lac
2837915
CDC
Bord du Lac
2838013
CDC
Lac Chibougamau
2594035
CDC
Bord du Lac
2837916
CDC
Bord du Lac
2838014
CDC
Lac Chibougamau
2594036
CDC
Bord du Lac
2837917
CDC
Bord du Lac
2838015
CDC
Lac Chibougamau
2594037
CDC
Bord du Lac
2837918
CDC
Bord du Lac
2838016
CDC
Lac Chibougamau
2594038
CDC
Bord du Lac
2837919
CDC
Bord du Lac
2838017
CDC
Lac Chibougamau
2594039
CDC
Bord du Lac
2837920
CDC
Bord du Lac
2838018
CDC
Lac Chibougamau
2594040
CDC
Bord du Lac
2837921
CDC
Bord du Lac
2838019
CDC
Lac Chibougamau
2594041
CDC
Bord du Lac
2837922
CDC
Bord du Lac
2838020
CDC
Lac Chibougamau
2594042
CDC
Bord du Lac
2837923
CDC
Bord du Lac
2838021
CDC
Lac Chibougamau
2594043
CDC
Bord du Lac
2837924
CDC
Bord du Lac
2838022
CDC
Lac Chibougamau
2837798
CDC
Bord du Lac
2837925
CDC
Bord du Lac
2838023
CDC
Lac Chibougamau
2837799
CDC
Bord du Lac
2837926
CDC
Bord du Lac
2838024
CDC
Lac Chibougamau
2837800
CDC
Bord du Lac
2837927
CDC
Bord du Lac
2838025
CDC
Lac Chibougamau
2837801
CDC
Bord du Lac
2837928
CDC
Bord du Lac
2838026
CDC
Lac Chibougamau
2837802
CDC
Bord du Lac
2837929
CDC
Bord du Lac
2838027
CDC
Bord du Lac
2838028
CDC
Bord du Lac
2838040
CDC
Bord du Lac
2838052
CDC
Bord du Lac
2838029
CDC
Bord du Lac
2838041
CDC
Bord du Lac
2839997
CDC
Bord du Lac
2838030
CDC
Bord du Lac
2838042
CDC
Bord du Lac
2839998
CDC
Bord du Lac
2838031
CDC
Bord du Lac
2838043
CDC
Bord du Lac
2839999
CDC
Bord du Lac
2838032
CDC
Bord du Lac
2838044
CDC
Bord du Lac
2840000
CDC
Annual Report | 105
Schedule of Tenements
As at 31 December 2024
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Bord du Lac
2838033
CDC
Bord du Lac
2838045
CDC
Bord du Lac
2840001
CDC
Bord du Lac
2838034
CDC
Bord du Lac
2838046
CDC
Bord du Lac
2840002
CDC
Bord du Lac
2838035
CDC
Bord du Lac
2838047
CDC
Bord du Lac
2840003
CDC
Bord du Lac
2838036
CDC
Bord du Lac
2838048
CDC
Bord du Lac
2840004
CDC
Bord du Lac
2838037
CDC
Bord du Lac
2838049
CDC
Bord du Lac
2840005
CDC
Bord du Lac
2838038
CDC
Bord du Lac
2838050
CDC
Bord du Lac
2840006
CDC
Bord du Lac
2838039
CDC
Bord du Lac
2838051
CDC
Corner Bay-Devlin Property - 100% owned by CBay Minerals Inc. (99058)
Property
Description
Mining Title
Title
type
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Baie Line
2494615
CDC
Corner Back
2428254
CDC
Corner Back
2428282
CDC
Baie Line
2494616
CDC
Corner Back
2428255
CDC
Corner Back
2428283
CDC
Baie Line
2494621
CDC
Corner Back
2428256
CDC
Corner Back
2428284
CDC
Baie Line
2494622
CDC
Corner Back
2428257
CDC
Corner Back
2428285
CDC
Baie Line
2494623
CDC
Corner Back
2428258
CDC
Corner Back
2428286
CDC
Baie Line
2494624
CDC
Corner Back
2428259
CDC
Corner Back
2428287
CDC
Corner Bay
2428202
CDC
Corner Back
2428260
CDC
Devlin Ext.
2541350
CDC
Corner Bay
2428203
CDC
Corner Back
2428261
CDC
Devlin Ext.
2541351
CDC
Corner Bay
2428204
CDC
Corner Back
2428262
CDC
Devlin Ext.
2541352
CDC
Corner Bay
2428205
CDC
Corner Back
2428263
CDC
Devlin Ext.
2541353
CDC
Corner Bay
2428206
CDC
Corner Back
2428264
CDC
Devlin Ext.
2541354
CDC
Corner Bay
2428207
CDC
Corner Back
2428265
CDC
Devlin Ext.
2541355
CDC
Corner Bay
2428208
CDC
Corner Back
2428266
CDC
Devlin Ext.
2541356
CDC
Corner Bay
878
BM
Corner Back
2428267
CDC
Devlin Ext.
2541357
CDC
Corner Back
2428240
CDC
Corner Back
2428268
CDC
Devlin Ext.
2541358
CDC
Corner Back
2428241
CDC
Corner Back
2428269
CDC
Devlin Ext.
2541359
CDC
Corner Back
2428242
CDC
Corner Back
2428270
CDC
Devlin Ext.
2541360
CDC
Corner Back
2428243
CDC
Corner Back
2428271
CDC
Devlin Ext.
2541361
CDC
Corner Back
2428244
CDC
Corner Back
2428272
CDC
Devlin Ext.
2541362
CDC
Corner Back
2428245
CDC
Corner Back
2428273
CDC
Devlin Ext.
2541363
CDC
Corner Back
2428246
CDC
Corner Back
2428274
CDC
Devlin Ext.
2541364
CDC
Corner Back
2428247
CDC
Corner Back
2428275
CDC
Devlin Ext.
2541365
CDC
Corner Back
2428248
CDC
Corner Back
2428276
CDC
Devlin Ext.
2541366
CDC
Corner Back
2428249
CDC
Corner Back
2428277
CDC
Devlin Ext.
2541367
CDC
Corner Back
2428250
CDC
Corner Back
2428278
CDC
Devlin Ext.
2541368
CDC
Corner Back
2428251
CDC
Corner Back
2428279
CDC
Devlin Ext.
2541369
CDC
Corner Back
2428252
CDC
Corner Back
2428280
CDC
Devlin Ext.
2541370
CDC
Corner Back
2428253
CDC
Corner Back
2428281
CDC
Devlin Ext.
2541371
CDC
Devlin Ext.
2541372
CDC
Devlin Ext.
2541392
CDC
Bord du Lac Est
2839979
CDC
Devlin Ext.
2541373
CDC
Devlin Ext.
2541393
CDC
Bord du Lac Est
2839980
CDC
Devlin Ext.
2541374
CDC
Devlin
2427785
CDC
Bord du Lac Est
2839981
CDC
Devlin Ext.
2541375
CDC
Devlin
2427786
CDC
Bord du Lac Est
2839982
CDC
Devlin Ext.
2541376
CDC
Devlin
2427787
CDC
Bord du Lac Est
2839983
CDC
Devlin Ext.
2541377
CDC
Devlin
2427788
CDC
Bord du Lac Est
2839984
CDC
Devlin Ext.
2541378
CDC
Devlin
2433731
CDC
Bord du Lac Est
2839985
CDC
Devlin Ext.
2541379
CDC
Devlin
2433732
CDC
Bord du Lac Est
2839986
CDC
Devlin Ext.
2541380
CDC
Bord du Lac Est
2839967
CDC
Bord du Lac Est
2839987
CDC
Devlin Ext.
2541381
CDC
Bord du Lac Est
2839968
CDC
Bord du Lac Est
2839988
CDC
Devlin Ext.
2541382
CDC
Bord du Lac Est
2839969
CDC
Bord du Lac Est
2839989
CDC
Devlin Ext.
2541383
CDC
Bord du Lac Est
2839970
CDC
Bord du Lac Est
2839990
CDC
Devlin Ext.
2541384
CDC
Bord du Lac Est
2839971
CDC
Bord du Lac Est
2839991
CDC
Devlin Ext.
2541385
CDC
Bord du Lac Est
2839972
CDC
Bord du Lac Est
2839992
CDC
Devlin Ext.
2541386
CDC
Bord du Lac Est
2839973
CDC
Bord du Lac Est
2839993
CDC
Annual Report | 106
Schedule of Tenements
As at 31 December 2024
Property
Description
Mining Title
Title
type
Property
Description
Mining
Title
Title
type
Property
Description
Mining
Title
Title
type
Devlin Ext.
2541387
CDC
Bord du Lac Est
2839974
CDC
Bord du Lac Est
2839994
CDC
Devlin Ext.
2541388
CDC
Bord du Lac Est
2839975
CDC
Bord du Lac Est
2839995
CDC
Devlin Ext.
2541389
CDC
Bord du Lac Est
2839976
CDC
Bord du Lac Est
2839996
CDC
Devlin Ext.
2541390
CDC
Bord du Lac Est
2839977
CDC
Devlin Ext.
2541391
CDC
Bord du Lac Est
2839978
CDC
Corner Bay-Devlin (Copper) Property - 56.41% interest held by CBay Minerals Inc. (99058)
(responsible) and 43.59 % by Pan American Silver Corp.
Property
Description
Mining
Title
Title type
Property
Descriptio
n
Mining
Title
Title type
Property
Description
Mining
Title
Title
type
Copper
2428166
CDC
Copper
2428172
CDC
Copper
2428178
CDC
Copper
2428167
CDC
Copper
2428173
CDC
Copper
2428179
CDC
Copper
2428168
CDC
Copper
2428174
CDC
Copper
2428180
CDC
Copper
2428169
CDC
Copper
2428175
CDC
Copper
2428181
CDC
Copper
2428170
CDC
Copper
2428176
CDC
Copper
2428182
CDC
Copper
2428171
CDC
Copper
2428177
CDC
Gwillim Property - 100% owned by CBay Minerals Inc. (99058)
Mining Title
Title type
Mining Title
Title type
Mining Title
Title type
2435912
CDC
2435914
CDC
2435916
CDC
2435913
CDC
2435915
CDC
2435917
CDC
Gwillim Property - 50% held by CBay Minerals Inc. (99058) (responsible) and 50% by Alamos Gold
Inc.
Mining Title
Title type
Mining Title
Title type
Mining Title
Title type
2437034
CDC
2437040
CDC
2437046
CDC
2437035
CDC
2437041
CDC
2437047
CDC
2437036
CDC
2437042
CDC
2437048
CDC
2437037
CDC
2437043
CDC
2437049
CDC
2437038
CDC
2437044
CDC
2437039
CDC
2437045
CDC
Joe Mann Property - 100% owned by CBay Minerals Inc. (99058)
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
2361693
CDC
2374328
CDC
2377630
CDC
2485645
CDC
2361694
CDC
2374329
CDC
2377631
CDC
2485646
CDC
2361695
CDC
2374330
CDC
2377632
CDC
2485647
CDC
2361696
CDC
2374331
CDC
2377633
CDC
2485648
CDC
2361697
CDC
2374332
CDC
2377634
CDC
2485649
CDC
2361698
CDC
2377614
CDC
2377635
CDC
2485652
CDC
2362090
CDC
2377615
CDC
2377636
CDC
2485653
CDC
2362091
CDC
2377616
CDC
2377637
CDC
2485654
CDC
2362092
CDC
2377617
CDC
2377638
CDC
2485655
CDC
2362093
CDC
2377618
CDC
2377639
CDC
2485656
CDC
2374316
CDC
2377619
CDC
2377640
CDC
2485657
CDC
2374317
CDC
2377620
CDC
2377641
CDC
2539689
CDC
2374318
CDC
2377621
CDC
2377642
CDC
2539690
CDC
2374319
CDC
2377622
CDC
2377643
CDC
2539691
CDC
2374321
CDC
2377623
CDC
2377644
CDC
2539692
CDC
2374322
CDC
2377624
CDC
2377645
CDC
2539693
CDC
Annual Report | 107
Schedule of Tenements
As at 31 December 2024
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
2374323
CDC
2377625
CDC
2377646
CDC
2539694
CDC
2374324
CDC
2377626
CDC
2377647
CDC
2539695
CDC
2374325
CDC
2377627
CDC
2377648
CDC
2539696
CDC
2374326
CDC
2377628
CDC
2377649
CDC
420
CM
2374327
CDC
2377629
CDC
2485644
CDC
425
CM
Joe Mann Property - 65% held by CBay Minerals Inc. (99058) (responsible) and 35% by SOQUEM
inc. (2427)
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
Mining
Title
Title type
2143040
CDC
2363955
CDC
2363973
CDC
2363991
CDC
2363935
CDC
2363956
CDC
2363974
CDC
2363992
CDC
2363936
CDC
2363957
CDC
2363975
CDC
2363993
CDC
2363937
CDC
2363958
CDC
2363976
CDC
2363994
CDC
2363938
CDC
2363959
CDC
2363977
CDC
2363995
CDC
2363942
CDC
2363960
CDC
2363978
CDC
2363996
CDC
2363943
CDC
2363961
CDC
2363979
CDC
2363997
CDC
2363944
CDC
2363962
CDC
2363980
CDC
2363998
CDC
2363945
CDC
2363963
CDC
2363981
CDC
2363999
CDC
2363946
CDC
2363964
CDC
2363982
CDC
2364000
CDC
2363947
CDC
2363965
CDC
2363983
CDC
2364001
CDC
2363948
CDC
2363966
CDC
2363984
CDC
2364002
CDC
2363949
CDC
2363967
CDC
2363985
CDC
2364003
CDC
2363950
CDC
2363968
CDC
2363986
CDC
2364004
CDC
2363951
CDC
2363969
CDC
2363987
CDC
444
CM
2363952
CDC
2363970
CDC
2363988
CDC
2363953
CDC
2363971
CDC
2363989
CDC
2363954
CDC
2363972
CDC
2363990
CDC
Tortigny Est Property - 50% held by CBay Minerals Inc. (99058) (responsible) and 50% by SOQUEM
inc. (2427)
Mining Title
Title type
2330549
CDC
2330550
CDC
2330551
CDC
Auclair Project - Quebec, Canada (100% owned by Avenir Metals (Canada) Limited (103257))
1129237
1129265
2771079
2771104
2771129
2771154
2773256
1129238
1129266
2771080
2771105
2771130
2771155
2773257
1129239
1129267
2771081
2771106
2771131
2771156
2773258
1129243
1129268
2771082
2771107
2771132
2771157
2773259
1129244
1129269
2771083
2771108
2771133
2771158
2773260
1129245
1129270
2771084
2771109
2771134
2771159
2773261
1129246
1129279
2771085
2771110
2771135
2771160
2773262
1129247
1129280
2771086
2771111
2771136
2771161
2773263
1129248
1129281
2771087
2771112
2771137
2771162
2773264
1129249
1129282
2771088
2771113
2771138
2771163
2773265
1129250
1129283
2771089
2771114
2771139
2771164
2773266
1129251
1129284
2771090
2771115
2771140
2771165
2773267
1129252
1129285
2771091
2771116
2771141
2771166
2773268
1129253
1129286
2771092
2771117
2771142
2771167
2773269
1129254
1129287
2771093
2771118
2771143
2771168
2773270
1129255
1129288
2771094
2771119
2771144
2771169
2773271
1129256
1129289
2771095
2771120
2771145
2771170
2773272
1129257
1129290
2771096
2771121
2771146
2771171
2773273
Annual Report | 108
Schedule of Tenements
As at 31 December 2024
1129258
1129291
2771097
2771122
2771147
2771172
2773274
1129259
1129292
2771098
2771123
2771148
2771173
2773275
1129260
1129304
2771099
2771124
2771149
2771174
2773276
1129261
1129305
2771100
2771125
2771150
2771175
2773277
1129262
1129306
2771101
2771126
2771151
2771176
2773278
1129263
2771077
2771102
2771127
2771152
2771177
2773279
1129264
2771078
2771103
2771128
2771153
2773255
2773280
1129237
1129265
2771079
2771104
2771129
2771154
2773256
1129238
1129266
2771080
2771105
2771130
2771155
2773257
1129239
1129267
2771081
2771106
2771131
2771156
2773258
1129243
1129268
2771082
2771107
2771132
2771157
2773259
1129244
1129269
2771083
2771108
2771133
2771158
2773260
1129245
1129270
2771084
2771109
2771134
2771159
2773261
1129246
1129279
2771085
2771110
2771135
2771160
2773262
1129247
1129280
2771086
2771111
2771136
2771161
2773263
1129248
1129281
2771087
2771112
2771137
2771162
2773264
1129249
1129282
2771088
2771113
2771138
2771163
2773265
1129250
1129283
2771089
2771114
2771139
2771164
2773266
Australian Projects (100% owned)
Property
Description
Tenement
Location
Registered Owner
Ownership
Perrinvale
E29/1075
Western Australia
Deneb Resources Pty Ltd
100%
Snake Rock
E70/4911
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
Bencubbin
E70/4988
Western Australia
Deneb Resources Pty Ltd
100%
Hardies Extension
E70/4990
Western Australia
Cygnus Gold (Projects) Pty Ltd
100%
Bencubbin South
E70/5168
Western Australia
Deneb Resources Pty Ltd
100%
Bencubbin North
E70/5169
Western Australia
Deneb Resources Pty Ltd
100%
Bonnie Rock
E70/5196
Western Australia
Deneb Resources Pty Ltd
100%
Mackie
E70/5397
Western Australia
Deneb Resources Pty Ltd
100%
Welbungin
E70/5617
Western Australia
Deneb Resources Pty Ltd
100%
Mining Tenements disposed: Nil
Mining Tenements acquired: Chibougamau Project properties described above
Beneficial percentage interests held in farm in or farm-out agreements:
Farm Out
Tenement
Location
Registered Owner
Structure and Ownership
E70/4787
Western Australia
Cygnus Gold (Projects) Pty Ltd
49% (diluting to 15%)
E70/5131
Western Australia
Cygnus Gold (Projects) Pty Ltd
49% (diluting to 15%)
Annual Report | 109
Schedule of Tenements
As at 31 December 2024
Farm In
Pontax Lithium Project - Quebec, Canada (51% interest held by Cygnus’ wholly-owned subsidiary
Avenir Metals (Canada) Limited (103257), earning up to 70%, with remaining 49% interest held by
Stria Lithium Inc. (96388))
CDC 2002627
CDC 2002641
CDC 2002659
CDC 80469
CDC 85804
CDC 2002628
CDC 2002642
CDC 2002664
CDC 80483
CDC 85805
CDC 2002629
CDC 2002643
CDC 2197182
CDC 84701
CDC 85806
CDC 2002630
CDC 2002646
CDC 2197183
CDC 84702
CDC 85807
CDC 2002631
CDC 2002647
CDC 2197184
CDC 84703
CDC 85808
CDC 2002632
CDC 2002648
CDC 2197185
CDC 84704
CDC 85809
CDC 2002633
CDC 2002649
CDC 2197186
CDC 84705
CDC 85810
CDC 2002634
CDC 2002650
CDC 2197187
CDC 84710
CDC 85811
CDC 2002635
CDC 2002651
CDC 2197188
CDC 84711
CDC 85812
CDC 2002636
CDC 2002652
CDC 2197190
CDC 84717
CDC 86421
CDC 2002637
CDC 2002655
CDC 2197191
CDC 84718
CDC 89173
CDC 2002638
CDC 2002656
CDC 80466
CDC 84719
CDC 89174
CDC 2002639
CDC 2002657
CDC 80467
CDC 85802
CDC 2002640
CDC 2002658
CDC 80468
CDC 85803
Pontax Extension Property - Quebec, Canada (Earning up to 100%. Currently held 100% by 9219-
8845 Québec inc. (Canadian Mining House))
2616420
2616444
2616468
2615721
2615627
2615651
2615675
2616421
2616445
2615893
2615722
2615628
2615652
2615676
2616422
2616446
2615699
2615723
2615629
2615653
2615677
2616423
2616447
2615700
2615724
2615630
2615654
2615678
2616424
2616448
2615701
2615725
2615631
2615655
2615679
2616425
2616449
2615702
2615726
2615632
2615656
2615680
2616426
2616450
2615703
2615727
2615633
2615657
2615681
2616427
2616451
2615704
2615728
2615634
2615658
2615682
2616428
2616452
2615705
2615611
2615635
2615659
2615683
2616429
2616453
2615706
2615612
2615636
2615660
2615684
2616430
2616454
2615707
2615613
2615637
2615661
2615685
2616431
2616455
2615708
2615614
2615638
2615662
2615686
2616432
2616456
2615709
2615615
2615639
2615663
2615687
2616433
2616457
2615710
2615616
2615640
2615664
2615688
2616434
2616458
2615711
2615617
2615641
2615665
2615689
2616435
2616459
2615712
2615618
2615642
2615666
2615746
2616436
2616460
2615713
2615619
2615643
2615667
2615747
2616437
2616461
2615714
2615620
2615644
2615668
2615748
2616438
2616462
2615715
2615621
2615645
2615669
2615751
2616439
2616463
2615716
2615622
2615646
2615670
2615752
2616440
2616464
2615717
2615623
2615647
2615671
2615753
2616441
2616465
2615718
2615624
2615648
2615672
2615754
2616442
2616466
2615719
2615625
2615649
2615673
2616443
2616467
2615720
2615626
2615650
2615674
Auclair Project (Beryl Lake Property) - Quebec, Canada (Earning up to 100%)
Currently held 100% by 9219-8845 Québec inc. (Canadian Mining House) (85234):
2631893
2634638
2644742
2651060
2687865
2689364
2712933
2631894
2634639
2644743
2651061
2687866
2689552
2712934
2631895
2634640
2644744
2651062
2687867
2689553
2712935
2631896
2634641
2644745
2651063
2687868
2689554
2712936
2631897
2634642
2644746
2651064
2687869
2689555
2712937
2631898
2634643
2644747
2651065
2689270
2689556
2712938
2631899
2634644
2645212
2651066
2689271
2689557
2712939
2631900
2634645
2645213
2651067
2689272
2689558
2712940
2631901
2634646
2645214
2651068
2689273
2689559
2712941
2631902
2634647
2645215
2651069
2689274
2689560
2712942
2631903
2634648
2563578
2651070
2689275
2689561
2712943
Annual Report | 110
Schedule of Tenements
As at 31 December 2024
2631904
2644720
2563579
2651071
2689276
2689562
2714584
2631905
2644721
2563580
2651072
2689277
2689563
2714585
2631906
2644722
2563581
2651073
2689278
2712913
2714586
2631907
2644723
2563582
2651074
2689279
2712914
2714587
2631908
2644724
2651042
2651075
2689280
2712915
2714588
2631909
2644725
2651043
2651076
2689281
2712916
2556226
2631910
2644726
2651044
2651077
2689282
2712917
2556227
2631911
2644727
2651045
2651078
2689283
2712918
2556228
2632764
2644728
2651046
2651599
2689284
2712919
2556229
2632765
2644729
2651047
2651600
2689285
2712920
2556230
2632766
2644730
2651048
2651601
2689286
2712921
2556231
2632767
2644731
2651049
2651602
2689287
2712922
2556232
2632768
2644732
2651050
2651603
2689288
2712923
2556233
2632769
2644733
2651051
2651604
2689289
2712924
2556234
2633497
2644734
2651052
2651605
2689290
2712925
2556235
2633498
2644735
2651053
2651606
2689291
2712926
2556236
2633499
2644736
2651054
2651607
2689292
2712927
2556237
2633500
2644737
2651055
2651608
2689293
2712928
2556238
2633501
2644738
2651056
2651609
2689360
2712929
2633502
2644739
2651057
2651610
2689361
2712930
2633700
2644740
2651058
2651611
2689362
2712931
2634637
2644741
2651059
2651612
2689363
2712932
Currently held 100% by Anna Rosa Giglio (96501):
2634305
2634357
2641993
2687800
2687852
2689228
2693549
2634306
2634358
2641994
2687801
2687853
2689229
2693550
2634307
2634359
2641995
2687802
2687854
2689230
2693551
2634308
2634360
2641996
2687803
2687855
2689231
2693552
2634309
2634361
2641997
2687804
2687856
2689232
2693553
2634310
2634362
2641998
2687805
2687857
2689233
2693554
2634311
2634363
2641999
2687806
2687858
2689234
2693555
2634312
2634364
2642000
2687807
2687859
2689235
2693556
2634313
2634365
2642001
2687808
2687860
2689236
2693557
2634314
2634366
2642002
2687809
2687861
2689237
2693558
2634315
2634367
2642003
2687810
2687862
2689238
2693559
2634316
2634368
2642004
2687811
2687863
2689239
2693560
2634317
2634369
2642005
2687812
2687864
2689240
2693561
2634318
2634370
2642006
2687813
2689189
2689241
2693562
2634319
2634371
2642007
2687814
2689190
2689242
2693563
2634320
2634372
2642008
2687815
2689191
2689243
2693564
2634321
2634373
2642009
2687816
2689192
2689244
2693565
2634322
2634374
2642010
2687817
2689193
2689245
2693566
2634323
2634375
2642011
2687818
2689194
2689246
2693567
2634324
2634376
2642012
2687819
2689195
2689247
2693568
2634325
2634377
2642013
2687820
2689196
2689248
2693569
2634326
2634378
2642014
2687821
2689197
2689249
2693570
2634327
2634379
2642015
2687822
2689198
2689250
2693571
2634328
2634380
2642016
2687823
2689199
2689251
2693572
2634329
2634381
2651342
2687824
2689200
2689252
2693573
2634330
2634382
2651343
2687825
2689201
2689253
2693574
2634331
2635050
2651344
2687826
2689202
2689254
2693575
2634332
2635051
2651345
2687827
2689203
2689255
2693576
2634333
2635052
2651346
2687828
2689204
2689256
2693577
2634334
2635053
2651347
2687829
2689205
2689257
2693578
2634335
2635054
2651348
2687830
2689206
2689258
2693579
2634336
2635055
2651349
2687831
2689207
2689259
2693580
2634337
2635056
2652176
2687832
2689208
2689260
2693581
2634338
2635057
2652177
2687833
2689209
2689261
2693582
2634339
2635058
2652178
2687834
2689210
2689262
2693583
2634340
2635059
2652179
2687835
2689211
2689263
2693584
2634341
2635060
2652180
2687836
2689212
2689264
2693585
2634342
2635061
2652181
2687837
2689213
2689265
2693586
2634343
2635062
2687786
2687838
2689214
2689266
2693587
2634344
2635063
2687787
2687839
2689215
2689267
2693588
2634345
2635064
2687788
2687840
2689216
2689268
2693589
2634346
2635065
2687789
2687841
2689217
2689269
2693590
Annual Report | 111
Schedule of Tenements
As at 31 December 2024
2634347
2635066
2687790
2687842
2689218
2693539
2693591
2634348
2635067
2687791
2687843
2689219
2693540
2693592
2634349
2635068
2687792
2687844
2689220
2693541
2693593
2634350
2635069
2687793
2687845
2689221
2693542
2693594
2634351
2635070
2687794
2687846
2689222
2693543
2693595
2634352
2635071
2687795
2687847
2689223
2693544
2693596
2634353
2641989
2687796
2687848
2689224
2693545
2694507
2634354
2641990
2687797
2687849
2689225
2693546
2694508
2634355
2641991
2687798
2687850
2689226
2693547
2634356
2641992
2687799
2687851
2689227
2693548
Sakami Property - Quebec, Canada (Earning up to 100%)
Currently held 100% by 9219-8845 Québec inc. (Canadian Mining House) (85234):
2563097
2563242
2564266
2717593
2717603
2717613
2717623
2563098
2563243
2565670
2717594
2717604
2717614
2717624
2563099
2564258
2565671
2717595
2717605
2717615
2717625
2563100
2564259
2565672
2717596
2717606
2717616
2717626
2563236
2564260
2565673
2717597
2717607
2717617
2717627
2563237
2564261
2565674
2717598
2717608
2717618
2717628
2563238
2564262
2571971
2717599
2717609
2717619
2717629
2563239
2564263
2571972
2717600
2717610
2717620
2563240
2564264
2571973
2717601
2717611
2717621
2563241
2564265
2629676
2717602
2717612
2717622
Currently held 100% by Anna Rosa Giglio (96501):
2629677
2642191
2642215
2663158
2663182
2663206
2663230
2629678
2642192
2642216
2663159
2663183
2663207
2663231
2630117
2642193
2662756
2663160
2663184
2663208
2663232
2641977
2642194
2662757
2663161
2663185
2663209
2663233
2641978
2642195
2662758
2663162
2663186
2663210
2663234
2641979
2642196
2662759
2663163
2663187
2663211
2663235
2641980
2642197
2662760
2663164
2663188
2663212
2663236
2641981
2642198
2662761
2663165
2663189
2663213
2663237
2641982
2642199
2662762
2663166
2663190
2663214
2663238
2641983
2642200
2662763
2663167
2663191
2663215
2663239
2641984
2642201
2662764
2663168
2663192
2663216
2663240
2641985
2642202
2662765
2663169
2663193
2663217
2663241
2641986
2642203
2662766
2663170
2663194
2663218
2663242
2641987
2642204
2662767
2663171
2663195
2663219
2663243
2641988
2642205
2662768
2663172
2663196
2663220
2663244
2642182
2642206
2662769
2663173
2663197
2663221
2663245
2642183
2642207
2662770
2663174
2663198
2663222
2663246
2642184
2642208
2662771
2663175
2663199
2663223
2663247
2642185
2642209
2662772
2663176
2663200
2663224
2663248
2642186
2642210
2662773
2663177
2663201
2663225
2663249
2642187
2642211
2662774
2663178
2663202
2663226
2642188
2642212
2663155
2663179
2663203
2663227
2642189
2642213
2663156
2663180
2663204
2663228
2642190
2642214
2663157
2663181
2663205
2663229
Level 2/8 Richardson Street
West Perth WA 6005, Australia
+61 (0)8 6118 1627
info@cygnusmetals.com
www.cygnusmetals.com