Annual Report
ABN 40 119 031 864
For the Year Ended 30 June 2021
Financial Statements
Chairman’s Letter
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Audit Report
ASX Additional Information
Corporate Directory
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65
DREADNOUGHT RESOURCES LIMITED
CHAIRMAN’S LETTER
Dear Fellow Shareholder,
We are pleased to present the 2021 Annual Report for Dreadnought Resources Limited (“Dreadnought” or the “Company”).
The past year has been another active year for Dreadnought.
At this time last year, I described our goals for 2021 including:
Illaara Project
Systematically assess and test the numerous high-quality gold opportunities including the three ~10km long orogenic gold
anomalies at Metzke’s Find, Lawrence’s Find and Central Illaara. This work was successful with JORC 2012 Resource
definition work at Metzke’s Find now planned in the
December 2021 quarter. Other gold targets on the major structural corridors remain subject to ongoing testing.
Commercialise Illaara’s iron ore potential. Environmental surveys were successfully completed during the year hence
paving the way for JORC 2012 Resource drilling at the Kings iron ore prospect in the
December 2021 quarter.
Refine and test the VMS targeting methods. This work resulted in the 1.4km long Nelson Cu-Pb-Zn-Ag anomaly being
identified for testing over the coming year.
Tarraji-Yampi Project
Drill the fully approved and numerous untested targets at Tarraji-Yampi. This work went exceptionally well with significant
results returned from Orion, Grant’s Find and Fuso showing a strong Cu-Au-Ag style of mineralisation with associated Co,
Bi and Sb (up to 0.1% - 0.2%) metal association. This association indicates that all three targets are potentially part of a
larger mineralisation system including Texas and Rough Triangle.
Rocky Dam Project
Refine and test our understanding of the bedrock lode position at Rocky Dam. Given the acquisition and consolidation of
Mangaroon, Rocky Dam became non-core and limited work was undertaken. Rocky Dam was commercialised via a
divestment to Lycaon Resources Ltd and reduced our annual tenement holding costs while allowed us to focus on
advancing core projects.
General
In addition, we will continue to evaluate other opportunities for adding to shareholder value. Major advances were made
on this front including:
-
-
-
the acquisition and consolidation of the Mangaroon Ni-Cu-PGE & Au project;
entering into an Option/JV agreement with First Quantum Minerals Limited regarding the base metal rights over five
tenements at Mangaroon; and
identification of critical metals at the Peggy Sue Lithium-Caesium-Tantalum prospect and the Yin rare earth element
prospect.
For 2021, our goals include to:
-
establish JORC 2012 Resources at our more advance projects including for gold at Metzke’s Find, iron ore at the
Kings prospect and rare earths at Yin;
advance and determine the scale potential of the mineralisation system at Tarraji-Yampi (including Orion, Grant’s
Find, Fuso, Texas and Rough Triangle);
advance our earlier stage prospects (Nelson base metals VMS, Peggy Sue Lithium-Caesium-Tantalum, Black Oak,
Lawrence’s Corridor, CRA Homestead, Mangaroon gold;
continue to assess the economics of producing a saleable concentrate from the rare earths at Yin; and
continue to evaluate other opportunities for adding to shareholder value.
-
-
-
-
3
DREADNOUGHT RESOURCES LIMITED
CHAIRMAN’S LETTER
In closing, we would like to thank our stakeholders including traditional owners, local communities, employees, joint venture
alliance partners, suppliers and other business partners. We also would take this opportunity to thank our fellow
shareholders for your ongoing support.
Paul Chapman
Non-Executive Chairman
4
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of
Dreadnought Resources Limited (referred to hereafter as the Parent Entity, Dreadnought or the Company) and the
entities it controlled at the end of, or during, the year ended 30 June 2021.
DIRECTORS
The following persons were directors of the Company during the whole of the financial year and up to the date of this
report, unless otherwise stated:
Paul Chapman
(Non-executive Chairman)
Appointed 9 April 2019
Dean Tuck
(Managing Director)
Appointed 9 April 2019
Ian Gordon
(Non-executive Director)
Appointed 21 December 2017
Paul Payne
(Non-executive Director)
Appointed 21 December 2017
PRINCIPAL ACTIVITIES
The principal activities of the Group during the financial year were minerals exploration and development. There were
no significant changes in the nature of activities of the Group during the year.
DIVIDENDS
No dividends have been declared or paid during the year (2020: Nil).
OPERATING RESULTS AND FINANCIAL POSITION
The net result of operations for the financial year was a loss of $1,277,865 (2020: $1,215,539).
The net assets of the Group have increased by $7,562,523 during the financial year from $4,596,252 at 30 June 2020
to $12,158,775 at 30 June 2021.
REVIEW OF OPERATIONS
Group Overview
The Group is an ASX-listed exploration and development company focussing on copper, nickel, rare earths and gold
projects within the state of Western Australia. The Company’s strategy is to discover major copper, nickel, rare earths and
gold deposits within Western Australia.
5
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
The highlights and significant changes in state of affairs during the year and to date include:
Tarraji-Yampi Ni-Cu-PGE & Au (“Tarraji-Yampi”)
During the year, a 3D inversion of magnetic and gravity data refined the Fuso and Paul’s Find Cu-Au Targets.
Fuso has been defined by a 500m x 400m high density gravity anomaly nestled within a ~1,700m x 700m south-
southeast plunging magnetic anomaly. Paul’s Find is defined by a coincident intense ~300m x 200m remanent
magnetic and density anomaly located near surface. This geophysical signature is typical of Proterozoic Cu-Au
deposits such as those seen in Tennant Creek and Mt Isa.
Geophysical and environmental surveys were undertaken. Ground based Fixed Loop EM (“FLEM”) Surveys
identified three conductors at Orion and drilling is ongoing. Also, diamond drilling at Texas Ni-Cu-PGE commenced
and is also ongoing with the initial hole intersecting sulphides within the Ruins Dolerite.
Subsequent to 30 June 2021, RC drilling commenced at Orion, Fuso, Grant’s Find and Paul’s Find Cu-Au and
Chianti-Rufina Cu-Pb-Zn-Ag targets and intersected significant Cu-Ag-Au massive sulphides at Orion, Cu-Au-Co
at Grant’s Find and Cu-Au-Co at Fuso. Ongoing target generation work confirmed high grade Cu-Ag-Bi-Sb at
Rough Triangle. The current view is that these deposits form part of a large mineralised system.
Mangaroon Ni-Cu-PGE, REE & Au Project (“Mangaroon”)
Dreadnought consolidated a >4,500 sq km ground position in the Mangaroon zone of the Gascoyne region of
Western Australia. Mangaroon is host to high-grade gold mineralisation, high-tenor outcropping Ni-Cu-PGE
sulphide mineralisation and high-grade rare earth element (“REE”) ironstones.
First Quantum Minerals Limited (“FQM”) entered into an Option/JV agreement regarding the base metal rights
over five tenements at Mangaroon. The Option provides FQM with the right, following the completion of an
exploration program funded by FQM, to earn a 51% interest in Mangaroon by spending $15m and a further 19%
interest by sole funding all expenditure up until a Decision to Mine.
Work programs included: mapping and rock chip sampling over outcropping Ni-Cu-PGE mineralisation along the
Money Intrusion (Ni-Cu-PGE); soil sampling over the Edmund and Minga Bar Faults (Au); and rock chip sampling
and mapping of outcropping high-grade REE ironstones.
Subsequent to 30 June 2021, a 1km long outcropping gossanous horizon was identified along the Money Intrusion
and additional high-grade REE ironstone outcrops were confirmed over 2.5km of strike at Yin with an additional
five REE ironstone outcrops identified off the Yin trend. An initial flotation circuit using bulk surface samples from
Yin performed well, achieving a recovery of 92.8% at a concentrate grade of 12.3% Nd2O3. Based on Nd2O3 and
CeO2 to TREO ratios from the head sample analysis, this equates to an average 40% TREO grade concentrate.
Mineralogical work on the concentrate confirmed that the REEs were hosted in monazite.
Illaara Au-Cu-LCT-Iron Ore Project (“Illara”)
High grade, narrow vein gold has been a focus within the Metzke’s Corridor. Multiple anomalies still require testing
in addition to following the Metzke’s Lode at depth.
With the encouragement of Metzke’s Corridor, the Lawrence’s Corridor and the Black Oak-CRA-Spitfire Corridor
have become the focus for the gold target generation pipeline.
In addition to gold, environmental work was advanced on the iron ore targets, high-grade tantalum mineralisation
was identified in outcropping fertile lithium-caesium-tantalum (“LCT”) pegmatites and a significant base metal in
soil anomaly was identified at the Nelson VMS target.
A number of work programs were completed at Illaara including:
•
•
RC Drilling at Metzke’s Corridor – 24 holes for 3,513m of drilling at Metzke’s Find, Longmore’s Find, Black Oak,
Bald Hill and Little Dove.
RC Drilling at Lawrence’s Corridor – 45 holes for 3,864m of drilling at 14 lithostructural-geochemical targets.
Regional soils survey to generate and define drill targets for gold, VMS base metals and LCT pegmatites.
Rocky Dam Gold & VMS Project (“Rocky Dam”)
In June 2021, Dreadnought entered into an agreement to divest Rocky Dam to Lycaon Resources Ltd, a pre-IPO
company that is seeking to list on the ASX in the December 2021 Quarter.
Dreadnought will receive 500,000 Lycaon shares as consideration plus a 1% net smelter royalty over all minerals
extracted from Rocky Dam.
The divestment of Rocky Dam reduces annual tenement holding costs by ~$150,000 and allows Dreadnought to
focus on advancing its core Kimberley, Mangaroon and Illaara projects.
6
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Corporate Highlights:
Jessamyn Lyons was appointed as Company Secretary on 1 July 2020.
In July and August 2020, the directors exercised 33,500,000 options for a total of $217,500 taking their investment in
the Company to approximately $1.1m or approximately 18.15%.
In August 2020, the Company completed a placement at $0.009 per share to raise $1,536,000 (before costs) from
professional and sophisticated investors through the issue of 170,666,673 shares. The funds raised were used to test
multiple high-grade gold and base metal targets at Illaara and Tarraji-Yampi in the Kimberley.
In October 2020, the Company completed a capital raising of $3,500,000 (before costs) from professional and
sophisticated investors through the issue of 125,000,000 shares at $0.028 per share.
A total of 41,000,000 options were exercised in October and November 2020 with directors exercising 11,000,000 of
these options for $105,000, bringing their total investment in the Company to approximately $1.2m. The 41,000,000
options injected $325,000 into the Company.
On 7 April 2021, the Company and First Quantum Minerals Ltd (“FQM”) entered into an Option Agreement in respect
of base metal rights over five tenements within the Mangaroon Ni-Cu-PGE & Au Project in the Gascoyne region of
Western Australia (“Option”). The Option Agreement provides FQM with the right, following the completion of an
exploration program funded by FQM, to earn a 51% interest in Mangaroon by spending $15m and a further 19%
interest by sole funding all expenditure up until a Decision to Mine.
On 8 April 2021, the Company extended the maturity date of the Convertible Loan Note Deed to 1 July 2022.
On 8 April 2021, the directors exercised 12,000,000 options for $110,000 bringing their total investment in
Dreadnought to over $1.3 million.
On 12 April 2021, the Company completed a capital raising of $3,000,000 (before costs) from professional and
sophisticated investors through the issue of 166,666,667 shares at $0.018 per share.
On 28 April 2021, the Company completed a Share Purchase Plan to raise $500,000 at an issue price of $0.018 per
share.
On 21 June 2021, the Company entered into an agreement to divest the Rocky Dam to Lycaon Resources Ltd
(“Lycaon”), a pre-IPO company that is seeking to list on the ASX in the December 2021 quarter. Dreadnought will
receive 500,000 Lycaon shares as consideration, plus a 1% net smelter return royalty over all minerals extracted from
Rocky Dam.
On 2 July 2021, the Company granted 11,500,000 options via the Dreadnought Employee Option Plan (“EOP”) to the
current employees of the Company. The options have a $0.04 exercise price and an expiry date of 2 July 2024.
On 12 July 2021, 10,000,000 ordinary fully paid shares were issued on the early exercise of options raising $80,000.
On 26 July 2021, the Convertible Loan Note holders elected to convert their notes into 109,090,909 fully paid ordinary
shares thereby reducing debt by $600,000 to nil. The notes were issued following approval by shareholders in August
2019 at a face value of $600,000 with a conversion price of $0.0055 per share.
On 14 September 2021, the Company announced a placement at $0.035 to institutional and sophisticated investors
raising $8,000,000 (before costs). Proceeds are to be used for building on recent successes at the Tarraji-Yampi,
Mangaroon and Illaara with drilling of massive sulphides at Tarraji-Yampi to commence immediately. Directors are
contributing $158,699 via the placement (subject to shareholder approval) and exercise of options and will maintain a
15% ownership, bringing their total investment to approximately $1.46 million.
7
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
INVESTMENT HIGHLIGHTS
Kimberley Ni-Cu-Au Projects
Dreadnought controls the second largest land
holding in the highly prospective West Kimberley
region of WA. The main project area, Tarraji-Yampi,
is located only 85kms from Derby and has been
locked up as a Defence Reserve since 1978.
Tarraji-Yampi presents a rare first mover opportunity
with known outcropping mineralisation and historic
workings from the early 1900’s which have seen no
modern exploration.
Results to date indicate that there may be a related,
large scale, Proterozoic Cu-Au-Ag-Bi-Sb-Co system
at Tarraji-Yampi, similar to Cloncurry / Mt Isa in
Queensland and Tennant Creek in the Northern
Territory.
Illaara Gold, VMS & Iron Ore Project
Illaara is located 190km northwest of Kalgoorlie in
the Yilgarn Craton and covers 75kms of strike along
the Illaara Greenstone Belt. Illaara is prospective for
typical Archean mesothermal lode gold deposits,
VMS base metals and critical metals including
Lithium-Caesium-Tantalum.
has
consolidated
Illaara
Dreadnought
Greenstone Belt mainly through an acquisition from
Newmont. Prior to Newmont, the Illaara Greenstone
Belt was predominantly held by iron ore explorers
and remains highly prospective for iron ore.
the
Mangaroon Ni-Cu-PGE, REE & Au Project
Mangaroon is a first mover opportunity covering ~4,500sq kms of tenure located 250kms south-east of Exmouth in the
Gascoyne Region of WA. During the region’s early history, there was limited government support for exploration resulting
in the region being vastly underexplored.
Since acquiring the project in late 2020, Dreadnought has located: outcropping high-grade gold bearing quartz veins along
the Edmund and Minga Bar Faults; outcropping high tenor Ni-Cu-PGE blebby sulphides in the recently defined Money
Intrusion; and outcropping high-grade REE ironstones, similar to those under development at the Yangibana REE Project.
Rocky Dam Gold & VMS Project (“Rocky Dam”)
Rocky Dam is located 45km east of Kalgoorlie in the Eastern Goldfields Superterrane of Western Australia. Rocky Dam is
prospective for typical Archean mesothermal lode gold deposits and Cu-Zn VMS mineralisation. Rocky Dam has known
gold and VMS occurrences with drill ready gold targets including the recently defined CRA-North Gold Prospect.
8
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 2 July 2021, the Company granted 11,500,000 options via the Dreadnought Employee Option Plan to the current
employees of the Company. The options have $0.04 exercise price and expiry date of 2 July 2024.
On 12 July 2021, 10,000,000 ordinary paid shares were issued on early exercise of options raising $80,000.
On 26 July 2021, the Company announced that 109,090,909 ordinary fully paid shares have been issued on the
conversion of the 600,000 Convertible Notes on issue at the election of the Noteholders. The notes were issued following
approval by shareholders in August 2019 at a face value of $600,000 with a conversion price of $0.0055 per share.
On 14 September 2021, the Company announced a placement at $0.035 has raised $8,000,000 (before costs) to
institutional and sophisticated investors. Directors are contributing $158,699 via the placement (subject to shareholder
approval) and exercise of options and will maintain a 15% ownership, bringing their total investment to approximately
$1.46 million.
Other than the events detailed above, there has not arisen in the interval between 1 July 2021 and the date of this report
any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to
affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the
consolidated entity, in future years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGY
The Group is focused on delivering significant shareholder returns through the discovery of economic copper, nickel,
rare earth and gold deposits in the tier one jurisdiction of Western Australia.
The Group will achieve these goals by:
Identifying projects with significant unrealised potential.
Focusing our technical effort and financial investment to effectively and efficiently generate and drill exciting,
mineralised targets.
Maintaining low overheads and keeping the market well informed through continuous activity and news flow.
ENVIRONMENTAL REGULATION
The operations of the Group in Australia are subject to environmental regulations under both Commonwealth and State
legislation. In the mining industry, many activities are regulated by environmental laws as they may have the potential
to cause harm and/or otherwise impact upon the environment. Therefore, the Group conducts its operations under the
necessary Commonwealth and State Licences and Works Approvals to carry out ground disturbing activities including
the discharge of hazardous waste and materials arising from any exploration or mining activities and development
conducted by the Group on any of its tenements. The Group considers it has complied with all relevant environmental
obligations.
9
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Directors have been in office for the entire period unless otherwise stated.
PAUL CHAPMAN B.Comm, CA, Grad. Dip. Tax, MAICD, MAusIMM
Independent Non-Executive Chairman
Experience and Expertise
Mr Chapman is a chartered accountant with over thirty years’ experience in the resources sector gained in Australia
and the United States. He was a founding shareholder/director of the following ASX listed companies: Black Cat
Syndicate Limited, Reliance Mining Limited, Encounter Resources Limited, Rex Minerals Limited, Silver Lake
Resources Limited and Avanco Resources Limited. Mr Chapman is the non-executive Chairman of ASX listed gold
developer Black Cat Syndicate Limited, copper/gold explorer Encounter Resources Limited and gold explorer Sunshine
Gold Limited..
Interests in shares and options
309,609,513 shares.
Special Responsibilities
Chairman of the Board.
Other current directorships
Mr Chapman is the non-executive chairman of Black Cat Syndicate Limited (ASX:BC8) (since August 2017).
Mr Chapman is the non-executive chairman of Encounter Resources Limited (ASX:ENR) (since October 2005).
SHN
Former directorships in the last 3 years
Mr Chapman resigned as non-executive director of Brazilian copper/gold producer Avanco Resources Limited
(ASX:AVB) on 10 August 2018 following a successful takeover by OZ Minerals Limited.
DEAN TUCK B.Sc (Hons), FGAA, MAIG
Managing Director
Experience and expertise
Mr Tuck is an experienced geologist and exploration manager having worked across a wide range of commodities in
Australia, Brazil and Southeast Asia from project generation through to resource evaluation. He has held senior level
positions at BHP Billiton and ASX listed junior explorers. Mr Tuck has been instrumental in a number of discoveries
including the Strickland gold, Mallinda and Mallina LCT pegmatites and Wonmunna iron ore.
Interests in shares and options
20,710,317 shares and 33,500,000 options.
Other current directorships
None.
Former directorships in the last 3 years
None.
10
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
IAN GORDON B.Comm, MAICD
Non-executive Director
Experience and Expertise
Mr Gordon is a mining executive with extensive experience in transaction generation, project acquisition, mine
development and the management of public companies. Mr Gordon was formally an Executive Director and Managing
Director of Ramelius Resources Limited for seven years and Managing Director of Flinders Mines Limited for two years.
He holds a Bachelor of Commerce degree from Curtin University (WA).
Interests in shares and options
47,603,758 shares.
Other current directorships
Mr Ian Gordon is a director of Woomera Mining Limited (ASX:WML) (since 14 October 2020)
Former directorships in the last 3 years
Mr Gordon resigned as director of ASX listed company Auteco Minerals (ASX:AUT) on 28 January 2020.
PAUL PAYNE B.AppSc Grad Dip Min Ec, FAusIMM
Non-executive Director
Experience and expertise
Mr Payne is a geologist and holds in excess of 30 years’ experience in mining including 10 years independent consulting
across a range of commodities and jurisdictions. Mr Payne has extensive technical experience in the evaluation of
mineral deposits from early stage exploration to definitive feasibility studies. Recent exploration experience includes
implementation and management of gold exploration for Dacian Gold Limited in WA and Rift Valley Resources Limited
in Tanzania. Mr Payne has held corporate roles including Technical Director and Managing Director of ASX listed
companies including founding Managing Director of Dacian Gold Limited, and was instrumental in the Company’s
successful IPO and making the major initial gold discovery at its Mount Morgans project.
Interests in shares and options
46,706,352 shares.
Other current directorships
Mr Payne is a director of Carnaby Resources Limited (ASX:CNB) (since July 2016).
Mr Payne is a director of Essential Metals Limited (ASX:ESS) (since January 2020).
Former directorships in the last 3 years
Mr Payne resigned as director of ASX listed company Auteco Minerals Limited (ASX:AUT) on 18 January 2019.
COMPANY SECRETARY
JESSAMYN LYONS BComm, AGIA ICSA (Grad Dip Applied Corporate Governance)
Appointed 1 July 2020.
Experience and expertise
Ms Lyons is a Chartered Secretary, an Associate of the Governance Institute of Australia and holds a Bachelor of
Commerce from the University of Western Australia with majors in Investment Finance, Corporate Finance and Marketing.
Ms Lyons also has 15 years of experience working in the stockbroking and banking industries and has held various
positions with Macquarie Bank, UBS Investment Bank (London) and more recently Patersons Securities.
NICHOLAS DAY BCom; MBA; FFINSIA; ASCPA
Appointed 1 July 2019, Resigned 9 July 2020.
11
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Meetings of directors
The size of the Company does not warrant separate Audit & Risk, Remuneration and Nomination Committees at this
time, accordingly the full Board performs comprises these roles. The numbers of meetings of the Company's Board of
Directors held during the year ended 30 June 2021, and the numbers of meetings attended by each director were as
follows:
Meetings of directors
Paul Chapman
Dean Tuck
Ian Gordon
Paul Payne
A = Number of meetings attended
B = Number of meetings held during the time the director held office during the year and was eligible to attend
A
8
8
8
8
B
8
8
8
8
Indemnification and insurance of officers
The Company has indemnified the directors and officers of the Company for costs incurred, in their capacity as a director
or officer, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and officers of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility
on behalf of the Group for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of
the Corporations Act 2001.
Non-audit services
The Group may decide to employ the auditor on assignments additional to their statutory duties where the auditors’
expertise and experience with the Group are important.
The Board of directors is satisfied that the provision of any such non-audit services is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed
below did not compromise the external auditor’s independence for the following reasons:
all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do not
adversely affect the integrity and objectivity of the auditor; and
the nature of the services provided do not compromise the general principles relating to auditor independence in
accordance with APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set
by the Accounting Professional and Ethical Standards Board.
There were no fees for non-audit services paid or payable to the external auditors of the Company, their related practices
or non-related audit firms during the year ended 30 June 2021.
12
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Shares under option
At the date of this report unissued ordinary shares of the Group under option are:
Expiry date
Exercise price
Number of
options
Vested
Unvested
Amount
paid/payable by
recipient ($)
25/05/2023
30/06/2024
09/04/2024
01/10/2023
30/06/2025
31/10/2023
$0.0060
$0.0050
$0.0050
$0.0100
$0.0098
$0.0200
20,000,000
20,000,000
6,500,000
6,500,000
-
-
30,000,000
15,000,000
15,000,000
5,500,000
-
5,500,000
5,479,452
5,479,452
-
1,500,000
-
1,500,000
-
-
-
-
-
-
Shares issued during or since year end as a result of exercise of options:
Date granted
Exercise price
Number of
shares issued
Date exercise
Amount paid for
shares ($)
04/04/2019
04/04/2019
04/04/2019
04/04/2019
16/08/2019
16/08/2019
16/08/2019
16/08/2019
16/08/2019
25/05/2020
25/05/2020
17/09/2024
03/04/2024
$0.010
$0.010
$0.010
$0.010
$0.005
$0.005
$0.005
$0.005
$0.005
$0.006
$0.006
$0.008
$0.010
10,000,000
17 July 2020
10,000,000
18 October 2020
10,000,000
26 October 2020
10,000,000
8 April 2021
7,500,000
17 July 2020
1,000,000
5 August 2020
15,000,000
20 August 2020
1,000,000
26 October 2020
2,000,000
8 April 2021
10,000,000
26 October 2020
10,000,000
19 November 2020
10,000,000
12 July 2021
100,000
100,000
100,000
100,000
37,500
5,000
75,000
5,000
10,000
60,000
60,000
80,000
10,000,000
4 August 2021
100,000
13
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited
The remuneration report is set out under the following main headings:
A Principles used to determine the nature and amount of remuneration
B Details of remuneration
C Share-based compensation
D Shareholdings
E Use of Remuneration Consultants
F Relationship between remuneration and Company performance
G Key Management Personnel Loan
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations
Act 2001.
A Principles used to determine the nature and amount of remuneration
The Group's policy for determining the nature and amounts of remuneration of board members and senior executive
officers of the Group is as follows:
The Company's Constitution specifies that the total amount of remuneration of non-executive directors shall be fixed from
time to time by a general meeting. The current maximum aggregate remuneration of non-executive directors has been
set at $300,000 per annum. Directors may apportion any amount up to this maximum amount amongst the non-executive
directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and other
expenses incurred in performing their duties as directors.
Non-executive and executive directors’ remuneration is by way of fees and statutory superannuation contributions. The
Company’s Incentive Options Plan (‘Plan”) was approved by shareholders on 16 August 2019. Directors may be eligible
to participate in the Incentive Options Plan.
The Company's remuneration structure is based on a number of factors including the financial position of the Company
and the particular experience and performance of the individual in meeting key objectives of the Company. The Board is
responsible for assessing relevant employment market conditions and achieving the overall, long term objective of
maximising shareholder benefits, through the retention of high quality personnel.
The Company does not presently emphasise payment for results through the provision of cash bonus schemes or other
incentive payments based on key performance indicators of the Company given the nature of the Company's business
as a mineral exploration entity. However, the Board may approve the payment of cash bonuses from time to time in order
to reward individual executive performance in achieving key objectives as considered appropriate by the Board.
The Company also has an Employee Incentive Option Plan approved by shareholders on 16 August 2019 that enables
the Board to offer eligible employees and directors options to acquire ordinary fully paid shares in the Company. Under
the terms of the Plan, options for ordinary fully paid shares may be offered to the Company's eligible employees at no
cost or no more than nominal monetary consideration unless otherwise determined by the Board in accordance with the
terms and conditions of the Plan. The objective of the Plan is to align the interests of employees and shareholders by
providing employees of the Company with the opportunity to participate in the equity of the Company as an incentive to
achieve greater success and profitability for the Company and to maximise the long term performance of the Company.
14
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Voting and comments made at the Company’s 2020 Annual General Meeting
Dreadnought Resources Limited received more than 98% of ‘yes’ votes on its remuneration report for the 2020 financial
year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
B Details of remuneration
This report details the nature and amount of remuneration for each key management person of the Company.
The names and positions held by directors and key management personnel of the Company during the financial year are:
Mr P Chapman – Chairman, non-executive (appointed 9 April 2019)
Mr D Tuck – Managing Director (appointed 9 April 2019)
Mr I Gordon – Director, non-executive (since 21 December 2017)
Mr P Payne – Director, non-executive (since 21 December 2017)
The remuneration policy of the Group has been designed to align directors’ objectives with shareholder and business
objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates.
By providing components of remuneration that are indirectly linked to share price appreciation (in the form of options and/or
performance rights), executive, business and shareholder objectives are aligned. The Board of Directors (“Board”) believes
the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and
manage the Company, as well as create goal congruence between directors and shareholders.
The remuneration policy and the relevant terms and conditions has been developed by the full Board as the Company
does not have a Remuneration Committee due to the size of the Company and the Board. In determining competitive
remuneration rates, the Board reviews trends among comparative companies and industry generally. It examines terms
and conditions for employee incentive schemes, benefit plans and share plans. Reviews are performed to confirm that
executive remuneration is in line with market practice and is reasonable in the context of Australian executive reward
practices.
The Company is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and
retaining talented executives, directors and senior executives are paid market rates associated with individuals in similar
positions, within the same industry.
(a) Executive remuneration – Mr D Tuck (appointed 9 April 2019)
Mr Dean Tuck, Managing Director, was employed by the Group in accordance with the terms and conditions outlined
within his service agreement dated 9 April 2019. For the year ended 30 June 2021, Mr Tuck received a base salary of
$200,000 in short term remuneration (2020: $160,000), with a further $19,000 in post-employment superannuation
contributions (2020: $12,000). Both parties may terminate the employment agreement by giving notice of termination to
each other on not less than one (1) months’ notice in writing.
On 16 August 2019, the Group granted the Managing Director 10,500,000 unlisted incentive options exercisable at $0.005
on or before 30 June 2024 vesting immediately, with a fair value of $51,331. 4,000,000 of these options were exercised
during the year.
In August 2019, the Company also granted the Managing Director 30,000,000 unlisted incentive options exercisable at
$0.005 on or before 9 April 2021 with a fair value of $177,184. Both tranches of incentive options were granted in order
to align the long term interests of the Managing Director to that of the Group (together hereafter referred to as the ‘long
term incentive options’).
15
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
(a) Executive remuneration – Mr D Tuck (continued)
As per the Group’s Notice of Meeting dated 22 November 2019, it was identified that the issue of the above 30,000,000
unlisted incentive options should have been for a 5-year term rather than for the 2-year term granted. At the General
Meeting held 23 December 2019, it was approved to cancel these incentive options and issue the Managing Director with
new incentive Options.
Due to an administrative oversight, the previous long term incentive options vested immediately when they were granted
to the Managing Director and the total expense associated with these incentive options of $177,184 was recognised at
30 June 2020. On 23 December 2019, the Board has approved the revised long term incentive option plan whereby his
ability to exercise the 40,500,000 long term incentive options would be subject to the following conditions:
10,500,000 unlisted incentive options
- Vest immediately and may be exercised after grant date
-
The options expire on 30 June 2024
30,000,000 unlisted incentive options
-
-
-
-
-
25% may be exercised on or after 30 June 2020
A further 25% may be exercised on or after 30 June 2021
A further 25% may be exercised on or after 30 June 2022
The remaining 25% may be exercised on or after 30 June 2023
The options expire on 9 April 2024
(b) Non-Executive remuneration
The agreements in place with the non-executive chairman, Paul Chapman and the non-executive directors, Ian Gordon
and Paul Payne are summarised below:
-
-
-
-
Term of agreement is renewed annually
Fee of $3,000 per month (plus minimum statutory superannuation entitlements)
No payment of termination benefits
Annual election in writing to take base fee in options under the Company’s Incentive Option Plan
During the year ended 30 June 2021, the Chairman, Paul Chapman elected to receive 5,479,452 options in lieu of a cash
payment of $36,000 in fees and other employee expenses.
16
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Details of key management personnel remuneration
Short-Term
Post-employment
Long-
term
Share-
based
payments
TOTAL
Total
performance
related
Options
as % of
total
2021
Salary
fees
Cash
bonus
Non-
monetary
D Tuck
P Chapman
I Gordon
P Payne
N Day**
Total
$
200,000
-
36,000
36,000
3,992
275,992
$
$
-
-
-
-
-
-
-
-
-
-
-
-
Accrued
annual
leave
$
23,167
-
-
-
-
23,167
Super-
annuation
Retirement
benefits
Termination
benefits
Incentive
plans
Options
$
19,000
-
3,420
3,420
-
25,840
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
-
-
-
-
-
$
-
114,182
-
-
-
114,182
$
242,167
114,182
39,420
39,420
3,992
439,181
%
-
-
-
-
-
-
%
-
100%
-
-
-
-
Short-Term
Post-employment
Long-
term
Share-
based
payments
TOTAL
Total
performance
related
Options
as % of
total
2020
Salary
fees
Cash
bonus
Non-
monetary
Other
Super-
annuation
Retirement
benefits
Termination
benefits
Incentive
plans
Options
$
$
$
$
D Tuck
P Chapman
D Chapman*
I Gordon
P Payne
N Day**
K Smith***
Total
$
160,000
-
-
-
-
80,500
11,213
251,713
*Resigned on 31 July 2019.
**Appointed on 31 July 2019; Resigned on 9 July 2020. Mr Day was engaged under a service contract with 133 North Trust to act as Company Secretary and provide accounting and
financial reporting services. Of the total invoiced amount to the Group of $80,500, $16,718 relates to payments to contractors engaged by 133 North Trust.
***Ms Smith was engaged under a service contract with AE Administrative Services Pty Ltd to act as Company Secretary. Ms Smith resigned on 31 July 2019.
400,515
36,627
-
36,627
36,627
80,500
11,213
602,109
$
12,000
-
-
-
-
-
-
12,000
228,515
36,627
-
36,627
36,627
%
57%
100%
-
100%
100%
-
-
-
-
-
338,396
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
17
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
C Share-based compensation
Employee Incentive Options Plan
The Company has an Employee Incentive Options Plan approved by shareholders that enables the Board to offer eligible
employees and directors options to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, options
to acquire ordinary fully paid shares may be offered to the Company's eligible employees at no cost unless otherwise
determined by the Board in accordance with the terms and conditions of the Plan.
Options granted as remuneration
Incentive options were granted to directors and key management personnel of the Company during the year. The terms
and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management
personnel in this financial year or future reporting years are as follows:
Name
Number of
options
granted
Grant date
P Chapman
5,479,452
30 November 2020
Vesting date
and
exercisable
date
Vest
immediately
Expiry Date
Exercise
Price
Fair value
per option at
grant date1
30 June 2025
$0.0098
$0.0208
1 A term of Paul Chapman’s appointment as a director of the Company is that he is entitled to $36,000 plus superannuation
in fees for the year ending 30 June 2021. Paul Chapman has elected to receive his remuneration for the financial year
ending 30 June 2021 by way of an issue of options. The Board resolved to grant 5,479,452 options to Paul Chapman under
the Company’s Incentive Option Plan on 1 July 2020, subject to obtaining shareholder approval. Shareholder approval was
obtained on 30 November 2020. The options have a fair value of $36,000 on 1 July 2020 and a fair value of $114,182 on
grant date of 30 November 2020 when shareholder approval was obtained.
Options granted carry no dividend or voting rights.
All options were granted over unissued fully paid ordinary shares in the Company. Options vest based on the provision of
service over the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options
are exercisable by the holder as from the vesting date. There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable by the recipient in relation to the granting of such options
other than on their potential exercise.
Shares issued on exercise of remuneration options
No shares were issued to directors as a result of the exercise of remuneration options during the financial year.
18
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Remuneration report – audited (continued)
Directors' interests in shares and options
Directors' relevant interests in shares and options of the Company are disclosed below.
Options
The number of options held by each key management person of the Group during the financial year is as follows:
30 June 2021
Directors
P Chapman
I Gordon
P Payne
D Tuck
Former
Company
Secretary
N Day*
Balance at
beginning
of year
Granted as
remuneration
during the year
Options
exercised
Net change
other
Balance at
year end
Total vested
30/06/21
Total
exercisable
30/06/21
37,500,000
7,500,000
7,500,000
40,500,000
93,000,000
5,479,452
-
-
-
5,479,452
(37,500,000)
(7,500,000)
(7,500,000)
(4,000,000)
(56,500,000)
-
5,479,452
-
-
-
-
- 36,500,000
- 41,979,452
5,479,452
-
-
5,479,452
-
-
21,500,000 21,500,000
26,979,452 26,979,452
10,000,000
10,000,000
-
-
-
-
(10,000,000)
(10,000,000)
-
-
-
-
-
-
*resigned on 15 July 2020
D
Shareholdings
The number of ordinary shares held by each key management person of the Group during the financial year is as follows:
Balance at
beginning of
year
Participation in
Share Purchase
Plan during the
year
Issued on
exercise of
options
during the
year
Other changes
during the year
Balance at end
of year
30 June 2021
Directors
P Chapman
D Tuck
I Gordon
P Payne
Former Company
Secretary
N Day*
*resigned on 15 July 2020
266,630,061
13,710,317
39,825,981
38,928,575
359,094,934
65,603,889
65,603,889
-
-
277,777
277,777
555,554
37,500,000
4,000,000
7,500,000
7,500,000
56,500,000
-
-
-
-
-
304,130,061
17,710,317
47,603,758
46,706,352
416,150,488
-
-
-
-
(65,603,889)
(65,603,889)
-
-
19
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
D
Shareholdings (Continued)
Other transactions with key management personnel and their related parties
Transactions with key management personnel and their related parties recognised during the year (excluding re-
imbursement of expenses incurred on behalf of the Company) relating to directors and their director related entities were
as follows:
Director
Transaction
D Gordon
P Chapman
Payments to a former director related
entity for company secretary and
accounting services (ie Adelaide Equity
Partners Limited)
Payments to a director related entity for
office rental (ie Stone Poneys Nominees
Pty Ltd atf Chapman Superannuation
Fund)
Consolidated
2021
$
2020
$
-
11,213
11,627
-
No amounts were owing to related parties as at 30 June 2021 (2020: nil).
E Use of Remuneration Consultants
The Board seeks external remuneration advice as required. No such advice was obtained during the financial year ending
30 June 2021.
F
Relationship between remuneration and Company performance
Remuneration for certain individuals is directly linked to the performance of the Group. Details of the earnings and total
shareholders return for the last five years.
Operating revenue
Net profit/(loss)
Share price at year end
2021
$
186,553
(1,277,865)
0.024
2020
$
72,163
(1,215,539)
0.0060
2019
$
3,474
(688,822)
0.0040
2018
$
3,993
(324,155)
0.0050
2017
$
3,892
(382,120)
0.0030
G Key Management Personnel Loan
There were no loans issued to Key Management Personnel during the financial year (2020: Nil).
Remuneration report ends.
20
DREADNOUGHT RESOURCES LIMITED
DIRECTORS’ REPORT
Auditor’s independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
immediately after this directors' report.
The Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors.
Dean Tuck
Managing Director
Dated 29 September 2021
21
To the Board of Directors of Dreadnought Resources Limited
Auditor’s Independence Declaration under section 307C of the Corporations Act 2001
As lead audit director for the audit of the financial statements of Dreadnought Resources Limited for the
financial year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been
no contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
29 September 2021
22
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
For the Year Ended 30 June 2021
Other income
Grant income
Administration expenses
Finance expense
Exploration expenditure
Legal fees
Impairment of exploration expenditure
Net gain on deregistration of subsidiaries
Director and employee benefits expense
Loss from continuing operations before income tax
Income tax benefit
Consolidated
Note
30 June 2021
$
30 June 2020
$
2
3
3
9
3
4
104,035
82,500
2,543
69,620
(669,158)
(669,115)
(76,477)
(78,467)
(78,968)
(10,429)
(20,191)
(62,182)
(315,169)
(27,928)
-
10,027
(304,437)
(449,608)
(1,277,865)
(1,215,539)
-
-
Loss from continuing operations before income tax
(1,277,865)
(1,215,539)
Other comprehensive loss, net of income tax
Equity instruments at fair value though other comprehensive loss
-
-
Total comprehensive loss for the year
(1,277,865)
(1,215,539)
Loss per share for loss attributable to the ordinary equity holders of the Company
Cents
Basic loss per share (cents)
Diluted loss per share (cents)
Note
Cents
14
14
(0.06)
(0.06)
(0.07)
(0.07)
The above consolidated statement of profit or loss and comprehensive income should be read in conjunction with the
accompanying notes.
23
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Financial Position
As at 30 June 2021
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Other assets
Exploration asset held for sale
Total Current Assets
Non-Current Assets
Exploration assets
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Other financial liabilities
Total Current Liabilities
Non-Current Liabilities
Other financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
Note
30 June 2021
$
30 June 2020
$
6
7
8
9
9
10
11
11
2,645,136
157,172
334,613
100,000
464,099
51,393
47,027
-
3,236,921
562,519
10,371,428
5,104,501
10,371,428
5,104,501
13,608,349
5,667,020
807,641
62,986
-
468,158
23,663
578,947
870,627
1,070,768
578,947
578,947
-
-
1,449,574
1,070,768
12,158,775
4,596,252
12
13
52,030,339
904,031
(40,775,595)
43,389,962
704,020
(39,497,730)
12,158,775
4,596,252
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
24
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2021
Attributable to shareholders
Dreadnought Resources Limited
Issued
Capital
Accumulated
Losses
Equity
Reserve
Options
Reserve
Total
$
$
$
$
$
Balance at 1 July 2019
40,263,315
(38,282,191)
39,520
35,000
2,055,644
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
and tax
Option issues, net of transaction costs
and tax
-
-
-
(1,215,539)
-
(1,215,539)
3,126,647
-
-
-
-
-
-
-
-
Balance at 30 June 2020
43,389,962
(39,497,730)
39,520
-
-
-
(1,215,539)
-
(1,215,539)
-
3,126,647
629,500
664,500
629,500
4,596,252
Balance at 1 July 2020
43,389,962
(39,497,730)
39,520
664,500
4,596,252
Loss for year
Other comprehensive loss
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners
Share issues, net of transaction costs
(Note 12)
Exercise of options (Note 12)
Equity component of the
convertible notes
Option issues, net of transaction costs
and tax (Note 13)
-
-
-
(1,277,865)
-
(1,277,865)
7,987,877
652,500
-
-
-
-
-
-
-
-
-
-
-
16,199
-
-
-
-
-
-
(1,277,865)
-
(1,277,865)
7,987,877
652,500
16,199
-
183,812
183,812
Balance at 30 June 2021
52,030,339
(40,775,595)
55,719
848,312
12,158,775
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
25
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers and employees
Interest received
Interest and other costs of finance paid
Government grants
Consolidated
Note
30 June 2021
$
30 June 2020
$
(501,086)
(555,160)
4,035
2,544
(60,278)
(60,000)
100,973
69,620
Net cash used in operating activities
23
(456,356)
(542,996)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for exploration assets
Payment for property, plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Capital raising costs
Exercise of options
Net cash provided by financing activities
(6,002,235)
(2,549,285)
(749)
-
(6,002,984)
(2,549,285)
8,535,998
3,115,895
(548,121)
(207,481)
652,500
-
8,640,377
2,908,414
Net increase/(decrease) in cash and cash equivalents held
2,181,037
(183,867)
Cash and cash equivalents at beginning of year
464,099
647,966
Cash and cash equivalents at end of financial year
2,645,136
464,099
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
26
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1
Summary of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these consolidated Financial Statements are set out
below. These policies have been consistently applied to all the periods presented, unless otherwise stated. The
Financial Statements are for the consolidated entity consisting of Dreadnought Resources Limited and its subsidiaries.
(a)
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and interpretations issued by the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. Dreadnought Resources Limited is a for profit entity for the purpose of preparing the
financial statements.
(i) Compliance with IFRS
These consolidated financial statements also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
These financial statements have been prepared on an accrual basis, under the historical cost convention,
as modified by the revaluation of financial assets through other comprehensive income.
(iii) Critical accounting estimates
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the
Group.
(b)
Going concern
The financial statements have been prepared on a going concern basis which assumes the Company and Consolidated
Group will have sufficient funds to pay its debts, as and when they become payable, for a period of at least 12 months
from the date the financial report is authorised for issue.
As at 30 June 2021, the Consolidated Group had net assets of $12,158,775 (2020: $4,596,252) and a working capital
surplus of $2,366,294 (2020: working capital deficit of $508,249). Included in non-current liabilities as at 30 June 2021
are Convertible Notes of $578,947 which have been fully converted into ordinary shares subsequent to year end. In
addition, during the financial year, the Consolidated Group had cash outflows from operating activities of $456,356
(2020: $542,996) and cash outflows from investing activities (including payments for exploration) of $6,002,984 (2020:
2,549,285).
On 14 September 2021, the Company announced a placement at $0.035 to institutional and sophisticated investors
raising $8,000,000 (before costs). The Group’s cash flow forecast out to 30 September 2022 indicates that the Group
will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from
the date of signing this financial report.
To address the future funding requirements of the Group, the directors have:
developed a business plan that provides encouragement for investors to invest; and
continued their focus on maintaining an appropriate level of corporate overheads and projects spending in line
with the Group’s available cash resources.
Based on the cash flow forecasts, the directors are satisfied that the going concern basis of preparation is appropriate.
In determining the appropriateness of the basis of preparation, the Directors have considered the impact of the COVID-
19 pandemic on the position of the Group at 30 June 2021 and its operations in future periods.
27
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1
Summary of Significant Accounting Policies (continued)
(c) Basis of Consolidation
The Group financial statements consolidate those of the Parent and all of its subsidiaries. The Parent controls a subsidiary
if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June. All transactions and
balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions
between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the
underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises
the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in
profit or loss. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are
recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets
that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners
of the parent and the non-controlling interests based on their respective ownership interests.
(d)
Investments in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous
decisions about relevant activities are required. Separate joint venture entities providing joint ventures with an interest to
net assets are classified as a joint venture and accounted for using the equity method.
Joint operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to
each liability of the arrangement. The Group’s interests in assets, liabilities, revenue and expenses of joint operations are
included in the respective line items of the consolidated financial statements. Gains and losses resulting from sales to a
joint operation are recognised to the extent of the other parties’ interests. When the Group makes purchases from a joint
operation, it does not recognise its share of the gains and losses from the joint arrangement until it resells those
goods/assets to a third party.
(e)
Comparative Amounts
Comparatives are consistent with prior years, unless otherwise stated. Where a change in comparatives has also affected
the opening retained earnings previously presented in a comparative period, an opening statement of financial position at
the earliest date of the comparative period has been presented.
28
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1
Summary of Significant Accounting Policies (continued)
(f)
Income Tax
The tax expense recognised in the profit or loss and other comprehensive income relates to current income
tax expense plus deferred tax expense (being the movement in deferred tax assets and liabilities and unused
tax losses during the year).
Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for
the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using
the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts
of tax bases of assets and liabilities to the carrying amounts in the consolidated financial statements. Deferred
tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset
is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax consequences relating to a non-monetary asset carried at fair value are determined using the
assumption that the carrying amount of the asset will be recovered through sale.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences and
losses can be utilised.
Current tax assets and liabilities are offset where there is a legally enforceable right to set off the recognised
amounts and there is an intention either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Deferred tax assets and liabilities are offset where there is a legal right to set off current tax assets against
current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied
by the same taxation authority on either the same taxable entity or different taxable entities which intend either
to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the period
except where the tax arises from a transaction which is recognised in other comprehensive income or equity,
in which case the tax is recognised in other comprehensive income or equity respectively.
Dreadnought Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity in the Group recognises its own current and
deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to
allocation.
Current tax liabilities (assets) and deferred tax assets arising from unused tax losses and tax credits in the
subsidiaries are immediately transferred to the head entity.
The tax consolidated group has entered into a tax funding arrangement whereby each company in the Group
contributes to the income tax payable by the Group in proportion to their contribution to the Group’s taxable
income. Differences between the amounts of net tax assets and liabilities derecognised and the net amounts
recognised pursuant to the funding arrangement are recognised as either a contribution by, or distribution to
the head entity.
29
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(g)
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains a lease or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability are recognised by the Group where the Group
is a lessee. However, all contracts that are classified as short-term leases (i.e. a lease with a remaining lease
term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a
straight-line basis over the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Group uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
•
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to
terminate the lease.
•
•
•
•
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest. Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects
that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life
of the underlying asset.
(h)
Revenue and other income (including government grants)
Revenue is recognised when or as the Group transfers control of goods or services to a customer at the amount
to which the Group expected to be entitled. If the consideration promised includes a variable amount, the Group
estimates the amount of consideration to which it will be entitled.
Revenue is measured at the transaction price received or receivable (which excludes estimates of variable
consideration) allocated to the performance obligation satisfied and represents amounts receivable for services
provided in the normal course of business, net of discounts, VAT, GST and other sales related taxes. Where
the expected period between transfer of a promised service and payment from the customer is one year or
less no adjustment for a financing component is made.
Revenue arising from the provision of services is recognised when and to the extent that the customer
simultaneously receives and consumes the benefits of the Group’s performance or the Group does not create
an asset with an alternative use but has an enforceable right to payment for performance completed to date.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
Government assistance revenue is recognised when it is received or when the right to receive payment is
established.
30
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(i)
Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables
in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows
arising from investing and financing activities which is recoverable from, or payable to, the taxation authority
is classified as operating cash flows.
(j)
Property, Plant and Equipment
Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any
impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the
costs of dismantling and restoring the asset, where applicable.
Plant and equipment
Plant and equipment is measured on a cost basis. The carrying amount of plant and equipment is reviewed
annually by directors to ensure it is not in excess of the recoverable amount. The recoverable amount is
assessed on the basis of the expected net cash flows that will be received from the assets’ employment and
subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.
Subsequent costs are included in the assets’ carrying amounts or recognised as separate assets as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Group and the cost can be measured reliably. All other repairs and maintenance are charged to the statement
of profit or loss and other comprehensive income during the financial year in which they are incurred.
Depreciation
The depreciable amount of all property, plant and equipment, except for freehold land is depreciated on a
reducing balance method from the date that management determine that the asset is available for use. The
depreciation rates used for each class of depreciable assets vary from 25% to 40%. Where the asset qualifies
for the ATO instant write-off deduction, it is written off in the statement of profit or loss and other comprehensive
income.
(k)
Financial instruments
Classification and Measurement
Under AASB 9, the Group measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs. Under AASB 9, debt financial instruments are
subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other
comprehensive income (FVOCI).
Classification is based on two criteria:
The Group’s business model for managing the assets; and
Whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on
the principal amount outstanding (the ‘SPPI criterion’).
31
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1
Summary of Significant Accounting Policies (continued)
(k)
Financial instruments (continued)
The classification and measurement of the Group’s debt financial assets are, as follows:
Debt instruments are amortised cost for financial assets that are held within a business model with the
objective to hold the financial assets in order to collect contractual cash flows that meet the SPPI criterion.
This category includes the Group’s trade and other receivables.
Other financial assets are classified and subsequently measured, as follows:
Equity instruments at FVOCI, with no recycling of gains or losses to profit or loss on derecognition. This
category only includes equity instruments which the Group has irrevocably elected to so classify upon initial
recognition or transition.
Impairment
The Group applies the AASB 9 simplified model of recognising lifetime expected credit losses for all trade
receivables as these items do not have a significant financing component.
Where applicable, in measuring the expected credit losses, the trade receivables are assessed on a collective
basis as they possess shared credit risk characteristics. They are grouped based on the days past due.
The expected loss rates are based on the historic payment profile for as well as the corresponding historical
credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking
macroeconomic factors affecting the customer’s ability to settle the amount outstanding.
Trade receivables are written off when there is no reasonable expectation of recovery. Failure to make
payments within 180 days from the invoice date and failure to engage with the Group on alternative payment
arrangement amongst others is considered indicators of no reasonable expectation of recovery.
Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes that can be converted to
ordinary shares at the option of the holder, when the number of shares to be issued is fixed and does not vary
with changes in fair value.
The liability component of compound financial instruments is initially recognised at the fair value of a similar
liability that does not have an equity conversion option. The equity component is initially recognised at the
difference between the fair value of the compound financial instrument as a whole and the fair value of the
liability component. Any directly attributable transaction costs are allocated to the liability and equity
components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial instrument
is not remeasured.
Interest related to the financial liability is recognised in profit or loss. On conversion at maturity, the financial
liability is reclassified to equity and no gain or loss is recognised.
32
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(l)
Impairment of non-financial assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets
are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from
other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
(m)
Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments
with original maturities of twelve months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts. Any bank overdrafts the
Group have are shown within borrowings in current liabilities in the consolidated statement of financial position.
(n)
Employee benefits
Short-term employee benefits
Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled
wholly within twelve months after the end of the period in which the employees render the related service.
Examples of such benefits include wages and salaries and non-monetary benefits. Short-term employee
benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term employee benefits
The Group’s liabilities for long service leave are included in other long term benefits as they are not expected
to be settled wholly within twelve months after the end of the period in which the employees render the related
service. They are measured at the present value of the expected future payments to be made to employees.
The expected future payments incorporate anticipated future wage and salary levels, experience of employee
departures and periods of service. Any re-measurements arising from experience adjustments and changes
in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Group presents employee benefit obligations as current liabilities in the statement of financial position if
the Group does not have an unconditional right to defer settlement for at least twelve (12) months after the
reporting period, irrespective of when the actual settlement is expected to take place.
33
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(o)
Loss per share
Dreadnought Resources Ltd presents basic and diluted loss per share information for its ordinary shares.
Basic loss per share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of ordinary shares outstanding during the year.
Diluted earnings per share adjusts the basic earnings per share to take into account the after income tax effect
of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of additional ordinary shares that would have been outstanding assuming the conversion of
all dilutive potential ordinary shares.
(p)
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
(q)
Share-Based Payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees and non-
employees. The fair value of the equity to which employees become entitled is measured at grant date and
recognised as an expense over the vesting period, with a corresponding increase to an equity account. The
fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using a Black
Scholes pricing model which incorporates all market vesting conditions. The amount to be expensed is
determined by reference to the fair value of the options or shares granted. This expense takes in account any
market performance conditions and the impact of any non-vesting conditions but ignores the effect of any
service and non-market performance vesting conditions.
Non-market vesting conditions are taken into account when considering the number of options expected to
vest. At the end of each reporting period, the Group revises its estimate of the number of options which are
expected to vest based on the non-market vesting conditions. Revisions to the prior period estimate are
recognised in profit or loss and equity.
If the Group modifies the terms or conditions of the equity instruments granted in a manner that reduces the
total fair value of the share-based payment arrangement, or is not otherwise beneficial to the employee, the
Group shall nevertheless continue to account for the services received as consideration for the equity
instruments granted as if that modification had not occurred. In addition, the Group recognises the effect of
modifications that increase the total fair value of the share-based payment arrangement or are otherwise
beneficial to the employee.
(r)
Exploration and development expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable
area of interest. These costs are only carried forward to the extent that they are expected to be recouped
through 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. As the asset is not
available for use it is not depreciated or amortised.
Accumulated costs in relation to an abandoned area are impaired in full against profit or loss in the period in
which the decision to abandon that area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
34
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(s)
Reserves
FVOCI reserves represent financial assets at fair value through other comprehensive income reserve. The
reserve records fair value change of equity instruments. The equity reserve represents the equity component
(conversion rights) on the issue of unsecured convertible notes.
(t)
Key estimates and judgments
The preparation of the consolidated financial statements requires management to make estimates and
judgments. These estimates and judgments are continually evaluated and are based on historical experience
and other factors, including expectations of future events that may have a financial impact on the Group and
that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
(i) Estimated impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets as noted in note 1(l). Where an impairment trigger exists, the recoverable amount
of the asset is determined.
(ii) Exploration and evaluation
The Group policy for exploration and evaluation is discussed in note 1(r). The application of this policy requires
management to make certain assumptions as to future events and circumstances. Any such estimates and
assumptions may change as new information becomes available. If, after having capitalised exploration and
evaluation expenditure, management concludes that the capitalised expenditure is unlikely to be recovered by
future sale or exploration, then the relevant capitalised amount will be written off through the statement of profit
or loss.
(iii) Compound financial instrument
The Group’s policy for compound financial instrument is discussed in Note 1(k). The fair value of the liability
component is determined based on the contractual stream of future cash flows which is discounted at the rate
of interest that would apply to an identical financial instrument without the conversion option. The Group uses
its judgement to determine the discount rate based on the market interest rates existing at the end of each
reporting period.
(iv) Estimation of tax losses carried forward
Potential future income tax benefits attributable to gross tax losses of $34,722,472 (2020: $27,992,307) carried
forward have not been brought to account at 30 June 2021 because the directors do not believe it is appropriate
to regard realisation of the future tax benefit as probable. These benefits will only be obtained if:
a.
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit
from the losses and deductions to be released;
the Group continues to comply with the conditions for deductibility imposed by the law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for
the losses.
b.
c.
Tax losses carried forward have no expiry date.
35
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
1 Summary of Significant Accounting Policies (continued)
(u)
Joint control
The Group’s accounting policy for Joint Arrangements is set out in Note 1(d). AASB 11 Joint Arrangements
requires an investor to have contractually agreed the sharing of control when making decisions about the
relevant activities (in other words requiring the unanimous consent of the parties sharing control). However,
what these activities are is a matter of judgement. As at the reporting date 30 June 2021, the Group does not
have any Joint Arrangements as defined in this policy. While there are agreements in place with other parties
(for the Group’s 80% interest in certain tenements which form part of it’s Tarraji-Yampi project), there is no joint
control over decisions about relevant activities required to progress these projects. For the Tarraji-Yampi
project, it is the view of the Group that it controls this project through its 80% interest.
(v)
Financial report
The financial report was authorised for issue on 29 September 2021 by the Board of Directors.
(w)
Adoption of new and revised accounting standards and interpretations
In the year ended 30 June 2021, the directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting periods
beginning on or after 1 July 2021. As a result of this review, the directors have determined that there is no
material impact of the new and revised Standards and Interpretations on the Group and, therefore, no material
change is necessary to the Group’s accounting policies.
(x)
New accounting standards and interpretations that are not yet mandatory
The Company has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Amendments to AASB 101 clarify the criteria used to determine whether liabilities are classified as current or
non-current. These amendments clarify that current or non-current classification is based on whether an entity
has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after
the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods,
services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion
feature classified as an equity instrument separately from the liability component of a compound financial
instrument. The amendments are effective for annual reporting periods beginning on or after 1 January 2023.
The Group is currently assessing the impact of new accounting standards and amendments. The Group does
not believe that the amendments to AASB 101 will have a significant impact on the classification of its liabilities.
36
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
2 Other Income
Option fee income (Note 9(v))
Interest received
3 Expenses
Administration expenses
Compliance and regulatory
Computer expenses
Consulting fees (a)
Insurance
Seminar/conference
Share registry
Travel and accommodation
Marketing / Investor Relations
Other
(a) Consulting fees
Accounting and secretarial services
Tenement related
Corporate consulting fees
Director and employee benefit expenses
Non-executive director fees
Wages and salaries not capitalised as exploration assets
Share-based payment (Note 13 and 24)
- Directors
- Employees
Superannuation
Other employee benefit
Consolidated
30 June 2021
$
100,000
4,035
104,035
30 June 2020
$
-
2,543
2,543
119,764
113,501
47,834
23,750
243,290
382,145
33,665
36,389
55,375
16,154
34,000
82,687
26,822
5,831
84,246
4,009
-
28,811
669,158
669,115
196,787
120,715
46,503
59,106
-
202,324
243,290
382,145
66,049
-
-
29,083
114,182
338,396
69,630
6,533
48,043
58,780
2,763
20,586
304,437
449,608
Salaries and wages recharged to Exploration Assets during the year was $641,709 (2020: $360,265).
Finance expense
Of the total balance, $60,000 (2020: $60,000) relates to payment on the convertible loan note interest which were
cash in nature. The remaining relates to interest accrued on the convertible loan note of $16,199 (2020: $18,467) and
$278 (2020: nil) on interest on insurance premium funding.
37
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
4
Income Tax Expense
Income tax expense/(benefit)
Current tax
Deferred tax
Income tax expense/(benefit)
Reconciliation of income tax to accounting loss:
Prima facie loss from ordinary activities
Tax at the Australian tax rate of
Prima facie tax expenses/(income) on ordinary activities
Add:
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Non assessable income
Other non allowable items
Share-based payments
Impairment of exploration assets
JMEI forgone tax losses
Tax effect of temporary differences not brought to account as they do not meet
the recognition criteria
2021
$
2020
$
-
-
-
-
-
-
-
Consolidated
30 June 2021
$
30 June 2020
$
(1,277,865)
(1,215,539)
26%
27.5%
(332,245)
(334,273)
(9,750)
570
47,791
-
(17,188)
379
109,224
-
550,000
293,634
(308,142)
-
-
38
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
4
Income Tax Expense (continued)
Deferred Income Tax
Deferred income tax at 30 June relates to the following
Deferred tax liabilities
Prepayments
Exploration assets
Deferred tax assets
Accruals
Provision for employee entitlements
Section 40-880 expenditure
Revenue tax losses
Capital losses
Deferred tax assets not brought to account as realisation is not
probable
Deferred tax assets
Consolidated
2021
$
2020
$
(66,865)
(2,603,803)
(7,340)
(1,376,979)
9,201
16,376
223,035
9,027,843
441,304
12,641
6,507
84,110
7,703,729
466,764
(7,047,091)
(6,889,432)
-
-
A deferred tax liability of $nil (2020: $45,168) was recognised in equity during the financial year.
A deferred tax asset (DTA) has not been recognised in respect of temporary differences as they do not meet the recognition
criteria per AASB 112 Income Taxes. A DTA has not been recognised in respect of tax losses as realisation of the benefit
is not regarded as probable.
The Group is part of a tax consolidated group in accordance with the tax consolidation legislation. The Group has
unrecognised assessed gross tax losses of $34,722,472 (2020: $27,992,307) that are available indefinitely for offset against
future taxable profits of the Group.
The tax rates applicable to each potential tax benefit are as follows:
Timing differences – 26%;
Tax losses – 26%.
The Group has JMEI credits available from the Australian Taxation Office of $750,000 in respect of the year ending 30 June
2022 (2021: $600,000). The JMEI entitles Australian resident investors in eligible minerals exploration companies to obtain
either a refundable tax offset or (where the Eligible Investor is a corporate tax entity) franking credits.
The maximum amount of credit the Group can create in the 2022 year is the lesser of the following:
(a) 2022 greenfield exploration expenditure x 26% tax rate;
(b) 2022 tax loss x 26% tax rate; or
(c) JMEI credits of $750,000.
39
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
5 Operating Segments
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are
reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that at this time
are no separately identifiable segments. The principal products and services of this operating segment are the mining
and exploration operations predominately in Western Australia.
6 Cash and cash equivalents
Cash at bank and in hand
7
Trade and other receivables
CURRENT
Receivable for option fee
GST receivable
Other receivables
Total current trade and other receivables
Consolidated
30 June 2021
$
30 June 2020
$
2,645,136
464,099
2,645,136
464,099
Consolidated
30 June 2021
$
30 June 2020
$
110,000
46,163
1,009
-
32,930
18,463
157,172
51,393
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial
statements.
As at 30 June 2021 there were no material trade and other receivables that were considered to be past due or
impaired (2020: Nil) and therefore there no expected loss credit provision required.
8 Other assets
CURRENT
Prepayments
Total other assets
Consolidated
30 June 2021
$
30 June 2020
$
334,613
334,613
47,027
47,027
40
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
9
Exploration and evaluation assets
CURRENT
Exploration asset held for sale (i)
Consolidated
30 June 2021
$
30 June 2020
$
100,000
100,000
-
-
(i) On 19 June 2021, the Group entered into a binding Terms Sheet to sell its Rocky Dam Gold Project to Lycaon
Resources Limited, a pre-IPO company that is seeking to list on the ASX in the December 2021 Quarter. The
Company will receive 500,000 Lycaon shares at a deemed issue price of $0.20 per share as consideration plus
a 1% net smelter royalty over the all minerals extracted from Rocky Dam.
NON-CURRENT
Exploration and evaluation asset
Balance at 1 July 2019
Impairment
Expenditure incurred
Cash acquisition (ii)
Equity based acquisition (iii)
Balance at 30 June 2020
Balance at 1 July 2020
Impairment (iv)
Expenditure incurred
Balance at 30 June 2021
30 June 2021
$
30 June 2020
$
10,371,428
10,371,428
5,104,501
5,104,501
2,130,136
(27,928)
2,722,293
100,000
180,000
5,104,501
5,104,501
(315,169)
5,582,096
10,371,428
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest.
(ii)
The Company signed an agreement with Melville Raymond Dalla-Costa (“Dalla-Costa), granting the Company
an exclusive license and option to acquire 100% interest in tenement E30/485 and E29/965. The Company paid
Initial Option Fees of $100,000 on 12 December 2019. The option term may be extended for an additional fifteen
(15) months by the Company given an extension notice to Dalla-Costa and paying the option extension fee no
less that 30 days prior to the expiry of the Option term. Upon the Company giving an exercise notice, Dalla-
Costa agrees to sell and the Company agrees to purchase the tenement free from all encumbrances in
consideration for $1 million.
(iii) During the 2019/2020 year, the Group purchased Metzke’s Find and the Wombarella Project. The fair value of
the total consideration paid was $180,000 (30,500,000 fully paid ordinary shares) based on the fair value of the
shares issued to vendor. The purchase consideration comprised 16,000,000 @ $0.005 ($80,000) and
14,500,000 @ $0.007 ($100,000) for Metzke’s Find and Wombarella Project respectively.
(iv) The impairment of the exploration assets in 2020/2021 relates to the impairment within the Rocky Dam project
as disclosed in (i) above.
41
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
9
Exploration and evaluation assets (continued)
(v) On 1 April 2021, Dreadnought and First Quantum Minerals Ltd. (TSE:FM) (“FQM”) entered into an Option
Agreement in respect of base metal rights over 5 tenements within the Mangaroon Ni-Cu-PGE & Au Project
(“Mangaroon”) in the Gascoyne Region of Western Australia (“Option”). The Option provides FQM with the right,
following the completion of an exploration program funded by FQM, to earn a 51% interest in Mangaroon by
spending $15m and a further 19% interest by sole funding all expenditure up until a Decision to Mine. The
consideration for the grant of the right of $100,000 from FQM to Dreadnought has been included in the
Consolidated Statement of Profit or Loss and Other Comprehensive Income.
10 Trade and other payables
CURRENT
Unsecured liabilities
Trade payables
Accrued expenses
PAYG and wages payable
Superannuation payable
Total trade and other payables
Consolidated
30 June 2021
$
30 June 2020
$
739,233
24,574
22,443
21,391
807,641
392,453
63,984
11,721
-
468,158
All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value.
11 Other financial liabilities
Convertible notes – liability component – current
Convertible notes – liability component – non-current
Total financial liabilities
Consolidated
30 June 2021
$
-
578,947
30 June 2020
$
578,947
-
578,947
578,947
The Group received a total amount of $600,000 from issuing Convertible Notes in June 2019. The issue of Convertible
Notes was approved by shareholders in August 2019. Each of the Convertible Notes carries a face value of $1.00
with an annual interest rate of 10% and maturity date of 2 July 2021. On 8 April 2021, the maturity date was extended
to 1 July 2022. The holder may elect to convert the Convertible Notes into shares at $0.0055 per share. Upon the
occurrence of default, the lender may require immediate redemption of all outstanding Convertible Notes together
with all interest and other outstanding moneys to be immediately due and payable to the lender. The Convertible
Notes were determined to be a compound financial instrument, resulting in a split between liability and equity
components (Note 1(k)). The fair value of the liability component is determined based on the contractual future cash
flows which is discounted at the rate of interest (14%) that would apply to an identical financial instrument without the
conversion option. At 30 June 2021, $55,719 was attributed to equity component.
On 26 July 2021, the Convertible Loan Note holders elected to convert their Convertible Notes into 109,090,909 fully
paid ordinary shares thereby reducing debt by $600,000 to nil.
42
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
12
Issued Capital
(a) Ordinary Shares
Date
Consolidated
30 June 2021
$
30 June 2020
$
43,389,962
43,389,962
43,389,962
43,389,962
No.
$
01/07/2019 At 1 July 2019
1,161,041,188
40,263,315
03/07/2019 Share Placement – Sophisticated and professional investors
165,131,627
495,395
01/08/2019 Share Purchase Plan – Eligible shareholders
140,166,663
420,500
21/11/2019 Share Placement – Sophisticated and professional investors
219,761,918
1,384,500
28/11/2019 Share Placement – Sophisticated and professional investors
23,095,243
145,500
23/12/2019 Director & Management participation in Placement
26,984,129
170,000
16/01/2020
Shares issued in part consideration for the acquisition of the
Wombarella and Metzke's Projects
30,500,000
180,000
19/05/2020 Share Placement - Sophisticated and professional investors
107,500,000
430,000
19/05/2020 Director & Management participation in Placement
17,500,000
70,000
19/05/2020
Less: Transaction costs
-
(169,248)
At 30 June 2020
1,891,680,768
43,389,962
43
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
12
Issued Capital (Continued)
Date
01/07/2020
At 1 July 2020
15/07/2020
Options exercised
05/08/2020
Options exercised
No.
$
1,891,680,768
43,389,962
17,500,000
137,500
1,000,000
5,000
13/08/2020
Share Placement – Sophisticated and professional investors
170,666,673
1,536,000
20/08/2020
Options exercised
19/10/2020
Options exercised
26/10/2020
Options exercised
15,000,000
75,000
10,000,000
100,000
21,000,000
165,000
30/10/2020
Share Placement – Sophisticated and professional investors
125,000,000
3,500,000
19/11/2020
Options exercised
07/04/2021
Options exercised
10,000,000
60,000
12,000,000
110,000
19/04/2021
Share Placement – Sophisticated and professional investors
166,666,667
3,000,000
06/05/2021
Share Purchase Plan – Eligible shareholders
27,777,653
499,998
Less: Transaction costs
At 30 June 2021
Capital Management
-
(548,121)
2,468,291,761
52,030,339
Management controls the capital of the Group in order to maintain and generate long-term shareholder value and ensure
that the Group can fund its operations and continue as a going concern. The Group is not subject to any externally imposed
capital requirements. Management effectively manages the Group capital by assessing the Group financial risks and
adjusting its capital structure in response to changes in these risks and in the market. These responses include the
management of debt levels, distributions to shareholders and share issues.
The Group received a total amount of $600,000 raising from Convertible Notes. The issue of Convertible Notes was
approved by shareholders on 16 August 2019. The Convertible Notes each with a face value of $1.00 bear interest at 10%
per annum, have a Conversion Price of $0.0055 and mature on 1 July 2022. On 26 July 2021, the Convertible Loan Note
holders elected to convert their notes into 109,090,909 fully paid ordinary shares thereby reducing debt by $600,000 to nil.
(b) Options
The details of the unlisted options are as follows:
Number
10,000,000
20,000,000
6,500,000
30,000,000
10,000,000
5,500,000
5,479,452
1,500,000
88,979,452
Exercise Price $
0.0100
0.0060
0.0050
0.0050
0.0080
0.0100
0.0098
0.0200
Expiry Date
3-Apr-24
25-May-23
30-Jun-24
9-Apr-24
17-Sep-24
1-Oct-23
30-Jun-25
31-Oct-23
Refer Note 13(a) for further information.
44
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
13 Reserves
Options reserve (a)
Equity reserve (b)
(a) Options Reserve
Grant Date At 1 July 2019
Consolidated
30 June 2021
$
30 June 2020
$
848,312
55,719
664,500
39,520
904,031
704,020
No.
50,000,000
$
35,000
16/08/2019 Options issued – Directors’ options (1)
22,500,000
109,880
16/08/2019 Options issued – Managing Director’s options (2a)
40,500,000
17/09/2019 Options issued – Exploration Manager’s incentive options (3)
10,000,000
51,332
58,780
22/11/2019 Options cancelled – Managing Director‘s Options (2b)
(30,000,000)
-
23/12/2019
Options issued – Managing Director’s options (4)
30,000,000
177,184
25/05/2020 Options issued – Broker’s options (5)
At 30 June 2020
Grant Date At 1 July 2020
40,000,000
232,324
163,000,000
664,500
No.
$
163,000,000
664,500
04/04/2019 Options exercised – IronRinger Vendor Options
(40,000,000)
-
16/08/2019 Options exercised – Director Options
(26,500,000)
-
25/05/2020 Options exercised – Broker Options
(20,000,000)
-
01/07/2020 Options issued – Chairman Options (6)
02/10/2020
Options issued – Employee Options (7)
15/01/2021 Options issued – Employee Options (8)
At 30 June 2021
5,479,452
114,182
5,500,000
54,779
1,500,000
14,851
88,979,452
848,312
1) On 16 August 2019, the Group granted 22,500,000 unlisted options exercisable at $0.005 on or before 30 June
2024, vesting in four quarterly tranches from 1 July 2019 to 30 June 2020.
2a) On 16 August 2019, the Group granted 10,500,000 unlisted incentive options exercisable at $0.005 on or before
30 June 2024, vesting immediately to the Managing Director. The Group also granted 30,000,000 unlisted
incentive options exercisable at $0.005 on or before 9 April 2021.
45
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
13 Reserves (Continued)
(a) Options Reserve (Continued)
2b) As per the Group's Notice of Meeting dated 22 November 2019, it was identified that the issue of the above
30,000,000 incentive options was not consistent with the Managing Director's executive services contract. At the
General Meeting held 23 December 2019, it was approved to cancel these options and issue the Managing Director
with replacement of long term incentive options in lieu of these instruments (refer to (4) below).
3) On 17 September 2019, the Group granted 10,000,000 unlisted incentive options exercisable at $0.008 on or before
17 September 2024, vesting immediately to the Exploration Manager.
4) On 23 December 2019, the Group granted 30,000,000 unlisted incentive options exercisable at $0.005 on or before
9 April 2024, vesting annually over 4 financial years to the Managing Director.
As detailed above at (2), these options were replacement instruments for the Managing Director. The amount
expensed in relation to these instruments is the incremental increase in fair value as a result of the change in terms
from an expiry life 9 April 2021 to 9 April 2024.
5) On 25 May 2020, the Group engaged the services of Shaw and Partners as broker to manage the placement. The
Group has agreed to pay the broker a fee of 6% of the funds raised under the placement and 40,000,000 options as
part of a 12-month corporate mandate. The options are exercisable at $0.006 on or before 25 May 2023 vesting
immediately to the broker.
6) A term of Paul Chapman’s appointment as a director of the Company is that he is entitled to $36,000 plus
superannuation in fees for the year ending 30 June 2021 (year ended 30 June 2020 $nil). Paul Chapman has elected
to receive his remuneration for the financial year ending 30 June 2021 by way of an issue of options. The Board
resolved to grant 5,479,452 options to Paul Chapman under the Company’s Incentive Option Plan on 1 July 2020,
subject to obtaining shareholder approval. Shareholder approval was obtained on 30 November 2020. The options
vest immediately.
7) On 12 October 2020, the Company agreed to offer Nick Chapman and Matthew Crowe, employees of the Company
who are not related parties of the Company, 2,500,000 and 3,000,000 Options respectively under the Employee
Option Plan, subject to obtaining Shareholder approval. Shareholder approval was obtained on 30 November 2020.
50% of the options vest 12 months from grant date and the other 50% vest 24 months from grant date.
8) On 19 November 2020, the Company agreed to offer Luke Blais, an employee of the Company who are not related
parties of the Company, 1,500,000 Options under the Employee Option Plan. 50% of the options vest 12 months
from grant date and the other 50% vest 24 months from grant date.
(b) Equity Reserve
Relates to the equity component of the Convertible Note. Refer to Note 11 for more details.
46
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
14 Loss per share
(a) Basic loss per share
Loss attributable to the ordinary equity holders
Weighted average number of shares outstanding during the year
Basic loss per share (cents)
Consolidated
30 June 2021
$
30 June 2020
$
(1,277,865)
2,223,544,155
(0.06)
(1,215,539)
1,642,562,893
(0.07)
(b) Dilutive earnings per share
In accordance with AASB 133 Earnings per Share, potential ordinary shares in the form of options and convertible
notes are antidilutive when their conversion to ordinary shares decrease loss per share from continuing operations.
The calculation of diluted earnings/(losses) per share does not assume conversion, exercise, or other issue of
potential ordinary shares that would have an antidilutive effect on earnings/(losses) per share.
15 Exploration Commitments
Exploration expenditure commitments payable:
Not later than 12 months
Between 12 months and five years
Later than five years
Total exploration tenement minimum expenditure
Consolidated
30 June 2021
30 June 2020
$
$
1,048,000
1,955,000
-
589,394
825,189
-
3,003,000
1,414,583
The Group can seek deferral of minimum expenditures or relinquish tenements as required.
16 Financial Risk Management
The Group is exposed to a variety of financial risks through its use of financial instruments. This note discloses the
Group’s objectives, policies and processes for managing and measuring these risks. The Group’s overall risk
management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. The
Group does not speculate in financial assets.
Specific risks
Market risk - currency risk, interest rate risk and equity price risk
Credit risk
Liquidity risk
The principal categories of financial instrument used by the Group are:
Cash at bank
Trade and other receivables
Trade and other payables
Other financial liabilities – convertible notes
Objectives, policies and processes
Specific information regarding the mitigation of each financial risk to which the Group is exposed is provided below.
47
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
16 Financial Risk Management (continued)
Liquidity risk
Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty
in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become
due. The Group maintains cash to meet its liquidity requirements for up to 30-day periods. The Group manages its
liquidity needs by carefully monitoring long-term financial liabilities as well as cash-outflows due in day-to-day business.
Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis
of a rolling 30-day projection. Long-term liquidity needs for a 180-day and a 360-day period are identified monthly. At
the reporting date, these reports indicate that the Group expected to have sufficient liquid resources to meet its
obligations under all reasonably expected circumstances.
The Group’s assets and liabilities have contractual maturities which are summarised below:
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Consolidated
Within 1 year
More than 1 year
30 June
2021
$
30 June
2020
$
30 June
2021
$
30 June
2020
$
2,645,136
464,099
157,172
51,393
2,802,308
515,492
807,641
394,174
-
-
-
-
Convertible notes – liability component, at amortised cost
-
578,947
578,947
807,641
973,121
578,947
Market risk
(i) Foreign currency sensitivity
-
-
-
-
-
-
All of the Group transactions are carried out in Australian Dollars, therefore the Group is not exposed to foreign
exchange risk.
(ii) Cash flow interest rate sensitivity
The Company received shareholders’ approval for the issuance of 600,000 Convertible Notes on 16 August 2019.
The Group’s sensitivity to interest rates cash flow are not affected as the Convertible Notes carry fixed interest at a
rate of 10% per annum. Interest rate risk on cash and cash equivalents is not considered to be a material risk due
to the short term nature of these financial instruments.
(iii) Price sensitivity
The Group is not exposed to price sensitivity.
48
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
16 Financial Risk Management (continued)
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to
the Group.
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and
financial institutions, as well as credit exposure to wholesale and retail customers, including outstanding receivables
and committed transactions. Management considers that all the financial assets that are not impaired for each of the
reporting dates under review are of good credit quality, including those that are past due. The credit risk for liquid
funds and other short-term financial assets is considered negligible, since the counterparties are reputable banks
with high quality external credit ratings. The long term and short term ratings is AA- and A-1+ respectively (Source:
S&P Global Ratings).
Fair value estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared
to their carrying values as presented in the consolidated statement of financial position. Fair values are those amounts
at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length
transaction.
Fair values derived may be based on information that is estimated or subject to judgement, where changes in
assumptions may have a material impact on the amounts estimated. Areas of judgement and the assumptions have
been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market,
with more reliable information available from markets that are actively traded.
30 June 2021
30 June 2020
Net
Carrying
Value
$
Net Fair
value
$
Net
Carrying
Value
$
Net Fair
value
$
2,645,136
2,645,136
464,099
464,099
157,172
157,172
51,393
51,393
2,802,308
2,802,308
515,492
515,492
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
807,641
807,641
394,174
394,174
Convertible notes – liability component
Total financial liabilities
578,947
1,386,588
578,947
578,947
578,947
1,386,588
973,121
973,121
17 Dividends
There were no dividends paid during the year (2020: nil).
49
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
18 Key Management Personnel Disclosures
The totals of remuneration paid to the key management personnel of Dreadnought Resources Ltd during the year
are as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
Total Remuneration
Consolidated
30 June 2021
$
299,159
25,840
114,182
30 June 2020
$
251,713
12,000
338,396
439,181
602,109
The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to
each member of the Group’s Key Management Personnel for the years ended 30 June 2021 and 30 June 2020.
Other key management personnel transactions
For details of other transactions with key management personnel, refer to Note 22: Related Party Transactions.
19 Remuneration of Auditors
Remuneration of the auditor, for:
Auditing or reviewing the financial report
- Nexia Perth Pty Ltd (Australia)
-
JV audit
-
Pitcher Partners BA&A Pty Ltd (Australia)
Pitcher Partners BA&A Pty Ltd (Australia)
Consolidated
30 June 2021
$
30 June 2020
$
30,000
-
-
30,000
-
33,000
5,150
38,150
20 Deed of Cross-Guarantee
The Company has not entered into any guarantees, in the current or previous financial year, in relation to the debts
of its subsidiaries.
50
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
21 Contingent Liabilities
In December 2019, the Company signed an agreement with Melville Raymond Dalla-Costa (“Dalla-Costa), granting
the Company an exclusive license and option to acquire 100% interest in tenement E30/485 and E29/965. The
Company has paid an Initial Option Fees of $100,000 on 12 December 2019. The option term may be extended for
an additional fifteen (15) months by the Company given an extension notice to Dalla-Costa and paying the option
extension fee no less that 30 days prior to the expiry of the Option term. Upon the Company giving an exercise notice,
Dalla-Costa agrees to sell and the Company agrees to purchase the tenement free from all encumbrances in
consideration for $1 million.
As part of the consideration for the acquisition of tenement E04/2560, E29/1050, E29/957, E29/959, E30/471 and
E30/476 from relevant parties, the Company has the obligation to pay royalties, which only become due and payable
when and if mining commences.
22 Related Parties
The Group’s main related parties are as follows:
(i) Key management personnel:
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity,
directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key
management personnel.
For details of remuneration disclosures relating to key management personnel, refer to the remuneration report in
the Directors' Report.
The aggregate amounts recognised during the year (excluding re-imbursement of expenses incurred on behalf of
the Company) relating to directors and their director related entities were as follows:
Director
Transaction
D Gordon
P Chapman
Payments to a former director related
entity for company secretary and
accounting services (ie Adelaide Equity
Partners Limited)
Payments to a director related entity for
office rental (ie Stone Poneys Nominees
Pty Ltd atf Chapman Superannuation
Fund)
Consolidated
2021
$
2020
$
-
11,213
11,627
-
No amounts were outstanding and owing to related parties as at 30 June 2021 (2020: nil).
51
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
22 Related Parties (continued)
(ii) Subsidiaries:
The consolidated financial statements include the financial statements of Dreadnought Resources Ltd and the
following subsidiaries:
Name of subsidiary
Dreadnought Holdings Pty Ltd (deregistered in Jan 2021)
Dreadnought Exploration Pty Ltd (formerly Dreadnought
Kimberley Pty Ltd)
Dreadnought Yilgarn Pty Ltd
%
ownership
interest
2021
-
% ownership
interest
2020
100
100
100
100
100
23 Cash Flow Information
Reconciliation of result of loss for the year to cashflows from operating activities:
Reconciliation of net loss to net cash provided by operating activities:
Loss for the year
Cash flows excluded from loss attributable to operating activities
Non-cash flows in loss:
- share based payments
- property, plant and equipment expensed
- impairment loss on exploration assets
- interest on convertible notes
- exploration expenditure
Changes in assets and liabilities, net of the effects of purchase and
disposal of subsidiaries:
- increase in trade and other receivables
- decrease/(increase) in prepayments
- increase in trade and other payables
Cashflow outflow from operations
Non-cash investing and financing activities
Share-based payments expense – share issue costs
Non-cash assets acquisition
Consolidated
30 June 2021
$
30 June 2020
$
(1,277,865)
(1,215,539)
183,812
749
315,169
16,199
78,968
629,500
2,158
27,928
18,467
10,429
(105,779)
243,495
88,896
(3,179)
(15,162)
2,402
(456,356)
(542,996)
-
-
232,324
180,000
52
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
24 Share-based Payments
At 1 July 2020
Options exercised
Options issued
At 30 June 2021
Number
163,000,000
(86,500,000)
12,479,452
$
664,500
-
183,812
Weighted
Average
Exercise Price
$0.007
$0.010
$0.01
88,979,452
848,312
$0.04
Share-based payments granted during the year:
5,479,452 Chairman Options granted on 1 July 2020 and approved on 30 November 2020.
The options were deemed to have a fair value of $0.0208 per option. The options vest immediately and were valued
at $114,182 using the Black-Scholes option pricing model and applying the following inputs:
Share price
Exercise price
Expected volatility
Risk-free interest rate
Useful life/term
$0.022
$0.0098
155.92%
0.30%
5 years
5,500,000 Employee Options granted on 2 October 2020 and approved on 30 November 2020.
50% of the options vest 12 months from grant date and the other 50% vest 24 months from grant date. The options
were deemed to have a fair value of $0.0197 per option. The options were valued at $108,388 using the Black-Scholes
option pricing model, with $54,779 expensed as share-based payments during the year. The following inputs were
applied:
Share price
Exercise price
Expected volatility
Risk-free interest rate
Useful life/term
$0.022
$0.010
167.29%
0.11%
3 years
1,500,000 Employee Options granted on 19 November 2020
50% of the options vest 12 months from grant date and the other 50% vest 24 months from grant date. The options
were deemed to have a fair value of $0.0216 per option. The options were valued at $32,410 using the Black-Scholes
option pricing model, with $14,851 expensed as share-based payments during the year. The following inputs were
applied:
Share price
Exercise price
Expected volatility
Risk-free interest rate
Useful life/term
$0.025
$0.02
165.06%
0.19%
3 years
A share-based payment expense has been included within the Consolidated Statement of Profit or Loss and Other
Comprehensive Income, with the expense recognised over the useful life/term of the options. The total share-based
payment expense for the year in respect to equity instruments issued was $183,812, classified under Director &
Employee Benefits (Note 3) in the profit and loss.
53
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
24 Share-based Payments (Continued)
Share-based payment arrangements granted in prior years and existed during the financial year ended 30
June 2021:
1) On 4 April 2019, the Group issued a total of 50,000,000 unlisted options exercisable at $0.01 on or before 3 April
2024, vesting immediately to vendors of IronRinger Resources Pty Ltd. 40,000,000 options were exercised during
the year.
2) On 16 August 2019, the Group granted a total of 22,500,000 unlisted options exercisable at $0.005 on or before
30 June 2024 to Directors, vesting in four quarterly tranches from 1 July 2019 to 30 June 2020. These options
were exercised during the year.
3) On 16 August 2019, the Group granted 10,500,000 unlisted incentive options exercisable at $0.005 on or before
30 June 2024, vesting immediately to the Managing Director. 4,000,000 options were exercised during the year.
4) On 17 September 2019, the Group granted 10,000,000 unlisted incentive options exercisable at $0.008 on or
before 17 September 2024, vesting immediately to the Exploration Manager.
5) On 23 December 2019, the Group granted 30,000,000 unlisted incentive options exercisable at $0.005 on or before
9 April 2024, vesting annually over 4 financial years to the Managing Director.
6) On 25 May 2020, the Group engaged the services of Shaw and Partners as broker to manage the placement. The
Group has agreed to pay the broker a fee of 6% of the funds raised under the placement and 40,000,000 options
as part of a 12-month corporate mandate. The options are exercisable at $0.006 on or before 25 May 2023 vesting
immediately to the broker. 20,000,000 options were exercised during the year.
The share options outstanding at the end of the financial year had a weighted average remaining contractual life of
3.03 years (2020: 3.87 years) and weighted average exercise price of $0.04 (2020: $0.01).
25 Events occurring after the reporting date
On 2 July 2021, the Company granted 11,500,000 unlisted options via the Dreadnought Employee Option Plan (EOP)
to the current employees of the Company. The options have $0.04 exercise price and expiry date of 2 July 2024.
On 12 July 2021, 10,000,000 ordinary paid shares have been issued on early exercise of options raising $80,000.
On 26 July 2021, the Company announced that 109,090,909 ordinary fully paid shares have been issued on the
conversion of the 600,000 Convertible Notes on issue at the election of the Noteholders. The Convertible Notes were
issued following approval by shareholders in August 2019 at a face value of $600,000 with a conversion price of
$0.0055 per share.
On 14 September 2021, the Company announced a placement at $0.035 has raised $8,000,000 (before costs) to
institutional and sophisticated investors. Directors are contributing $158,699 via the placement (subject to shareholder
approval) and exercise of options and will maintain a 15% ownership, bringing their total investment to approximately
$1.46 million.
Other than the events detailed above, there has not arisen in the interval between 1 July 2021 and the date of this
report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group,
to affect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of
the consolidated entity, in future years.
54
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Notes to the Consolidated Financial Statements
For the Year Ended 30 June 2021
26 Parent entity
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
Statement of Profit or Loss and Other Comprehensive Income
Total loss for the year
Total comprehensive loss
27 Company Details
The registered office of the Company is:
Dreadnought Resources Ltd
Level 3, 35 Outram Street
West Perth WA 6005
The principal place of business of the Company is:
Dreadnought Resources Ltd
Suite 6, 16 Nicholson Road
Subiaco WA 6008
PO Box 572
Floreat WA 6014
www.dreadnoughtresources.com.au
Email: info@DreadnoughtResources.com.au
30 June 2021
$
30 June 2020
$
3,134,597
10,367,656
557,542
5,108,940
13,502,253
5,666,482
777,787
578,947
1,070,230
-
1,356,734
1,070,230
52,030,339
(40,788,851)
904,031
43,389,962
(39,497,730)
704,020
12,145,519
4,596,252
(1,291,121)
(1,226,695)
(1,291,121)
(1,226,695)
55
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
Directors’ Declaration
For the Year Ended 30 June 2021
In the directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as described in Note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position
as at 30 June 2021 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become
due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Dean Tuck
Managing Director
Dated 29 September 2021
56
Independent Auditor’s Report to the Members of Dreadnought Resources
Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Dreadnought Resources Limited (the Company and its
subsidiaries (the Group)), which comprises the consolidated statement of financial position as at 30
June 2021, the consolidated statement of comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional & 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.
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.
57
Key audit matter
How our audit addressed the key audit matter
Funding and Liquidity
Refer to note 1b
Dreadnought Resources Limited is a Company
limited by shares, incorporated in Australia. The
Company is engaged in exploration activities on its
three projects, the Tarraji-Yampi Ni-Cu-Au Project
located in the highly prospective West Kimberley,
the Mangaroon Ni-Cu-PGE-REE-Au Project located
southeast of Exmouth, and the Illaara Au-Cu-Ta-
Iron Ore Project located northwest of Kalgoorlie.
The investee’s activities have not yet advanced to a
stage where it is able to generate revenue,
accordingly the Group is reliant on funding from
external sources, such as capital raisings, to support
its operations. We focused on whether the Group
had sufficient cash resources and access to funding
to allow the Group to continue as a going concern.
The adequacy of funding and liquidity as well as the
relevant impact on the going concern assessment is
a key audit matter due to the inherent uncertainties
associated with the future development of the
Group’s projects and the level of funding required to
support that development.
We evaluated the Group’s funding and liquidity
position at 30 June 2021 and its ability to repay its
debts as and when they fall due for a minimum of
12 months from the date of signing the financial
report. Our procedures included, amongst others:
▪
▪
▪
▪
▪
obtaining management’s cash flow forecast for
the 18 months from the commencement of the
2021 financial year;
evaluating the reliability and accuracy of the
to prepare
data and assumptions used
management’s forecasts by comparing them to
financial information in current and prior years
as well as to our understanding of the Group’s
future plans and operating conditions;
observing and confirming that management has
the ability to reduce its discretionary costs and
exploration costs to conserve the Company’s
cash;
observing that the Company has sufficient cash
to meet its minimum exploration commitments;
and
considering events subsequent to year end to
determine whether any additional facts or
information have become available since the
its
date on which management made
assessment.
Capitalisation of exploration assets
Our procedures included, amongst others:
Refer to note 9
As at 30 June 2021, the Group held capitalised
exploration
(2020:
of
$5,104,501). The Group’s accounting policy in
respect of exploration assets is outlined in Note 1(r).
$10,371,428
assets
This is a key audit matter due to the fact that
significant judgement is applied in determining
whether:
▪
▪
the capitalised Exploration and Evaluation
assets meet the recognition criteria in terms of
AASB 6 Exploration for and Evaluation of
Mineral Resources; and
facts and circumstances exist that suggest that
the carrying amount of the Exploration and
Evaluation
their
recoverable amount in accordance with AASB
6.
assets may
exceed
▪
▪
▪
▪
obtaining an understanding of the processes
associated with the capitalisation of exploration
and evaluation expenditure, and those involved
with the assessment of impairment indicators;
reviewing the impairment assessment prepared
by management for all areas of interest,
reviewing expenditure and comparing this to
requirements and budgeted amounts;
investigating whether the Company's right to
explore in the area of interest has expired
during the period or will expire in the near
future and is not expected to be renewed; and
analysing the Group’s intention to carry out
substantive exploration and evaluation activity
in the relevant tenements, this involved an
assessment of the Group’s cash-flow forecast
and
senior
management and directors as to the planned
activities of the Group.
discussions with
budget,
58
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 30 June 2021, but does not include the financial report
and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 the
other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with 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
Australian
at:
https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Assurance
Standards
Auditing
website
Board
and
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 20 of the Directors’ Report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Dreadnought Resources Limited for the year ended 30 June
2021 complies with section 300A of the Corporations Act 2001.
59
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.
Yours sincerely
Nexia Perth Audit Services Pty Ltd
M. Janse Van Nieuwenhuizen
Director
Perth
29 September 2021
60
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
Additional information required by the ASX Listing Rules is set out below.
1.
Shareholdings
The issued capital of the Company as at 16 September 2021 is:
2,605,862,122 ordinary fully paid shares
All issued ordinary fully paid shares carry one vote per share.
2.
Distribution of Equity Securities as at 16 September 2021
Ordinary Shares (ASX Code: DRE)
Holding Ranges
Holders
Total Units
% Issued Share Capital
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
85
48
49
1,815
2,024
26,348
140,730
413,371
88,452,110
2,516,829,563
Totals
4,021
2,605,862,122
0.00
0.01
0.02
3.39
96.58
100.00%
3.
Unmarketable parcels
There were 302 holders of less than a marketable parcel of ordinary shares.
4.
Substantial shareholders as at 16 September 2021
Name
Number of Shares
% Holding
Paul Chapman and associated entities
309,609,513
11.88
5.
Restricted Securities Subject to Escrow as at 16 September 2021
There are no shares subject to escrow.
6.
On-market buy back
There is currently no on-market buyback program for any of the Company’s listed securities.
7.
Group cash and assets
In accordance with Listing Rule 4.10.19, the Group confirms that it has been using the cash and assets for the year
ended 30 June 2021 consistent with its business objective and strategy.
8.
Voting Rights
All ordinary fully paid shares have one voting right per share. Unlisted options have no voting rights.
61
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
9.
Top 20 Largest Holders of Listed Securities as at 16 September 2021
Holder Name
Holding
%
STONE PONEYS NOMINEES PTY LTD
295,042,759
11.32
1
2
3
4
5
6
7
8
9
MR DAVID MICHAEL CHAPMAN + MS MICHELE WOLLENS
64,224,107
PARETO NOMINEES PTY LTD
RAMELIUS RESOURCES LTD
60,277,777
48,735,849
PAYNE GEOLOGICAL SERVICES PTY LTD
44,081,352
MR PHILIP DAVID CRUTCHFIELD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
CITICORP NOMINEES PTY LIMITED
34,625,000
32,352,266
30,531,582
MRS BELINDA GORDON + MR IAN GORDON
27,611,114
10 MR NEVRES CRLJENKOVIC
11 MR TAO WU
12 MR DREW GRIFFIN MONEY
13
SNOWBALL 3 PTY LTD
14 MR LIZHONG WU + MRS WEIPING QIU
15 MR IAN JAMES GORDON
16 MR STEPHEN JAMES FOLEY + MS NATALIE CHANTAL MELLONIUS
17 MR DEAN TUCK + MRS DIANNE MAE TUCK
18
PARKRANGE NOMINEES PTY LTD
19 MR MARC DAVID HARDING
20
JRMA GROUP PTY LTD
25,000,000
25,000,000
20,000,000
20,000,000
20,000,000
19,992,644
18,333,330
0.70
17,710,317
17,500,000
17,000,000
15,600,000
0.68
0.67
0.65
0.60
2.46
2.31
1.87
1.69
1.33
1.24
1.17
1.06
0.96
0.96
0.77
0.77
0.77
0.77
Total held by top 20 registered shareholders
853,618,097
32.76
62
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
10.
Unquoted securities
UNLISTED OPTIONS @ $0.01 EXPIRING 01/10/23
Holder Name
1 MR MATTHEW JAMES CROWE
2 MR NICHOLAS WOLLENS CHAPMAN
Total
Holding
%
3,000,000
55%
2,500,000
45%
5,500,000
100%
UNLISTED OPTIONS @ $0.005 EXPIRING 9/04/2024
Holder Name
Holding
%
1 MR DEAN TUCK & MRS DIANNE MAE TUCK
30,000,000
100%
UNLISTED OPTIONS @ $0.06 EXPIRING 11/08/2024
Holder Name
1 MR FRANK MURPHY
Holding
%
2,000,000
100%
UNLISTED OPTIONS @ $0.005 EXPIRING 30/06/2024
Holder Name
Holding
%
MR DEAN TUCK & MRS DIANNE MAE TUCK
3,500,000
100%
UNLISTED OPTIONS @ $0.006 EXPIRING 25/05/2023
Holder Name
Holding
%
1 MR BLAIR OLIVER CAMPBELL SPAULDING
5,000,000
25%
2
3
PARETO NOMINEES PTY LTD
RAVENHILL FINANCIAL SERVICES PTY LTD
Total
UNLISTED OPTIONS @ $0.02 EXPIRING 31/10/2023
Holder Name
MR LUKE BLAIS
10,000,000
50%
5,000,000
25%
20,000,000
100%
Holding
%
1,500,000
100%
63
Dreadnought Resources Ltd and Controlled Entities
ABN: 40 119 031 864
ASX Additional Information
10.
Unquoted securities (continued)
UNLISTED OPTIONS @ $0.04 EXPIRING 02/07/2024
Holder Name
1 MR LUKE BLAIS
2 MR MATTHEW JAMES CROWE
3 MR NICHOLAS WOLLENS CHAPMAN
4 MRS JESSAMYN LYONS
Total
Holding
%
3,000,000
26%
4,000,000
35%
3,000,000
26%
1,500,000
13%
11,500,000
100%
64
DREADNOUGHT RESOURCES LIMITED
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
Tarraji-Yampi
E04/2315
Tarraji
WA
Granted
Registered and 80% Beneficial as a Joint
Venture
Whitewater Resources Pty Limited
Tarraji-Yampi
E04/2508
Yampi
WA
Granted
Tarraji-Yampi
E04/2557
Yampi
WA
Granted
Tarraji-Yampi
E04/2572
Yampi
WA
Granted
Tarraji-Yampi
E04/2608
Yampi
WA
Granted
100%
100%
100%
100%
Dreadnought (Kimberley) Pty Ltd
Dreadnought (Kimberley) Pty Ltd
Dreadnought (Kimberley) Pty Ltd
Dreadnought (Kimberley) Pty Ltd
Tarraji-Yampi
E04/2675
Yampi
WA
Application
100%
Dreadnought (Kimberley) Pty Ltd
Tarraji-Yampi
E04/2676
Yampi
WA
Application
100%
Dreadnought (Kimberley) Pty Ltd
E04/2560
Wombarella
WA
Granted
100%
Beau Resources Pty Ltd
E04/2574
Broome Creek
WA
Application
100%
Dreadnought (Kimberley) Pty Ltd
West
Kimberley
West
Kimberley
West
Kimberley
E04/2573
Napier Downs
WA
Granted
Rocky Dam
E25/533
Rocky Dam
WA
Granted
Rocky Dam
E25/599
Rocky Dam
WA
Granted
100%
100%
100%
Dreadnought (Kimberley) Pty Ltd
Dreadnought (Yilgarn) Pty Ltd
Dreadnought (Yilgarn) Pty Ltd
65
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
DREADNOUGHT RESOURCES LIMITED
Rocky Dam
E27/634
Rocky Dam
WA
Granted
Rocky Dam
E28/2988
Rocky Dam
WA
Granted
Illaara
E29/957
Illaara
WA
Granted
Illaara
E29/959
Illaara
WA
Granted
Illaara
E29/1050
Illaara
WA
Granted
Illaara
E30/471
Illaara
WA
Granted
Illaara
E30/476
Illaara
WA
Granted
Illaara
E29/965
Illaara
WA
Granted
Illaara
E30/485
Illaara
Granted
100%
100%
100%
100%
100%
100%
100%
100%
100%
Dreadnought (Yilgarn) Pty Ltd
Dreadnought (Yilgarn) Pty Ltd
Newmont Goldcorp Exploration Pty Ltd
Newmont Goldcorp Exploration Pty Ltd
Gianni, Peter Romeo
Newmont Goldcorp Exploration Pty Ltd (
Newmont Goldcorp Exploration Pty Ltd
Dalla-Costa, Melville Raymond
Dalla-Costa, Melville Raymond
WA
WA
WA
WA
South
Kimberley
Project
South
Kimberley
Project
South
Kimberley
Project
E80/5363
Horseshoe Range
E80/5364
Sparke Range
Application
100%
Dreadnought (Kimberley) Pty Ltd
Application
100%
Dreadnought (Kimberley) Pty Ltd
E80/5365
Lindner Hill
Application
100%
Dreadnought (Kimberley) Pty Ltd
66
ASX Additional Information – Tenement List
Project
Tenement
Lease Name
State
Status
% Owned by DRE
Holders
South
Kimberley
Project
E80/5366
Mt Amhurst
WA
Application
100%
Dreadnought (Kimberley) Pty Ltd
DREADNOUGHT RESOURCES LIMITED
67
Corporate Directory
Directors
Paul Chapman
(Non-executive Chairman)
Dean Tuck
(Managing Director)
Ian James Gordon
(Non-executive Director)
Paul Charles Payne
(Non-executive Director)
Company Secretary
Ms Jessamyn Lyons
Registered Office
Level 3, 35 Outram Street
West Perth WA 6005
Telephone: +61 (0) 428 824 343
Website: www.dreadnoughtresources.com.au/
ABN 40 119 031 864
Share Registry
Computershare
Level 11, 172 St Georges Tce
Perth, WA, Australia
Telephone: + 61 8 6188 0800
Auditors
Nexia Perth Audit Services Pty Ltd
Level 3, 88 William Street
Perth WA 6000
Stock Exchange
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
ASX Code: DRE
DREADNOUGHT RESOURCES LIMITED
68