(ACN 100 714 181)
Annual Report
For the year ended 30 June 2021
Page
3
4
14
15
16
17
18
19
20
41
46
Contents
Corporate Directory
Au
Directors Declaration
Statement of Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Independent Audit Report
ASX Additional Information
Page 2
Corporate Directory
ACN: 100 714 181
ASX Code: KRR
King River Resources Limited shares are listed on the Australian Stock Exchange (ASX)
DIRECTORS
Anthony Barton
(Chairman)
Leonid Charuckyj
(Director)
Greg MacMillan
(Director)
COMPANY SECRETARIES
Greg MacMillan
Kathrin Gerstmayr
REGISTERED OFFICE
254 Adelaide Tce
Perth WA 6000
Tel:
Fax:
Email: info@kingriverresources.com.au
(08) 9221 8055
(08) 9325 8088
SOLICITORS
Fairweather Corporate Lawyers
589 Stirling Highway
Cottesloe WA 6011
BANKERS
ANZ Banking Corporation
Perth WA 6000
SHARE REGISTER
Automic Group
Level 2, 267 St Georges Terrace
Perth WA 6000
AUDITORS
Ernst and Young
11 Mounts Bay Road
Perth WA 6000
INTERNET ADDRESS
www.kingriverresources.com.au
CORPORATE GOVERNANCE STATEMENT
www.kingriverresources.com.au/investors/corporate-governance/
Page 3
Directors Report
The directors submit their report for King River Resources
for the year ended 30 June 2021.
DIRECTORS
entities
follows
below. The directors were in office for the entire period unless otherwise stated. No director has served as a director of any other
ASX Listed Company in the past 3 years unless mentioned below.
Anthony Barton
Chairman
Appointed 21 May 2007
Mr Barton has been involved in founding and growing a number of successful listed public companies. He has extensive
experience in capital markets, corporate finance, funds management and venture capital and has had advisory roles in the
incorporation and listing of many Australian based resource companies.
Mr Barton is the founding Executive Chairman of the boutique investment bank Australian Heritage Group. He is a graduate of
the Royal Melbourne Institute of Technology with a Bachelor of Business (Accountancy) degree and has in excess of 40 years of
commercial experience having also acted in senior executive and director capacities for two leading Australian stockbroking
firms.
Leonid Charuckyj
Director
Appointed 13 December 2011
Mr. Charuckyj (B.E. and M.Eng-Sc. Melbourne University) has had extensive experience over a broad range of technical,
engineering, management and corporate roles including senior positions in government, public and private industry both in
Australia and overseas. His focus has been on the environmental, pollution control and waste management industries and on the
energy and mining industries amongst others.
This has included such diverse roles as representing Australia as an expert engineering advisor in the Middle East, developing
and commercialising new technologies (both in the public company arena and for major international groups), and managing all
aspects of an industrial minerals development from mine and processing to product development and marketing.
Gregory MacMillan
Director - Appointed 2 July 2014
Joint Company Secretary - Appointed 9 August 2012
Mr. MacMillan has wide ranging corporate, financial, capital markets and commercial experience over the last 35 years. Greg has
held the positions of director, company secretary, chief financial officer, and corporate finance executive in numerous companies
across the finance, mining and commercial sectors. Greg holds a Bachelor of Business degree, is a Certified Practicing Accountant
and a Chartered Company Secretary.
COMPANY SECRETARY
Kathrin Gerstmayr
Joint Company Secretary
Appointed 4 April 2019
Ms. Gerstmayr commenced her career working for a chartered accounting and business advisory firm as tax manager, before
moving into senior finance roles in a variety of industries. She holds a Bachelor of Commerce degree (Professional Accounting
and Marketing Management), is a Certified Practicing Accountant and a Chartered Company Secretary.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
King River has established a portfolio of 100% owned tenements covering approximately 3,274 square kilometres in the East
Kimberley region in Western Australia. The principal activities of the entities within the Group during the year were focusing on
exploration and development of the tenements in the East Kimberley region of Western Australia. King River has also established
a portfolio of 100% owned tenements covering approximately 7,705 square kilometres, in the Tennant Creek region of the
Northern Territory.
Page 4
Directors Report
OPERATIONS REPORT
The primary focus of King River Resources during the 2021 financial year is the advancement of metallurgical studies on the
, and the completion of the Kwinana
e optimal process route
High Purity Alumina Pre-feasibility study on 16 June 2021. The C
to produce high purity alumina, vanadium, titanium, magnesium and iron. The Company has also enjoyed further success with
high grade gold and base metals exploration at Mt Remarkable, located some 120 kilometres South of Speewah, and Treasure
Creek, located in the Tennant Creek region of the Northern Territory.
INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the directors in the shares of the Company were
Anthony Barton
Leonid Charuckyj
Greg MacMillan
Total
Chairman
Director
Director
Ordinary Shares
Options Over Ordinary Shares
104,660,1571
18,162,1212
35,468,1093
158,290,387
2,272,7301
900,0002
909,0923
4,081,822
¹ 40,778,058 of the shares and 909,092 options are held by Mr AP Barton and Mrs CH Barton as trustee for the Barton Family
Superannuation Fund of which Mr Barton is a director and a beneficiary, 25,022,244 of the shares and 454,546 options are held
by Barton & Barton Pty Ltd of which Mr Barton is a director and shareholder, 31,992,238 of the shares and 454,546 options are
held by Universal Oil (Australia) Pty Ltd of which Mr Barton is a director and a shareholder, and 6,867,617 of the shares and
454,546 options are held by Harvey Springs Estate Pty Ltd of which Mr Barton is a director and a shareholder.
2 1,050,699 shares and 450,000
4,939,754 of the shares are held by Mr L
Charuckyj & Mrs CM Charuckyj as trustee for the ZETA Super Fund of which Mr Charuckyj is a trustee and beneficiary, 12,171,668
of the shares and 450,000 options are held by Temtor Pty Ltd of which Mr Charuckyj is a director and shareholder.
3 35,468,109 shares and 909,092 of the options are held by GDM Services Pty Ltd as trustee for the GDM Services Trust and GDM
Services Superannuation Fund of which Mr MacMillan is a director and beneficiary.
CORPORATE STRUCTURE
King River is a company limited by shares that is incorporated and domiciled in Australia. King River has fully owned
subsidiaries:
-
Speewah Mining Pty Ltd
-
Treasure Creek Pty Ltd
-
Kimberley Gold Pty Ltd
- Whitewater Minerals Pty Ltd
-
ARC Specialty Metals Pty Ltd
The Group has prepared a consolidated financial report incorporating the entities (being 100% owned subsidiaries) that it
controlled during the financial year.
REVIEW OF CONSOLIDATED FINANCIAL CONDITION
The consolidated entity recorded an operating loss after income tax of $968,842 (2020: $1,115,536 loss). There was no dividend
declared or paid during the year.
CAPITAL STRUCTURE
As at the date of this report the Company had 1,553,524,947 (2020: 1,553,524,947) fully paid ordinary shares. There were also
152,443,342 (2020: 152,443,342) listed options over ordinary shares on issue and 7,000,000 unlisted options over ordinary shares
on issue (2020: 7,000,000). Details of the terms of the unlisted options are outlined in Note 18 of the consolidated financial
statements.
CASH FROM OPERATIONS
The net cash outflow used for operating activities was $742,479 (2020: $632,732). The cash balance at year end was $6,124,217
(2020: $578,179).
LOSS PER SHARE
Basic and diluted loss per share (cents)
Share price
2021
(0.06)
0.026
2020
(0.09)
0.033
2019
(0.06)
0.028
2018
(0.09)
0.097
2017
(0.07)
0.007
Page 5
Directors Report
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the financial year the following significant change was
shares and 119,110,007 attaching options. The issue price for each share under this SPP was $0.033 plus 1 free attaching option for
every 2 shares issued. Each option has an exercise price of $0.06 and expiry date of 31 July 2022.
On 27 July 2020 the Company completed a Placement from professional and sophisticated investors and raised $2,000,000 from
the issue of 66,666,669 shares and 33,333,335 attaching options. The issue price for each share under the Placement was $0.03 plus
1 free attaching option for every 2 shares issued. The options have an exercise price of $0.06 and an expiry of 31 July 2022.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while event has had no significant impact on the consolidated
entity up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The
situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as
maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Pre-
. The Kwinana High
Purity Alumina PFS was completed on 16 June 2021 and demonstrated the potential for King River to be a producer of high value,
high purity, alumina sourced from an industrial chemical feedstock and utilising the new KRR ARC HPA process.
Kwinana High Purity Alumina
was the completion of
or the ASX website with report dated 16 June 2021.
Work has commenced on the development of a Mini-Pilot Plant to demonstrate the ARC HPA process works at a larger scale for
the Definitive Feasibility Studies and to produce market samples.
ENVIRONMENTAL REGULATION AND PERFORMANCE
performance obligations are monitored by the Board and subjected from time to time to Government agency audits and site
environmental performance obligations. No environmental breaches have occurred or have been notified by any Government
agencies during the year ended 30 June 2021.
SHARES UNDER OPTION
As at the date of this report, there were 159,443,342 unissued ordinary shares under granted options.
Date Options Granted
14-August- 2019
19-August-2020
Expiry Date
14-Aug-2022
31-July-2022
Issue Price of Shares
Number Under Option
$0.06
$0.06
7,000,000
152,443,342
159,443,342
SHARES ISSUED ON EXERCISE OF OPTIONS
During or since the end of the financial year, there were no shares issued on options exercised. Refer to Note 16 of the consolidated
financial statements for further details of the options. Option holders do not have any right, by virtue of the option, to participate
in any issue of the Company or any related body corporate.
Page 6
Directors Report
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into
and the Constitution against legal proceedings, damage, loss, liability, cost, charge, expense, outgoing or payment (including
legal expenses on a solicitor/client basis) suffered, paid or incurred by the officers in connection with the Officers being an officer
of the Company, the employment of the officer with the Company or a breach by the Company of its obligations under the D&O
Deed.
Also pursuant to the D&O Deed, the Company must insure the Officers against liability and provide access to all board papers
relevant to defending any claim brought against the Officers in their capacity as officers of the Company. The Company has paid
insurance premiums of $31,205 (2020: $26,488) in respect of liability for any current and future directors, Company secretary,
executives
remuneration. Please also note Director Liability insurance premiums was paid in the 2022 financial year.
ROUNDING
The amounts contained in this report and in the financial report have been rounded to the nearest dollar.
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each director of King River Resources Limited, and for the
executives in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report,
key management personnel (KMP) of the Company and the Group are defined as those persons having authority and
responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any
director (whether executive or otherwise) of the Company.
encompasses the chief executive and senior executives of the Company.
Details of key management personnel
(i) Directors
A Barton
L Charuckyj
G MacMillan
(ii) Executives
K Rogers
A Chapman
Chairman
Director
Director / Company Secretary
Chief Geologist
Project Geologist
Other than as detailed above there are no other Executives of the Company.
1. Remuneration Committee
The Remuneration Committee of the Board of Directors of King River is responsible for determining and reviewing
compensation arrangements for the directors and executives. The Remuneration Committee assesses the appropriateness of the
nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions
with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive
team. Such officers are given the opportunity to receive their base emolument in a variety of forms including cash and fringe
benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen will be optimal
for the recipient without creating undue cost for the Company.
2. Use of Independent Remuneration Consultants
During the year ended 30 June 2021 no external remuneration consultants were engaged to assist the Group in any capacity.
3. Remuneration Policy
e
to provide maximum stakeholder benefit from the retention of high quality Board and executive team by remunerating directors
and key executives fairly and appropriately with reference to relevant employment market conditions.
long term development and success, to ensure remuneration is fair and reasonable (taking into account all relevant factors, and
within appropriate controls or limits), that all remuneration packages are reviewed annually or on an ongoing basis in accordance
with management's remuneration packages, and that retirement benefits or termination payments (other than notice periods) will
not be provided or agreed other than in exceptional circumstances.
Page 7
Directors Report
remuneration policy aligns with achievement of strategic objectives and creation of long
term value for shareholders. The Company assesses each employee annually based upon the individual performance in carrying
out the agreed responsibilities of the employee which have been developed in consideration of the
term goals.
The performance incentive component is reflected as part of the increase in salary and the issue of equity based compensation for
each employee on an annual basis.
The Company has a formal policy to prohibit executives from entering into arrangements to protect the value of unvested long
term incentive awards. The Company performance related payments and long term incentive awards are under ongoing review
and will be included when deemed appropriate given the Company position and performance at the time.
The table
to 30 June 2021:
Description
Revenue
30-Jun-21
30-Jun-20*
30-Jun-19*
30-Jun-18*
30-Jun-17*
$6,094
$1,764
$4,466
$931
$453
Net loss before tax
($968,842)
($1,115,536)
($806,862)
($871,803)
($422,996)
Net loss after tax
($968,842)
($1,115,536)
($806,862)
($871,803)
($422,996)
Share price at end of year
$0.026
$0.032
$0.028
$0.097
Market capitalisation
$40.39m
$39.96m
$34.68m
$113.8m
Basic loss cents per share
Diluted loss cents per share
0.06
0.06
0.09
0.09
0.06
0.06
0.09
0.09
$.007
$6.07m
0.07
0.07
*Comparatives have not been adjusted for the changes due to the adoption of AASB 15 and AASB 9 in 2019 and AASB 16 in 2020.
4. Non Executive Director Remuneration
4.1 Fixed Remuneration
The aggregate remuneration of non executive directors will not exceed the maximum approved amount of $150,000 approved at
Annual General Meeting on 24 April 2007. The board seeks to set aggregate remuneration at a level which provides the Company
with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable by shareholders.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The board considers fees paid to non executive directors of comparable companies when
undertaking the annual review as well as additional time commitment of directors who serve on one or more sub committees and
assistance to the Company with new investment opportunities. Each of the non executive directors during the financial year
received a salary of $43,800 per annum inclusive of superannuation where superannuation is paid. Non executive directors are
encouraged to hold shares in the Company; these are to be purchased by the director on market. It is considered good corporate
governance for directors to have a stake in the company on whose board he or she sits. Remuneration of non executive directors
for the year ended 30 June 2021 is disclosed in Table 1 under the remuneration section of this report.
4.2 Variable Remuneration
Non executive directors do not receive performance based bonuses or additional remuneration for their membership of subsidiary
boards or committees.
Short Term Incentives
4.3 Variable Remuneration
During the financial year, the Company had no contractual obligations to provide long term incentives to non executive directors.
Long Term Incentives
5. Executive Director Remuneration
The Company aims to reward executives with a level and mix of remuneration commensurate with their position and
responsibilities within the company so as to:
reward executives for Company and individual performance;
align the interests of executives with those of shareholders;
link reward with the strategic goals and performance of the company; and
ensure total remuneration is competitive by market standards.
Executive remuneration comprises of:
base pay and benefits; and
long term incentives through equity based compensation.
Page 8
Directors Report
5.1 Fixed Remuneration
Base pay and benefits
Base pay is structured as a total employment cost package that may be delivered as combination of cash and salary sacrifice
Executives are offered a competitive base pay. Reference is made to industry benchmarks to ensure that the base pay is set to
competitive with comparable positions of responsibility. There is no guaranteed base pay increases for any executive contract.
5.2 Variable Remuneration
During the financial year the Company had no contractual obligations to provide short term incentives to the Key Management
Personnel and Executives of the Company.
Short Term Incentives
5.3 Variable Remuneration
During the financial year the Company had no contractual obligations to provide long term incentives to the Key Management
Personnel and Executives of the Company.
Long Term Incentives
5.4 Employment Contract Executive - Ken Rogers (Chief Geologist)
The Company has entered into an employment agreement with Mr Rogers for the provision of technical geological services based
on daily rates for the provision of services. Their services can be terminated by giving a 4 week notice by either party.
5.5 Consulting Contract Executives - Andrew Chapman (Project Geologist)
The Company has entered into a contractor agreement with Mr Chapman for the provision of technical geological services based
on daily rates for the provision of services. Their services can be terminated by giving a 4 week notice by either party.
6. Remuneration of Key Management Personnel and Executives of the Company
Details of the remuneration of each director of King River, each of the executives of the Company and the consolidated entity for
the year ended 30 June 2021 are set out in the following tables.
Table 1: Remuneration for the year ended 30 June 2021
Short Term
Post-Employment
Share Based
Payments
Salary &
Fees
$
Cash
Bonus
$
43,800
43,800
43,800
131,400
61,776
161,859
223,635
355,035
-
-
-
-
33,8443
-
33,844
-
Superannuation
Options
$
-
-
-
-
9,084
-
9,084
9,084
$
-
-
-
-
-
-
-
-
Loan Plan
Shares
$
Total
$
-
-
-
-
13,9952
-
13,995
13,995
43,800
43,800
43,800
131,400
118,699
161,859
280,558
411,958
30 June 2021
Directors
A Barton
L Charuckyj
G MacMillan
Sub Total1
Executives
K Rogers
A Chapman
Sub Total
Total
1
Performance
Based
Remuneration
as % of Total
%
-
-
-
-
40%
-
17%
12%
2On 14 August 2019 the Company issued 10,000,000 shares to Mr Rogers at the market price of 3.2 cents per share. 5,000,000 of the
shares were escrowed until the completion of the prefeasibility study which was completed on 16 June 2021 and the 5,000,000
shares were released from escrow on 1 July 2021. 5,000,000 of the shares are subject to trading restrictions and escrowed until the
completion of a bankable feasibility study. The shares have been funded by a limited recourse loan from the Company with a 4-year
term and zero interest rate. The fair value per share at grant date is $0.0254 and the expense for the period relating to the loan plan
shares is $13,995 the remaining future expense is $65,473. Please refer to section 6.2 Equity Based Compensation (Loan Plan Shares)
and Note 18 Share-Based Payment .
3Mr Rogers received a cash bonus in light of his services in finalising the PFS and his contribution to the Company.
Page 9
Directors Report
Table 2: Remuneration for the year ended 30 June 2020
Short Term
Salary &
Fees
$
Cash
Bonus
$
43,800
43,800
40,000
127,600
61,776
136,672
198,448
326,048
-
-
-
-
-
-
-
-
Post Employment
Superannuation
$
-
-
3,800
3,800
5,869
-
5,869
9,669
Share Based
Payments
Options
$
-
-
-
-
-
-
-
-
Loan Plan
Shares
$
Total
$
-
-
-
-
174,5322
-
174,532
174,532
43,800
43,800
43,800
131,400
242,177
136,672
378,849
510,249
Performance
Based
Remuneration as
% of Total
-
-
-
-
72%
-
46%
34%
30 June 2020
Directors
A Barton
L Charuckyj
G MacMillan
Sub Total1
Executives
K Rogers
A Chapman
Sub Total
Total
1
2On 14 August 2019 the Company issued 10,000,000 shares to Mr Rogers at the market price of 3.2 cents per share. The shares will
be subject to trading restrictions and 5,000,000 of the shares will be escrowed until the completion of the PFS and 5,000,000 of the
shares will be escrowed until the completion of a bankable feasibility study. The shares have been funded by a limited recourse loan
from the Company with a 4-year term and zero interest rate. The fair value per share at grant date is $0.0254 and the remaining
future expense is $79,468. Please refer to Note 18 Share-Based Payment.
By way of cash preservation measure, the Director fees for February 2020 through to June 2020 were accrued and payments
deferred until August 2020.
6.1 Equity Based Compensation Options 2021
During the year, no unlisted options were issued to executives as an alternate remuneration to cash.
Table 1: Compensation Option Holdings of Key Management Personnel during the year ended 30 June 2021
30 June 2021
Balance at
Beginning
of Period
Granted as
Remuner-
ation
Options
Exercised
Options
Expired
1 July
2020
Balance at
End of
Period
30 June
2021
Vested at 30 June 2021
Not
Total
Exercisable Exercisable
Executives
A Chapman
Total
5,000,000
5,000,000
-
-
-
-
-
-
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
-
-
On 14 August 2019 the Company issued 5,000,000 options to Andrew Chapman with an exercise price of 6 cents per share and an
expiry date of 14 August 2022. The options will be subject to exercise restrictions and will vest upon defining a minimum Inferred
resource (at either the Tennant Creek Project or the Mt Remarkable Region) of no less than 250,000 ounces of Au at an average grade
of no less than 6 grams per tonne. The fair value per option at grant date is $0.0068 and if vesting conditions are met the future
expense to be recognised is $33,872.
Page 10
Directors Report
6.2. Equity Based Compensation Shares 2021
Table 1: Shareholdings of Key Management Personnel during the year ended 30 June 2021
30 June 2021
Directors
A Barton 1
L Charuckyj 2
G MacMillan 3
Executives
K Rogers4
A Chapman
Total
Balance
1 July 2020
Ord
Granted as
Remuneration
Ord
On Exercise
of Options
Ord
Net Change
Other
Ord
Balance
30 June 2021
Ord
100,114,702
16,362,121
33,649,928
3,800,120
-
153,926,871
-
-
-
-
-
-
-
-
-
-
-
-
4,545,455
1,800,000
1,818,181
104,660,157
18,162,121
35,468,109
606,062
-
4,406,182
-
8,769,698
162,696,569
¹ 40,778,058 of the shares are held by Mr AP Barton and Mrs CH Barton as trustee for the Barton Family Superannuation Fund
of which Mr Barton is a director and a beneficiary. 25,022,244 of the shares are held by Barton & Barton Pty Ltd of which Mr
Barton is a director and shareholder. 31,992,238 of the shares are held by Universal Oil (Australia) Pty Ltd of which Mr Barton
is a director and a shareholder. 6,867,617 of the shares are held by Harvey Springs Estate Pty Ltd of which Mr Barton is a
director and a shareholder.
2 1,050,699 shares
. 4,939,754 of the shares are held by Mr L Charuckyj & Mrs CM
Charuckyj as trustee for the ZETA Super Fund of which Mr Charuckyj is a trustee and beneficiary. 12,171,668 of the shares are
held by Temtor Pty Ltd of which Mr Charuckyj is a director and shareholder.
3 35,468,109 of the shares are held by GDM Services Pty Ltd as trustee for the GDM Services Trust and GDM Services
Superannuation Fund of which Mr MacMillan is a director and beneficiary.
4 4,406,182
Loan Plan Shares
During the year, no Loan Plan Shares were issued to executives as an alternate remuneration to cash.
Table 2: Loan Plan Shares of Key Management Personnel during the year ended 30 June 2021
30 June 2021
Executives
K Rogers
Total
Balance
1 July 2020
Ord
10,000,000
10,000,000
Fair value
per share at
issue date
Balance
30 June 2021
Ord
Issue Date
Expiry Date1
14 August 2019
$0.0254
10,000,0002
14 August 2023
10,000,000
1 The limited recourse loan in respect of the Loan Plan Shares has to be fully repaid 4 years after grant date of the Loan Plan
Shares.
2 At the date of this report, there is 5,000,0000 escrowed loan plan shares and 10,000,000 escrowed loan plan shares as at 30 June
2021.
On 14 August 2019 the Company issued 10,000,000 Loan Plan Shares to the Mr Rogers at the market price of 3.2 cents per share.
The PFS was completed on 16 June 2021, of which 5,000,000 shares were released from escrow on 1 July 2021. 5,000,000 of the
shares are subject to trading restrictions will be escrowed until the completion of a bankable feasibility study on either the
Speewah Project or the High Purity Alumina Project. The shares have been funded by a limited recourse loan from the Company
with a 4-year term and zero interest rate, the loan is repayable at the end of the term or from the proceeds of any shares sold after
escrow release. In the event that any shares sold are less than 3.2 cents the Company will only recoup the value of the shares sold
at the respective price in repayment of the loan, or part thereof. Please refer to Note 18 Share-Based Payment.
The Loan Plan Shares were provided at no cost to the recipients.
The Loan Plan Shares have been accounted for as an in-substance option award. The fair value of the equity instrument granted
was estimated as at the date of grant using the Black and Scholes model taking into account the terms and conditions upon which
the shares were granted. Please refer to Note 18 Share Based Payments.
Speewah Project towards are more direct industrial aluminium feedstock pr
Project arose as a result of work upon the Speewah Project in assessing HPA products and resulting in the Company developing
ibility focus towards HPA Project, on 29
January 2021 the Company varied the terms of the Loan Plan Share Restriction Period to also enable the restriction to be satisfied
he
Page 11
Directors Report
and end on the relevant development of the HPA Project. As the award has non-market based vesting conditions, the modification
of the award did not give rise to an incremental fair value at the date of modification. The share price at the date of modification
is $0.029.
6.3 Related Party Transactions
Director and the Company Secretary, have entered into an occupancy and administration agreement with King River in respect
of providing occupancy and administration commencing March 2009. The total value of the occupancy and administration
services provided by AHG during the year was $4,909 (2020: $4,909). All services provided by companies associated with directors
were provided on commercial terms.
Harvey Springs Estate Pty Ltd , a company controlled by Mr Anthony Barton, had entered into a loan facility agreement in the
amount of $500,000 with King River to fund ongoing development and working capital. The loan facility was non-interest bearing
and unsecured with the maturity date being 30 June 2021. The loan facility was drawn down in full before 30 June 2020 to fund
prefeasibility expenditure and working capital. The loan was repaid in full on 18 August 2020.
All equity transact
Mr Anthony Barton and his associate entities acquired 4,545,455 ordinary shares and 2,272,730 attaching options at $0.033 per
share and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Leonid Charuckyj and his associate entities acquired 1,800,000 ordinary shares and 900,000 attaching options at $0.033 per
share and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Greg MacMillan and his associate entities acquired 1,818,181 ordinary shares and 909,092 attaching options at $0.033 per share
and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Kenneth Rogers acquired 606,062 ordinary shares and 303,032 attaching options at $0.033 per share and nil per option pursuant
to the Share Purchase Plan acceptance.
6.4 Voting and comments made at the company's 2020 Annual General Meeting ('AGM')
At the 2020 AGM, 97.26% of the votes received supported the adoption of the remuneration report for the year ended 30 June
2020. The company did not receive any specific feedback at the AGM regarding its remuneration practices.
End of Remuneration Report
DIRECTORS MEETINGS
The number of meetings of directors (including meetings of committees of directors) held during the year and the number of
meetings attended by each director was as follows:
Directors
Meetings
5
Number of Meetings Held
Number of Meetings Attended
Anthony Barton
Leonid Charuckyj
Greg MacMillan
5
5
5
1. During the year the Directors approved 14 circular resolutions which were signed by all Directors of the Company
2. All committees of directors are made up of the full Board. Reference to meeting refers to meeting conducted specifically to deal
with the particular business of that Committee.
COMMITTEE MEMBERSHIP
The role of the Audit, Remuneration and Nomination Committees is carried out by the full Board in accordance with the
appropriate charters. The Board considers that no efficiencies or benefits would be gained by establishing separate committees.
Page 12
Directors Report
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of King River support
located on the
Company website www.kingriverresources.com.au/investors/corporate-governance/.
INDEMNIFICATION OF AUDITORS
To the extent permitted by law and professional regulations, the Company has agreed to indemnify its auditors, Ernst & Young,
as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
AUDITOR INDEPENDENCE
Section 370C of the Corporation Act 2001 requires our auditors, Ernst & Young, to provide the directors of the Company with an
Independence Declaration in relation to the audit of the consolidated financial report. This Independence Declaration is disclosed
on page 13 of this
2021.
NON AUDIT SERVICES
ring the year ended 30 June 2021.
Signed in accordance with a resolution of the directors.
Mr Greg MacMillan
Director
24 September 2021
Page 13
In accordance with a resolution of the directors of King River Resources Limited, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, including:
(i
for the year ended on that date; and
30 June 2021 and of its performance
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the
Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 2(a);
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable, subject to the matters set out in Note 2(e) to the financial report;
(d) there are reasonable grounds to believe that the Company and the subsidiaries identified in Note 5 will be able to meet any
obligations or liabilities to which they are or may become subject to, by virtue of the Deed of Cross Guarantee between the
Company and that subsidiary; and
(e) this declaration has been made after receiving the declarations required to be made to the Directors in accordance with section
295A of the Corporations Act 2001 for the financial year ending 30 June 2021.
On behalf of the Board
Mr Greg MacMillan
Director
24 September 2021
Page 15
Statement of Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
2020
Notes
$
$
6(a)
2(f), 6(b)
6(c)
6(c)
6(d)
18
6(e)
7
benefits expenses
Revenue
Other income
Compliance costs
Depreciation expense
Finance costs
Insurance expense
Other administration expenses
Share-based payments
Write-off of capitalised exploration expense
Loss before income tax expense
Income tax benefit
Net loss for the year after tax
Other Comprehensive Income
Total Comprehensive Loss for the Year
Total Comprehensive Loss for the Year is attributable to:
Owners of King River Resources Limited
6,094
-
1,764
385,064
(131,400)
(131,400)
(217,527)
(198,766)
(59,668)
(1,521)
(43,051)
(70,314)
(1,277)
(46,457)
(327,172)
(330,362)
(13,995)
(180,602)
(968,842)
-
(188,058)
(535,730)
(1,115,536)
-
(968,842)
(1,115,536)
-
-
(968,842)
(1,115,536)
(968,842)
(968,842)
(1,115,536)
(1,115,536)
Loss per share
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
9
9
(0.06)
(0.06)
(0.09)
(0.09)
The above statement of other comprehensive income should be read in conjunction with the accompanying notes
Page 16
Statement of Financial Position
AS AT 30 JUNE 2021
Assets
Current Assets
Cash and cash equivalents
Other receivables
Other current assets
Total Current Assets
Non Current Assets
Deferred exploration expenditure
Plant and Equipment
Right of use asset
Total Non Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Loan and borrowings
Lease liabilities
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
2021
2020
Notes
$
$
10(a)
10(b)
10(c)
2(f), 11
12
13
14
14
15
15
16(a)
16(b)
2(f)
6,124,217
578,179
423,130
49,389
34,412
6,581,759
8,303
635,871
18,173,969
207,540
76,552
18,458,061
25,039,820
16,155,543
39,587
107,445
16,302,575
16,938,446
213,033
296,657
-
500,000
33,435
246,468
43,395
43,395
289,863
55,597
852,254
55,260
55,260
907,514
24,749,957
16,030,932
49,408,241
39,734,369
1,898,115
1,884,120
(26,556,399)
(25,587,557)
24,749,957
16,030,932
The above statement of financial position should be read in conjunction with the accompanying notes.
Page 17
Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
2020
Notes
$
$
Cash Flows from Operating Activities
Interest received
Payments to suppliers and employees
Interest and other finance costs paid
Payment of director fees in arrears
Net cash used in operating activities
10(a)
Cash Flows from Investing Activities
Exploration Incentive Scheme grant received
Research & Development tax incentive received
2(f)
Payment for exploration and evaluation
Payment for property, plant & equipment
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from share issues
Payment of share issue costs
Proceed from loan
Payment of loan
Repayment of principal portion of lease liabilities
Net cash from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and Cash Equivalents at end of year
10(a)
6,094
(703,252)
(1,521)
(43,800)
(742,479)
1,764
(633,219)
(1,277)
-
(632,732)
45,552
-
-
500,322
(2,679,120)
(2,708,348)
(193,106)
(1,909)
(2,826,674)
(2,209,935)
9,861,230
(187,368)
-
(500,000)
(58,671)
9,115,191
5,546,038
578,179
6,124,217
-
-
500,000
-
(46,094)
453,906
(2,388,761)
2,966,940
578,179
The above statement of cash flows should be read in conjunction with the accompanying notes.
Page 18
Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
At 1 July 2020
Loss for the year
Total comprehensive income for the year
Issued
Capital
Note 16(a)
Equity
Benefits
Reserve
Note 16(b)
Accumulated
Losses
Total Equity
Notes
$
$
$
$
39,734,369
1,884,120
(25,587,557)
16,030,932
-
-
-
-
(968,842)
(968,842)
(968,842)
(968,842)
Transaction with owners in their capacity as owners:
Loan Plan Shares 14 August 2019
18(a)
Issue of Shares
Placement 27 July 2020
Issue of Shares
Share Purchase Plan 19 August 2020
Share issue costs net tax
Balance at 30 June 2021
At 1 July 2019
-
2,000,000
7,861,239
(187,367)
13,995
-
-
-
-
-
-
-
13,995
2,000,000
7,861,239
(187,367)
49,408,241
1,898,115
(26,556,399)
24,749,957
39,734,369
1,696,062
(22,907,025)
18,523,406
Prior period adjustment
2(f)
-
-
(1,564,996)
(1,564,996)
Balance at 1 July 2019 - restated
Loss for the year
Total comprehensive income for the year
Transaction with owners in their capacity as owners:
Loan Plan Shares 14 August 2019
Options Granted
14 August 2019
18(a)
18(a)
39,734,369
1,696,062
(24,472,021)
16,958,410
-
-
-
-
-
-
(1,115,536)
(1,115,536)
(1,115,536)
(1,115,536)
174,532
13,526
-
-
174,532
13,526
Balance at 30 June 2020
39,734,369
1,884,120
(25,587,557)
16,030,932
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Page 19
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
1. CORPORATE INFORMATION
is a Company domiciled in Australia and publicly listed on the Australian
King River Resources
254
Stock Exchange (ASX). The Company was incorporated on 28 May 2002. The address of
Adelaide Tce, Perth WA 6000. The consolidated financial statements as at and for the year ended 30 June 2021 comprise the
Company and its subsidiaries
The consolidated financial report was authorised for issue by the directors on the 24 September 2021 in accordance with a
resolution of the directors.
2. BASIS OF PREPARATION
(a) Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting
and other authoritative pronouncements issued by the Australian Accounting Standards Board, and the
Corporations Act 2001. The consolidated financial repor
and interpretations adopted by the International Accounting Standards Board (IASB).
(b) Basis of measurement
Unless stated otherwise, the consolidated financial statements have been prepared on the historical cost basis.
(c) Functional and presentation currency
unctional currency.
(d) Use of estimates and judgements
The preparation of financial statements in conformity requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods affected.
(e) Going Concern Basis of Preparation
The Group incurred a net loss after income tax of $968,842 for the year ended 30 June 2021 (2020: $1,115,536) and a net cash inflow
of $5,546,038 (2020: outflow of $2,388,761). As at 30 June 2021 the Group had cash and cash equivalents of $6,124,217 (2020:
$578,179) and a net current asset surplus of $6,335,291 (2020: $216,383 deficit).
The directors are satisfied that at the date of signing of the financial report, there are reasonable grounds to believe that the Group
will be able to continue to pay its debts as and when they fall due and that it is appropriate for the financial statements to be
prepared on a going concern basis.
(f) Prior period adjustment
During the year management reviewed the accounting treatment applied to Research and Development (R&D) Tax Incentives
received by the Group and accounted for as government grants in line with AASB 120 Accounting for Government Grants and
Disclosure of Government Assistance.
overnment grants are recognised
where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the
grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which
it is intended to compensate, are expensed. When the grant relates to an asset, it is offset against the related asset. In prior years,
R&D Tax Incentives received relating to Deferred Exploration Expenditure were recognised in income . Accordingly, a prior year
adjustment has been processed to reclassify relevant amounts to Deferred Exploration Expenditure . The impact of the restatement
on the accumulated loss at 30 June 2019 is $1,564,996. The Statement of Comprehensive Income for year ended 30 June 2020 has
not been restated as the impact was not considered material. The receipt of the Research and Development tax refund relating to
an asset is recognised as cash inflow from investing activities. The comparative information in the Statement of Cash Flows has
been restated for this reclassification adjustment.
All Deferred Exploration Expenditure relating to R&D Tax Incentives received prior to 2014 was written off in 2013 when the
Group determined that the Deferred Exploration Expenditure relating to the processing of vanadium and titanium was fully
impaired.
Page 20
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
2. BASIS OF PREPARATION continued
(f) Prior period adjustment continued
Below summarises the impact of the adjustment on the Statement of Financial Position as at 30 June 2020:
Statement of Financial Position
Non-Current Assets
Deferred exploration expenditure
Total Non-Current Assets
Total Assets
Net Assets
Equity
Accumulated losses
Total Equity
Balance as at
30 June 2020
(pre-correction)
Prior period
correction
Restated balance
as at
30 June 2020
$
$
$
17,720,539
(1,564,996)
16,155,543
17,867,571
(1,564,996)
16,302,575
18,503,442
(1,564,996)
16,938,446
17,595,928
(1,564,996)
16,030,932
(24,022,561)
(1,564,996)
(25,587,557)
17,595,928
(1,564,996)
16,030,932
(g) Changes in accounting policies
From 1 July 2020 the Group has adopted all new and amended Accounting Standards and Interpretations, mandatory for annual
periods beginning 1 July 2020. The application of these new and amended Accounting Standards and Interpretations’ did not
have a material impact on the financial position or performance of the Group.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have
not been adopted by the Group for the annual reporting period ended 30 June 2021. Management are of the view that these
standards and amendments will not have a significant impact of the financial statements.
Page 21
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Principles of Consolidation
The consolidated financial report comprises the financial statements of King River Resources Limited and its controlled entities
the wholly owned companies
Speewah Mining Pty Ltd, Treasure Creek Pty Ltd, Kimberley Gold Pty Ltd, Whitewater Minerals Pty Ltd and ARC Specialty
Metals Pty Ltd. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with its
investee and has ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if
and only if the Group has;
. King River Resources
Power over the investee (eg, existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including;
- The contractual arrangement with the other vote holders of the investee
- Rights arising from other contractual arrangements
-
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or
more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary
and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or
disposed of during the year are included in the statement of comprehensive income from the date the Group gains control until
the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (OCI) are
attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to
policies. All inter-company balances and transactions
between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation.
Where controlled entities have entered or left the consolidated entity during the year, their operating results have been
included/excluded from the date control was obtained, or until the date control ceased. There are no minority interests in the
equity of the controlled entity.
(b) Income Tax and Other Taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or
amount are those that are enacted or substantively enacted by the balance sheet date. Deferred income tax is provided for on all
temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except when the deferred income tax liability
arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that,
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures,
and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences
and the carry-forward of unused tax credits and unused tax losses can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference
will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be
utilised.
The carrying amount of deferred income tax assets is reviewed at each financial year end and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Page 22
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES continued
(b) Income Tax and Other Taxes continued
Deferred income tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the balance date.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Tax consolidation legislation
The head entity, King River and the subsidiary in the tax consolidated group continue to account for their own current and
deferred tax amounts. The Group has applied the group allocation approach in determining the appropriate amount of current
taxes and deferred taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, King River also recognises the current tax liabilities (or assets) and the
deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated
group.
(c) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
On initial recognition a financial asset is classified and measured at:
a. Amortised cost;
b. Fair Value through Other Comprehensive Income (FVOCI)
equity investment; or
c. FVOCI
d. Fair Value through Profit or Loss (FVTPL)
The classification of financial assets is generally based on the business model in which a financial asset is managed and its
contractual cash flow characteristics. A financial asset (unless it is a trade receivable without a significant financing component
that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction
costs that are directly attributable to its acquisition.
In order for a financial asset to be classified and measured at amo
debt investment;
st
and is performed at an instrument level.
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Group. For financial assets measured at amortised cost, these assets are subsequently
measured using the effective interest method. The amortised cost is reduced by impairment losses.
Interest income and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
The Group financial assets consist of cash and cash equivalents and other receivables.
Impairment of financial assets
In relation to the financial assets carried at amortised cost, an expected credit loss model is applied. For short term receivables,
the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting
date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-
looking factors specific to the debtors and the economic environment.
The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to
receive the outstanding contractual amounts in full. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.
Financial liabilities
Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
financial liabilities include trade and other payables and loans and borrowings.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Trade and other payables are designated as other financial liabilities and are measured at amortised cost.
Page 23
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES continued
(c) Financial Instruments continued
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
(d) Plant and Equipment
Plant and equipment are measured on the cost basis less accumulated depreciation and impairment losses.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are
incurred.
Impairment
Carrying values of assets are reviewed at each financial year end to determine whether there are any indicators of impairment
that may indicate the carrying values may not be recoverable in whole or in part.
Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating unit and the
recoverable amount test applied to the cash generating unit as a whole.
Recoverable amount is determined as the greater of fair value less costs of disposal and value in use. An impairment exists if the
carrying value of the asset is determined to be in excess of its recoverable amount, in which case the asset or cash generating unit
is written down to its recoverable amount.
Depreciation
The depreciable amount of plant and equipment is depreciated on a straight line basis over its useful life to the Group commencing
from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets.
Class of Fixed Asset
Plant and equipment
Depreciation Rate
10-50%
An asset s residual value and useful life is reviewed, and adjusted if appropriate, at each balance sheet date.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the income statement.
(e) Shares in controlled entities
Investments in controlled entities are measured at cost in the separate financial statements of the Parent. The Company assesses
whether it is necessary to recognise any impairment loss in the investment in subsidiaries following any significant changes in
the underlying assets or operations of the relevant subsidiary.
(f) Exploration and Evaluation Expenditure
Expenditure
Exploration and evaluation expenditure is capitalised provided the rights to tenure of the area of interest is current and either:
the exploration and evaluation activities are expected to be recouped through successful development and
exploitation of the area of interest or, alternatively, by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date reached a stage that
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and
active and significant operations in, or relating to, the area of interest is continuing.
When the technical feasibility and commercial viability of extracting a mineral resource have been demonstrated
then any capitalised exploration and evaluation expenditure is reclassified as capitalised mine development. Prior
to reclassification, capitalised exploration and evaluation expenditure is assessed for impairment.
Impairment
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at the cash
generating unit level whenever facts and circumstances suggest that the carrying amount of the asset may exceed
its recoverable amount.
An
its estimated
recoverable amount. One or more of the following facts and circumstances indicate that an entity should test exploration and
evaluation assets for impairment: (a) the period for which the entity has the right to explore in the specific area has expired during
the period or will expire in the near future, and is not expected to be renewed; (b) substantive expenditure on further exploration
the carrying amount of an asset or cash-generating unit exceeds
impairment exists when
Page 24
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES continued
(f) Exploration and Evaluation Expenditure continued
for and evaluation of mineral resources in the specific area is neither budgeted nor planned; (c) exploration for and evaluation of
mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the
entity has decided to discontinue such activities in the specific area; (d) sufficient data exist to indicate that, although a
development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be
recovered in full from successful development or by sale. In any such case, or similar cases, the entity shall perform an impairment
test. Any impairment loss is recognised as an expense.
(g) Leases
Group as Lessee
The Company entered into agreements to occupy two warehouse storage facilities in March 2019.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises
the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date
net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an
estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of
the asset, whichever the shorter. Where the Company expects to obtain ownership of the leased asset at the end of the lease term,
the depreciation is over the estimated useful life. Right-of-use assets are subject to impairment or adjusted for any remeasurement
of lease liabilities.
The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases of 12 months
or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value
of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate
e. Lease payments comprise of fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual
value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any
anticipated termination penalties. The variable lease payments that do depend on an index or a rate are expensed in the period
in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there
is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease
term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the
corresponding right-of-use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
(h) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement
is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in the income statement net of any reimbursement.
obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a pre-tax
rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the
passage of time is recognised in finance costs.
(i)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of
the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
Page 25
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES continued
(j) Share Based Payment Transactions
Equity settled transactions
The Group provides benefits to directors and employees (including senior executives) of the Group in the form of share based
payments, whereby employees render services in exchange for shares or rights over shares (equity settled transactions).
The cost of these equity settled transactions with employees is measured by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value of shares is determined by the price on grant date and of options using the
Black & Scholes model, further details of which are given in Note 18. In valuing equity settled transactions, no account is taken
of any performance conditions, other than conditions linked to the price of the shares of King River (market conditions) if
applicable.
The cost of equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled
to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects:
(i)
(ii)
the extent to which the vesting period has expired; and
No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included
in the determination of fair value at grant date. The income statement charge or credit for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a
market condition.
If the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified.
In addition, an expense is recognised for any modification that increases the total fair value of the share based payment
arrangement, or is otherwise beneficial to the employee, as measured at the date of modification. If an equity settled award is
cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised
immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date
that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in
the previous paragraph. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of diluted earnings per share.
(k) Employee Benefits
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of
measured
at the amounts expected to be paid when the liabilities are settled.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date using the projected
unit credit method. Consideration is given to expected future wage and salary levels, experience of employee, departures, and
period of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(l) Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
(m) Earnings Per Share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and
other non discretionary changes in revenues or expenses during the period that would result from the dilution of potential
ordinary shares;
Page 26
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
3. SIGNIFICANT ACCOUNTING POLICIES continued
(m) Earnings Per Share continued
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus
element. Losses have an anti-dilutive effect. Therefore, the basic and diluted earnings for the current and prior period have
remained the same.
(n) Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions
will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods
that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is offset against
the related asset.
4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(a) Significant accounting judgements
involving estimations, which have the most significant effect on the amounts recognised in the consolidated financial statements:
(i) Capitalisation of exploration and evaluation expenditure
Under AASB 6 Exploration for and Evaluation of Mineral Resources, the Group has the option to either expense exploration and
evaluation expenditure as incurred, or to capitalise such expenditure (provided certain conditions are satisfied). The Group has
elected, when the conditions in AASB 6 are met, to capitalise these costs.
(ii) Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on
the consolidated entity based on known information. This consideration extends to the nature of , staffing and geographic regions
in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either
any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which
may impact the consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-
19) pandemic.
(iii) Research and development tax incentives
Research and development rebates are recognised when there is reasonable assurance that the rebate will be received.
Management judgement is required to assess that the rebate meets the recognition criteria and in determining the measurement
of the rebate including the assessment of the eligibility and appropriateness of the apportionment of eligible expenses based on
research and development activities undertaken by the consolidated entity and taking into consideration relevant legislative
requirements.
Further, the Research and Development Tax Incentive program in Australia is a self-assessment regime and there is a four year
period from the date of lodgement where the claim may be subject to a review the Australian Taxation Office or Ausindustry,
with any amounts overclaimed being potentially subject to full repayment with interest and penalties.
(b) Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events
and are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected. The key estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of certain assets and liabilities with the next annual reporting period are:
(i) Determination of mineral resources and ore reserves
Page 27
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS continued
(b) Significant accounting estimates and assumptions continued
The information on mineral resources and ore reserves were prepared by or under the supervision of Competent Persons as
defined in the JORC code. The amounts presented are based on the mineral resources and ore reserves determined under the
JORC code. There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are
valid at the time of estimation may change significantly when new information becomes available.
(ii) Share based payment transactions
The Group measures the cost of equity settled transactions with employees and suppliers by reference to the fair value of the
equity instrument at the date at which they are granted. The expense recognised is based on an assessment of the probability of
the vesting. The fair value is determined by using a Black and Scholes model, using the assumptions detailed in Note 18. The
accounting estimates and assumptions relating to equity settled share based payments would have no impact on the carrying
amounts of the assets and liabilities within the next annual reporting period but may impact income and expenses.
(iii) Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and
evaluation asset through sale. To the extent that capitalised exploration and evaluation expenditure is determined not to be
recoverable in the future, profits and net assets will be reduced in the period in which this determination is made. In addition,
exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage that permits
a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the
future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this
determination is made.
5. PARENT ENTITY INFORMATION
Parent
Current Assets1
Non-current Assets
Total Assets
Current Liabilities
Non-current Liabilities
Total Liabilities
Contributed Equity
Accumulated Losses
Option Reserve
Total Equity
Loss for the year
Total Comprehensive loss for the year
2021
$
6,262,978
79,863
6,342,841
101,666
43,395
145,061
49,408,241
(45,108,576)
1,898,115
6,197,780
(3,341,077)
(3,341,077)
2020
$
465,316
112,107
577,423
672,802
53,631
726,433
39,734,369
(41,767,499)
1,884,120
(149,010)
(3,196,773)
(3,196,773)
1Loan receivables from the subsidiaries of King River have been written down to fair value in the parent entity information and
recorded in profit and loss.
Guarantees
As a condition of the Corporations Instrument 2016/785, King River Resources Limited, Speewah Mining Pty Ltd, Treasure Creek
have
Pty Ltd, Kimberley Gold Pty Ltd, Whitewater Minerals Pty Ltd and ARC Specialty Metals Pty Ltd
entered into a deed of cross guarantee. The effect of the deed is that King River Resources Limited has guaranteed to pay any
deficiency in the event of winding up of the controlled entity or if it does not meet its obligations under the terms of overdrafts,
loans, leases or other liabilities subject to the guarantee. The controlled entity has also given a similar guarantee in the event that
King River Resources Limited is wound up or if it does not meet its obligations under the terms of overdrafts, loans, leases or other
liabilities subject to the guarantee.
Page 28
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
6. REVENUES AND EXPENSES
(a) Interest Revenue
Interest revenue calculated using the effective interest rate method
(b) Other Income
Research & Development Tax Incentive1
1 Please refer to Note 2(f) Prior Period Adjustment
(c) Expenses
Depreciation expenses:
depreciation right of use asset
depreciation plant and equipment
wages and fees
superannuation contribution expense
(excluding sharebased payments):
(d) Other administration expenses
Administration and bookkeeping fees
Travel and accommodation
Media and investor relations
Office expenses
Short term lease expenses
Other expenses
(e) Tenement Expenses
Consolidated
2021
$
2020
$
6,094
1,764
-
-
385,064
385,064
(33,425)
(26,243)
(59,668)
(131,400)
-
(131,400)
(84,066)
(7,645)
(97,550)
(61,227)
(47,347)
(29,337)
(327,172)
(52,054)
(18,260)
(70,314)
(127,600)
(3,800)
(131,400)
(74,909)
(33,566)
(107,262)
(45,678)
(54,396)
(14,551)
(330,362)
During the financial year, the following tenement licences were allowed to expire or were surrendered and the total capitalised
tenement costs in the amount of $180,602 incurred were written off.
Speewah E80/4961
Speewah E80/4962
Speewah E80/4973
(88,394)
(56,895)
(35,313)
(180,602)
Page 29
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
7. INCOME TAX
(a) The components of tax expense comprise:
Current income tax
Current income tax expense / (benefit)
Deferred income tax
Relating to the origination and reversal of temporary differences
Adjustments in respect of deferred income tax of previous years
Total income tax expense as reported in the profit or loss
(b) The prima facie tax on profit from ordinary activities before income tax
is reconciled to the income tax expense as follows:
Profit / (Loss) Before Income Tax
Prima facie tax payable on profit from ordinary activities before income tax at
30% (2020: 27.5%)
Add:
Tax Effect of:
Movement in deferred tax assets not brought to account
Permanent differences
Deferred Tax Assets and Liabilities
Deferred Tax Assets (DTA)
Capital raising costs
Tax losses
Less: tax losses foregone in lieu of JMEI claim in the 2021 financial year
Other
Accrued expenses
DTA to offset DTL
Unrecognised DTA
Deferred Tax Liabilities (DTL)
Exploration
Fixed assets
Other
Deferred tax assets to offset DTL
Consolidated
2021
$
2020
$
-
-
-
-
-
-
-
-
(968,842)
(1,115,536)
(290,653)
(306,771)
281,945
8,708
-
360,487
(53,716)
-
30 June 2020 Movement
30 June 2021
55,278
7,856,585
-
30,486
9,556
(4,907,273)
3,044,632
35,133
1,535,891
(659,709)
(7,437)
2,519
(624,452)
281,945
(4,873,148)
(4,577)
(29,547)
4,907,273
(579,043)
(51,991)
6,581
624,452
-
-
90,411
9,392,476
(659,709)
23,049
12,075
(5,531,725)
3,326,577
(5,452,191)
(56,568)
(22,966)
5,531,725
-
The Company and its subsidiary form a tax consolidated group. The consolidated financial statements have been prepared on
this basis of the formation of a consolidated group. The above DTA amounts are not recognised in the accounts on the basis the
Company does not meet the DTA recognition test, as profits are not forecast for the period ended 30 June 2021.
8. SEGMENT REPORTING
The Consolidated Entity operates in one geographical area being Australia (Western Australia and Northern Territory) and one
industry, being exploration for the year to 30 June 2021. The Chief Operating Decision Makers are the Board of Directors and
management of the Group. There is only one operating segment identified being exploration activities in Australia based on
internal reports reviewed by the Chief Operating Decision Makers in assessing performance and allocation of resources.
The accounting policies applied for internal reporting purposes are consistent with those applied in the preparation of the
financial statements.
Page 30
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
$
2020
$
9. LOSS PER SHARE
Loss used in calculation of basic and diluted earnings per share
(968,842)
(1,115,536)
Weighted average number of ordinary shares for the purposes of basic
earnings per share
Effect of dilution - share options
Weighted average number of ordinary shares adjusted for effect of dilution
Number
Number
1,515,960,601
-
1,247,826,282
-
1,515,960,601
1,247,826,282
As at 30 June 2021 the Company has 10,000,000 Loan Plan Shares accounted for as in-substance options (2020: 10,000,000),
7,000,000 unlisted options (2020: 7,000,000), and 152,443,342 (2020: 412,867,511) listed options on issue. These options are not
considered to be dilutive as the issue of the shares are contingent on certain vesting conditions or conversion of the options to
ordinary shares will decrease the loss per share. There have been no other transactions involving ordinary shares or potential
ordinary shares subsequent to the balance date that would significantly change the number of ordinary shares or potential
ordinary shares outstanding for the reporting period.
10. CURRENT ASSETS
(a) Cash and cash equivalents balance
Cash at bank and on hand
Cash at bank
bank security deposits1
Consolidated
2021
$
2020
$
6,112,062
12,155
6,124,217
566,024
12,155
578,179
Cash at bank earns interest at floating rates based on daily bank deposit rates.
1The bank security deposits of $12,155 is made up of two bank accounts in the name of King River for security of the bank
guarantees in the amount of $5,555 and $6,600 on the warehouse leases.
Reconciliation of net loss after tax to net cash flows from operations
Profit/(Loss) for the year
Share-based payments
Depreciation
Capitalise Exploration Cost written off
Other income1
(Increase)/decrease in assets:
- current receivables
- other current assets
Increase/(decrease) in liabilities:
- Trade and other current payables
Net Cash flow used in Operating Activities
1Please refer to Note 2(f) Prior Period Adjustment.
(b) Other Receivables
GST recoverable
Research & Development tax rebate receivable
(c) Other current assets
Prepayments
Security deposit
(968,842)
13,995
59,668
180,602
-
-
(4,833)
(23,069)
(742,479)
40,666
382,464
423,130
13,136
21,276
34,412
(1,115,529)
188,058
70,314
535,730
(500,322)
115,258
3,060
70,699
(632,732)
49,389
-
49,389
8,303
-
8,303
Allowance for impairment loss
Other receivables which are primarily from the ATO are non-interest bearing and are generally paid on 30 day settlement terms.
Other receivables are neither past due nor materially impaired at 30 June 2021 and 30 June 2020.
Fair value
Due to the short-term nature of the other receivables, their carrying value approximates their fair value.
Page 31
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
11. DEFERRED EXPLORATION EXPENDITURE
At Cost
Balance at beginning of the year
Prior period adjustment2
Balance at beginning of the year - restated 2
Expenditure incurred
Capitalise Tenement cost written off1
Research & Development Incentive Received
Exploration Incentive Scheme
Total Exploration Expenditure
1 Please refer to Note 6. Revenue and Expenses (e).
2 Please refer to Note 2(f) Prior Period Restatement.
Consolidated
2021
$
2020
$
16,155,543
-
16,155,543
2,622,903
(180,602)
(382,464)
(41,411)
18,173,969
15,429,679
(1,564,996)
13,864,683
2,826,590
(535,730)
-
-
16,155,543
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases are dependent
on the successful development and commercial exploitation or sale of the respective areas. As at 30 June 2021 there are no
indicators of impairment under AASB 6 related to Deferred Exploration Expenditure.
Consolidated
12.
PLANT AND EQUIPMENT
Gross carrying amount
Accumulated depreciation
at cost
Net carrying amount
At beginning of year, net accumulated depreciation
Acquired
Disposals
Depreciation charge for the year
At end of year, net accumulated depreciation
The useful life of the assets was estimated between 2 and 20 years for 2021 and 2020.
13. RIGHT OF USE ASSET
Leased warehouse storage
TRADE AND OTHER PAYABLES
14.
Trade payables
Accruals
Loan funding1
Other payables
2021
$
314,117
(106,577)
207,540
39,587
193,106
-
(25,153)
207,540
2020
$
121,011
(81,424)
39,587
55,938
1,909
-
(18,260)
39,587
76,552
76,552
107,445
107,445
171,799
40,250
-
984
213,033
260,832
34,750
500,000
1,075
796,657
1 Harvey Springs Estate Pty Ltd, a company controlled by Mr Anthony Barton, had entered into a loan facility agreement in the
amount of $500,000 with King River to fund ongoing development and working capital. The loan facility was non-interest bearing
and unsecured with the maturity date being 30 June 2021. The loan facility was drawn down in full before 30 June 2020 to fund
prefeasibility expenditure and working capital and repaid in full in August 2020.
Trade payables and other creditors are non-interest bearing and are normally settled on 30 day terms. Due to the short term nature
of these payables, their carrying value approximates their fair value.
Page 32
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
14.
TRADE AND OTHER PAYABLES continued
Changes in liabilities arising from financing liabilities
Loans
Current lease liabilities (Note 15)
Non-current lease liabilities (Note 15)
Total liabilities from financing activities
1 July 2020
$
500,000
Cash flows
$
(500,000)
Other
$
30 June 2021
$
-
55,597
55,260
(58,671)
36,509
-
(11,865)
610,857
(558,671)
24,644
-
33,435
43,395
76,830
LEASE LIABILITIES
15.
Leased warehouse storage - current
Leased warehouse storage - non-current
16. CONTRIBUTED EQUITY AND RESERVES
(a) Contributed Equity Consolidated
Issued capital at beginning of year as at 1 July 2020
Fully paid ordinary shares carry one vote per share and carry the right to
dividends
Movements in ordinary shares on issue
Placement 27 July 2020
Issue of Shares
Issue of Shares
Share Purchase Plan 19 August 2020
Capital Raising Fees net of tax
Consolidated
2021
$
33,435
43,395
76,830
2020
$
55,597
55,260
110,857
2021
Number
$
1,248,638,5531
39,734,369
66,666,669
238,219,725
-
2,000,000
7,861,239
(187,367)
Issued capital at end of year as at 30 June 2021
1,553,524,9471
49,408,241
1 Number of shares is inclusive of the 10,000,000 Loan Plan Shares accounted for as in-substance options. Refer to Note 18(b)
Loan Plan Shares.
Movement in options on issue
Number
Exercise Price
Listed Options on Issue as at 1 July 2020
Granted Attaching options Placement and Share Purchase Plan
Exercised
Expired 31 July 2020
Listed Options on Issue as at 30 June 2021
412,867,511
152,443,342
-
(412,867,511)
152,443,342
12 cents
6 cents
-
12 cents
6 cents
shares and 119,110,007 attaching options. The issue price for each share under this SPP was $0.033 plus 1 free attaching option for
every 2 shares issued. Each option has an exercise price of $0.06 and expiry date of 31 July 2022.
On 27 July 2020 the Company completed a Placement from professional and sophisticated investors and raised $2,000,000 from
the issue of 66,666,669 shares and 33,333,335 attaching options. The issue price for each share under the Placement was $0.03 plus
1 free attaching option for every 2 shares issued. The options have an exercise price of $0.06 and an expiry of 31 July 2022. There
were no other significant movements in equity after the 2021 reporting period until the lodgement of this report.
Page 33
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
16. CONTRIBUTED EQUITY AND RESERVES continued
(a) Contributed Equity Consolidated continued
Unlisted Options on Issue as at 1 July 2020
Granted
Expired
Options on Issue as at 30 June 2021
Refer note 18 (b) Summaries of Options Granted.
Issued capital at beginning of year as at 1 July 2019
Fully paid ordinary shares carry one vote per share and carry the right to
dividends
Movements in ordinary shares on issue
Loan Plan Shares 22 August 20191
Capital Raising Fees net of tax
Number
7,000,000
Exercise Price
6 cents
-
-
-
-
7,000,000
6 cents
2020
Number
$
1,238,638,553
39,734,369
10,000,0001
-
-
-
Issued capital at end of year as at 30 June 2020
1,248,638,553
39,734,369
1 On 14 August 2019 the Company issued 10,000,000 shares to the Chief Geologist at the market price of 3.2 cents per share.
The shares will be subject to trading restrictions and 5,000,000 of the shares will be escrowed until the completion of the
prefeasibility study and 5,000,000 of the shares will be escrowed until the completion of a bankable feasibility study. The shares
have been funded by a limited recourse loan from the Company with a 4-year term and zero interest rate. Refer to Note 6.2
Equity Based Compensation (Loan Plan Shares) and Note 18 Recognised Share-Based Payment Expenses, which includes the
pro rata expense of the value for the relevant period. The Share Based Payment amount is recognised in the Reserves and not
Issued Capital.
Movement in options on issue
Number
Exercise Price
Listed Options on Issue as at 1 July 2019
Granted
Exercised
Expired
Listed Options on Issue as at 30 June 2020
Unlisted Options on Issue as at 1 July 2019
Granted 14 August 2019
Expired 30 June 2020
Options on Issue as at 30 June 2020
412,867,511
-
-
-
412,867,511
Number
4,500,000
7,000,0001
(4,500,000)
7,000,000
12 cents
-
-
-
12 cents
Exercise Price
10 cents
6 cents
10 cents
6 cents
1 On 14 August 2019 the Company issued 5,000,000 options to Project Geologist with an exercise price of 6 cents per share and an
expiry date of 14 August 2022. The options are subject to exercise restrictions and will vest upon defining a minimum Inferred
resource (at either the Tennant Creek Project or the Mt Remarkable Region) of no less than 250,000 ounces of Au at an average grade
of no less than 6 grams per tonne.
On 14 August 2019 the Company issued 2,000,000 options to a contractor with an exercise price of 6 cents per share and an expiry
date of 14 August 2022.
Excludes 10,000,000 Loan Plan Shares accounted for as in-substance options. Refer to Note 18(b) Loan Plan Shares.
Terms and conditions of contributed equity
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate
in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. On a
show of hands, every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and upon a
poll each share is entitled to one vote.
As per the Corporations Act 2001 the Company does not have authorised capital and ordinary shares do not have a par value.
Page 34
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
16. CONTRIBUTED EQUITY AND RESERVES continued
(a) Contributed Equity Consolidated continued
16(b) Reserves
Reserves
At 30 June 2019
Share based payments
At 30 June 2020
Share based payments
At 30 June 2021
Equity Benefits Reserve
$
1,696,062
188,058
1,884,120
13,995
1,898,115
Nature and Purpose of Equity Benefits Reserve
This reserve is used to record the value of equity benefits provided to directors, employees and external service providers as
part of their fees and remuneration.
During the 2020 year, the following options expired and were issued:
-
-
-
2,000,000 unlisted options exercisable at $0.06 on or before 14 August 2022 were issued to contractors of the Company.
These options all vested immediately.
5,000,000 unlisted options exercisable at $0.06 on or before 14 August 2022 were issued to Project Geologist of the Company.
These options have vesting conditions.
4,500,000 unlisted options exercisable at $0.10 expired 30 June 2020.
Consolidated
2021
$
2020
$
17. COMMITMENTS
Exploration Expenditure Commitment
In order to
conditions under which the tenements were granted. These amounts change annually and are also based on whether term of
extensions are granted for each tenement.
Within 1 year
1,775,350
1,938,800
18. SHARE BASED PAYMENTS
(a) Recognised share-based payment expenses
On 14 August 2019 the Company issued 10,000,000 Loan Plan Shares to the Chief Geologist at the market price of 3.2 cents per
share. The PFS was completed on 16 June 2021, of which 5,000,000 shares were released from escrow on 1 July 2021. 5,000,000 of
the shares are subject to trading restrictions will be escrowed until the of a bankable feasibility study. The shares have been funded
by a limited recourse loan from the Company with a 4-year term and zero interest rate, the loan is repayable at the end of the term
or from the proceeds of any shares sold after escrow release. In the event that any shares sold are less than 3.2 cents the Company
will only recoup the value of the shares sold at the respective price in repayment of the loan, or part thereof.
The Loan Plan Shares have been accounted for as an in-substance option award. The fair value of the equity instrument granted
was estimated as at the date of grant using the Black and Scholes model taking into account the terms and conditions upon which
the shares were granted. Please refer to Note 18(g). The value brought to account as a share-based payment expense in the year
ended 30 June 2021 was $13,995.
Project arose as a result of work upon the Speewah Project in assessing HPA products and resulting in the Company developing
January 2021 the Company varied the terms of the Loan Plan Share Restriction Period to also enable the restriction to be satisfied
and end on the relevant development of the HPA Project. As the award has non-market based vesting conditions, the modification
of the award did not give rise to an incremental fair value at the date of modification.
he
Page 35
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
18. SHARE BASED PAYMENTS continued
(b) Summaries of options granted
The following table illustrates the number and weighted average exercise prices (WAEP) and movements of share options issued
during the year to contractors & employees.
Options outstanding at the beginning of
the year
Granted during the year
Converted during the year
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2021
2020
Number
WAEP
Number
WAEP
7,000,000
-
-
-
7,000,000
2,000,000
0.06
-
-
-
0.06
0.06
4,500,000
7,000,000
-
(4,500,000)
7,000,000
2,000,000
0.10
0.06
-
0.10
0.06
0.06
There were 7,000,000 options on issue as at 30 June 2021 (2020: 7,000,000). Only 2,000,000 are vested immediately and exercisable.
5,000,000 have vesting conditions.
Loan Plan Shares
2021
2020
Number
WAEP
Number
WAEP
Loan Plan Shares outstanding at the
beginning of the year
Issued during the year
Released during the year
Expired during the year
Loan Plan Share outstanding at the end of
the year
Escrowed at the end of the year
10,000,000
-
-
-
10,000,000
10,000,000
0.0254
-
-
-
0.0254
0.0254
-
10,000,000
-
-
10,000,000
10,000,000
-
0.0254
-
-
0.0254
0.0254
There were 10,000,000 Loan Plan Shares which have been accounted for as an in-substance options award (2020: 10,000,000) at 30
June 2021, the 10,000,000 Loan Plan Shares have vesting conditions. Refer to section 6.2 Equity Based Compensation for details of
Loan Plan Shares accounted for as in substance options.
(c) Weighted average remaining contractual life
The weighted average remaining contractual life for the options outstanding as at 30 June 2021 is 1.12 year (2020: 2.12 years).
(d) Range of exercise price and weighted average share price at the date of exercise
The exercise price for options outstanding at the end of the year was:
2021
0.06
Class O (7,000,000)
Options
2020
0.06
There were no options exercised during the 2021 financial year. Class O 7,000,000 options expire on 14 August 2022.
(e) Weighted average fair value
There were no options granted during the year ended 30 June 2021 (2020: 7,000,000). There were no options expired during the
year ended 30 June 2021 (2020: 4,500,000).
Page 36
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
18. SHARE BASED PAYMENTS continued
(f) Option pricing model
The fair value of the equity-settled share options granted under the option plan is estimated as at the date of grant using a Black-
Scholes model taking into account the terms and conditions upon which the options were granted.
The following table lists the inputs to the model used for the year ended 30 June 2021.
Grant Date
Options Issued
Volatility (%)
Risk free interest rate (%)
Discount rate (%)
Historic share price previous to grant date ($)
Expected life of options (months)
Options exercise price ($)
Fair value at grant date ($)
14 August
2019
7,000,000
50
0.69
0.94
0.036
36
0.06
0.0068
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur.
The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not
necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair value.
(g) Share pricing model
The fair value of the equity-settled share granted under the Loan Plan Shares issued to Chief Geologist is estimated as at the date
of grant using a Black-Scholes model taking into account the terms and conditions upon which the shares were granted.
The following table lists the expense inputs to the model used for the year ended 30 June 2021.
Grant Date
Options Issued
Volatility (%)
Risk free interest rate (%)
Discount rate (%)
Historic share price previous to grant date ($)
Expected life of options (months)
Fair value at grant date ($)
14 August
2019
10,000,000
100
0.71
0.94
0.032
48
0.0254
The expected life of the shares is based on historical data and is not necessarily indicative of exercise patterns that may occur.
The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not
necessarily be the actual outcome.
19.
FINANCIAL RISK MANAGEMENT
assets and liabilities such as loan and borrowings, lease liabilities, receivables and trade payables, which arise directly from its
operations.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement
and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity
instrument are disclosed in notes 10 and 14 to the consolidated financial statements.
The Group manages its exposure to a variety of financial risks: market risk (including interest rate risk), credit risk, liquidity risk
and cash flow interest rate risk in accordance with the approved Group policies.
Primary responsibility for the identification and control of financial risks rests with the Board. The Board reviews and agrees
policies for managing each of the risks identified.
The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring
levels of exposure to interest rate and foreign exchange risk and assessment of market forecast for interest rate and
foreign exchange. The Group manages credit risk by only dealing with recognised, creditworthy, third parties and liquidity risk
is monitored through the development of future rolling cash flow forecasts.
Commodity price risk
Presently the Group is not exposed to commodity price risk.
Page 37
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
FINANCIAL RISK MANAGEMENT continued
19.
Interest rate risk
aged
by the Board in accordance with the approved investment policy. This policy defines maximum exposures and credit ratings
limits.
The Group does not account for fixed rate financial assets and liabilities at fair value through profit or loss.
During the financial year the Group has managed its cash assets by entering into a fixed interest term deposits to maximise its
cash balance.
The group does not have any material exposure to interest rate risk as at 30 June 2021.
Foreign currency risk
The Group has no material transactional foreign currency exposure.
Credit risk
Credit risk arises in the event that counterparty will not meet its obligations under a financial instrument leading to financial
losses. The Group is exposed to credit risk from its operating activities, financing activities including deposits with banks and
receivables.
The credit risk control procedures adopted by the Group is to assess the credit quality of the institution with whom funds are
deposited or invested, taking into account its financial position and past experiences. Investment limits are set in accordance with
limits set by the Board based on the counterparty credit rating. The limits are assigned to minimise concentration of risks and
mitigate financial loss through potential counterparty failure. The compliance with credit limits is regularly monitored as part of
day-to-day operations. Any credit concerns are highlighted to senior management.
As the Group is yet to commence mining operations it has no significant exposure to customer credit risk. The maximum exposure
to credit risk at the reporting date is the carrying value of each class of financial assets in the Statement of Financial Position.
Credit Quality of Financial Assets
Consolidated as at 30 June 2021
Cash and cash equivalents
Other Financial Assets
AAA
$
-
-
Trade and Other Receivables
40,666
Consolidated as at 30 June 2020
Cash and cash equivalents
Other Financial Assets
AAA
$
-
-
Trade and Other Receivables
49,389
S&P Credit rating
A1+
$
6,124,217
-
-
A1
$
-
-
-
S&P Credit rating
A1+
$
578,179
-
-
A1
$
-
-
-
A2
$
-
-
-
A2
$
-
-
-
Unrated
$
-
-
-
Unrated
$
-
-
-
Liquidity risk
The responsibility for liquidity risk management rests with the Board of Directors.
The Group manages liquidity risk by maintaining sufficient cash to meet the operating requirements of the business and investing
excess funds in highly liquid short term i
including: cash generated from interest accrued on cash balances, short and long term borrowings and issue of equity instruments.
Alternatives for sourcing our future capital needs include our current cash position, future operating cash flow, project debt
financings and equity raisings. These alternatives are evaluated to determine the optimal mix of capital resources for our capital
needs.
The maturity analysis for contractual undiscounted cash flows of liabilities:
Less than one year
$246,666
One to five years
Total undiscounted cash flow
$50,695
$297,361
Page 38
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
FINANCIAL RISK MANAGEMENT continued
19.
Capital risk management
(2020: $16,030,932
amounting to $24,749,957 at 30 June 2021
To safeguard the business as a going concern;
To maximise potential returns for shareholders through minimising dilution; and
To retain an optimal debt to equity balance in order to minimise the cost of capital.
The Group may issue new shares or sell assets to reduce debts in order to maintain the optimal capital structure.
20. GROUPS INFORMATION
The consolidated financial statements include the financial statements of King River Resources Limited and its subsidiaries:
Country of
Incorporation
Australia
Australia
Australia
Australia
Australia
% Equity Interest
2021
100
100
100
100
1001
2020
100
100
100
100
-
Speewah Mining Pty Ltd
Treasure Creek Pty Ltd
Kimberley Gold Pty Ltd
Whitewater Minerals Pty Ltd
ARC Specialty Metals Pty Ltd
1This is a wholly-owned subsidiary incorporated on 21 May 2021.
21. EVENTS AFTER THE BALANCE SHEET DATE
22.
The auditors of King River are Ernst & Young.
Au
Fees to Ernst & Young (Australia)
Fees for auditing the statutory financial report of the parent covering the
group and auditing the statutory financial reports of any controlled entities
Fees for other assurance and agreed-upon-procedures services under other
legislation or contractual arrangements where there is discretion as to
whether the service is provided by the auditor or another firm
- Audit of Form 5 expenditure report
Total fees to Ernst & Young (Australia)
remuneration
Consolidated
2021
$
42,674
-
42,674
42,674
2020
$
37,804
3,120
40,924
40,924
23. DIRECTORS AND KEY MANAGEMENT PERSONNEL DISCLOSURES
There were no changes to Directors and Key Management Personnel between the reporting date and the date the financial report
was authorised for issue.
Consolidated
(a) Compensation of Directors and Key Management Personnel
Director and Key Management Personnel
Short-term
Post-employment superannuation
Share based payments
2021
$
388,879
9,084
13,995
411,958
2020
$
326,048
9,669
174,532
510,249
Page 39
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
24. RELATED PARTY TRANSACTIONS
Director and the Company Secretary, have entered into an occupancy and administration agreement with King River Resources
in respect of providing occupancy, administration and bookkeeping services commencing March 2009. The total value of the
occupancy and administration services provided by AHG during the year was $4,909 (2020: $4,909). As at 30th June 2021, there is
$520 amount (2020: $450) outstanding to pay AHG. All services provided by companies associated with directors were provided
on commercial terms.
Harvey Springs Estate Pty Ltd , a company controlled by Mr Anthony Barton, had entered into a loan facility agreement in the
amount of $500,000 with King River to fund ongoing development and working capital. The loan facility is non-interest bearing
and unsecured with the maturity date being 30 June 2021. The loan facility was drawn down in full before 30 June 2020 to fund
prefeasibility expenditure and working capital. The loan was repaid in full on 18 August 2020.
Mr Anthony Barton and his associate entities acquired 4,545,455 ordinary shares and 2,272,730 attaching options at $0.033 per
share and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Leonid Charuckyj and his associate entities acquired 1,800,000 ordinary shares and 900,000 attaching options at $0.033 per
share and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Greg MacMillan and his associate entities acquired 1,818,181 ordinary shares and 909,092 attaching options at $0.033 per share
and nil per option pursuant to the Share Purchase Plan acceptance.
Mr Kenneth Rogers acquired 606,062 ordinary shares and 303,032 attaching options at $0.033 per share and nil per option pursuant
to the Share Purchase Plan acceptance.
Page 40
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
ASX Additional Information
Additional information required by the Australian Stock Exchange Limited and not shown elsewhere in this report is as
follows. The information is current as at 23 September 2021.
(a) Distribution of Equity Securities
The number of shareholders, by size of holding, in each class of share are:
1
1,001
5,001
10,001
100,001
1,000
5,000
10,000
100,000
and over
Listed Ordinary Shares
Listed Options
Number of
Holders
157
Number of
Shares
42,452
293
485
2,300
1,512
4,747
1,035,529
3,997,800
97,219,753
1,451,229,413
1,553,524,947
Number of
Holders
Number of
Options
9
-
1
245
267
523
996
-
7,442
9,702,483
142,732,421
152,443,342
(b) Twenty Largest Shareholders
The names of the twenty largest holders of quoted shares are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
GDM SERVICES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
UNIVERSAL OIL (AUSTRALIA) PTY LTD
A P BARTON PERSON S/F A/C
BARTON SUPER FUND A/C
L & E FISHER NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
S F MARAVENTANO PTY LTD
SESNA PTY LTD
MR KENNETH JON CARTER & MRS MANDY EMMA CARTER
LASTING LEGACY PTY LTD
HOOKS ENTERPRISES PTY LTD
BARTON & BARTON PTY LTD
16. MRS CORINNE HEATHER BARTON
17. MARK LA STARZA SUPERANNUATION FUND PTY LTD
18.
19.
J & R SUPERANNUATION PTY LTD
TEMTOR PTY LTD
20. MR KENNETH ARNOLD ROGERS
(c) Voting Rights
Listed Ordinary Shares
Number of Shares Percentage
of Shares %
43,224,274
41,050,083
35,401,684
30,541,718
28,725,371
28,064,033
20,965,700
19,812,358
18,000,000
16,604,216
15,713,098
15,000,000
15,000,000
14,909,091
14,200,000
13,917,018
11,132,422
11,070,137
11,000,000
10,391,667
10,303,031
2.78%
2.64%
2.28%
1.97%
1.85%
1.81%
1.35%
1.28%
1.16%
1.07%
1.01%
0.97%
0.97%
0.96%
0.91%
0.90%
0.72%
0.71%
0.71%
0.67%
0.66%
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
Page 46
ASX Additional Information
(d)
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations
Act 2001 are:
Mr Anthony Barton and Associates
(e) Twenty Largest Quoted Option Holders
Number of Shares
104,660,157
Percentage of
Ordinary Shares %
6.737%
These options all have an exercise price of 6 cents and expire on the 31 July 2022.
Listed Options
Number of Options Percentage of
Options %
1
2
3
4
5
6
7
8
9
9
10
10
10
11
12
13
14
15
16
17
18
19
20
THE KING'S RANSOM (VIC) PTY LTD
M & K KORKIDAS PTY LTD
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
J & R SUPERANNUATION PTY LTD
MR MATTHEW WAYNE SOLMAN
OCEAN REEF HOLDINGS PTY LTD
CALM NOMINEES PTY LTD
L & E FISHER NOMINEES PTY LTD
IQ GLOBAL ASSET PARTNERS PTY LTD
DENILIQUIN PHARMACY (NSW) PTY LTD
MARRIOTT PRINTERY PTY LIMITED
INVICTUS CAPITAL PTY LTD
KHE SANH PTY LTD
MULLOWAY PTY LTD
MR ERIC JOHN ANDERSON
MR CRAIG LESLIE DIXON
SIRROM SUPER PTY LTD
MR PAUL JONATHAN WRIGHT
MR EDWARD JAMES HARWOOD & MRS BEVERLEY MARIE
HARWOOD
CITICORP NOMINEES PTY LIMITED
LHG SUPERANNUATION PTY LTD
BNP PARIBAS NOMINEES PTY LTD
7,000,000
6,299,837
5,530,306
4,200,000
3,105,164
2,500,000
2,121,213
2,037,880
2,037,880
2,000,010
2,000,000
2,000,000
2,000,000
1,750,000
1,666,667
1,582,148
1,500,000
1,460,096
1,446,965
1,250,000
1,121,214
1,100,000
1,077,270
4.59%
4.13%
3.63%
2.76%
2.04%
1.64%
1.39%
1.34%
1.34%
1.31%
1.31%
1.31%
1.31%
1.15%
1.09%
1.04%
0.98%
0.96%
0.95%
0.82%
0.74%
0.72%
0.71%
(f) Distribution of unquoted option holder numbers
Category (Size of Holding)
No of Option Holders
No of Options
100,001 and over
Page 47
2
2
7,000,000
7,000,000
ASX Additional Information
(g) Holders of more than 20% of unquoted options
There are no holders, holding more than 20% of the unquoted options on issue.
(h) On-Market Buyback
There is no on-market buy-
(i) Schedule of Mining Tenements
Area of Interest
Australia
Western Australia
Tenements
Comments
All of the Tenements are registered in the name of Speewah
Mining Pty Ltd, Treasure Creek Pty Ltd and Whitewater
Minerals Pty Ltd the wholly owned subsidiaries of King
River Resources Limited.
Note:
M = Mining Lease
E/EL = Exploration Licence
L = Miscellaneous Licence
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
East Kimberley
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
Tennant Creek
M80/267
M80/268
M80/269
E80/2863
E80/3657
E80/4468
E80/5007
E80/5133
E80/5176
E80/5177
E80/5178
E80/5192
E80/5193
E80/5194
E80/5195
E80/5196
L80/43
L80/47
EL31617
EL31618
EL31619
EL31623
EL31624
EL31625
EL31626
EL31627
EL31628
EL31629
EL31633
EL31634
EL32199
EL32200
EL32344
EL32345
Page 48