A N N U A L
R E P O R T
2 0 2 1
03
+61 (3) 5358 8625
@Navarre Minerals Ltd
info@navarre.com.au
@NavarreMinerals
navarre.com.au
@NavarreMinerals
CORPORATE
DIRECTORY
COMPANY
Navarre Minerals Limited ABN 66 125 140 105
DIRECTORS
Kevin Wilson (Chairman)
Ian Holland (Managing Director)
Geoff McDermott (Technical Director)
COMPANY SECRETARY
Mathew Watkins
REGISTERED OFFICE & PRINCIPAL
OPERATIONS OFFICE
40-44 Wimmera Street
PO Box 385 Stawell Victoria 3380
Australia
SHARE REGISTRAR
Boardroom Pty Limited
Level 7, 411 Collins Street
Melbourne Victoria 3000 Australia
Telephone +61 (2) 9290 9600
Facsimile +61 (2) 9279 0664
AUDITOR
RSM Australia Partners
Level 21, 55 Collins Street
Melbourne Victoria 3000 Australia
STOCK EXCHANGE LISTING
ASX Limited
Level 4, North Tower, Rialto, 525 Collins Street
Melbourne Victoria 3000 Australia
ASX Code: NML
INCORPORATED
30 April 2007
Victoria, Australia
U N E A R T H I N G P R O S P E R I T Y
The ground-breaking accomplishments of today
mean little without delivering a sustainable,
prosperous future for all stakeholders.
We are committed to discovering and developing
significant, generational assets - to go beyond our
predecessors and reach our greatest potential.
Be part of our legacy.
UNEARTHING PROSPERITYANNUAL REPORT 2021
05
CONTENTS
Chairman's Letter
Managing Director’s Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Review Report
Additional Shareholder Information
08
10
32
66
69
70
71
72
73
97
98
101
FORWARD
LOOKING
STATEMENTS
This Financial Report includes certain forward-
looking statements that have been based on
current expectations about future acts, events
and circumstances. These forward-looking
statements are, however, subject to risks,
uncertainties and assumptions that could cause
those acts, events and circumstances to differ
materially from the expectations described in such
forward-looking statements.
These factors include, among other things,
commercial and other risks associated with the
meeting of objectives and other investment
considerations, as well as other matters not yet
known to the Company or not currently considered
material by the Company.
UNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED L E A D I N G E X P L O R A T I O N
L E A D I N G E X P L O R A T I O N
I N V I C T O R I A ' S
I N V I C T O R I A ' S
‘ S E C O N D G O L D R U S H '
‘ S E C O N D G O L D R U S H '
08
09
KEVIN WILSON
CHAIRMAN
CHAIRMAN’S
LETTER
DEAR FELLOW SHAREHOLDER,
At our Stawell Corridor Gold Project, we announced a maiden
Geoff McDermott transitioning to a new role of technical
It is my pleasure to present the Navarre Minerals’ annual
Mineral Resource for the Resolution and Adventure prospects
director.
report for the year ended 30 June 2021.
of 304,300 ounces of gold at an average grade of 2.43 grams
I’m pleased to report that Navarre has progressed further
The Mineral Resource is the first instalment of what we
company in 2007 and as a public company from 2011 after
towards its ultimate objective of becoming a gold producer.
believe will be a growing resource base and the first step in
its ASX listing. Geoff’s continuing support is testament to his
This included exploration advances across our portfolio of
establishing the Stawell Corridor Gold Project as an emerging
belief in the quality of the Company’s portfolio of
Victorian gold projects, culminating in the announcement of a
gold-producing camp in western Victoria.
mineral assets.
per tonne (see our ASX announcement on 30 March 2021).
Geoff has led the Company from its foundation as a private
maiden Mineral Resource at our flagship Stawell Corridor Gold
Project.
At St Arnaud, we substantially expanded our tenement
We were also pleased to welcome Paul Hissey as the
position within the goldfield that historically produced
Company’s new chief financial officer. Paul has broad
Our busy drilling program has forged ahead amid a backdrop
400,000 ounces of gold. The Company completed a maiden
experience both as a geologist at the ‘coal face’ of mining
of conditions largely conducive for the Company and the gold
7,643 metre air-core drilling program on the Nelson and New
operations and in capital markets roles.
sector in general.
Bendigo lines of lode, revealing multiple options for the pursuit
While the global gold price has retreated somewhat on
Ian, who played a key role in reviving the nearby Fosterville
expectations that central banks will ease liquidity and increase
On the Glenlyle tenement, our first diamond drilling on the
gold project to what is now acknowledged as one of the
interest rates, the bullion price remains at historically high
exciting Morning Bill prospect has revealed the potential for
world’s biggest and richest gold mines.
levels in Australian dollar terms. In an increasingly uncertain
a large polymetallic mineral system hidden beneath shallow
world, gold’s reputation as a safe haven and a store of value is
cover.
likely to remain untarnished.
On behalf of the Board, I would also like to thank the
management team and staff of Navarre for a first-class job,
of additional gold discoveries.
The Board also acknowledges the outstanding leadership of
Then there’s the Tandarra Gold Project, our joint venture
as well as our shareholders for their unwavering support.
Despite industry-wide cost pressures, per-ounce gold margins
managed by 51 per cent partner Catalyst Metals Limited.
remain robust and the outlook for a late-stage explorer, cum-
Post balance date, Catalyst reported results from a 60 hole,
Mining projects ultimately only succeed with the support of
developer like us is positive.
6,764 metre drilling program that included intercepts of up
the local people, so we also thank the communities in which
Investor support for Navarre remains high, as evidenced by
announcement on 26 July 2021).
to nine metres at 14.8 grams of gold per tonne (see ASX
we operate.
our strongly oversubscribed $14.9 million placement and share
purchase plan completed in June this year.
In other corporate development, Navarre received a 17 per
cent shareholding in Resource Base Limited, as consideration
Of course, the COVID-19 pandemic remains an unwelcome
for divestment of the non-core Black Range Project. In July
backdrop for the Company and for Australians in general.
2021 Resource Base subsequently listed on the ASX under
Despite renewed lockdowns during the period, the disruption
the code RBX, valuing Navarre’s holding at approximately $1.3
was minimal, with our drilling activity accommodating the
million at the date of this report.
KEVIN WILSON
CHAIRMAN
17 September 2021
new operating measures introduced to keep our people,
contractors and the communities in which we operate safe
On the management front, we saw the smooth transition of
and healthy.
Ian Holland to the managing director role, with incumbent
UNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED
010
011
MANAGING DIRECTOR’S
REVIEW OF OPERATIONS
I am pleased to present my first review of operations as
Navarre’s managing director, covering a busy year as the
Company aggressively pursued its exploration programs
I’m also pleased to report Navarre navigated the shoals of
In October 2020, following a competitive tender process,
the ongoing COVID-19 pandemic, with disruption kept to a
Navarre was granted tenure over the historic St Arnaud
minimum, despite some exploration initially slowing as a result.
Goldfield, which adjoins the Company’s existing St Arnaud
We took the requisite precautions to protect not just our
Gold Project. The St Arnaud Goldfield historically produced
workers, but also the communities in which we operate.
400,000 ounces of gold and the Company wasted no time
following up legacy drill hits with its maiden drilling campaign
Navarre raised $8 million of equity capital in July 2020.
over the main producing areas.
In June this year, we bolstered our balance sheet via an
oversubscribed placement and share purchase plan that
across some of Australia’s most prospective, and proven, gold
The St Arnaud expansion followed the June 2020 acquisition
raised $14.9 million. This puts Navarre in a sound position for
precincts.
of the Jubilee Gold Project, 25km southwest of Ballarat.
the current year’s busy exploration program, which has already
Over the year, the Company carried out 38,323 metres of air-
gold at a recovered grade of about 12 grams per tonne from a
core, reverse circulation and diamond core drilling across its
single east-west trending quartz reef but had not been drilled
Highlights since year end include further diamond drilling on
key projects.
since the mine closed in 1913.
the Stawell project’s Adventure prospect, high grade zones at
The old Jubilee Mine historically produced 130,000 ounces of
started strongly.
In March this year the Company announced a maiden Mineral
Meanwhile, work continued on the 49 per cent owned
discovery of a new gold-bearing quartz reef with visible gold
Resource of 304,300 ounces at an average grade of 2.43
Tandarra Gold Project, in joint venture with Catalyst Metals
at the St Arnaud Gold Project.
grams per tonne for the flagship Stawell Corridor Gold Project,
Limited.
Tandarra, a major geophysics survey at Morning Bill and the
IAN HOLLAND
MANAGING DIRECTOR
covering the Resolution and Adventure prospects (see our
ASX announcement on 30 March 2021).
The Mineral Resource is located on the eastern flank of
the Irvine basalt dome, which has been subject to broader
exploration work across other targets. Ultimately, we aim to
deliver several potential advanced projects within commercial
distance of the nearby Stawell processing facility.
Work this year will focus on substantially increasing the size of
our resource base with further drilling planned for the Irvine
basalt dome and at St Arnaud.
During the year Navarre also carried out extensive exploration
programs at its wholly owned St Arnaud Gold Project and at
Glenlyle near Ararat, part of the greater Stawell Corridor Gold
Project.
Glenlyle contains Morning Bill, a greenfields prospect
discovered by the Company in 2018 under shallow cover.
Navarre’s first diamond core drilling program at Morning Bill
has revealed the prospect’s best gold, copper, lead and zinc
assays to date, including 16.5 grams per tonne gold, 1.2 per
cent copper, 9.1 per cent zinc and 4.8 per cent lead (see ASX
announcement on 2 & 10 June 2021).
Figure 1: Location of Navarre’s Victorian projects.
JUBILEETANDARRAST ARNAUDSTAVELY JVSTAWELL CORRIDORMELBOURNEVICTORIAAUSTRALIAFOSTERVILLEStawell CorridorStavely ArcBENDIGOBALLARATSTAWELLUNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED 012
013
STAWELL CORRIDOR GOLD PROJECT
(ELs 5476, 5480, 5497 6525, 6526, 6527, 6528, 6702, 6745 & 7125)
TABLE 1: Mineral Resources for Resolution and Adventure Prospects
OWNERSHIP
COMMODITY
LOCATION
GEOLOGICAL PROVINCE
PROJECT STAGE
100% Navarre Minerals
Gold
237km North-West
of Melbourne, Victoria
Cambro-Ordovician Stawell
Zone of the Lachlan Fold Belt
Advanced Exploration
Navarre has a dominant land position along 70 kilometres of
the prospective Stawell Gold Corridor, south on-strike of the
six million-ounce Stawell Goldfield (Figures 1 & 2).
Navarre’s wholly owned Stawell Corridor Gold Project contains
seven potential zones with geology similar to the operating
five million ounce Magdala Gold Mine, 20 kilometres north.
We are systematically exploring these targets from north
to south.
IRVINE BASALT DOME
The Company’s most advanced prospects are Resolution and
Adventure, on the prospective eastern margin of a nine-
kilometre Cambrian-age basalt dome (Irvine dome) within the
historic Ararat Goldfield (Figure 2). The two prospects are
located approximately 3 kilometres apart (see Figure 3).
Following an extensive drilling program, in March 2021 the
Company announced a maiden JORC 2012 Inferred Mineral
Resource1 estimate (MRE) for the Resolution and Adventure
prospects, of 304,300 ounces at an average grade of 2.43
grams per tonne (Table 1 and Figure 3).
This is the first significant MRE to be delineated on the Stawell
Corridor outside of Stawell’s operating Magdala Gold Mine
and represents the first step in what is expected to be an
ongoing process of resource growth and upgrade over the
short to medium term.
1. Refer ASX release on 30 March 2021 “Maiden Gold Mineral Resource &
Exploration Target for Resolution & Adventure Prospects.” The Company
confirms that it is not aware of any new information that affects the information
contained in the announcement.
PROSPECT
CUT-OFF GOLD (g/t)
INFERRED
TONNES
GOLD GRADE
GOLD OUNCES
Resolution OP
Adventure OP
Total OP
Resolution UG
>0.6
>0.6
>0.6
MSO
1,754,000
680,000
2,434,000
1,455,000
Total
Variable
3,889,000
2.09
1.85
2.02
3.12
2.43
118,000
40,300
158,300
146,000
304,300
◊ The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric tonnes. Minor
discrepancies may occur due to rounding to appropriate significant figures.
Full details relating to the MRE are contained in the ASX announcement dated 30 March 2021.
The Company also declared additional Exploration Targets1 of between 280,000 to 420,000 ounces of gold across these two
prospects, at an average grade of 2-3 grams per tonne of gold (Table 2 and Figure 3).
TABLE 2: Exploration Target for Resolution and Adventure Prospects
PROSPECT
Resolution
Adventure
Total
INFERRED
TONNES (Mt)
GOLD GRADE (g/t)
GOLD OUNCES (k Oz)
2.4 - 3.6
1.0 - 1.6
3.4 – 5.2
2.0 - 3.0
200 - 300
2.0 – 3.2
80 - 120
2.0 – 3.0
280 – 420
◊ The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration
to estimate a Mineral Resource in relation to this Exploration Target. It is uncertain if further exploration will result in the
estimation of a Mineral Resource in relation to these Exploration Targets
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 014
015
IN SUPPORT OF THE MRE,
HIGHLIGHT RESULTS
A 14,000 METRE DIAMOND DRILLING
CAMPAIGN WAS COMPLETED ON
TIME AND WITHIN BUDGET DURING
THE YEAR.
Navarre believes there is significant potential to increase the
size of the resource base at Resolution and Adventure, with
further expansion diamond drilling to test the down-plunge
directions which remain open at depth and along strike
(Figures 3-5).
5.0m @ 10.0 g/t Au
from 273.9m (RD027)
9.4m @ 5.3 g/t Au
from 355.6m, including 3.4m @ 9.2 g/t Au (RD028)
10.8m @ 4.5 g/t Au
from 483.6m, including 4.2m @ 7.5 g/t Au (RD028)
2.0m @ 9.9 g/t Au
from 235.8m (RD024)
1.0m @ 20.8 g/t Au
from 358.6m within a broader zone
of 10.3m @ 2.2 g/t Au (RD024)
0.6m @ 55.0 g/t Au
from 494.1m (RD032)
7.9m @ 4.3 g/t Au
from 441.4m, including 1.0m @ 11.7 g/t Au (RD032)
3.7m @ 3.8 g/t Au
from 381.3m (RD030)
3.2m @ 9.6 g/t Au
from 263.6m, including 0.9m @ 12.5 g/t Au (AD007)
8.4m @ 3.4 g/t Au
from 405.6m, including 0.9m @ 13.7 g/t Au (AD008)
0.5m @ 55.7 g/t Au
from 508.9m (RD033)
4.0m @ 3.1 g/t Au
from 558.8m (RD040)
See ASX announcements on 8 July 2020, 25
September 2020, 23 December 2020 & 11 March
2021; Figures 4 & 5
Figure 2: Stawell Corridor Gold Project location map.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 016
017
Figure 3: Longitudinal projection
of Resolution and Adventure
prospects showing gold
mineral inventory.
Figure 4: Longitudinal Projection
of the Resolution prospect’s South
Shoot showing significant drill
results (refer to ASX announcement
of 15 September 2021).
Figure 5: Longitudinal Projection of
the Adventure prospect showing
key drill intercepts (refer to ASX
announcement of 21 July 2021).
Post balance date the Company received results for
three diamond core holes for a total of 1,242 metres
drilled at the Resolution prospect which missed
the timing deadline to be included in the MRE. The
best result was 1.1 metres at 14.0 grams per tonne
gold in hole RD044 (see ASX announcements on 15
September 2021).
LANGI LOGAN BASALT DOME
South of the Irvine basalt dome, the 14.5 kilometre
long Langi Logan basalt dome is the next major
prospect for Magdala-style mineralisation within
the Stawell Corridor Gold Project (Figures 2 & 6).
Prior to World War One, deep-lead mining within
the prospect area produced approximately 133,000
ounces of gold from old river gravels now covered
by younger lava flows that range from two to 30
metres in thickness.
During the year, a 3,400 metre air core drilling
campaign has enhanced the potential scale of
the gold system through the identification of a
previously unknown 2.5 kilometre extension of the
basalt dome (Langi Logan North Extension on
Figure 6), offset to the west by a major east-west
trending transverse fault.
The reconnaissance air-core drilling highlighted
several areas of anomalous gold, quartz veining
and sulphides (pyrite + arsenopyrite) requiring
follow-up infill drilling.
Langi Logan is at an early exploration stage but has
the potential to be a new gold system similar to
that found on the flanks of the Irvine and Magdala
basalt domes.
Figure 6: Gravity image showing drill results, including historical,
and geological interpretation (refer to ASX announcement of 14 January 2021).
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 018
019
GLENLYLE PROJECT
HIGHLIGHT INTERCEPTS
Situated 25 kilometres south-west of Ararat, the Glenlyle
tenement captures a large circular intrusive complex within
the Dryden-Stavely Volcanic Belt (Figure 2). This belt of
rocks also hosts the Cayley Lode copper discovery of Stavely
Minerals (ASX: SVY), 25 kilometres south-on-strike at Stavely’s
nearby Thursdays Gossan deposit.
The Glenlyle tenement contains the exciting Morning Bill
discovery, a greenfields prospect discovered by Navarre
in 2018.
During H1 2021, Navarre completed the first ever diamond core
testing program of Morning Bill, with a total of 2,994 metres of
drilling completed across eight holes as follow-up to strongly
anomalous gold, silver, copper, lead and zinc mineralisation
reported in earlier air-core drilling (refer ASX announcements
1.9m @ 10.1 g/t gold
from 142.6m, including 1.0m @ 16.5 g/t gold, 216.0 g/t
silver & 2.0% zinc from within a broader interval of
46.8m @ 0.5 g/t gold from 120.5m (GDD001)
2.5m @ 3.7 g/t gold
from 364.9m, including 0.9m @ 9.1 g/t gold (GDD001)
305.4m @ 3.0 g/t silver
from 72.6m, including 1.9m @ 130.2 g/t silver (GDD001)
6.7m @ 1.8 g/t gold, 2.4 g/t silver,
1.5% zinc, 0.4% lead & 0.1% copper
from 208.6m (GDD003), including:
on 4 February 2021, 4 & 18 March 2021 and 2 & 10 June 2021).
0.4m @ 10.1 g/t gold, 11.4 g/t silver, 9.1% zinc, 4.8% lead & 0.2% copper;
The target area covered a 1,100-metre strike extent and a
0.3m @ 2.3 g/t gold, 2.0 g/t silver, 1.8% zinc and 1.2% copper;
0.4m @ 8.0 g/t gold, 2.7 g/t silver, 4.9% zinc and 0.2% copper;
Figure 7: Straw-yellow sphalerite (zinc) and grey galena (lead) mineralisation at 213m in GDD003 (LHS) and chalcopyrite (copper)
mineralisation at approximately 215m down hole in GDD003 (RHS).
width of up to approximately 400 metres (Figure 8).
This near-surface mineralisation remains open along strike
and at depth.
All eight diamond holes intersected variably broad to strong
gold, silver and associated polymetallic mineralisation,
including peak assays of 16.5 grams per tonne gold, 1.2%
copper, 9.1% zinc and 4.8% lead (Figure 7).
The results provide further evidence that Morning Bill is an
emerging large, concealed gold-silver system with
polymetallic potential.
A major geophysics program is now underway as a prelude to
a drilling program to start later this year.
The knowledge gained about Morning Bill’s mineralisation will
be applied to follow up drilling programs scheduled for later
in the year, following completion of the annual crop harvest.
0.6m @ 3.6 g/t gold, 9.0 g/t silver,
0.5% zinc and 0.2% lead
from 363.7m (GDD002A)
9.7m @ 1.1 g/t gold
from 306.8m from within a broader zone of 30.5m
@ 0.6 g/t gold, (GDD006)
278.9m @ 2.8 g/t silver
from 70.2m, including 1.4m @ 117.1 g/t silver (GDD006)
194.8m @ 1.1 g/t silver
from 222.7m to end of hole (GDD007)
5.1m @ 13.7 g/t silver
from 298.5m to end of hole, including 1.0m
@ 58.6 g/t silver (GDD005)
See Figure 8 and ASX announcements on 4 February
2021, 4 & 18 March 2021, 2 & 10 June 2021 and 23
August 2021
Figure 8: Plan of Morning Bill showing diamond and air core results on magnetic image.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 020
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TANDARRA GOLD PROJECT
(RL 6660) (joint venture with operator Catalyst Metals Limited)
OWNERSHIP
COMMODITY
LOCATION
GEOLOGICAL PROVINCE
PROJECT STAGE
Navarre Minerals 49%
Catalyst Metals 51%
Gold
North-West of Melbourne,
Victoria
Bendigo-Ballarat Zone of
Lachlan Fold Belt overlain by
Recent Murray Basin cover
Early Exploration
THE HIGH-GRADE TANDARRA GOLD
PROJECT IS LOCATED 50 KILOMETRES
NORTHWEST OF KIRKLAND LAKE
GOLD’S WORLD-CLASS FOSTERVILLE
GOLD MINE, AND 40 KILOMETRES
NORTH OF THE 22 MILLION-OUNCE
BENDIGO GOLDFIELD (FIGURE 1).
Led by Catalyst, exploration at Tandarra is targeting the next
generation of gold deposits under shallow cover in the region.
The Tandarra Gold Project comprises three main prospects,
Macnaughtan, Tomorrow and Lawry that are concealed
beneath a blanket of younger, post-mineralisation sediments
of the Murray Basin (Figure 9). These three prospects are
adjacent to one another and are located in the hangingwall of
the Whitelaw Fault, a major structural control of gold
mineralisation at Bendigo.
During the year the Tandarra Joint Venture completed a total
of 10,509 metres of air-core, RC and diamond drilling across
the Macnaughtan, Tomorrow and Lawry prospects.
TOMORROW PROSPECT
At the Tomorrow prospect, diamond holes TND003-TND006
and reverse circulation holes TNR001-TNR005 were
completed in April 2021.
The drilling targeted repetitions of gold-bearing fault
structures at depth, below the main zone.
Figure 9: Plan of the Macnaughtan, Tomorrow and Lawry
prospects showing significant 2021 drilling results.
(Diagrams reproduced courtesy of Catalyst Metals Limited).
Hole TND003 returned the best results of 2.9 metres at 1.6
grams per tonne gold from 158 metres and 2.6 metres at 3.5
grams per tonne gold from 177 metres, confirming the position
of the upper west-dipping mineralised fault.
HIGHLIGHT INTERCEPTS (MACNAUGHTAN)
Drilling also intersected a deeper fault structure about 450
metres downhole, demonstrating repetition at depth albeit
with less alteration and lower gold values.
Further drill testing is required at all three prospects to infill
and expand the known extends of gold mineralisation which
remains open along strike and at depth.
13m @ 7.8 g/t gold
from 78m, including 2m @ 44.8 g/t gold (ACT464)
9m @ 14.8 g/t gold
from 106m, including 1m @ 112 g/t gold and 10m
@ 1.7 g/t gold from 119m from within a broader interval
of 30m @ 5.1 g/t gold from 105m (TNA050)
MACNAUGHTAN PROSPECT
Air-core drilling completed on the Macnaughtan prospect
has confirmed extensive zones of near surface, gold-bearing
quartz reef development. Two diamond holes testing beneath
one of the better air-core results (ACT464), intersected a broad
10 metre wide mineralised fault zone containing extensive
quartz veining with visible gold.
1m @ 18.7 g/t gold
from 70m (TNA039)
1m @ 9.4 g/t gold
from 75m (TNA032)
4m @ 1.6 g/t gold
from 89m, including 1m @ 5.7 g/t gold (TNA038)
2.45m @ 54.8 g/t gold
from 230.7m, including 0.3m @ 412 g/t gold (TND002)
See ASX announcements on 13 October 2020, 15
April 2021 and 26 July 2021
LAWRY PROSPECT
HIGHLIGHT INTERCEPTS (LAWRY)
Infill air-core drilling around the previously reported Lawry
discovery hole (ACT378) encountered significant gold
mineralisation in three holes located 50 metres west, 100m
north and 100m south of the Lawry hole hole (refer ASX
announcement of 13 October 2020).
This gold mineralisation remains open to the north,
south and at depth.
6m @ 3.2 g/t gold
from 57m and 2m @ 16.3 g/t gold from 102m (TNA017)
6m @ 1.3 g/t gold
from 58m (TNA014)
4m @ 1.0 g/t gold
from 98m and 1m @ 1.2 g/t gold from 128m (TNA015)
See ASX announcement on 15 April 2021
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 022
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ST ARNAUD GOLD PROJECT
(ELs 6556, 6819, 7431 & 7567)
OWNERSHIP
COMMODITY
LOCATION
GEOLOGICAL PROVINCE
PROJECT STAGE
100% Navarre Minerals
Gold
Silver
244km North-West
of Melbourne, Victoria
Bendigo-Stawell Zone,
Lachlan Fold Belt
Early Exploration
THE ST ARNAUD GOLD PROJECT
SURROUNDS THE HISTORICAL
ST ARNAUD GOLDFIELD, WHICH
The drilling returned strong gold and silver results, highlighting
significant areas for follow-up diamond drill testing as a first
step towards targeting a maiden mineral resource.
PRODUCED APPROXIMATELY 400,000
In addition to the air-core program, the Company is part way
through a 9,000 metre diamond core drilling program testing
OUNCES OF GOLD BETWEEN 1855 AND
beneath the best AC results on the New Bendigo and Nelson
1916 AT AN AVERAGE GRADE OF 15
lines of reef.
GRAMS PER TONNE.
Post balance date the Company received results for thirteen
diamond core drill holes carried out on the New Bendigo line
High-grade gold was mined from quartz lodes in a structural
(refer Figures 10 & 11).
setting consistent with most gold deposits in central Victoria,
including Bendigo and Fosterville (Figure 1).
Highlights include a gold intercept of 0.4 metres at 38.3 grams
In a competitive tender process, in October 2020 the Victorian
grams per tonne gold from 153.7 metres (NBD005) and 1.4
Government’s Earth Resource Regulation granted Navarre
metres at 13.1 grams per tonne, within a broader interval of 6.2
tenure over the St Arnaud Goldfield, which adjoins the
metres at 3.7 grams per tonne gold (NBD013).
per tonne gold, within a broader interval of one metre at 15.6
Company’s existing St Arnaud Gold Project.
In the June quarter, Navarre completed its inaugural 7,643
Company’s ASX announcements of 11 February 2021, 1 & 26
metre reconnaissance drilling program across 113 air-core
March 2021, 16 June 2021 and 15 September 2021.
Further details of the drilling programs are provided in the
holes testing beneath the shallow gold workings of the
recently granted exploration licence, EL 6819.
HIGHLIGHT INTERCEPTS
20m @ 1.8 g/t gold
from 33m, including 1m @ 9.2 g/t gold and 1m
@ 6.9 g/t gold, and 1m @ 5.5 g/t gold from
62m (SAC145)
4m @ 3.0 g/t gold
from 6m (SAC143)
3m @ 2.2 g/t gold
from 49m (SAC159)
1m @ 36.4 g/t gold
from 41 metres (SAC223)
6m @ 1.2 g/t gold and 67.0 g/t silver
from 20m (SAC208), including:
2m @ 172.0 g/t silver and 2.5 g/t gold
4m @ 3.3 g/t gold and 5.6 g/t silver
from 24m (SAC213)
Figure 10: Location of Navarre’s significant drill
intercepts within the St Arnaud Goldfield.
1m @ 8.2 g/t gold
from 20m (SAC226)
9m @ 1.5 g/t gold
from 15m (SAC172)
1m @ 6.3 g/t gold
from 65m (SAC189)
1m @ 5.7 g/t gold and 34.8 g/t silver
from surface (SAC199)
7m @ 1.0 g/t gold
from 32m (SAC227)
See ASX announcement on 16 June 2021
Figure 11: Longitudinal projection of the north end of the
New Bendigo Line showing significant drill intercepts.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 024
025
BLACK RANGE PROJECT
(EL 4590)
STAVELY PROJECT
(EL 5425) (NAVARRE 49%)
Having deemed the copper-gold asset as non-core, in July 2021
Navarre sold its 100% interest in EL 4590 to Resource Base
Ltd in return for a 17 per cent interest in Resource Base.
Resource Base successfully listed on the ASX under the code
RBX in July 2021.
The Black Range Project captures three fault-bound segments
of the Stavely Arc Volcanics.
JUBILEE GOLD PROJECT
(EL 6689)
OWNERSHIP
COMMODITY
LOCATION
GEOLOGICAL PROVINCE
PROJECT STAGE
100% Navarre Minerals
Gold
Silver
143km west of
Melbourne, Victoria
Tasman Orogenic Belt,
Middle Devonian
Early Exploration
Stavely Minerals Limited (ASX: SVY) (Stavely) may earn up to
an 80% equity interest in EL 5425 from Navarre by spending
$450,000 over a five year period. EL 5425 is adjacent to
Stavely’s wholly owned EL 4556 tenement that contains the
Cayley Lode copper discovery at their nearby Thursdays
Gossan deposit.
During the year, Stavely received results from a 7,500 line
kilometre regional airborne gravity survey recently flown over
its combined Stavely project area, inclusive of EL 5425 (refer
SVY ASX announcement of 15 March 2021).
The survey results are being reviewed to aid identification
of regional exploration targets obscured by shallow
transported cover.
Auger geochemical assays of 39 samples were also carried out
but did not locate any significant porphyry pathfinder
elements.
The Jubilee Gold Project includes the historical 619 metre deep
Jubilee Gold Mine which produced approximately 130,000
ounces of gold, at an average grade of 12 grams per tonne.
After operating for 26 years the mine closed in 1913 and no
drilling had taken place since then.
During the year, Navarre’s 3,444 metre reconnaissance
air-core drilling campaign returned strongly anomalous gold
grades of up to 1.5 grams per tonne across three targets.
These are associated with abundant quartz veining and have
significantly expanded the footprint and robustness of the
Jubilee project.
A deeper target below the old mine workings remains to be
tested with diamond drilling.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 026
027
CORPORATE
CAPITAL RAISING
Navarre raised $8 million of equity capital in July 2020. In June
2021, the Company further strengthened its balance sheet
via an oversubscribed placement and share purchase plan that
raised a combined $14.9 million.
With $14.1 million cash as of 30 June 2021, Navarre is well
funded to continue its ongoing exploration programs.
BOARD MOVEMENTS
Ian Holland was appointed as an independent non-executive
director in May 2020 and was subsequently appointed
joint managing director on 1 September 2020 and
managing director on 1 April 2021, as part of a phased
succession program.
Navarre’s foundation managing director Geoff McDermott
was appointed technical director on 1 April 2021.
OUTLOOK
With a strong balance sheet, Navarre is in an excellent position
to pursue its multi-faceted exploration program at a time
of sustained investor interest in the Victorian gold story.
The board and management look forward to updating
shareholders on the exploration program.
IAN HOLLAND
MANAGING DIRECTOR
17 September 2021
COMPETENT PERSON DECLARATION
The information in this Annual Report that relates to
Exploration Targets, Exploration Results, Mineral Resources
or Ore Reserves is based on information compiled by Shane
Mele, who is a Member of The Australasian Institute of Mining
and Metallurgy and who is Exploration Manager of Navarre
Minerals Limited. Mr Mele has sufficient experience which is
relevant to the style of mineralisation and type of deposit
under consideration, and to the activity which he is
undertaking, to qualify as a Competent Person as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’.
Mr Mele consents to the inclusion in the release of the
matters based on his information in the form and context
in which it appears.
The information in this announcement that relates to
Navarre’s Exploration Results have been extracted from
various Navarre ASX announcements and are available to view
on the Company's website at www.navarre.com.au or through
the ASX website at www.asx.com.au (using ticker code "NML").
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcement.
The Company confirms that the form and context in which
the Competent Person's findings are presented have not been
materially modified from the original market announcements.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 028
029
TENEMENT INFORMATION (AS AT 15 SEPTEMBER 2021)
PROJECT
BENDIGO NORTH
TENEMENT
GROUP
DETAILS (1, 2)
INTEREST
PROJECT
TENEMENT
DETAILS (1, 2)
GROUP
INTEREST
Tandarra 3
RL 6660
49%
WESTERN VICTORIA COPPER
Black Range 4
EL 4590
0%
Stavely 5
EL 5425
49%
STAWELL CORRIDOR
Ararat
Tatyoon
Glenlyle
Long Gully
Westgate
Hospital Hill
Napoleon
ST ARNAUD
St Arnaud
Lord Nelson
St Arnaud East
JUBILEE GOLD PROJECT
Jubilee
Ballarat
◊ Notes:
EL 5476
100%
Snake Hill
ELA 6530
0%
EL 5480
100%
Langi Logan
EL 6702
EL 5497
100%
Langi Logan West
EL 6745
100%
100%
EL 6525
100%
Margaret Gully
ELA 6843
0%
EL 6526
100%
Mininera
EL 7125
100%
EL 6527
100%
Tatyoon North
ELA 7743
0%
EL 6528
100%
EL 6556
100%
St Arnaud West
ELA 7436
EL 6819
EL 7431
100%
100%
Donald
Jeffcott
0%
0%
ELA 7496
EL 7567
100%
EL 6689
100%
Ballarat
ELA 7539
ELA 7538
0%
East Jubilee
ELA 7748
0%
0%
1. EL = Exploration Licence; ELA = Exploration Licence Application;
RL = Retention Licence.
2. All tenements are located in Victoria.
3. Catalyst Metals Ltd completed all obligations to earn a 51% interest
under a farm-out agreement with Navarre. In addition to its ownership of
the Tandarra licence in the Bendigo North area, Navarre is entitled to a 1%
royalty on Catalyst’s share of proceeds from future production from
part of the area covered by exploration licences EL 5266 (Raydarra)
and EL 5533 (Sebastian).
4. In July 2021, Resource Base Limited acquired EL 4590 from Navarre.
For further details, see Note 26.
5. Stavely Minerals Limited completed its obligations to earn a 51%
interest and may earn a further 29% interest under an earn-in and
joint venture agreement with Navarre.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 030
031
STATEMENT OF MINERAL RESOURCES
The information in this section is drawn from the
SUMMARY OF SIGNIFICANT CHANGES SINCE 2020
underpinning the estimates in the original release continue
AND ORE RESERVES
following release:
Navarre is not aware of any new information or data that
to apply and have not materially changed. Navarre confirms
Navarre Minerals Limited intends to release its Annual
Statement of Mineral Resources and Ore Reserves estimates
as of 30 June each year. This is the inaugural Annual
Statement of Mineral Resources and Ore Reserves for Navarre.
DEPOSIT
In March 2021, Navarre declared a maiden Inferred Mineral
Resource of 3.9Mt @ 2.43 g/t gold for 304,300 ounces of gold
for the Resolution and Adventure deposits within its wholly
owned Stawell Corridor Gold Project.
As of 30 June 2021, Navarre has not declared any Ore Reserve
estimates for its projects.
Adventure & Resolution Mineral
Resources as of 26 March 2021
(Maiden Gold Mineral Resource & Exploration Target
for Resolution & Adventure Prospects)
RELEASE DATE
30-Mar-21
MINERAL RESOURCES AS OF 30 JUNE 2021
MEASURED
INDICATED
INFERRED
TOTAL
materially affects the information contained in the Mineral
that the form and context in which the Competent Person’s
Resource estimates of the Adventure and Resolution deposits
findings are presented have not been materially modified from
since announcement of the maiden Mineral Resources on 30
the original release.
March 2021.
3. The information in this report that relates to Exploration
GOVERNANCE AND INTERNAL CONTROLS
Results, Exploration Targets and Mineral Resources is based
The Minerals Resources estimate in this statement have
on, and fairly reflects, information compiled by Mr Shane
been prepared in accordance with the 2012 Edition of the
Mele, who is a Member of The Australasian Institute of
Australasian Code for Reporting of Exploration Results,
Mining and Metallurgy and who is Exploration Manager of
Mineral Resources and Ore Reserves (JORC Code 2012 Edition)
Navarre Minerals Limited. Mr Mele has sufficient experience
by suitably qualified and experienced Competent Persons.
which is relevant to the style of mineralisation and type of
The estimates are reviewed by internal and external qualified
deposit under consideration, and to the activity which he is
professionals and the Board of Navarre reviews and approves
undertaking, to qualify as a Competent Person as defined in
the estimates prior to public release.
the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.”
COMPETENT PERSON STATEMENT
Mr Mele consents to the inclusion of the material in this report
1. The Annual Mineral Resources and Ore Reserves Statement
in the form and context in which it appears.
has been compiled by Mr Geoff McDermott, who is a Member
of the Australasian Institute of Geoscientists. Mr McDermott
4. The information in this report that relates to the
is the Technical Director and a full-time employee of Navarre
Estimation and Reporting of Mineral Resources has been
Minerals Limited. Mr McDermott has sufficient experience
compiled by Mr David Coventry BSc (Geology) and Mr Richard
Au
g/t
Tonnes
Mt
Au
g/t
Tonnes
Mt
Au
g/t
Tonnes
Mt
Au
g/t
Au
oz
which is relevant to the style of mineralisation and type of
Buerger BSc (Geology).
deposit under consideration, and to the activities undertaken
1.75
2.09
1.75
2.09
118,000
Edition of the “Australasian Code for Reporting of Exploration
of Mining Plus Pty Ltd and have acted as independent
to qualify as a Competent Person as defined in the 2012
Both Mr Coventry and Mr Buerger are full-time employees
1.46
3.12
1.46
3.12
146,000
0.68
1.85
0.68
1.85
40,300
3.89
2.43
3.89
2.43
304,300
Results, Mineral Resources and Ore Reserves (The JORC Code).
consultants on the Resolution and Adventure prospects
Mr McDermott consents to the inclusion of the material in this
Mineral Resource estimations. Mr Coventry is a Member of the
report in the form and context in which it appears.
Australasian Institute of Geoscientists (#5288) and Mr Buerger
is a Member of the Australian Institute of Geoscientists (#6031).
2. The information in this Annual Report that relates to
Both have sufficient experience with the style of mineralisation
Mineral Resources or Ore Reserves as of 30 June 2021 has
and the deposit type under consideration, and to the activities
been extracted from the release titled “Maiden Gold Mineral
undertaken to qualify as a Competent Persons as defined in
Resource & Exploration Target for Resolution & Adventure
the 2012 Edition of the “Australasian Code for Reporting of
Prospects” dated 30 March 2021 (the original release). Navarre
Exploration Results, Mineral Resources and Ore Reserves.”
confirms that it is not aware of any new information or data
Mr Coventry and Mr Buerger consent to the inclusion in this
that materially affects the information included in the original
report of the contained technical information relating to the
release and, in the case of Mineral Resources or Ore Reserves,
Mineral Resource estimations in the form and context in
that all material assumptions and technical parameters
which it appears.
DEPOSIT
Tonnes
Mt
-
-
-
-
Resolution OP
Resolution UG
Adventure OP
Total Stawell
Corridor
◊ Notes:
-
-
-
-
-
-
-
-
-
-
-
-
1. The long-term gold price assumption for Mineral Resources and Ore
Reserves was AUD$2,500 per ounce.
2. The OP cut-off gold grade used was >0.6 g/t.
3. Mineral Resources for the Resolution UG are spatially constrained within
notional mining volumes to eliminate mineralisation that does not have
reasonable prospects of eventual economic extraction.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 032
033
DIRECTORS’
REPORT
The directors present their report together with the
consolidated financial statements of the group comprising
Navarre Minerals Limited (variously the “Company”,
“Navarre” and “Navarre Minerals”) and its subsidiaries
(together, the “Group”) for the financial year ended 30
June 2021. Navarre Minerals is a company limited by shares,
incorporated and domiciled in Australia. In order to comply
with the provisions of the Corporations Act 2001,
the directors report as follows:
1. DIRECTORS
The names and details of the Company’s directors in office
during the financial year and until the date of this report are as
follows. The directors were in office during the entire period
unless otherwise stated.
DIRECTOR
Kevin Wilson
Appointed
30 April 2007.
DESIGNATION &
INDEPENDENCE
STATUS
Chairman
QUALIFICATIONS, EXPERIENCE & EXPERTISE
DIRECTORSHIPS
OF OTHER LISTED
COMPANIES
SPECIAL
RESPONSIBILITIES
DURING THE YEAR1
BSc (Hons), ARSM, MBA
Los Cerros Limited
Chairman of the Board.
Mr Wilson has over 30 years’ experience in the minerals and finance
(ongoing).
Non-executive
industries. He was the Managing Director of Rey Resources Limited,
Chairman of the Nomination &
an Australian energy exploration company, from 2008 to 2016 and the
Investigator
Remuneration Committee.
Independent
Managing Director of Leviathan Resources Limited, a Victorian gold mining
Resources Limited
company, from its initial public offering in 2005 through to its sale in 2006.
(ongoing).
Chairman of the Audit
He has prior experience as a geologist with the Anglo American Group in
Africa and North America and as a stockbroking analyst and investment
banker with CS First Boston and Merrill Lynch in Australia and USA.
Committee from 2 April to
25 June 2020 and from 1
September 2020.
Ian Holland
Managing
Appointed 25 May 2020.
Director
BSc, MMinGeoSc, FAusIMM, F Fin, MAICD
None.
Chairman of the Audit
Mr Ian Holland has over 20 years’ experience in the minerals industry
Committee from 25 June to 31
Executive
He is a geologist by background and has a strong track record of value
across a number of gold and base metal operations throughout Australia.
August 2020.
Appointed Managing
Director on
1 September 2020.
Geoff McDermott
Appointed Managing
Director on 19 May 2008.
Appointed Technical
Director on 1 April 2021.
Technical
Director
Executive
Colin Naylor
Appointed 5 November
2010 and resigned 27
November 2020.
Appointed Company
Secretary on 31 July 2018
and resigned 31 December
2020.
Director &
Company
Secretary
Non-
Independent
creation with his most recent previous role as Vice President, Australian
Operations for Kirkland Lake Gold where he led the growth of the world-
class Fosterville Gold mine in Victoria. He was also previously the General
Manager of Fosterville for a number of years as well as roles at Mount Isa
Mines, Mount Gordon and Renison.
Member of the Nomination
& Remuneration Committee
from 25 June 2020.
BSc (Hons), MAIG
None.
Member of the Nomination &
Mr McDermott is a geologist with over 30 years’ industry experience
Remuneration Committee.
working in surface and underground metalliferous mining operations,
in mineral exploration and as a consultant to the minerals industry. Mr
McDermott has a broad range of international experience having worked
as a geologist in Canada, Fiji and Australia for companies such as Western
Mining Corporation and Rio Tinto and with the Government of the
Northwest Territories, Canada. From 2002 until 2007, Mr McDermott was
Chief Geologist and Group Geologist with MPI Mines Limited and Leviathan
Resources Limited.
B.Bus (Acc), FCPA
Mr Naylor was previously Chief Financial Officer and Company Secretary
of oil and gas explorer, Melbana Energy Limited, a position held for over 11
years until July 2018. Before joining Melbana, Mr Naylor held a number of
None.
Member of the Audit
Committee and the
Nomination & Remuneration
Committee until 27 November
senior roles in major resource companies, including Woodside Petroleum,
2020.
BHP Petroleum and Newcrest Mining. Mr Naylor also worked at MPI Mines
Limited and Leviathan Resources Limited.
1 From 28 January 2021, the Board fulfilled the role of Nomination & Remuneration Committee and Audit & Risk Committee
UNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED
034
035
1. DIRECTORS (CONT.)
4. OPERATING AND FINANCIAL REVIEW
INTERESTS IN THE SHARES AND
OPTIONS OF THE COMPANY
As at the date of this report, the relevant
beneficial and non-beneficial interests of
each of the directors in the shares and
share options in the Company were:
ORDINARY
SHARES
OPTIONS
PERFORMANCE
RIGHTS
K Wilson
13,906,085
1,700,000
-
4.1 PRINCIPAL ACTIVITIES
c) Share issues
The principal activities during the year were mineral
In July 2020, Navarre raised $8,000,000 (before transaction
exploration in Victoria, Australia.
costs) from a share placement to institutional and
sophisticated investors, resulting in the issue of 64,000,000
The Company had 10 permanent employees at 30 June 2021
ordinary shares at an issue price of $0.125 per share.
I Holland
2,300,000
-
1,000,000
including directors (2020: 6).
G McDermott
14,555,792
5,000,000
-
4.2 ENVIRONMENT, HEALTH AND SAFETY
costs) from issuing 200,000 fully paid ordinary shares
The Group conducts exploration activities in Victoria. No
following the exercise of unlisted employee share options
In August 2020, Navarre raised $14,400 (before transaction
The terms of these options are set out in Note 23 to the consolidated financial statements.
mining activity has been conducted by the Group on its
(exercise price $0.072, expiry date 31 December 2021).
2. COMPANY SECRETARY
Mr Colin Naylor held the position of Company Secretary from 31
July 2018 until 31 December 2020. Ms Jodi Ford was appointed
interim Company Secretary for the period 1 January 2021 to 28
January 2021, at which time Mr Mathew Watkins was appointed
Company Secretary. As a result of Mr Watkins’s appointment,
Ms Ford reverted to her previous role as Assistant Company
Secretary.
Mr Watkins is a Chartered Accountant who has extensive
ASX experience within several industry sectors including
Biotechnology, Bioscience, Resources and Information
Technology. He specialises in ASX statutory reporting, ASX
compliance, Corporate Governance and board and secretarial
support. Mr Watkins is appointed Company Secretary on a
number of ASX listed Companies as well as a number of public
unlisted companies.
Mr Watkins is employed at Leydin Freyer, a professional
Company Secretarial and Accounting firm. Leydin Freyer have
vast experience working with listed entities and brings a strong
background of working with growing companies within the
Resources sector.
3. DIVIDENDS
No dividend has been paid, provided or recommended during
the financial year and to the date of this report (2020: nil).
exploration licences, and its exploration activities to date have
had a low level of environmental impact.
In November 2020, Navarre issued 500,000 fully paid ordinary
shares following the exercise of unlisted performance rights
The Group’s exploration operations are subject to
(expiry date 31 December 2024).
environmental and health and safety regulations under the
various laws of Victoria and the Commonwealth. There were
In December 2020, Navarre raised $288,860 (before
no reported Lost Time Injuries or environmental incidents
transaction costs) from issuing 2,200,000 fully paid ordinary
during the year.
4.3 REVIEW OF OPERATIONS
shares following the exercise of unlisted share options
(exercise price $0.1313, expiry date 17 May 2022).
Refer to the Managing Director’s Review of Operations 2021
In March 2021, Navarre raised $132,000 (before transaction
on pages 10 to 26.
costs) from issuing 1,100,000 fully paid ordinary shares
following the exercise of unlisted employee share options
4.4 REVIEW OF FINANCIAL POSITION
(exercise price $0.12, expiry date 17 May 2024).
a) Results for the year
The net loss for the financial year, after provision for income
In June 2021, Navarre raised $10,000,000 (before transaction
tax, was $2,723,684 (2020: loss after tax of $984,124).
costs) from a share placement to institutional and
sophisticated investors, resulting in the issue of 100,000,000
b) Review of financial condition at the balance date
ordinary shares at an issue price of $0.10 per share. Also
At balance date the Group held cash and cash equivalents of
during June 2021, Navarre raised $4,893,000 (before
$14,095,825. During the year the Group increased the cash
transaction costs) from a Share Purchase Plan, resulting in the
balance by $11,499,177 following net proceeds from share
issue of 48,930,000 ordinary shares at an issue price of $0.10
issues of $22,048,991 and interest received of $70,721, which
per share.
was partially used to meet investment, exploration and capital
net cash outflows of $7,707,187, corporate costs of $2,897,836
d) Significant changes in the state of affairs of the Group
and lease liability repayments of $15,512.
during the financial year
During the year, the Group raised $23,328,260 (before
transaction costs) through capital raising initiatives, as detailed
above (under the heading “Share issues”). The purpose of the
capital raisings was mainly to enable the Company to pursue
exploration programs at its portfolio of assets in Victoria.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 036
037
e)
$1,520,000
in Resource Base shares on
settlement (at Resource Base Initial
Public Offering price of $0.20
per share);
2,500,000
Resource Base shares on the
4. OPERATING AND FINANCIAL REVIEW (CONT.)
e) Significant events after the balance date
On 16 February 2021, Navarre announced the execution of a binding
agreement with Resource Base Limited (Resource Base) for the sale of
the Company’s Black Range base metal exploration tenement (EL 4590)
in western Victoria, which includes the Eclipse prospect.
As consideration for acquiring 100% ownership in the tenement,
Resource Base agreed to provide Navarre the adjacent considerations,
subject to the satisfaction or waiver of certain conditions precedent.
On 12 July 2021, following successful completion of its Initial Public
announcement of a JORC compliant
Offering, Resource Base was admitted to the Official List of ASX Limited.
Inferred Mineral Resource of:
As a result, the Company was issued 7,600,000 fully paid ordinary shares
a minimum of 100,000 ounces of gold at a
minimum grade of no less than 1 g/t; or
a minimum of a combined 100,000 tonnes of
copper and zinc, each at a minimum grade of
1%, within 5 years of the settlement date; and
6,000,000
Resource Base shares on delivery of
a definitive feasibility study within 5
years of settlement which indicates
a project net present value of
greater than $250,000,000.
In addition, Navarre was entitled
to nominate one non-executive
director to sit on the Board of
Resource Base.
in Resource Base.
On 1 July 2021, Navarre issued 3,300,000 share performance rights to
senior staff of the Company under the terms of the Navarre Minerals
Limited Performance Rights Plan.
In September 2021, Navarre’s application to participate in the Federal
Government’s Junior Minerals Exploration Incentive (JMEI) scheme for
the 2021/2022 income tax year was accepted by the Australian Taxation
Office. The Company has received an allocation of up to $1,250,000
exploration credits which can be distributed to eligible shareholders,
being those that are Australian resident shareholders who apply for and
are issued new shares in Navarre’s capital raising activities between 1
September 2021 and 30 June 2022.
Other than the above, there has not arisen in the interval between the
end of the financial year and the date of this report any item, transaction
or event of a material and unusual nature likely, in the opinion of the
directors of the Company, to significantly affect the operations of the
Group, the results of those operations, or state of affairs of the Group,
in future financial years.
f) Likely developments and expected results
During the year under review, the Group continued to focus on the Irvine Gold Project and Tandarra Gold Project,
while also broadening its mineral exploration activities to include programs at St Arnaud, Glenlyle and Langi Logan.
During the course of the financial year ending 30 June 2022, the Group expects to continue its mineral exploration
activities and will investigate additional opportunities in which the Group may wish to participate.
UNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED 038
4. OPERATING AND FINANCIAL REVIEW (CONT.)
4.5 BUSINESS STRATEGY AND PROSPECTS FOR FUTURE FINANCIAL YEARS
a) Business Strategy
THE GROUP’S MISSION IS TO REWARD SHAREHOLDERS
BY CREATING VALUE THROUGH THE DISCOVERY,
EVALUATION AND EXTRACTION OF MINERALS.
To achieve this, we must maximise the potential of our
b) Future Prospects of the Group
existing assets through targeted exploration programs while
The key driver of the Group’s future prospects will be the
also identifying new opportunities upon which to apply our
success of its exploration programs. The discovery of an
expertise and invest our capital.
economic mineral deposit has the potential to significantly
increase shareholder wealth.
The Group’s goal is to define a mineral resource and to
become a low-cost mineral producer through exploration
success. The Group undertakes an active exploration program
within emerging and proven mineral corridors, with the
The risks presented on the opposite page are not intended to
objective of identifying economic gold and copper mineral
be an exhaustive list of the risk factors to which the Company
deposits. The Group’s strategy for the next twelve months is
is exposed.
to focus its financial and managerial resources on expanding
its maiden resource at the Irvine Gold Project (Resolution and
Navarre Minerals is also exposed to a range of market,
Adventure) and following up encouraging initial results at
financial and governance risks. The Company has risk
Glenlyle and St Arnaud, while continuing to participate in
management and internal control systems to manage material
the Tandarra JV. Evaluating opportunities to grow and advance
business risks which include insurance coverage over major
Navarre towards production through acquisition will also form
operational activities and regular review of material business
a key plank of our corporate strategy.
risks by the Board.
039
!
b)
I
THE KEY MATERIAL RISKS FACED BY THE GROUP
EXPLORATION RISK
THAT ARE LIKELY TO HAVE AN EFFECT ON ITS
FUTURE FINANCIAL PROSPECTS INCLUDE:
II
LAND ACCESS
The Group’s mineral tenements are in the early
stages of exploration, and there can be no
assurance that exploration of the tenements
currently held by the Group, or any other
tenements that may be acquired in the future,
will result in the discovery of an economic
mineral deposit. Until the Group is able to realise
There is a substantial level of regulation and
value from its mineral tenements, it is likely to
restriction on the ability of exploration and
incur ongoing operating losses. If exploration
mining companies to have access to land in
is successful, there will be additional costs and
Australia. Negotiations with both native title
processes involved in moving to the development
claimants/holders and the owners/occupiers
phase. By its nature, exploration risk can never
of private land are generally required before
be fully mitigated, but the Group has the benefit
the Group can access land for exploration or
of significant exploration expertise through
mining activities. Inability to access, or delays
its management team and of operational
experienced in accessing, the land may impact on
and business expertise at both board and
the Group’s activities;
management level;
III
REQUIREMENTS FOR CAPITAL
IV
TENEMENT TITLE
As exploration costs reduce the Group’s cash
The Group could lose title to its mineral
reserves, the Group will require additional
tenements if insufficient funds are available
capital to support the long term exploration and
to meet the relevant annual expenditure
evaluation of its projects. If the Group is unable
commitments, as and when they arise. The
to obtain additional financing as needed, through
Group closely monitors its compliance with
equity, debt or joint venture financing, it may be
licence conditions, including expenditure
required to scale back its exploration programs.
commitments and rents, and maintains a
The Group will continue to consider capital
dialogue with the relevant State government
raising initiatives, as required, including possible
representatives who are responsible for enforcing
corporate opportunities;management level;
licence conditions; and.
V
RELIANCE ON KEY PERSONNEL
The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends
substantially on the executive and non-executive Directors. There can be no assurance given that there will be no
detrimental impact on the Company if one or more of the Directors, particularly the Managing Director, no longer
acts as a Director.
UNEARTHING PROSPERITYANNUAL REPORT 2021NAVARRE MINERALS LIMITED 040
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5. SHARE OPTIONS
6. SHARE PERFORMANCE RIGHTS
COMPENSATION OPTIONS ISSUED
OPTIONS EXPIRED DURING THE FINANCIAL YEAR
COMPENSATION PERFORMANCE RIGHTS ISSUED DURING THE
DURING THE FINANCIAL YEAR
No share options were issued by the
Company to directors or employees of
the Company during the financial year.
NUMBER OF OPTIONS
DATE LAPSED/EXPIRED
550,000
750,000
1,000,000
1,000,000
31 December 2020
27 February 2021
31 March 2021
6 June 2021
UNISSUED SHARES UNDER OPTION
At the date of this report, there were 12,400,000 unissued ordinary shares
of the Company under option. The details of these options are as follows:
EXPIRY DATE
EXERCISE PRICE
NUMBER
31 December 2021
17 May 2022
29 January 2023
10 April 2023
21 February 2024
17 May 2024
$0.090
$0.1313
$0.150
$0.150
$0.120
$0.120
200,000
1,800,000
2,000,000
3,900,000
1,700,000
2,800,000
No person entitled to exercise the options had or has any right by virtue
of the option to participate in any share issue of the Company.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
During or since the end of the financial year, the Company issued fully
paid ordinary shares as a result of the exercise of options as follows:
DATE EXERCISED
NUMBER OF SHARES
AMOUNT PAID ON
EACH SHARE
18 August 2020
200,000
11 December 2020
2,200,000
4 March 2021
19 March 2021
433,333
666,667
$0.072
$0.1313
$0.120
$0.120
FINANCIAL YEAR
During the financial year, the Company issued 1,500,000 share
performance rights (expiry 31 December 2024) to the Managing Director
of the Company (further details on the performance rights are contained
later in this Directors report).
PERFORMANCE RIGHTS EXPIRED DURING THE FINANCIAL
YEAR
No performance rights expired during the financial year.
UNISSUED SHARES UNDER PERFORMANCE RIGHTS
At the date of this report, there were 4,300,000 unissued ordinary shares
of the Company under performance rights.
The terms of these performance rights are as follows:
EXPIRY DATE
NUMBER
30 June 2024
31 December 2024
30 June 2025
900,000
1,000,000
2,400,000
No person entitled to exercise the performance rights had or has any
right by virtue of the performance right to participate in any share issue
of the Company.
SHARES ISSUED ON THE EXERCISE OF PERFORMANCE RIGHTS
During or since the end of the financial year, the Company issued fully
paid ordinary shares as a result of the exercise of performance rights
as follows:
EXPIRY DATE
NUMBER OF SHARES
30 November 2020
6 August 2021
26 August 2021
500,000
1,800,000
1,000,000
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7. INDEMNIFICATION AND INSURANCE OF DIRECTORS
10. REMUNERATION REPORT (AUDITED)
The Company paid an insurance premium in respect of a contract insuring all
directors of the Company against legal costs incurred in defending proceedings as
permitted by Section 199B of the Corporations Act 2001.
8. BOARD AND COMMITTEE MEETINGS
The following table sets out the members of the Board of Directors and the
members of the Committees of the Board, the number of meetings of the Board
and of the Committees held during the year and the number of meetings attended
during each director’s period of office.
BOARD OF DIRECTORS
AUDIT & RISK COMMITTEE3
NOMINATION REMUNERATION
& COMMITTEE3
K Wilson
I Holland1
G McDermott
C Naylor2
A
14
14
14
6
B
14
14
14
6
A
2
1
-
2
B
2
1
-
2
A
2
2
2
1
B
2
2
2
1
A – Number of meetings attended
B – Number of meetings held during the time the director held office during the year
The Remuneration Report for the year ended 30 June 2021 outlines the
remuneration arrangements of the Company, in accordance with Section 300A of
the Corporations Act 2001 and its regulations.
The information provided in this Remuneration Report has been audited as required
by Section 308(3C) of the Corporations Act 2001. This Remuneration Report forms
part of the Directors’ Report.
The Remuneration Report details the remuneration arrangements for Key
Management Personnel (“KMP”), who are defined as those persons having
authority and responsibility for planning, directing and controlling the activities of
the Company, directly or indirectly, including any director (whether executive or
otherwise) of the Company.
10.1 KEY MANAGEMENT PERSONNEL FOR THE YEAR
ENDED 30 JUNE 2021
DIRECTORS
K Wilson
I Holland
Chairman (independent Non-executive)
Managing Director (Executive) (appointed Managing Director on 1 September 2020)
1Mr Holland was a member of the Audit & Risk Committee between 25 June 2021 until his appointment as Joint Managing Director on 1 September 2020.
G McDermott
Technical Director (Executive) (Managing Director for period up to 31 March 2021,
2Mr Naylor resigned on 27 November 2020.
3From 28 January 2021, the Board fulfilled the role of Nomination & Remuneration Committee and Audit & Risk Committee. Therefore, no separate committee
meetings are reported above for the period 28 January 2021 until 30 June 2021
appointed Technical Director on 1 April 2021)
C Naylor
Director and Company Secretary (Executive) (resigned as Director on 27 November 2020 and
Company Secretary on 31 December 2020)
9. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES
EXECUTIVES
The directors have received the auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 from the auditor, RSM Australia
Partners, set out on page 66.
NON-AUDIT SERVICES
Details of amounts paid to the auditor, RSM Australia Partners, for non-audit
services provided during the year by the auditor are outlined in note 24 to the
financial statements. The Directors are satisfied that the provision of non-audit
services is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001. The nature and scope of the non-audit
services provided means that auditor independence was not compromised.
P Hissey
Chief Financial Officer (appointed 1 April 2021)
S Mele
J Ford
Exploration Manager
Accountant and Assistant Company Secretary (acted as interim Company Secretary for period 1
January 2021 to 28 January 2021)
M Watkins
Company Secretary (appointed 28 January 2021)
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10.2 BOARD OVERSIGHT OF REMUNERATION
10.4 EXECUTIVE REMUNERATION ARRANGEMENTS
The policy for determining the nature and amount of
of any discussion of their remuneration arrangements or
The Company aims to reward executives with a level and mix of remuneration commensurate
remuneration for directors and executives is set by the Board
performance and takes no part in the discussion or decision-
with their position and responsibilities within the Company and so as to:
of Directors as a whole. The Board established a Nomination
making process in relation to such matters.
& Remuneration (“N&R”) Committee to provide the Board
◊ align the interests of executives with those of shareholders;
with a regular, structured opportunity to focus on nomination
The Board may obtain professional advice when appropriate
and remuneration issues. The Board fulfils the role of N&R
to ensure that the Company attracts and retains talented
◊
link reward with the strategic goals and performance of the Company; and
Committee due to the size of the Group and its operations.
and motivated directors and employees who can enhance
◊ ensure total remuneration is competitive by market standards.
Any potential for, or perception of, conflict of interest
Company performance through their contributions
resulting from any of the members of the N&R Committee is
and leadership.
addressed by ensuring that those members recuse themself
Executive remuneration consists of fixed remuneration and, where appropriate,
variable (at risk) remuneration.
Fixed remuneration
Variable/at risk remuneration
The base salaries of the Managing Director and other
The performance of executives is measured against criteria
July 2021, the Chairman’s directors’ fees increased to $60,000
executives are fixed. Fixed remuneration is set at a market
agreed annually and is based predominantly on the overall
per annum (excluding statutory superannuation).
competitive level, considering an individual’s responsibilities,
success of the Company in achieving its broader corporate
performance, qualifications and experience, and current
goals. Variable remuneration is linked to predetermined
In addition to directors’ fees, the directors are entitled to be
market conditions in the mining industry. Base salaries are
performance criteria. Variable remuneration is also used to
paid all travelling and other expenses they incur in attending
reviewed annually, but executive contracts do not guarantee
promote retention of high calibre staff, which the Company
to the Company’s affairs, including attending and returning
any increases in fixed remuneration.
considers to be essential to the growth and success of
from general meetings of the Company or meetings of the
Board or of committees of the Board. No additional
remuneration is paid to directors for service on board
Executives receive statutory superannuation from the
the Company.
Company and may, in their discretion, make additional
Variable remuneration may take the form of short-term
committees or on the boards of wholly owned subsidiaries,
superannuation contributions by way of salary sacrifice.
incentives, such as payment of a cash bonus, or long-term
but additional remuneration may be paid to directors if they
incentives through participation in the NMLOP or NMLPRP,
are called upon to perform extra services or make any special
The Managing Director approves the terms and conditions
which are used to provide long term performance and
exertion for the purposes of the Company.
of consultants’ contracts, including fees, taking into account
retention incentives, as appropriate. See page 64 for details of
market conditions for the services that are provided.
options and performance rights granted to key management
The non-executive directors have no leave entitlements and
Consulting contracts do not include any guaranteed fee
personnel during the year.
do not receive any retirement benefits, other than statutory
increases.
superannuation and salary sacrifice superannuation
The Company prohibits executives from entering into
(if directors wish to exercise their discretion to make additional
The fixed component of executives’ remuneration is detailed
arrangements to protect the value of unvested options or
superannuation contributions by way of salary sacrifice).
in Table 1 and Table 2 of this Report.
performance rights. The prohibition includes entering into
The remuneration of the Company’s non-executive directors
for the year ended 30 June 2021 and 30 June 2020 is detailed
in Table 1 and Table 2 of this Remuneration Report.
contracts to hedge their exposure to options or performance
rights awarded as part of their remuneration package.
10.3 NON-EXECUTIVE DIRECTOR
REMUNERATION ARRANGEMENTS
The Board seeks to set non-executive director remuneration
at a level that provides the Company with the ability to
attract and retain directors of high calibre, at a cost acceptable
to shareholders.
The amount of aggregate remuneration approved by
shareholders and the fee structure for non-executive directors
is reviewed annually by the Board against fees paid to non-
executive directors of comparable companies.
The Company’s Constitution and the ASX Listing Rules specify
that the aggregate remuneration of non-executive directors
must be determined from time to time by members in a
general meeting. An amount not exceeding the amount
determined is then divided between the directors as
agreed. The maximum aggregate annual remuneration for
nonexecutive directors is currently set at $300,000 per
annum. Any increase in this amount will require shareholder
approval at a general meeting.
Non-executive directors are remunerated at marketplace
levels by way of fixed fees, usually in the form of cash and
statutory superannuation contributions, and (from time to
time, as appropriate) options issued through the Navarre
Minerals Limited Option Plan (“NMLOP”) or share performance
rights issued through the Navarre Minerals Limited
Performance Rights Plan (“NMLPRP”). For the reporting
period, the Chairman was entitled to receive $50,000 per
annum (excluding statutory superannuation). Effective from 1
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10.5 EXECUTIVE CONTRACTUAL ARRANGEMENTS
Remuneration arrangements for Key Management Personnel
are formalised in employment or consultancy agreements
(as applicable). Details of these contracts are provided below.
MANAGING DIRECTOR
Mr Ian Holland was appointed Joint Managing Director on 1 September 2020 and transitioned to
the role of Managing Director on 1 April 2021. Mr Holland is employed by the Company on a full-
time basis pursuant to an executive service agreement dated 31 August 2020, which contains
the following major terms:
LONG-TERM INCENTIVE
Mr Holland is eligible to receive an annual long-term incentive payment of up to
75% of the total fixed remuneration on terms decided by the Board. Mr Holland
is also eligible to participate in the Company’s long-term incentive arrangements
(as amended or replaced) on terms decided by the Board, subject to necessary
shareholder approvals. Effective from 1 July, Mr Holland’s long-term incentive
increased to up to 80% of his total base salary.
The Managing Director’s remuneration package for the period to 31 December
2021 included a long-term incentive in the form of a grant of 1,500,000 share
performance rights. The performance rights will vest based on the following
conditions:
TERM
SHORT-TERM INCENTIVE
From 1 September 2020 until either the Company or
Mr Holland is eligible to receive an annual short-term
Mr Holland terminates the agreement.
incentive payment of up to 50% of the total fixed
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
BASE SALARY
Mr Holland’s total fixed remuneration is $245,940
per annum plus statutory superannuation. Effective
from 1 July 2021, Mr Holland’s remuneration increased
to $300,000 plus statutory superannuation. This is
reviewed by the N&R Committee on an annual basis,
but there is no guarantee of any increase in fixed
remuneration.
remuneration on terms decided by the Board. In
October 2019, the N&R Committee resolved that
the grant of Performance Rights, with appropriate
performance hurdles, to be a more effective
incentive arrangement than the short-term incentive
payments used in previous years. Therefore, no
short-term incentive payment was included in Mr
Holland’s remuneration package for calendar year
2021. Instead, Mr Holland was granted 1,500,000
share performance rights (see below Long-term
incentive section for further details).
NOTICE
TERMINATION PAYMENTS
The Company may terminate the agreement at
If Mr Holland’s employment is terminated by
any time by giving six months’ notice in writing. Mr
the Company for any reason (other than in
Holland may terminate the agreement at any time
circumstances warranting summary dismissal), Mr
by giving six months’ written notice to the Company
Holland is entitled to a retirement benefit calculated
or on one month’s written notice to the Company if
as one month’s total fixed remuneration, plus two
a ‘fundamental change’ to his employment occurs or
weeks’ total fixed remuneration for each completed
the Company has failed to remedy a notified breach
or part-completed year of continuous service with
of its obligations under the agreement. The Company
the Company. If Mr Holland resigns within six
may immediately terminate the agreement by giving
months of a ‘fundamental change’, Mr Holland is
written notice in certain circumstances, including if
entitled to a lump sum payment equivalent to six
serious misconduct has occurred. The Company may
months’ total fixed remuneration.
elect to pay Mr Holland in lieu of part or all of any
notice period.
500,000
These Performance Rights will vest and become exercisable
when the Share price exceeds a closing price of 20 cents
per Share for 10 consecutive Trading Days while holding the
position of Managing Director in the period from 1 September
2020 to 31 December 2021.
500,000
These Performance Rights will vest and become exercisable
when the Share price exceeds a closing price of 25 cents
per Share for 10 consecutive Trading Days while holding the
position of Managing Director in the period from 1 September
2020 to 31 December 2022.
500,000
These Performance Rights will vest and become exercisable
when the Share price exceeds a closing price of 30 cents
per Share for 10 consecutive Trading Days while holding the
position of Managing Director in the period from 1 September
2020 to 31 December 2023.
The Company obtained shareholder approval for the grant of these performance
rights at the Company’s annual general meeting in November 2020 and the
performance rights were issued shortly after that meeting on 27 November 2020.
The service condition has been achieved for 500,000 performance rights with the
Company’s share price exceeding a closing share price of 20 cents per share for 10
consecutive trading days and as such these performance rights vested and were
exercised on 30 November 2020.
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TECHNICAL DIRECTOR
Mr Geoff McDermott was appointed Technical Director with effect from 1 April 2021. Prior to
this, Mr McDermott was employed as Managing Director from 31 March 2011 to 31 August 2020
before becoming Joint Managing Director from 1 September 2020.
Mr McDermott is employed by the Company on a full-time basis pursuant to an executive
service agreement dated 10 December 2010 (and subsequent variations), which contains the
following major terms:
TERM
SHORT-TERM INCENTIVE
From 31 March 2011 until either the Company or Mr
Mr McDermott is eligible to receive an annual short-
McDermott terminates the agreement.
term incentive payment on terms decided by the
BASE SALARY
Mr McDermott’s total fixed remuneration is
$245,936 per annum plus statutory superannuation.
Effective from 1 July 2021, Mr McDermott’s
remuneration increased to $250,000 plus statutory
superannuation. This is reviewed by the N&R
Committee on an annual basis, but there is no
guarantee of any increase in fixed remuneration.
NOTICE
The Company may terminate the agreement at any
time by giving six months’ notice in writing.
Mr McDermott may terminate the agreement at
any time by giving six months’ written notice to
the Company or on one month’s written notice
to the Company if a ‘fundamental change’ to his
employment occurs or the Company has failed to
remedy a notified breach of its obligations under
the agreement. The Company may immediately
terminate the agreement by giving written notice in
certain circumstances, including if serious misconduct
has occurred. The Company may elect to pay Mr.
McDermott in lieu of part or all of any notice period.
Board.
In August 2020, the Board of Directors considered
Mr McDermott’s short term incentive arrangements
for the period up to 31 March 2021. The Board of
Directors determined that Mr McDermott will receive
a short-term incentive in the form of a cash payment
of up to $100,000, subject to achievement of agreed
KPIs. Those KPIs comprised performance measures
in relation to the delivery of a maiden Mineral
Resource. In March 2021, the Board of Directors
assessed Mr McDermott’s performance against the
defined short-term incentive KPIs and approved
a cash payment of $85,000 to Mr McDermott by
way of a short-term incentive for the period up to
31 March 2021. Of this, $50,000 was related to the
delivery of the maiden Inferred Minerals Resource
of 3.9Mt @ 2.43g/t gold for 304,300 ounces of gold
at the Resolution and Adventure prospects, and the
remaining $35,000 was related to the additional
Exploration Target declared for the Resolution and
Adventure prospects of between 3.4 and 5.2Mt
at a grade ranging between 2.0 to 3.0 g/t gold
for 280,000 to 420,000 ounces of gold (see ASX
announcement of 30 March 2021).
In line with the Company’s internal policy to utilise
performance rights rather than short-term incentive
payments, no short-term incentive payment was
included in Mr McDermott’s remuneration package
for financial year 2022.
LONG-TERM INCENTIVE
Mr McDermott is eligible to participate in the Company’s
Mr McDermott remuneration package for calendar
long-term incentive arrangements (as amended or
year 2020 included an incentive in the form of a grant
replaced) on terms decided by the Board, subject to
of 1,500,000 share performance rights, subject to the
necessary shareholder approvals.
following conditions:
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
500,000
These Performance Rights will vest and become exercisable upon Mr McDermott holding the position of
Managing Director at 31 December 2020 (Retention Service Period).
500,000
At the discretion of the Board these Performance Rights will vest and become exercisable upon
satisfactory meeting the following hurdles in the period to 31 December 2020 (Service Performance).
- Securing statutory permitting and community support for drilling programs
- Execution of drilling programs - on budget with no safety or environmental incidents
166,666
These Performance Rights will vest and become exercisable when the Share price exceeds a closing
price of 12 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December
2020.
166,667
These Performance Rights will vest and become exercisable when the Share price exceeds a closing
price of 16 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December
2020.
166,667
These Performance Rights will vest and become exercisable when the Share price exceeds a closing
price of 20 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December
2020.
The Company obtained shareholder approval for the grant
determined that the Service Conditions for each tranche of
of these performance rights at the Company’s annual
performance rights had been met and all performance
general meeting in November 2019 and the performance
rights had vested and are exercisable. These performance
rights were issued shortly after that meeting on 18
rights were exercised on 6 August 2021.
November 2019. In January 2021, the N&R Committee
TERMINATION PAYMENTS
If Mr McDermott’s employment is terminated by the
for each completed or part-completed year of continuous
Company for any reason (other than in circumstances
service with the Company. If Mr McDermott resigns within
warranting summary dismissal), Mr McDermott is entitled to
six months of a ‘fundamental change’, Mr McDermott is
a retirement benefit calculated as one month’s total fixed
entitled to a lump sum payment equivalent to six months’
remuneration, plus two weeks’ total fixed remuneration
total fixed remuneration.
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CHIEF FINANCIAL OFFICER
Mr Paul Hissey has been engaged by the Company since 17
On 1 April 2021, Mr Paul Hissey was appointed Chief Financial
Mr Hissey is eligible to participate in the Company’s long-term incentive
LONG-TERM INCENTIVE
August 2020 pursuant to a consultancy services agreement to
Officer of the Company. Mr Hissey is employed by the
arrangements (as amended or replaced) on terms decided by the Board.
provide corporate development services.
Company on a full-time basis pursuant to an executive service
Under the terms of his consultancy services agreement with
agreement, which contains the following major terms:
Subsequent to 30 June 2021, Mr Hissey was granted 1,200,000 share performance
the Company, Mr Hissey was remunerated for his services at
a rate of $125 per hour (plus GST), with a minimum of $5,000
retainer fee per month (plus GST) applicable.
TERM
NOTICE
From 1 March 2021 until either the Company or Mr
The Company may terminate the agreement at any
Hissey terminates the agreement.
time by giving three months’ notice in writing. Mr
BASE SALARY
Mr Hissey’s total fixed remuneration is $233,000
per annum inclusive of statutory superannuation.
Effective from 1 July 2021, Mr Hissey’s remuneration
increased to $220,000 plus statutory superannuation.
Total fixed remuneration is reviewed by the N&R
Committee on an annual basis, but there is no
guarantee of any increase in fixed remuneration.
Hissey may terminate the agreement at any time by
giving three months’ written notice to the Company
or on one month’s written notice to the Company if
a ‘fundamental change’ to his employment occurs or
the Company has failed to remedy a notified breach
of its obligations under the agreement. The Company
may immediately terminate the agreement by giving
written notice in certain circumstances, including
if serious misconduct has occurred. The Company
may elect to pay Mr Hissey in lieu of part or all of any
notice period.
SHORT-TERM INCENTIVE
TERMINATION PAYMENTS
Mr Hissey is eligible to receive an annual short-term
If Mr Hissey’s employment is terminated by the
incentive payment on terms decided by the Board.
Company for any reason (other than in circumstances
In line with the Company’s internal policy to utilise
warranting summary dismissal), Mr Hissey is entitled
performance rights rather than short-term incentive
to a retirement benefit calculated as one month’s
payments, no short-term incentive payment was
total fixed remuneration, plus two weeks’ total fixed
included in Mr Hissey’s remuneration package for
remuneration for each completed or part-completed
financial year 2022.
year of continuous service with the Company.
rights as part of his remuneration package for financial year 2022.
The performance rights will vest based on the following conditions:
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
400,000
These Performance Rights will vest and become exercisable
upon Mr Hissey holding the position of Chief Financial
Officer at close of business, 30 June 2022 (Retention Service
Period).
400,000
These Performance Rights will vest and become exercisable
when the share price exceeds a closing price of 15 cents
per share for 10 consecutive trading days while holding the
position of Chief Financial Officer in the period from 1 July
2021 to 30 June 2023.
400,000
These Performance Rights will vest and become exercisable
when the share price exceeds a closing price of 20 cents
per share for 10 consecutive trading days while holding the
position of Chief Financial Officer in the period from 1 July
2021 to 30 June 2024.
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EXPLORATION MANAGER
Mr Mele was appointed Exploration Manager of the Company
with effect from 22 February 2017. Mr Mele was
engaged by the Company on a consultancy basis prior to
entering into an employment arrangement and becoming
a full-time employee with the Company.
On 8 January 2018, Mr Mele entered into an executive service
agreement which contains the following major terms
TERM
NOTICE
From 8 January 2018 until either the Company or Mr
The Company may terminate the agreement at any
Mele terminates the agreement.
BASE SALARY
Mr Mele’s total fixed remuneration is $233,000
per annum inclusive of statutory superannuation.
Effective from 1 July 2021, Mr Mele’s remuneration
increased to $220,000 plus statutory superannuation.
Total fixed remuneration is reviewed by the N&R
Committee on an annual basis, but there is no
guarantee of any increase in fixed remuneration.
time by giving three months’ notice in writing. Mr
Mele may terminate the agreement at any time by
giving three months’ written notice to the Company
or on one month’s written notice to the Company if
a ‘fundamental change’ to his employment occurs or
the Company has failed to remedy a notified breach
of its obligations under the agreement. The Company
may immediately terminate the agreement by giving
written notice in certain circumstances, including if
serious misconduct has occurred. The Company may
elect to pay Mr Mele in lieu of part or all of any notice
period.
SHORT-TERM INCENTIVE
Mr Mele is eligible to receive an annual short-term
incentive payment on terms decided by the Board.
In line with the Company’s internal policy to utilise
Performance Rights rather than short-term incentive
payments, no short-term incentive payment was
included in Mr Mele’s remuneration package for
financial year 2022.
TERMINATION PAYMENTS
If Mr Mele’s employment is terminated by the
Company for any reason (other than in circumstances
warranting summary dismissal), Mr Mele is entitled
to a retirement benefit calculated as one month’s
total fixed remuneration, plus two weeks’ total fixed
remuneration for each completed or part-completed
year of continuous service with the Company (to be
calculated by reference to Mr Mele’s start date as a
consultant geologist on 18 May 2016).
LONG-TERM INCENTIVE
Mr Mele is eligible to participate in the Company’s long-term
Mr Mele’s remuneration package for financial year 2021
incentive arrangements (as amended or replaced) on terms
included an incentive in the form of a grant of
decided by the Board.
1,000,000 share performance rights, subject to the
following conditions:
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
400,000
These Performance Rights will vest and become exercisable upon Mr Mele holding the position of
Exploration Manager at Close of Business, 30 June 2021 (Retention Service Period).
600,000
At the discretion of the Board these Performance Rights will vest and become exercisable (in part
or in full) upon satisfactorily meeting the following hurdles in the period to 30 June 2021 (Service
Performance).
- Significantly advancing at least one of the Company’s 100%-owned projects by either:
•
•
Delivery of a Mineral inventory [e.g., 500koz inferred resource + 500koz exploration target]
of > 1,000,000 ozs of gold / gold equivalent by 30 June 2021; or
Delivery of a minimum of five potential economic > 30 gram metre gold drill intercepts;
and
- Securing statutory permitting and community support for drilling programs, and
- Execution of drilling programs - on budget with no safety or environmental incidents
In July 2021, the Board of Directors determined that the
Subsequent to 30 June 2021, Mr Mele was granted
service conditions for each tranche of performance rights
1,200,000 share performance rights as part of his
had been met and all performance rights had vested
remuneration package for financial year 2022.
and became exercisable. These performance rights were
The performance rights will vest based on the
exercised on 26 August 2021.
following conditions:
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
400,000
These Performance Rights will vest and become exercisable upon Mr Mele holding the position of
Exploration Manager at close of business, 30 June 2022 (Retention Service Period).
400,000
These Performance Rights will vest and become exercisable when the share price exceeds a closing
price of 15 cents per share for 10 consecutive trading days while holding the position of Exploration
Manager in the period from 1 July 2021 to 30 June 2023.
400,000
These Performance Rights will vest and become exercisable when the share price exceeds a closing
price of 20 cents per share for 10 consecutive trading days while holding the position of Exploration
Manager in the period from 1 July 2021 to 30 June 2024.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 054
055
COMPANY SECRETARY
The Company Secretary, Mr Colin Naylor, was employed by
In January 2021, the Company engaged Leydin Freyer Corp
OTHER EXECUTIVES
All executives have standard employment agreements.
the Company on a part-time basis pursuant to an employment
Pty Ltd to provide the services of Company Secretary, Mr
The Company may terminate the executive’s employment
agreement dated 31 July 2018, in addition to his role as a
Mathew Watkins, for which Leydin Freyer Corp Pty Ltd receives
agreement by written notice (ranging from four weeks to
Director of the Company. Mr Naylor resigned as a Director with
a retainer fee of $3,500 per month. The agreement can be
three months’ notice) or providing payment in lieu of
effect 27 November 2020 and Company Secretary with effect
terminated by giving one months’ notice or a lesser period
the notice period (based on the fixed component of the
31 December 2020.
as mutually agreed by both parties or, in the case of wilful
executive’s remuneration).
The Company may terminate the agreement at any time
without notice if serious misconduct has occurred.
The executive may terminate the agreement by written
notice to the Company (ranging from four weeks to three
months’ notice). On cessation of employment, any outstanding
options and any unvested performance rights will be forfeited.
The Company’s Accountant & Assistant Company Secretary,
with no termination period.
Ms Jodi Ford, acted as interim Company Secretary for the
period 1 January to 28 January 2021.
misconduct or fraud, the engagement will cease immediately
ACCOUNTANT & ASSISTANT
COMPANY SECRETARY
During the year, the Accountant & Assistant Company
the position of Accountant & Assistant Company Secretary
Secretary, Ms Ford, was employed by the Company on a
as at close of business, 30 June 2021. In July 2021, the Board
part-time basis pursuant to an employment agreement dated
of Directors determined that the service condition for these
2 May 2011 (and subsequent variations). Effective from 1 July
performance rights had been met and all performance rights
2021, Ms Ford was made a full-time employee of the Company.
had vested and became exercisable. These performance rights
were exercised on 6 August 2021.
Ms Ford is eligible to participate in the Company’s long-term
incentive arrangements (as amended or replaced) on terms
Subsequent to 30 June 2021, Ms Ford was granted 300,000
decided by the Board. Ms Ford’s remuneration package for
share performance rights as part of her remunerationpackage
financial year 2021 included an incentive in the form of a grant
for financial year 2022. The performance rights will vest based
of 300,000 share performance rights, subject to holding
on the following conditions:
NUMBER OF
PERFORMANCE
RIGHTS
SERVICE CONDITION
150,000
These Performance Rights will vest and become exercisable upon Mrs Ford holding the position of
Accountant & Assistant Company Secretary at close of business, 30 June 2022 (Retention Service
Period).
150,000
These Performance Rights will vest and become exercisable when the share price exceeds a closing
price of 15 cents per share for 10 consecutive trading days while holding the position of Accountant &
Assistant Company Secretary in the period from 1 July 2021 to 30 June 2023.
The Company may terminate the agreement at any time by
giving one months’ notice in writing. Ms Ford may terminate
the agreement at any time by giving one months’ written
notice to the Company unless a shorter period is agreed by
the Company.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 056
057
10.6 REMUNERATION OF KEY MANAGEMENT PERSONNEL OF THE COMPANY
TABLE 1: Remuneration for the year ended 30 June 2021.
TABLE 2: Remuneration for the year ended 30 June 2020.
SHORT TERM
EMPLOYMENT
PAYMENT
POST
SHARE-
BASED
SALARY/
SUPER
DIRECTORS
CONSULTING
STI CASH
ANNUATION
FEES $
FEES $
BONUS $
BENEFITS $
EQUITY
SETTLED1 $
LONG
TERM
LONG
SERVICE
LEAVE $
PERFORMANCE
TOTAL
RELATED
$
%
SHORT TERM
EMPLOYMENT
PAYMENT
POST
SHARE-
BASED
SALARY/
SUPER
DIRECTORS
CONSULTING
STI CASH
ANNUATION
FEES $
FEES $
BONUS $
BENEFITS $
EQUITY
SETTLED1 $
LONG
TERM
LONG
SERVICE
LEAVE $
PERFORMANCE
TOTAL
RELATED
$
%
NON– EXECUTIVE DIRECTORS
NON– EXECUTIVE DIRECTORS
50,000
50,000
-
-
-
-
5,250
7,355
5,250
7,355
K Wilson
Sub-total
non-executive
directors
EXECUTIVE DIRECTORS
I Holland2
6,806
204,950
-
18,725
182,777
G McDermott
-
242,630
85,000
25,000
78,560
C Naylor3
10,605
43,007
OTHER KEY MANAGEMENT PERSONNEL
18,665
1,421
5,054
-
-
-
-
-
-
62,605
62,605
413,258
436,959
73,698
183,804
20,230
138,744
2,312
374,237
7,221
41,889
8,538
133,342
-
-
-
17,625
17,411
975,607
85,000
94,895
443,391
16,619
1,632,923
-
-
-
-
-
-
-
-
-
178,7504
212,951
75,694
17,6255
P Hissey
S Mele
J Ford
M Watkins
Sub-total
executive
KMP
11.7
11.7
44.2
37.4
1.9
-
37.1
31.4
-
32.4
-
-
-
-
-
-
-
-
4,750
7,356
2,876
4,713
384
-
8,010
12,069
-
-
-
-
62,106
37,862
4,428
104,396
50,000
30,273
4,044
84,317
K Wilson
J Dorward2
I Holland3
Sub-total
non-executive
directors
EXECUTIVE DIRECTORS
G McDermott
-
241,939
60,000
25,000
142,383
4,789
474,111
C Naylor
40,000
37,908
OTHER KEY MANAGEMENT PERSONNEL
-
-
60,132
212,951
-
-
-
25,000
15,171
-
118,079
5,712
17,543
1,170
84,557
20,230
52,510
2,359
288,050
40,000
552,330
60,000
75,942
227,607
8,318
964,797
J Ford
S Mele
Sub-total
executive
KMP
11.8
12.4
0.0
11.6
42.7
12.8
20.7
18.2
29.8
TOTAL
124,317
552,330
60,000
83,952
239,676
8,318
1,069,193
28.0
TOTAL
67,411
975,607
85,000
100,145
450,746
16,619
1,695,528
31.6
1 Refer Note 23 to the consolidated financial statements for fair value calculation
of options and performance rights.
2 Mr Holland was a non-executive director between 1 July 2020 to 31 August 2021.
Mr Holland was appointed Managing Director on 1 September 2020.
3 Mr Naylor resigned as director effective 27 November 2020 and Company
Secretary effective 31 December 2021.
4 Consists of consulting fees paid to Mr Hissey for the period 17 August 2020
to 31 March 2021 (pursuant to a consultancy services agreement) and fixed
remuneration from 1 April 2021 (pursuant to an executive services agreement).
5 Represents fees paid/payable for services provided by the consultant.
1 Refer Note 23 to the consolidated financial statements for fair value calculation
of options and performance rights.
2 Mr Dorward resigned as non-executive director effective 2 April 2020.
3 Mr Holland was appointed non-executive director on 25 May 2020.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 058
059
10.7 REMUNERATION MIX
The Company’s executive remuneration is structured as a mix of fixed annual remuneration and
variable ‘at risk’ remuneration. The mix of these components varies for different management
levels and according to whether an executive is engaged as an employee or a contractor.
TABLE 3: Relative proportion and components of total remuneration packages for the year
ended 30 June 2021.
10.8 EQUITY INSTRUMENTS
a) Share Options
TABLE 4: Options granted, vested and lapsed during the year.
NUMBER OF
OPTIONS
GRANTED
FAIR VALUE
PER OPTION
EXERCISE
GRANT
AT GRANT
PRICE PER
% OF TOTAL REMUNERATION
PERFORMANCE-BASED REMUNERATION
FIXED REMUNERATION %
SHORT TERM INCENTIVE %
LONG TERM INCENTIVE %
55.8
62.6
98.1
100.0
62.9
68.6
-
19.4
-
-
-
-
44.2
18.0
1.9
-
37.1
31.4
EXECUTIVES
I Holland
G McDermott
C Naylor
P Hissey
S Mele
J Ford
DIRECTORS
K Wilson
G McDermott
G McDermott
G McDermott
G McDermott
C Naylor
C Naylor
EXECUTIVES
S Mele
S Mele
S Mele
S Mele
J Ford
J Ford
J Ford
J Ford
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
DURING FY21
DATE
DATE ($)
OPTION ($)
EXPIRY DATE
VEST DATE
DURING FY21
NUMBER OF
NUMBER OF
OPTIONS
OPTIONS
VESTED
LAPSED
DURING
FY21
-
-
-
-
10 Apr 18
0.048
0.150
10 Apr 23
10 Apr 18 1
900,000
10 Apr 18
0.048
0.150
10 Apr 23
10 Apr 18 1
1,000,000
10 Apr 18
0.050
0.150
10 Apr 23
10 Apr 19 1
1,000,000
10 Apr 18
0.054
0.150
10 Apr 23
10 Apr 20 1
1,000,000
17 May 19
0.036
0.120
17 May 24
10 Apr 18
0.048
0.150
10 Apr 23
17 May 19
0.036
0.120
17 May 24
-
-
-
-
1,000,000
750,000
750,000
-
550,000
29 Jan 18
0.053
0.150
29 Jan 23
29 Jan 18 1
500,000
29 Jan 18
0.058
0.150
29 Jan 23
29 Jan 19 1
500,000
29 Jan 18
0.062
0.150
29 Jan 23
29 Jan 20 1
500,000
21 Feb 19
0.029
0.120
21 Feb 24
21 Feb 21 1
433,334
29 Jan 18
0.053
0.150
29 Jan 23
29 Jan 18 1
166,667
29 Jan 18
0.058
0.150
29 Jan 23
29 Jan 19 1
166,667
29 Jan 18
0.062
0.150
29 Jan 23
29 Jan 20 1
166,666
21 Feb 19
0.029
0.120
21 Feb 24
21 Feb 21 1
133,334
-
-
-
-
-
-
-
-
1 Closing share price must exceed exercise price for 10 consecutive trading days after the vesting date.
All unvested options expire on the earlier of their expiry date or termination of the employee’s
employment. All vested options expire on their expiry date, upon termination of the employee’s
employment, or, in the case of the retirement of a full-time employee, 90 days after the
termination of the employee’s employment. These options do not entitle the holder to participate
in any share issue of the Company.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 060
061
TABLE 5: Shares issued on exercise of options.
b) Share performance rights
TABLE 7: Performance Rights granted, vested and lapsed during the year.
C Naylor
J Ford
NO. OF SHARES
1,100,000
200,000
AMOUNT PAID PER
SHARE ($)
0.120
0.072
TABLE 6: Value of options granted, exercised and lapsed during the year.
NUMBER OF
RIGHTS
GRANTED
FAIR VALUE
PER RIGHT AT
NUMBER OF
RIGHTS
NUMBER OF
VESTED
RIGHTS LAPSED
DURING FY21
GRANT DATE
GRANT DATE ($)
EXPIRY DATE
VEST DATE
DURING FY21
DURING FY21
DIRECTORS
I Holland
I Holland
I Holland
500,000
27 Nov 20
31 Dec 24
31 Dec 21 1
500,000
500,000
27 Nov 20
31 Dec 24
31 Dec 22 1
500,000
27 Nov 20
31 Dec 24
31 Dec 23 1
-
-
G McDermott
1,000,000
18 Nov 19
$0.1050
31 Dec 22
31 Dec 20 1
1,000,000
VALUE OF OPTIONS GRANTED
VALUE OF OPTIONS EXERCISED
VALUE OF OPTIONS LAPSED
DURING THE YEAR $
DURING THE YEAR $
DURING THE YEAR $
G McDermott
166,667
18 Nov 19
$0.0692
31 Dec 22
31 Dec 20 1
166,667
DIRECTORS
G McDermott
C Naylor
EXECUTIVES
J Ford
-
-
-
-
36,850
6,664
36,000
55,434
-
G McDermott
166,667
18 Nov 19
$0.0549
31 Dec 22
31 Dec 20 1
166,667
EXECUTIVES
S Mele
J Ford
1,000,000
18 May 20
$0.1400
30 Jun 23
30 Jun 21 1
1,000,000
300,000
18 May 20
$0.1400
30 Jun 23
30 Jun 21 1
300,000
1 Vesting is conditional on certain performance conditions (see section 10.5 above for further details).
For details on the valuation of options, including models and assumptions used, please refer to
employee’s employment. These performance rights do not entitle the holder to participate in any share issue of the Company.
Note 23 to the consolidated financial statements.
Unvested share performance rights expire on the earlier of their expiry date or termination of the employee’s employment and
vested share performance rights expire on the earlier of their expiry date or three months from the date of termination of the
TABLE 8: Shares issued on exercise of performance rights.
There was no exercise of performance rights during the reporting period.
TABLE 9: Value of share performance rights granted, exercised and lapsed during the year
VALUE OF RIGHTS GRANTED
VALUE OF RIGHTS EXERCISED
DURING THE YEAR $
DURING THE YEAR $
VALUE OF RIGHTS LAPSED
DURING THE YEAR $
DIRECTORS
I Holland
290,500
107,500
-
1 Vesting is conditional on certain performance conditions (see section 10.5 above for further details).
For details on the valuation of performance rights, please refer to Note 23 to the consolidated financial statements.
-
-
-
-
-
-
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 062
063
10.9 ADDITIONAL DISCLOSURES RELATING TO SHARES,
OPTIONS AND PERFORMANCE RIGHTS
Movement in shares
The movement during the reporting period in the number of ordinary shares in Navarre
Minerals Limited held directly, indirectly or beneficially, by key management personnel,
including their related parties, is as follows:
Options over equity instruments
The movement during the reporting period in the number of options over ordinary shares
in Navarre Minerals Limited held, directly, indirectly and beneficially by key management
personnel, including their related parties is as follows:
RECEIVED ON
RECEIVED ON
EXERCISE OF
EXERCISE OF
PERFORMANCE
HELD AT 30
HELD AT 1
GRANTED AS
OPTIONS
OPTIONS
HELD AT 30
VESTED IN
AT 30 JUNE
AT 30 JUNE
VESTED AND
EXERCISABLE
UNVESTED
PURCHASES
OPTIONS
RIGHTS
SALES
OTHER
JUNE 2021
JULY 2020
REMUNERATION
EXERCISED
LAPSED
JUNE 2021
2021
2021
2021
HELD AT 1
JULY 2020
Shares held in Navarre Minerals Limited (number)
DIRECTORS
K Wilson
I Holland
13,606,085
300,000 1
-
1,800,000 2
G McDermott
12,978,568
200,000 1
C Naylor
5,814,562
-
EXECUTIVES
P Hissey
S Mele
J Ford
-
100,000 4
160,435
150,000 1
58,770
-
200,000
-
-
-
-
-
-
13,906,085
2,300,000
13,178,568
Options held in Navarre Minerals Limited (number)
DIRECTORS
K Wilson
1,700,000
I Holland
-
G McDermott
6,000,000
230,000
5,584,5623
-
C Naylor
2,400,000
-
-
29 Jan 18 1
100,000
29 Jan 19 1
310,435
200,000
21 Feb 21 1
58,770
EXECUTIVES
J Ford
S Mele
1,300,000
2,800,000
-
500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,700,000
900,000
1,433,334
266,666
-
-
-
1,000,000
5,000,000
3,000,000
5,000,000
1,100,000
1,300,000
-
750,000
-
200,000
-
-
-
1,100,000
633,334
1,100,000
2,800,000
1,933,334
2,800,000
-
-
-
-
-
-
-
-
-
-
-
1Issued as a result of participation in the Company’s Share Purchase Plan in June 2021.
2Consists of 1,500,000 purchased on-market and 300,000 issued as a result of participation in the Company’s Share Purchase Plan in June 2021.
3Shareholding at resignation on 31 December 2020.
4Issued as a result of participation in the Company’s Share Placement in June 2021.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021 064
065
Performance rights over equity instruments
The movement during the reporting period in the number of performance rights over ordinary
shares in Navarre Minerals Limited held, directly, indirectly and beneficially by key management
personnel, including their related parties is as follows:
PERFORMANCE
PERFORMANCE
VESTED AND
EXERCISABLE
UNVESTED
HELD AT 1
GRANTED AS
RIGHTS
RIGHTS
HELD AT 30
VESTED IN
AT 30 JUNE
AT 30 JUNE
JULY 2020
REMUNERATION
EXERCISED
LAPSED
JUNE 2021
2021
2021
2021
Performance Rights held in Navarre Minerals Limited (number)
DIRECTORS
I Holland
-
1,500,000
500,000
G McDermott
1,500,000
EXECUTIVES
J Ford
S Mele
300,000
1,000,000
-
-
-
-
-
-
-
-
-
1,000,000
500,000
-
1,000,000
1,500,000
1,333,334
1,500,000
300,000
300,000
300,000
1,000,000
1,000,000
1,000,000
-
-
-
10.10 COMPANY PERFORMANCE
With the exception of long-term incentives, the remuneration of executives and consultants is
not linked to financial performance measures of the Company. Long-term incentives granted to
executives are linked to improvements in the Company’s share price.
In accordance with Section 300A of the Corporations Act 2001, the following table summarises
Navarre’s performance over a five-year period:
2021
2020
2019
2018
2017
Net profit/(loss) - $000
(2,724)
(984)
(866)
(1,251)
(703)
Basic earnings/(loss) per share – cents per share
(0.50)
(0.21)
(0.22)
(0.47)
(0.34)
Share price at the beginning of year - $
0.110
0.084
0.059
0.032
0.034
Share price at end of year - $
Dividends per share – cents
$0.094
0.110
0.084
0.059
0.032
Nil
Nil
Nil
Nil
Nil
11. AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the
Corporations Act 2001.
12. CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement for the year ended 30 June
2021, ASX Appendix 4G (Key to Disclosure of Corporate Governance Principles and
Recommendations) and other ancillary corporate governance related documents
may be accessed from the Company’s website at
www.navarre.com.au/corporate-governance/.
Signed in accordance with a resolution of the Directors made pursuant to s298(2) of
the Corporations Act 2001.
ON BEHALF OF THE DIRECTORS
KEVIN WILSON
CHAIRMAN
Melbourne, 17 September 2021
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Navarre Minerals Limited for the year ended 30 June 2021,
I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
J S CROALL
Partner
Dated: 17 September 2021
Melbourne, Victoria
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
067
“This is an
exciting time for
the Company"
IAN HOLLAND
MANAGING DIRECTOR
UNEARTHING PROSPERITYANNUAL REPORT 2021 068
FINANCIAL
REPORT
2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Note
Interest income
Income
Net administration expenses
Exploration expenditure written-off
Loss before income tax
Income tax expense
Net loss for the period
Other comprehensive income for the period
Total comprehensive loss for the period
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
4
5
6
6
069
2020
$
96,341
96,341
2021
$
58,929
58,929
(2,747,166)
(900,355)
(35,447)
(180,110)
(2,723,684)
(984,124)
-
-
(2,723,684)
(984,124)
-
-
(2,723,684)
(984,124)
(0.50)
(0.50)
(0.21)
(0.21)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
070
071
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other financial assets
Non-current assets classified as held for sale
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Other financial assets
Property, plant and equipment
Leasehold improvements
Right-of-use asset
Exploration and evaluation costs
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Employee benefits provision
Lease liability
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Employee benefits provision
Lease liability
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Share based payments reserve
Accumulated losses
TOTAL EQUITY
Note
2021
$
2020
$
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
15,332,569
5,787,470
Net loss for the period
7
8
9
10
9
11
12
13
14
15
16
17
16
17
18
18
18
14,095,825
733,302
80,000
423,442
2,596,648
180,822
3,010,000
-
110,000
128,207
6,354
101,312
26,213,914
26,559,787
110,000
39,525
-
-
15,297,618
15,447,143
41,892,356
21,234,613
1,160,986
176,399
17,973
1355,358
4,671
86,096
90,767
429,664
111,709
-
541,373
2,359
-
2,359
1,446,125
543,732
40,446,231
20,690,881
51,813,994
907,604
29,634,657
672,749
(12,275,367)
(9,616,525)
40,446,231
20,690,881
Share Based
Accumulated
Issued Capital
Payments
Losses
Total Equity
$$
Reserve
$$
$$
$$
Balance at 1 July 2020
29,634,657
672,749
(9,616,525)
20,690,881
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Cost of share based payments
Share issues
Costs of issues
-
-
23,328,260
(1,370,337)
521,111
-
-
-
(2,723,684)
(2,723,684)
(2,723,684)
(2,723,684)
-
-
-
-
521,111
23,328,260
(1,370,337)
-
-
Transfer of equity instruments exercised
221,414
(221,414)
Transfer of equity instruments lapsed
-
(64,842)
64,842
At 30 June 2021
51,813,994
907,604
(12,275,367)
40,446,231
Balance at 1 July 2019
25,155,010
521,068
(8,704,555)
16,971,523
Net loss for the period
-
-
(984,124)
(984,124)
Total comprehensive loss for the year
(984,124)
(984,124)
Transactions with owners in their capacity as owners:
Cost of share based payments
-
224,272
Share issues
Costs of issues
4,752,009
(272,799)
-
-
Transfer of equity instruments exercised
437
(437)
-
-
-
-
Transfer of equity instruments lapsed
-
(72,154)
72,154
224,272
4,752,009
(272,799)
-
-
At 30 June 2020
29,634,657
672,749
(9,616,525)
20,690,881
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
072
073
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
2021
$
2020
$
(2,897,836)
70,721
(748,109)
107,037
Net cash (used in) operating activities (Note 19)
(2,827,115)
(641,072)
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts / (payments) for investments
Expenditure on plant and equipment
Expenditure on exploration tenements
3,030,000
(124,179)
1,277,848
(9,593)
(10,613,008)
(4,257,610)
Net cash (used in) investing activities
(7,707,187)
(2,989,355)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1:
CORPORATE INFORMATION
The financial report of Navarre Minerals Limited (variously the “Company”, “Navarre” and “Navarre Minerals”) and its subsidiaries (together,
the “Group”) for the year ended 30 June 2021 was authorised for issue in accordance with a resolution of the directors on 17 September
2021.
Navarre Minerals Limited is a company limited by shares incorporated in Australia. The Company’s shares are publicly traded on Australian
Stock Exchange.
The nature of operations and principal activities of the Group are described in Note 3.
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations
Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board, as
appropriate for for-profit orientated entities, and is presented in Australian dollars. The financial report has also been prepared on a
historical cost basis.
(i) Compliance with IFRS
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issues
Transaction costs on issue of shares
Repayment of lease liability
23,328,260
(1,279,269)
(15,512)
4,752,009
(272,799)
-
The financial report complies with Australian Accounting Standards issued by the Australian Accounting Standards Board and International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
(ii) Early adoption of new Accounting Standards
Net cash from financing activities
22,033,479
4,479,210
The Group has not elected to early adopt any of the standards set out under (c) New Accounting Standards for Application in Future Periods.
Net (decrease) / increase in cash and cash equivalents
11,499,177
848,783
(iii) Historical cost convention
The financial statements have been prepared under a historical cost convention.
Cash and cash equivalents at beginning of period
2,596,648
1,747,865
(b)
New or amended Accounting Standards and Interpretations adopted
Cash and cash equivalents at end of period (Note 7)
14,095,825
2,596,648
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains new
definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but it has not had a
material impact on the consolidated entity's financial statements.
(c)
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been
early adopted by the consolidated entity for the annual reporting period ended 30 June 2021. The consolidated entity has not yet assessed
the impact of these new or amended Accounting Standards and Interpretations.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
074
075
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(d)
Basis of consolidation
(f)
Current and non-current classification (cont.)
The consolidated financial statements comprise the financial statements of Navarre Minerals Limited and its subsidiaries as at 30 June 2021
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily
and the results of all the subsidiaries for the year then ended (“Group”).
for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the
Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies so as to obtain benefits
settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.
from their activities.
Deferred tax assets and liabilities are always classified as non-current.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting
(g)
Cash and cash equivalents
policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income, expenses and profit and
losses from intra group transactions, have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.
(e)
Significant accounting judgements, estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on judgements, estimates and assumptions of future
events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain
assets and liabilities within the next annual reporting period are:
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value of share options is determined using either a Black Scholes or binomial option pricing model,
and using the assumptions detailed in Note 23.
Exploration and evaluation costs
Exploration and evaluation costs are accumulated separately for each area of interest and carried forward provided that one of the following
conditions is met:
Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits
with an original maturity of three months or less.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined
above, net of outstanding bank overdrafts.
(h)
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment losses. Depreciation is calculated on a straight-
line basis over the estimated useful lives of the assets which range from 3 to 5 years.
Impairment
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying
value may not be recoverable.
For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit
to which the asset belongs. Impairment exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset
is written down to its recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
such costs are expected to be recouped through successful development or sale; or
●
●
exploration activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of
the time value of money and the risks specific to the asset.
economically recoverable reserves, and active and significant operations in relation to the area are continuing.
An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the
Significant judgement is required in determining whether it is likely that future economic benefits will be derived from the capitalised
continued use of the asset. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
exploration and evaluation expenditure. In the judgement of the Directors, at 30 June 2021, exploration activities in each area of interest
proceeds and the carrying amount of the item) is included in the consolidated statement of comprehensive income in the period the item
have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of ore reserves. Active and significant
is derecognised.
operations in relation to each area of interest are continuing and nothing has come to the attention of the Directors to indicate future
economic benefits will not be achieved. The Directors are continually monitoring the areas of interest and are exploring alternatives for
funding the development of areas of interest when ore reserves are confirmed. If new information becomes available that suggests the
recovery of expenditure is unlikely, the amounts capitalised will need to be reassessed at that time.
(f)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
(i)
Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered principally through
a sale transaction rather than through continued use. They are measured at the lower of their carrying amount and fair value less costs of
disposal. For non-current assets or assets of disposal groups to be classified as held for sale, they must be available for immediate sale in
their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal groups to fair
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's
value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of a non-current assets
normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period;
and assets of disposal groups, but not in excess of any cumulative impairment loss previously recognised.
or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period. All other assets are classified as non-current.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to
the liabilities of assets held for sale continue to be recognised.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
076
077
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(i)
Non-current assets or disposal groups classified as held for sale (cont.)
(m)
Trade and other payables
Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale are presented separately on the
Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the
face of the statement of financial position, in current assets. The liabilities of disposal groups classified as held for sale are presented
end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase
separately on the face of the statement of financial position, in current liabilities.
(j)
Exploration and evaluation costs
of the goods and services.
(n)
Provisions
Exploration and evaluation expenditure is carried at cost. If indication of impairment arises, the recoverable amount is estimated and an
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that
impairment loss is recognised to the extent that the recoverable amount is lower than the carrying amount.
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
Exploration and evaluation costs are accumulated separately for each current area of interest and carried forward provided that one of the
amount of the obligation.
following conditions is met:
●
●
such costs are expected to be recouped through successful development or sale; or
exploration activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in relation to the area are continuing.
Impairment of exploration and evaluation costs
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 consolidated statement of comprehensive income net of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation
at the balance date. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the
To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits/ (losses) and
liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
net assets will be varied in the period in which this determination is made.
Farm-outs
The Group will account for farm-out arrangements as follows:
The Group will not record any expenditure made by the farminee on its behalf;
●
●
●
The Group will not recognise a gain or loss on the farm-out arrangement but rather will redesignate any costs previously capitalised
in relation to the whole interest as relating to the partial interest retained; and
Any cash consideration to be received will be credited against costs previously capitalised in relation to the whole interest with any
are measured at the rates paid or payable.
Long service leave
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities for wage and salaries, including non-monetary benefits and annual leave entitlements expected to be settled within 12 months of
the reporting date are recognised in provisions in respect of employees’ service up to the reporting date. They are measured at the amounts
expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
excess to be accounted for by the Group as gain on disposal.
(k)
Trade and other receivables
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 periods of service. Expected
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method,
future payments are discounted using market yields at the reporting date in national government bonds with terms to maturity and
less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.
currencies that match, as closely as possible, the estimated future cash outflows.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
Defined contribution superannuation expense
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(l)
Leases
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
(o)
Share-based payment transactions
The Group provides benefits to employees and directors of the Group in the form of share-based payment transactions, whereby services
At the inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract
are rendered in exchange for shares or rights over shares (‘equity-settled transactions’).
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset (“right-of-use” asset), the Group uses the definition of a lease in AASB 16.
The cost of equity-settled transactions is measured by reference to the fair value at the date at which they are granted. The fair value of
options and performance rights with market performance criteria is determined using either a Black Scholes or binomial option pricing
Right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position with a depreciation charge for
model. The fair value of performance rights with non-market performance criteria is determined by reference to the Company’s closing
the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs).
share price on the trading day prior to grant.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the
or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
performance conditions are fulfilled, ending on the date on which the recipient becomes fully entitled to the award (‘vesting date’).
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
078
079
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(o)
Share-based payment transactions (cont.)
(r)
Income tax (cont.)
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax
the vesting period has expired and (ii) the number of awards that, in the opinion of the directors, based on the best available information at
losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-
balance date, will ultimately vest. No adjustment is made for the likelihood of market conditions being met as the effect of these conditions
forward of unused tax assets and unused tax losses can be used, except:
is included in determination of fair value at grant date. The charge or credit for the period represents the movement in cumulative expense
recognised as at the beginning and end of the period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified.
●
●
where 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; and
when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in
In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date
which case a deferred tax asset is only recognised to the extent that it is probable that the temporary differences will reverse in the
of modification.
foreseeable future and taxable profit will be available against which the temporary differences can be applied.
Where 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
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable
for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement
that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as
described in the previous paragraph.
The dilutive effect, if any, of outstanding options and performance rights is reflected as additional share dilution in the computation of
earnings per share.
(p)
Contributed equity
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it is has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and 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 of set off exists to set off current tax assets against
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares, options or performance rights
current liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxable authority.
are shown in equity as a deduction, net of tax, from the proceeds.
(q)
Revenue
Income taxes relating to items recognised directly in equity are recognised in equity and not in the consolidated statement of
comprehensive income.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably
(s)
Goods and services tax
measured. Specific recognition criteria must also to be met:
Interest income
Revenue is recognised as the interest accrues using the effective interest method.
(r)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the
reporting date.
Deferred income tax is provided on all temporary differences at balance date between the tax bases of assets and liabilities and their
Revenues, expenses and assets are recognised net of GST, except receivables and payables which are stated with GST included. Where
GST incurred on a purchase of goods or services is not recoverable from the taxation authority, the GST is recognised as part of the cost
of acquisition of the asset or as part of the expense item as applicable.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
consolidated statement of financial position.
Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
carrying amounts for financial reporting purposes.
(t)
Earnings per share
Deferred income tax liabilities are recognised for all taxable temporary differences, except:
Basic earnings per share is calculated as net profit/(loss) attributable to members divided by the weighted average number of ordinary
●
●
where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business
shares.
combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
Diluted earnings per share is calculated as net profit/(loss) attributable to members divided by the weighted average number of ordinary
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and
shares and dilutive potential ordinary shares.
the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
(u)
Going concern
reverse in the foreseeable future.
The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the
realisation and settlement of liabilities in the normal course of the business.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
080
081
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
NOTE 5:
INCOME TAX
(v)
Parent entity financial information
The financial information for the parent entity, Navarre Minerals Limited, disclosed in Note 25 has been prepared on the same basis as the
consolidated financial statements, except as set out below.
Investments in subsidiaries
Investments in subsidiaries are accounting for at cost less accumulated impairment losses in the financial statements of Navarre Minerals
Limited.
NOTE 3:
SEGMENT INFORMATION
The Group’s reportable segment is confined to mineral exploration only within Australia.
Statement of Comprehensive Income
Current income tax
Current income tax credit
Tax losses not recognised as probable
Deferred income tax
Temporary differences
Tax losses brought to account offsetting temporary differences
NOTE 4:
NET ADMINISTRATION EXPENSES
Income tax expense reported in the consolidated statement of comprehensive income
Consolidated
2021
$
283,427
(283,427)
-
2020
$
226,899
(226,899)
-
3,250,630
(3,250,630)
1,284,598
(1,284,598)
-
-
-
-
Consolidated
2021
$
2020
$
Tax Reconciliation
A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Group’s applicable income
tax rate is as follows:
Accounting loss before tax
At the statutory 30% tax rate (2020: 30%)
Share based payment expense
Capital expenses
Non-deductible expenses
Tax losses not brought to account
Income tax expense reported in the consolidated statement of comprehensive income
(2,723,684)
(984,124)
817,105
(156,333)
(373,072)
(4,273)
(283,427)
-
295,237
(67,282)
-
(1,057)
(226,898)
-
Net administration expenses
Consultants' fees and expenses
Directors’ remuneration (non-executive)
Salaries and on-costs
Share based payments
Investor relations
Business development1
Motor vehicle expenses
Audit costs
Stock exchange, registry, and reporting costs
Travel and meal costs
Depreciation and amortisation
Other administration expenses
Gross administration expenses
Capitalised as exploration and evaluation costs2
Consolidated
2021
$
34,760
80,702
1,720,276
512,111
273,281
1,243,572
3,229
27,700
101,669
27,781
55,135
160,523
4,249,739
(1,502,573)
2020
$
10,231
136,127
849,608
224,272
196,718
-
19,249
27,537
71,699
8,592
16,657
87,909
1,648,599
(748,244)
Net administration expenses
2,738,166
900,355
1 Navarre has undertaken significant programs to pursue its stated strategic aim of exploring opportunities to further grow the business.
2 The amount capitalised as exploration and evaluation costs, totalling $1,502,573 (2020: $748,244), forms part of the exploration and evaluation expenditure
for the year as set out in Note 14.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
082
083
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5:
INCOME TAX (cont.)
Deferred Income Tax
Deferred income tax at 30 June relates to the following:
Statement of Financial Position
Income Statement
2021
$
2020
$
2021
$
2020
$
CONSOLIDATED
Deferred tax liabilities
Interest receivable
Exploration and evaluation costs
Gross deferred income tax liabilities
Deferred tax assets
Accruals
Provisions
Share issue costs
Capital expenses
Temporary differences not recognised as not probable
Tax losses brought to account to offset net deferred tax
liability
Gross deferred income tax assets
Net Deferred Tax Asset
Deferred tax expense
Tax consolidation
(i)
Members of the tax consolidated group
(80)
(7,864,174)
(7,864,254)
(3,617)
(4,589,285)
(4,592,902)
3,537
3,209
(3,274,889)
(1,289,975)
41,525
54,321
411,101
373,072
(784,173)
7,768,408
7,864,254
-
40,904
34,220
81,840
-
(81,840)
4,517,778
4,592,902
-
621
20,101
-
-
-
(2,293)
4,461
-
-
-
3,250,630
1,284,598
Navarre Minerals Limited and its 100% owned Australian resident subsidiaries have formed a tax consolidated group. Navarre Minerals
Limited is the head entity of the tax consolidated group.
(ii)
Tax effect accounting by members of the tax consolidated group
Measurement method adopted under UIG 1052 Tax Consolidated Accounting
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5:
INCOME TAX (cont.)
In June 2018, the Company received an allocation of up to $1,576,603 exploration credits in the Federal Government’s Junior Minerals
Exploration Incentive (“JMEI”) scheme for FY2019. The JMEI scheme enables eligible exploration companies to create exploration credits by
giving up a portion of their tax losses from greenfields minerals expenditure and distributing these exploration credits to eligible investors
who were issued new shares in the Company’s capital raising activities during FY2019. On 11 November 2019, the Company created JMEI
tax credits totalling $977,070 which have been applied and distributed on a pro-rata basis to eligible investors. Accordingly, carry forward
tax losses have been reduced by $3,256,901 (i.e. $977,070 grossed up by 30%). The balance of unused JMEI tax credits from FY2019
($599,533) were carried forward to FY2020.
In June 2019, the Company received an allocation of up to $1,500,000 exploration credits in the Federal Government’s JMEI scheme for
FY2020. Subsequent to FY2020, the Company calculated that out of the $1,500,000 of exploration credits allocated to the Company, a
maximum of $1,425,603 were distributable for FY2020 (based on $4,752,009 capital raised during FY2020 multiplied by the Company’s tax
rate of 30%).
On 9 December 2020, the Company created JMEI tax credits totalling $1,267,182. Of these, $599,533 were applied and distributed on a pro-
rata basis to FY2019 eligible investors and the remaining $667,649 were applied and distributed on a pro-rata basis to FY2020 eligible
investors. Accordingly, carry forward tax losses have been reduced by $4,223,941 (i.e. $1,267,182 grossed up by 30%).
The balance of unused JMEI tax credits from FY2020 ($757,954) have been carried forward to FY2021 and, depending on the tax loss
recorded for the FY2021, will be distributed to the FY2020 eligible investors.
The JMEI scheme replaced the previous Exploration Development Incentive scheme (“EDI”) scheme from 1 July 2017. The EDI operated for
a three year period (FY15 – FY17) and the Company issued exploration credits to shareholders to the value of $666,519. The value of tax
losses forgone is $2,341,207.
Basic earnings/(loss) per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings/(loss) per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
For the year ended 30 June 2021 and for the comparative period, there are no dilutive potential ordinary shares as conversion of share
options and performance rights would decrease the loss per share and hence are non-dilutive.
-
-
NOTE 6:
EARNINGS/(LOSS) PER SHARE
The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax
The following data was used in the calculations of basic and diluted loss per share:
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. The current and deferred tax amounts are measured in a systematic manner that is
consistent with the principles in AASB 112 Income Taxes.
In addition to its own current and deferred tax amounts, the head entity also recognises current tax liabilities (or assets) and the deferred
Net loss
tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.
Consolidated
2021
$
2020
$
(2,723,684)
(984,124)
Shares
Shares
Weighted average number of ordinary shares used in calculation of basic loss per share
548,193,192
464,660,543
Tax losses
At balance date, the Group has estimated unused gross tax losses of $29,895,000 (2020: $21,175,000) that are available to offset against
future taxable profits subject to continuing to meet relevant statutory tests. To the extent that it does not offset a net deferred tax liability,
a deferred tax asset has not been recognised in the accounts for these unused losses because it is not probable that future taxable profit
will be available to use against such losses.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
084
085
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7:
CASH AND CASH EQUIVALENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 11:
PROPERTY, PLANT AND EQUIPMENT
Cash at bank and in hand
14,095,825
2,596,648
At cost
Consolidated
2021
$
2020
$
Cash at bank earns interest at floating rates based on daily bank rates.
NOTE 8:
TRADE AND OTHER RECEIVABLES
Goods and services tax refund
Interest receivable
Prepaid Tandarra joint venture advance
Other
Consolidated
2021
$
583,690
265
49,849
99,498
2020
$
86,808
12,057
56,795
25,162
733,302
180,822
At balance date, no receivables are past due or impaired. Due to the short term nature of these receivables, their carrying value
approximates fair value. Trade receivables are non-interest bearing and are generally on 30-90 day terms. Details regarding the credit risk
of current receivables are disclosed in Note 20.
NOTE 9:
OTHER FINANCIAL ASSETS
Current
Term Deposits
Non-current
Bank Guarantees – Exploration Permit bonds
NOTE 10:
NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
Current
Tenement – EL 4590
Consolidated
2021
$
2020
$
80,000
3,010,000
Consolidated
2021
$
2020
$
110,000
110,000
Consolidated
2021
$
423,442
2020
$
-
In February 2021, the Company executed a binding terms sheet with Resource Base for the sale of the Company’s Black Range base metal
exploration tenement (EL 4590), subject to various conditions precedent. Subsequent to balance date, all applicable conditions precedent
were satisfied and EL 4590 was transferred to Resource Base.
Accumulated depreciation
Movement in Plant and Equipment
Net carrying amount at beginning of year
Additions
Depreciation
Net carrying amount at end of year
The useful life of the plant and equipment is estimated for 2021 at 3 to 5 years.
NOTE 12:
LEASEHOLD IMPROVEMENTS
At cost
Accumulated depreciation
Movement in Leasehold Improvements
Net carrying amount at beginning of year
Additions
Depreciation
Net carrying amount at end of year
NOTE 13:
RIGHT-OF-USE ASSETS
Land and buildings
Accumulated depreciation
Additions to the right-of-use assets during the year were $119,581 (2020: $0)
Consolidated
2021
$
397,013
(268,806)
2020
$
272,226
(232,701)
128,207
39,525
39,525
124,787
(36,105)
44,416
11,766
(16,657)
128,207
39,525
Consolidated
2021
$
14,716
(8,362)
6,354
-
7,114
(760)
6,354
Consolidated
2021
$
119,581
(18,269)
101,312
2020
$
7,602
(7,602)
-
-
-
-
-
2020
$
-
-
-
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
086
087
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 14:
EXPLORATION AND EVALUATION COSTS
NOTE 18:
CONTRIBUTED EQUITY AND RESERVES
Balance at beginning of year
Expenditure for the year
Classified as held for sale
Expenditure written-off during the year
Consolidated
2021
$
15,297,618
11,375,185
(423,442)
(35,447)
2020
$
10,997,701
4,480,027
-
(180,110)
26,213,914
15,297,618
Capitalised exploration and evaluation costs at 30 June 2021 relate to Stawell Corridor $16,765,655 (2020: $8,934,520), Bendigo North
$6,450,357 (2020: $5,067,766), St Arnaud Gold Project $2,468,130 (2020: $836,027), Jubilee Gold Project $521,087 (2020: $35,486) and Stavely
Arc Project $8,685 (2020: $423,819).
NOTE 15:
TRADE AND OTHER PAYABLES
Trade Creditors
Trade payables are non-interest bearing and are normally settled on 30 day terms.
NOTE 16:
EMPLOYEE BENEFITS PROVISION
Current
Annual leave entitlement
Long service leave entitlement
Non-current
Long service leave entitlement
NOTE 17:
LEASE LIABILITIES
Current
Lease liability
Non-current
Lease liability
Consolidated
2021
$
2020
$
1,160,986
429,664
Consolidated
2021
$
109,428
66,971
2020
$
59,045
52,664
176,399
111,709
Consolidated
2021
$
4,671
Consolidated
2021
$
17,973
Consolidated
2021
$
86,096
2020
$
2,359
2020
$
-
2020
$
-
ISSUED AND PAID UP CAPITAL
Ordinary shares
Movements in Ordinary Shares
Balance at beginning of year
Share Issues:
Share placement at $0.11
Share placement at $0.125
Share placement at $0.100
Share Purchase Plan at $0.100
Exercise of performance rights
Exercise of employee share options
Exercise of other share options
Cost of equity instruments exercised
Transaction costs
2021
Shares
Consolidated
2021
$
2020
Shares
2020
$
695,172,151
51,813,994
478,242,151
29,634,657
478,242,151
29,634,657
435,010,251
25,155,010
-
-
64,000,000
8,000,000
100,000,000
10,000,000
48,930,000
4,893,000
500,000
1,300,000
2,200,000
-
-
-
146,400
288,860
221,414
(1,370,337)
43,181,900
43,181,900
4,750,009
4,750,009
-
-
-
50,000
-
-
-
-
-
-
2,000
-
437
(272,799)
Balance at end of year
695,172,151
51,813,994
478,242,151
29,634,657
(a)
Terms and Conditions of Ordinary Shares
Ordinary shares entitle their holder to receive dividends as declared. In the event of winding up the Company, ordinary shares entitle their
holder to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up or which should
have been paid up on shares held. Each ordinary share entitles the holder to one vote, either in person or by proxy, at a meeting of the
Company. Ordinary shares issued during the year and since the end of the year, from date of issue rank equally with the ordinary shares
on issue.
(b)
Share Options
Employee Options
At 30 June 2021, 10,600,000 options over unissued shares granted to senior employees and non-executive directors of the Company were
outstanding. The options are granted pursuant to the Navarre Minerals Limited Option Plan, details of which are set out in Note 23.
Other Options
At 30 June 2021, 1,800,000 share options over unissued shares granted to Zenix Nominees Pty Ltd, a subsidiary of Hartleys Limited, as part
consideration for Hartleys’ role as manager for the Share Placement completed in April/May 2019, were outstanding.
(c)
Share Performance Rights
At 30 June 2021, 3,800,000 performance rights over unissued shares granted to senior employees of the Company were outstanding. The
performance rights are granted pursuant to the Navarre Minerals Limited Performance Rights Plan, details of which are set out in Note 23.
(d)
Capital Management
Capital is defined as equity. When managing capital, management’s objective is to ensure the entity continues as a going concern as well
as to maintain optimal returns to shareholders and benefits of other stakeholders. All methods of returning funds to shareholders outside
of dividend payments or raising funds are considered within the context of the Group’s objectives.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
088
089
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 18:
CONTRIBUTED EQUITY AND RESERVES (cont.)
NOTE 19:
STATEMENT OF CASH FLOWS RECONCILIATION
The Group will seek to raise further capital, if required, as and when necessary to meet its projected operations. The decision of how the
Reconciliation of net loss after tax to net cash flows used in operating activities
Group will raise future capital will depend on market conditions existing at that time. It is the Group’s plan that this capital will be raised by
any one or a combination of the following: placement of shares, pro-rata issue to shareholders, the exercise of outstanding options, and/or
a further issue of shares to the public. Should these methods not be considered to be viable, or in the best interests of shareholders, then
it would be the Group’s intention to meet its obligations by either partial sale of the Group’s interests or farm-out, the latter course of action
being part of the Group’s overall strategy.
The Group is not subject to any externally imposed capital requirements.
OTHER RESERVES
Share Based Payments Reserve
The share based payments reserve records the value of benefits provided as equity instruments to directors, employees and consultants
under share-based payment plans (Note 23).
Balance at beginning of year
Cost of share based payments
Cost of expired equity instruments transferred to accumulated losses
Cost of exercised equity instruments transferred to issued capital
Balance at end of year
ACCUMULATED LOSSES
Balance at beginning of year
Net loss for the year
Cost of equity instruments expired
Balance at end of year
Net loss
Adjustments for:
Exploration expenditure written-off
Depreciation and amortisation (net of allocation to exploration licences)
Share based payments (net of allocation to exploration licences)
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables (net of allocation to exploration licences)
Increase in trade and other payables (net of allocation to exploration licences)
Increase in provisions (net of allocation to exploration licences)
Consolidated
2021
$
2020
$
(2,723,684)
(984,124)
35,447
6,526
288,377
(482,518)
26,421
22,316
180,110
1,836
104,898
21,326
27,657
7,225
Net cash flows used in operating activities
(2,827,115)
(641,072)
NOTE 20:
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and short term deposits, the main purpose of which is to finance the Group’s
operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly
from its operations. The main risks arising from the Group’s financial instruments are credit risk, interest rate risk and liquidity risk. The
Board of Directors has reviewed each of those risks and has determined that they are not significant in terms of the Group’s current activities.
Credit risk
Consolidated
2021
$
672,749
521,111
(64,842)
(221,414)
2020
$
521,068
224,272
(72,154)
(437)
907,604
672,749
Consolidated
The Group trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the results
2021
$
(9,616,525)
(2,723,684)
64,842
2020
$
(8,704,555)
(984,124)
72,154
(12,275,367)
(9,616,525)
being that the Group’s exposure to bad debts is not significant.
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents and trade, other receivables and other
financial assets. The Group's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to
the carrying amount of these instruments. No collateral is held as security. Exposure at balance date is the carrying value as disclosed in
each applicable note.
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash and cash equivalents with a
floating interest rate. The impact of a 1.0% change in the market interest rates will not have a material impact on the Group’s financial
position.
There is no impact on equity other than the above net profit sensitivities on retained earnings/accumulated losses.
Liquidity Risk
The Group’s exposure to financial obligations relating to corporate administration and projects expenditure, are subject to budgeting and
reporting controls, to ensure that such obligations do not exceed cash held and known cash inflows for a period of at least 1 year.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built in an appropriate liquidity risk
framework for the management of the Group’s short, medium and longer term funding and liquidity management requirements. The Group
manages liquidity risk by maintaining adequate equity funding through the monitoring of future cash flow forecasts of its operations, which
reflect management’s expectations of the settlement of financial assets and liabilities.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
090
091
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 20:
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont.)
NOTE 21:
COMMITMENTS AND CONTINGENCIES (cont.)
The Group has limited financial resources and will need to raise additional capital from time to time as such fund raisings will be subject to
Exploration commitments for Stavely (EL 5425) during the reporting period were met by Stavely Minerals Limited (Stavely) under an earn-
factors beyond the control of the Group and its directors. When Navarre requires further funding for its programs, then it is the Group’s
in, pursuant to which Stavely may earn up to 80% interest in EL 5425. During FY2020, the Company received notification that Stavely had
intention that the additional funds will be raised by any one or a combination of the following: placement of shares, pro-rata issue to
satisfied the conditions for the first earn-in stage by sole funding $150,000 of exploration costs in the first two years, to earn a 51% equity
shareholders, the exercise of outstanding options, and/or a further issue of shares to the public. Should these methods not be considered
interest in EL 5425 in accordance with the Stavely Farm-in and Joint Venture Agreement signed in January 2018. Stavely has also elected
to be viable, or in the best interests of shareholders, then it would be the Group’s intention to meet its obligations by either partial sale of
to proceed to the second earn-in stage and sole fund a further $300,000 of exploration costs over the next three years to earn an additional
the Group’s interests or farm-out, the latter course of action being part of the Group’s overall strategy.
29% equity interest.
Maturity Analysis
At balance date, the Group holds $1,160,986 of financial liabilities consisting of trade and other payables. All financial liabilities will mature
within 12 months.
Fair Values
The aggregate net fair values of the financial assets and liabilities are the same as the carrying values in the consolidated statement of
In June 2020, the Company executed an Asset Sale Agreement to acquire 100% of the Jubilee Gold Project (EL 006689), under which, and
upon transfer of the tenement, the Group would be required to meet all exploration commitments for the tenement. During the reporting
period, the transfer of the tenement by the Victorian Department of Jobs, Precincts and Regions to the Group was completed.
In February 2021, the Company executed a binding terms sheet with Resource Base for the sale of the Company’s Black Range base metal
exploration tenement (EL 4590), subject to various conditions precedent. Subsequent to balance date, all applicable conditions precedent
were satisfied and EL 4590 was transferred to Resource Base. Therefore, there are no exploration commitments for Black Range (EL 4590)
financial position.
at balance date.
NOTE 21:
COMMITMENTS AND CONTINGENCIES
The Company currently has seven exploration licence applications in process. If these licences are granted, there will be minimum
(a)
Commitments
Operating Lease
expenditure commitment applicable to the tenements. The amount of this commitment is currently unknown.
2021
$
2020
$
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform work to meet the minimum
expenditure requirements set by the Victorian State Government. These obligations are expected to be fulfilled in the normal course of
operations. Exploration interests may be relinquished or joint ventured to reduce this expense to the Group. The Victorian State
Future minimum rentals payable under operating lease for office premises and storage yard at
Government has the authority to defer, waive or amend the minimum expenditure requirements.
balance date:
Payable not later than one year
Exploration Commitments – Exploration Permits
Estimated cost of minimum work requirements contracted for under exploration permit is
estimated at balance date:
Payable not later than one year
Payable later than one year but not later than five years
Payable later than five years
3,690
2,390
2021
$
2020
$
925,450
4,291,100
392,000
727,350
2,195,000
588,000
5,608,550
3,510,350
Exploration commitments at 30 June 2021 relate to Bendigo North (the Company’s 49% interest in the Tandarra Gold Project) $1,151,500
(2020: $1,274,000), Western Victoria Copper Project (the are no expenditure commitments for EL 4590 or EL 5425, see below for details)
$0 (2020: $154,000), Stawell Corridor $1,341,400 (2020: $1,703,050), St Arnaud Gold Project $2,985,250 (2020: $209,500) and Jubilee Gold
Project $130,400 (2020: $169,800).
During FY2019, the Company received notification from the Victorian Department of Economic Development, Jobs, Transport and Resources
(DEDJTR) that Retention Licence RL 6660 had been granted for a ten-year term expiring on 2 November 2028 for the Tandarra Gold Project.
The programme of work and milestones were also agreed with the DEDJTR and will require expenditure of $3.1 million during the ten-year
period. The Company is obligated to pay 49% of the required exploration programme expenditure of $3.1 million over the period of the
licence.
NOTE 22:
RELATED PARTY DISCLOSURES
Subsidiaries
The consolidated financial statements include the financial statements of Navarre Minerals Limited and the following subsidiaries:
Country of
Incorporation
Entity Interest
Black Range Metals Pty Ltd
Loddon Gold Pty Ltd
North Central Gold Exploration Pty Ltd
Tandarra Gold Pty Ltd
Western Victoria Gold Pty Ltd
Compensation of key management personnel by category:
Australia
Australia
Australia
Australia
Australia
Short term employee benefits
Post-employment benefits
Share-based payments
Long service leave expense
Details of compensation of individual key management personnel are set out in the Remuneration Report.
2021
%
100
100
100
100
100
Consolidated
2021
$
1,128,018
100,145
450,746
16,619
2020
%
100
100
100
100
100
2020
$
737,247
83,952
239,676
8,318
1,695,528
1,069,193
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
092
093
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 23:
SHARE BASED PAYMENT PLANS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 23:
SHARE BASED PAYMENT PLANS (cont.)
The Group has established the Navarre Minerals Limited Option Plan (“Option Plan”) and the Navarre Minerals Limited Performance Rights
Set out below are the options, vested and exercisable at the end of the financial year:
Plan (“Performance Rights Plan”), both of which have been approved by shareholders at a general meeting, whereby the Group may, at the
discretion of the Board of Directors, grant options over ordinary shares and performance rights over ordinary shares in the Company to
certain key management personnel of the Group. The options and performance rights are issued for nil consideration and are granted in
accordance with performance guidelines established by the Nomination and Remuneration Committee.
In November 2020, 1,500,000 performance rights were issued to the Managing Director, pursuant to the Performance Rights Plan.
In addition to options issued under the Option Plan and Performance Rights Plan, the Group may also issue options to service providers as
consideration for services provided to the Group.
Set out below are summaries of options granted under the Option Plan:
2021
Grant date
Expiry date
price
2020
Exercise
Held at 1 July
Options
Granted
Options
Exercised
Options
Held at 30
Lapsed
June 2021
22/02/2017
31/12/2021
22/02/2017
31/12/2021
29/01/2018
29/01/2023
10/04/2018
10/04/2023
06/06/2018
06/06/2021
21/02/2019
21/02/2024
17/05/2019
17/05/2024
$0.072
$0.090
$0.150
$0.150
$0.150
$0.120
$0.120
200,000
200,000
2,000,000
4,650,000
1,000,000
1,700,000
5,450,000
17/05/2019
17/05/2022
$0.1313
4,000,000
19,200,000
-
-
-
-
-
-
-
-
-
200,000
-
-
-
-
-
-
-
-
-
200,000
2,000,000
750,000
3,900,000
1,000,000
-
-
1,700,000
1,100,000
1,550,000
2,800,000
2,200,000
-
1,800,000
3,500,000
3,300,000
12,400,000
Weighted average exercise price
$0.1335
$0.0000
$0.1244
$0.1359
$0.1354
2020
Grant date
Expiry date
22/02/2017
22/02/2017
31/12/2021
31/12/2021
29/01/2018
29/01/2023
10/04/2018
10/04/2023
06/06/2018
06/06/2021
21/02/2019
21/02/2024
17/05/2019
17/05/2019
17/05/2024
17/05/2022
2021
Options
-
200,000
2,000,000
3,900,000
2020
Options
200,000
200,000
-
-
-
1,000,000
1,700,000
2,533,334
1,800,000
566,666
3,634,334
4,000,000
12,133,334
9,601,000
The weighted average share price during the financial year was $0.1508 (2020: $0.1062).
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.27 years (2020: 2.84 years).
Set out below are summaries of performance rights granted under the Performance Rights Plan:
2021
Grant date
Expiry date
2020
Rights Granted
Rights Exercised
Rights Lapsed
2021
Held at 1 July
Performance
Performance
Performance
Held at 30 June
18/11/2019
31/12/2022
18/05/2020
30/06/2023
27/11/2020
31/12/2024
1,500,000
1,300,000
-
2,800,000
-
-
1,500,000
1,500,000
-
-
500,000
500,000
-
-
-
-
1,500,000
1,300,000
1,000,000
3,800,000
Grant date
Expiry date
price
2019
Exercise
Held at 1 July
Options
Granted
Options
Exercised
Options
Held at 30
Lapsed
June 2020
2020
Held at 1 July
Performance
Performance
Performance
Held at 30 June
23/06/2015
31/12/2019
22/02/2017
31/12/2021
22/02/2017
31/12/2021
29/01/2018
29/01/2023
10/04/2018
10/04/2023
06/06/2018
06/06/2021
21/02/2019
21/02/2024
17/05/2019
17/05/2024
$0.040
$0.072
$0.090
$0.150
$0.150
$0.150
$0.120
$0.120
50,000
200,000
200,000
2,750,000
5,400,000
1,000,000
2,100,000
6,100,000
17/05/2019
17/05/2022
$0.1313
4,000,000
21,800,000
-
-
-
-
-
-
-
-
-
-
50,000
-
-
-
-
-
-
-
-
-
-
-
750,000
750,000
-
200,000
200,000
2,000,000
4,650,000
-
1,000,000
400,000
650,000
1,700,000
5,450,000
-
4,000,000
50,000
2,550,000
19,200,000
Weighted average exercise price
$0.1338
$0.0000
$0.0400
$0.1376
$0.1335
Grant date
Expiry date
2019
Rights Granted
Rights Exercised
Rights Lapsed
2020
18/11/2019
31/12/2022
18/05/2020
30/06/2023
-
-
-
1,500,000
1,300,000
2,800,000
-
-
-
-
-
-
1,500,000
1,300,000
2,800,000
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
094
095
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 23:
SHARE BASED PAYMENT PLANS (cont.)
NOTE 25:
PARENT ENTITY INFORMATION
For the performance rights granted during the current financial year, the valuation model inputs used to determine the fair value at grant
date are as follows:
Grant date
Expiry date
grant date
volatility
Dividend yield
interest rate
grant date
Share price at
Expected
Risk-free
Fair value at
27/11/2020
27/11/2020
27/11/2020
31/12/2024
31/12/2024
31/12/2024
$0.215
$0.215
$0.215
70%
70%
70%
0%
0%
0%
0.07%
0.07%
0.07%
$0.215
$0.186
$0.180
Set out below are the performance rights, vested and exercisable at the end of the financial year:
Grant date
Expiry date
18/11/2019
31/12/2022
18/05/2020
30/06/2023
NOTE 24:
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia Partners for:
Audit or review of the financial reports
Other non-audit services 1
2021
2020
Performance
Performance
Rights
1,500,000
1,300,000
Rights
166,666
-
2,800,000
166,666
Consolidated
2021
$
27,700
150,700
178,400
2020
$
27,100
-
27,100
1 The other non-audit services make up part of the business development expenditure set out in Note 4. This expenditure was incurred to pursue its stated
strategic aim of exploring opportunities to further grow the business.
Information relating to Navarre Minerals Limited
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Share based payment reserve
Accumulated losses
Total shareholders’ equity
(Loss) of the parent entity
Total comprehensive (loss) of the parent entity
Details of any guarantees entered into by the parent entity in relation to the debts of its
subsidiaries
Details of any contingent liabilities of the parent entity
Details of any contractual commitments by the parent entity for the acquisition of property, plant
or equipment
NOTE 26:
EVENTS SUBSEQUENT TO BALANCE DATE
2021
$
25,054,107
42,243,450
(1,337,385)
(1,446,126)
51,813,994
907,604
2020
$
7,031,809
21,549,176
(541,373)
(543,732)
29,634,657
672,749
(11,924,274)
(9,301,962)
40,797,324
21,005,444
(2,687,154)
(2,687,154)
(983,857)
(983,857)
n/a
n/a
n/a
n/a
n/a
n/a
On 16 February 2021, Navarre announced the execution of a binding agreement with Resource Base Limited (Resource Base) for the sale
of the Company’s Black Range base metal exploration tenement (EL 4590) in western Victoria, which includes the Eclipse prospect.
As consideration for acquiring 100% ownership in the tenement, Resource Base agreed to provide Navarre the following consideration,
subject to the satisfaction or waiver of certain conditions precedent:
(a) $1,520,000 in Resource Base shares on settlement (at Resource Base Initial Public Offering price of $0.20 per share);
(b) 2,500,000 Resource Base shares on the announcement of a JORC compliant Inferred Mineral Resource of
(i)
(i)
a minimum of 100,000 ounces of gold at a minimum grade of no less than 1 g/t; or
a minimum of a combined 100,000 tonnes of copper and zinc, each at a minimum grade of 1%, within 5 years of the
settlement date; and
(c) 6,000,000 Resource Base shares on delivery of a definitive feasibility study within 5 years of settlement which indicates a project
net present value of greater than $250,000,000.
In addition, Navarre was entitled to nominate one non-executive director to sit on the Board of Resource Base.
On 12 July 2021, following successful completion of its Initial Public Offering, Resource Base was admitted to the Official List of ASX Limited.
As a result, the Company was issued 7,600,000 fully paid ordinary shares in Resource Base.
On 1 July 2021, Navarre issued 3,300,000 share performance rights to senior staff of the Company under the terms of the Navarre Minerals
Limited Performance Rights Plan.
In September 2021, Navarre’s application to participate in the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme for
the 2021/2022 income tax year was accepted by the Australian Taxation Office. The Company has received an allocation of up to
$1,250,000 exploration credits which can be distributed to eligible shareholders, being those that are Australian resident shareholders who
apply for and are issued new shares in Navarre’s capital raising activities between 1 September 2021 and 30 June 2022.
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
096
097
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 26:
EVENTS SUBSEQUENT TO BALANCE DATE (cont.)
DIRECTORS’ DECLARATION
In accordance with a resolution of the directors of Navarre Minerals Limited, I state that:
In the opinion of the Directors:
Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item,
transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to significantly affect the
(a)
The financial statements and notes of Navarre Minerals Limited for the financial year ended 30 June 2021 are in
operations of the Group, the results of those operations, or state of affairs of the Group, in future financial years.
accordance with the Corporations Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Company’s and the consolidated entity’s financial position as at 30 June 2021.
Complying with Accounting Standards (including the Australian Accounting Interpretations) and Corporations
Regulations 2001.
The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note
2(a)(i).
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
(b)
(c)
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 ended 30 June 2021.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the Board
K Wilson
Chairman
Melbourne, 17 September 2021
UNEARTHING PROSPERITYNAVARRE MINERALS LIMITEDANNUAL REPORT 2021
RSM Australia Partners
Level 21, 55 Collins Street Melbourne VIC 3000
PO Box 248 Collins Street West VIC 8007
T +61 (0) 3 9286 8000
F +61 (0) 3 9286 8199
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
To the Members of Navarre Minerals Limited
Opinion
We have audited the financial report of Navarre Minerals Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement
of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the
RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be the key audit matter to be communicated in our report.
Key Audit Matter
How our audit addressed this matter
Carrying Value of Capitalised Exploration Expenditure
Refer to Note 14 in the financial statements
The Group has capitalised exploration and evaluation
expenditure, with a carrying value of $26,213,914 as
at 30 June 2021.
Our audit procedures in relation to the carrying
value of exploration and evaluation expenditure
included:
Under AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to test the
exploration and evaluation asset for impairment
when facts and circumstances suggest that the
the recoverable
carrying amount may exceed
amount. We determined this to be a Key Audit Matter
due
judgement
involved in assessing the carrying value of the asset.
the significant management
to
obtaining evidence that the Group has valid rights
to explore in the specific areas of interest;
enquiring with management and reviewing the
basis on which they have determined that the
exploration and evaluation of mineral resources
has not at the reporting date, reached a stage
which permits a reasonable assessment of the
existence or otherwise of economically recoverable
reserves;
enquiring with management and reviewing budgets
and plans to assess whether active and significant
operations are continuing in the specific areas of
interest;
reviewing whether management has received any
data which might cause them to conclude that the
exploration and evaluation asset is unlikely to be
recovered in full from successful development or by
sale; and
reviewing minutes of director meetings and
Australian Securities and Investments Commission
announcements to ensure the Directors have not
resolved to discontinue activities in the specific
areas of interest.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
ADDITIONAL SHAREHOLDER INFORMATION
The information set out below was compiled as at 13 September 2021.
1.
Listing Information
The Company is listed, and all of the Company’s issued shares are quoted on, the Australian Securities Exchange (ASX).
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
2.
(i)
Distribution of Equity Securities
Ordinary share capital
0101
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf.
This description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors' report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Navarre Minerals Limited for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
J S CROALL
Partner
Dated: 17 September 2021
Melbourne, Victoria
697,972,151 fully paid ordinary shares are held by 4,505 individual shareholders.
At a general meeting of shareholders, on a show of hands, each person who is a shareholder or sole proxy has one vote. On a
poll, each shareholder is entitled to one vote for each fully paid share.
(ii)
Unquoted options on issue
12,400,000 unquoted options are held by 5 individual option holders.
There are no voting rights attached to these options.
(iii)
Unquoted share performance rights on issue
4,300,000 unquoted options are held by 8 individual option holders.
There are no voting rights attached to these performance rights.
(iv)
Analysis of number of shareholders by size of holding
Ordinary shares
Options over ordinary shares
Performance rights over ordinary
shares
Holders
Total Units
% IC
Holders
Total Units
% IC
Holders
Total Units
% IC
1 – 1000
1,001 – 5,000
5,001 – 10,000
147
407
728
15,860
1,544,380
5,866,906
10,001 – 100,000
2,301
94,637,050
0.000
0.220
0.840
13,560
>100,001
922
595,907,955
85.380
Totals
4,505
697,972,151
100.000
-
-
-
-
5
5
-
-
-
-
-
-
-
-
12,400,000
100.000
12,400,000
100.000
-
-
-
-
8
8
-
-
-
-
-
-
-
-
4,300,000
100.000
4,300,000
100.000
624 holders holding a total of 1,934,962 shares held less than a marketable parcel of ordinary shares.
UNEARTHING PROSPERITYANNUAL REPORT 2021
0102
ADDITIONAL SHAREHOLDER INFORMATION
3.
20 Largest Shareholders
The following table sets out the top 20 holdings of the Company’s shares:
Shareholder
Newmarket Gold NT Holdings Pty Ltd
Dr Stephen Garth Nordstrom
VBS Exchange Pty Ltd
Holdings associated with Geoff McDermott
Holdings associated with Kevin Wilson
Maradox Pty Ltd
Kirkland Lake Gold Ltd
Pe Group Holdings Pty Ltd
Spruzen Corporation Pty Ltd
Mr Howard Manly Dimond & Mrs Linda Margaret Doris Dimond
Valleytech Instrumentation Pty Ltd
Campbell Kitchener Hume & Associates Pty Ltd
Greenhill Road Investments Pty Ltd
ESM Limited
Arc De Triomphe Securities Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Robert John Annells & Mrs Kimberley Jane Hodge
Citicorp Nominees Pty Limited
Tattersfield Securities Limited
Mr Ralph Douglas Russell
4.
Substantial Shareholders
Number of
shares
47,981,303
46,935,000
42,433,412
14,555,792
13,906,085
10,000,000
8,800,000
8,703,774
6,300,000
6,000,000
5,900,000
5,500,000
5,151,000
4,500,000
4,300,000
4,137,015
4,000,000
3,933,285
3,861,114
3,759,915
% Issued
capital
6.902
6.752
6.104
2.094
2.000
1.439
1.266
1.252
0.906
0.863
0.849
0.791
0.741
0.647
0.619
0.595
0.575
0.566
0.555
0.541
250,657,695
36.057
The substantial holders in the Company, as disclosed in substantial holding notices given to the Company, are set out below:
Shareholder
Dr Stephen Garth Nordstrom1
VBS Exchange Pty Ltd2
Newmarket Gold NT Holdings Pty Ltd3
1 As set out in substantial holding notice dated 4 June 2021.
2 As set out in substantial holding notice dated 4 August 2020.
3 As set out in substantial holding notice dated 19 March 2015.
5.
Other information
The Company is not currently conducting an on-market buy-back.
No of shares
46,600,000
44,748,745
18,469,272
% Issued
Capital
7.21
8.25
19.95
NAVARRE MINERALS LIMITED
A N N U A L
R E P O R T
2 0 2 1
40-44 Wimmera Street
PO Box 385
Stawell Victoria 3380 Australia
+61 (3) 5358 8625
info@navarre.com.au
navarre.com.au
@Navarre Minerals Ltd
@NavarreMinerals
@NavarreMinerals