ANNUAL
REPORT
2020
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Annual Report 2020 CONTENTS
EXECUTIVE SUMMARY
DIRECTORS REPORT
1. Directors
2. Meetings of Directors
3. Directors' Interests in Securities
4. Remuneration of Directors and Key
Management Personnel
5. Share Based Payments to Directors
and Senior Management
6. Securities On Issue
7. Financial Results
8. Key Business Strategies for FY2020
9. Key Business Risks
10. Events Subsequent to Balance Date
11. Dividends
12. Future Developments and Results
13. Options
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14. Indemnification of Directors, Officers and Auditors 27
15. Environmental Regulation and Performance
16. Auditor Independence and Non-Audit Services
17. Non-Audit Services
18. Proceedings on Behalf of the Company
19. Remuneration Committee
20. Remuneration Report - Audited
21. Auditor
22. Directors’ Resolution
Corporate Governance Statement
FINANCIAL RESULTS
AUDITORS’ DECLARATION
CONSOLIDATED STATEMENT OF
PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY FOR THE YEAR
CONSOLIDATED STATEMENT OF
CASH FLOWS FOR THE YEAR
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NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
2. Segment Reporting
3. Expenses
4. Contractors and Consultants
5. Finance Expenses
6. Income Tax
7. Loss per Share
8. Trade & Other Receivables
9. Current Other Financial Assets
10. Plant & Equipment
11. Exploration and Evalution Expenditure
12. Trade and Other Payables
13. Derivative Financial Liabilities
14. Issued Capital
15. Equity - Non Controlling Interest
16. Parent Entity & Controlled Entities
17. Equity Reserve
18. Share Based Payments
19. Cash Flow Information and Cash Equivalent
20. Contingencies
21. Financial Instruments
22. Key Management Personnel Compensation
23. Related Party Transactions
24. Auditors Remuneration
25. Non-Current Other Financial Assets
26. Fair Value Measurement
27. Subsequent Events
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT TO THE
MEMBERS OF NOVA MINERALS LIMITED
ADDITIONAL SECURITIES
EXCHANGE INFORMATION
1. Corporate Governance Statement
2. Substantial Shareholders
3. Securities on Issue and Numbers of Holders
4. Voting Rights
5. Distribution of Holders
6. Unmarketable Parcels
7. Twenty Largest Shareholders
8. Unquoted Securities
9. On-Market Buy-Back
10. Item 7, Section 611 Issues of Securities
11. On-Market Purchase of Securities
Under Employee Incentive Scheme
CORPORATE DIRECTORY
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Annual Report 2020Nova Minerals Limited
EXECUTIVE SUMMARY
“THE OBJECTIVE FOR 2020 IS UNCHANGED AND
REMAINS TO SIGNIFICANTLY INCREASE THE
CURRENT 2.5MOZ RESOURCE IN BOTH SIZE AND
CONFIDENCE.”
ESTELLE GOLD PROJECT
Nova Minerals Limited (“Nova” or the “Company”) continued its
fast-track exploration strategy at the district scale Estelle Gold
Project in Alaska, achieving a significant milestone with the release
of a JORC compliant 2.5Moz maiden inferred resource at its
Korbel prospect (Figure 2) in the September quarter (ASX: 11
September 2019) to outline the size and scope of the project area.
Two diamond drills rig are now turning on Pad 3, aka Block 2
“Starter Pit” area of the Korbel Deposit (Figure 2 and 4). The
objective for 2020 is unchanged and remains to significantly
increase the current 2.5Moz resource in both size and confidence.
Most importantly, the 2.5Moz Inferred Resource was achieved
using an average drill depth of less than 100m. Induced
Polarisation chargeability results show that the mineralization
is present to at least 300m below surface and remains open.
The current program will test down to 500m level or 5 times the
current depth of the existing Resource area. To date, all holes have
returned Continuous Gold Mineralisation from Surface above the
Company’s expectation. These results continue to support the
potential for a massive, bulk-tonnage, heap leachable resource.
The resource development drilling program will initially target
the “Starter Pit” at Korbel Block B’s Pads 3 and 4 (Figure 4). The
location of Pad 3 is within the vicinity of a high grade intercept
of 27.6 g/t Au over 1.5 metres returned from hole OX-RC-16
drilled in the summer of 2019 (ASX: 02 September 2019). In
addition, re-sampling of hole SE12-004, also in the vicinity of Pad
3, returned a broad intercept of 1.20 g/t Au over 70.1m (ASX: 02
September 2019). Drilling from Pad 3 will continue to expand the
Resource laterally and at depth by targeting mineralisation down
to 500m. The additional data density from drilling Pad 3 and 4 will
also increase confidence of the Resource and shift tonnes from
Inferred into the Measured & Indicated (M & I) categories. The
global objective is to push the “Starter Pit” towards a feasibility
study in 2021 (ASX announcement: 02 September 2019 and 9
December 2019) on the path to production.
Figure 1. Estelle Location Map
SIGNIFICANT DRILL INTERCEPT HIGHLIGHTS INCLUDE
(ASX:22 JUNE 2020 AND 15 JULY 2020)
KBDH-001
• 399.56m @ 0.34g/t gold from 1.86 metres
• incl 36.58m @ 0.78g/t gold from 11.58 metres
• incl 48.77m @ 0.55g/t gold from 96.93 metres
• also 60.96m @ 0.40g/t gold from 176.17 metres
KBDH-002
• 539.68m @ 0.27g/t gold from 2.26 metres
• incl 235m @ 0.44g/t gold from 14.63 metres
• incl 158m @ 0.50g/t gold from 14.63 metres
• incl 85.65m @ 0.60g/t gold from 14.63 metres
• incl 15.54m @ 1.05g/t gold from 14.63 metres
• incl 19.20m @ 0.78g/t gold from 230.43 metres
• also 1.98m @ 4.34g/t gold from 230.43 metres
KBDH-003
• 241.28m @ 0.39 g/t gold from 4.69 metres
• 118.87m @ 0.42 g/t gold from 17.68 metres
• 6.10m @ 1.27 g/t gold from 130.45 metres
• 21.34m @ 0.91 g/t gold from 224.94 metres
• 6.10m @ 1.70 g/t gold from 224.94 metres
KBDH-004
• 130.45m @ 0.61 g/t gold from 6.4 metres
• 106.07m @ 0.66 g/t gold from 6.4 metres
• 9.14m @ 2.06 g/t gold from 106.38 metres
• 3.05m @ 5.5 g/t gold from 109.42 metres
• 516.61m @ 0.28 g/t gold from 1.24 metres
Figure 2. Korbel Areas of Interest
Figure 4. Korbel Drill Layout
INFERRED RESOURCE - KORBEL
Cut-Off Au g/t
Tonnes
Grade Au g/t
Gold Ounces
0.10
0.15
0.18
0.20
0.30
0.40
0.50
225,538,080
205,188,840
181,291,950
169,590,735
96,634,435
68,620,730
47,371,345
0.37
0.40
0.43
0.45
0.59
0.70
0.82
2,711,997
2,625,636
2,500,538
2,431,838
1,833,081
1,544,369
1,244,330
Table 1. Mineral Resource Statement, Korbel deposit, Estelle property
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Annual Report 2020Nova Minerals Limited
RECOVERY
FURTHER TARGETS
In addition, Nova announced exceptional gold leach recoveries
averaging 76% at the Korbel Gold Deposit (Table 1).
All initial metallurgical test-work results are consistent with Nova’s
expectation that supports a future low strip, bulk mining, heap
leach mining operation. (ASX: 30 December 2019)
25 Samples
Au_FA
AuCN_2hr
AuCN_12h
AuRec_2hr
AuRec_12hr
Average
1.23
0.77
0.91
63%
76%
Table 2. Summary of Leach Recovery Results
Nova now has an 85% interest
in the Estelle Gold Camp by
surpassing the Stage 3 expenditure
requirements. (ASX: 20 November
2017).
Nova has also defined outside drill targets at Korbel within
Blocks A, C, D, and Cathedral (Figure 2). Across the claim
block, additional significant targets have been identified at
the RPM and the Shoeshine prospects. (ASX announcement:
9 December 2019).
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Nova Minerals
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Figure 3. Core Photos Illustrating Sheeted Veins Containing
Arsenopyrite From Higher-Grade Intercepts
Figure 5. Core Shack
Figure 6. Estelle All-Season Camp
Annual Report 2020
AIDEA APPROVES AGREEMENT TO WORK WITH NOVA
MINERALS ON THE WEST SUSITNA ACCESS ROAD TO THE
ESTELLE GOLD DISTRICT
The Company was pleased to announce that the Alaska Industrial
Development Export Authority (“AIDEA”) had approved a
resolution authorising an agreement with Nova to advance the
West Susitna Access Road as part of its Roads to Resources
initiative. The road would open areas northwest of Anchorage
and west of Wasilla, in the western parts of the Matanuska-Susitna
Borough where mineral exploration is underway and would most
notably link directly to the Estelle Gold District.
AIDEA is a public corporation of the State of Alaska providing
development finance. Its mission is to promote, develop, and
advance economic growth and diversification in the state by
providing financing and investment. The authority has a long
history of supporting Alaska’s minerals industry, beginning
with its financing and construction of the DeLong Mountain
Transportation System, the road and port serving the area that
includes the world’s second largest zinc mine, the Red Dog Mine,
as well as energy facilities and infrastructure for other mining
projects in the state.
Under the initiative, Nova and AIDEA, together with Matanuska-
Susitna Borough, will work collaboratively to investigate the
viability of permitting and constructing an all-season industrial
direct access road to the Company’s Estelle Gold Project. The
agreement identifies a range of initiatives that may be pursued,
including investigating AIDEA-supported financing options
for project infrastructure and other means to maximise local
employment and other economic benefits. Although no specific
terms have yet been discussed on payment for usage of the all-
season industrial access road to the Estelle Gold District, previous
returns in the short, medium and long term for its investors. The
arrangements that AIDEA entered into with, for example, Cominco
Directors and lead management have an opportunity to fast track
Indicated Resource Study – Now that Snow Lake, its consultants
and external laboratory have all the data at hand for the recourse
Ltd. (now Teck Resources Ltd.) in 1986 for construction of the
the Thompson Brothers Lithium Project to a cash flow stage quickly.
study, the Company will now process and validate all collected
successful Red Dog Mine Road and Port Facility may serve as a
data. Once this phase of data verification has been completed,
general template for a final financing agreement. This initiative
As outlined above, the advantages in allocating financial and
Snow Lake will pass the data back to CanMine for final modeling
is non-exclusive, meaning that other mining and exploration
human resources to advance the project far outweigh listing
and publication of an NI43-101 Indicated Resource.
companies or other industrial and commercial users may also
the company at this stage. The Company will look at increased
work in cooperation with AIDEA to support development of the
valuation when lithium markets are more favourable. With Snow
all-season access road to the Estelle Mining District.
Lake Resources Ltd passing all criteria to be listed, the Company
Ore Sorting – Snow Lake engaged Brent Hilscher of DRA Global.
DRA will assist in the design of an effective ore sorting strategy
can list at any time and will act to bring the best possible value for
for the Thompson Brothers Lithium Project. Ore sorting utilizes
NOVA LISTS ON THE OTCQB
all stakeholders.
The Company was pleased its application to uplist to the OTCQB
market in the United States was accepted and the Company’s
shares are now trading under the ticker symbol NVAAF.
The Company’s primary listing continues to be the Australian
Securities Exchange (“ASX”), with the shares now dual-listed on
the OTCQB Market in the United States.
The OTCQB market has high financial reporting standards and
strong corporate governance requirements, both of which are
satisfied through Nova’s ongoing compliance with ASX listing rules.
THOMPSON BROS. LITHIUM PROJECT –
MANITOBA, CANADA
(73.8% Interest in Snow Lake Resources Ltd)
Nova Minerals Limited 73.8% held subsidiary, Snow Lake Resources
Ltd. (“Snow Lake”), owns 100% of the Thompson Bros. Lithium
Property in Wekusko Lake, Manitoba. Capital allocation is an
everyday discussion within the Nova Group to create the best
ABOUT THE THOMPSON BROS. LITHIUM PROJECT
The Thompson Bros. Lithium Project is located 20 kilometres
east of the mining community of Snow Lake, Manitoba. The main
highway between Thompson and Flin Flon and rail connecting
Winnipeg and the seaport of Churchill, both pass 40 km south of
the property. Together with the 100% owned Crowduck project
the total landholding is 5229 ha across all claims. Manitoba is
consistently ranked one of the top mining jurisdictions in the world
and electricity costs are amongst the lowest in North America.
The project is well advanced and with a Maiden Inferred Resource
of 6.3 Mt @ 1.38% containing 86,940 tonnes of Li2O with an
additional exploration target of 3 to 7 Mt @ between 1.3 and 1.5%
Li2O in the immediate area of the resource. Initial metallurgical
test work demonstrates the project can produce a concentrate
material of 6.37% Li2O using standard metallurgical laboratory test
techniques. The company is currently fast tracking development
works to bring the project to cash flow in the near term.
OPERATIONAL UPDATE
The bulk of the drill holes that cover the heart of the resource were
located and surveyed by CanMine Consulting and this data will be
used to support the maiden NI43-101 Indicated Resource estimate.
Site Visit – In addition to the survey of drill collars, Frank Hrdy of
CanMine completed a site visit during which he utilised DGPS
to survey the perimeter of the surface exposure of the central
spodumene dyke. This exposure falls within the deposit domain
defined by the block modelling. The survey will be used to define
the geometry of the Bulk test pit sampling.
Core Logging/External Lab Check – All the infill core logging
and core cutting was requested by CanMine Consulting. Snow
Lake now has all the ICP chemistry back from The Saskatchewan
Research Council (SRC). This data will be used to additionally
support the planned maiden NI43-101 Indicated Resource
estimate. As a last step, Mr Hrdy has recommended a sub-set of
sample from our TBL core library be sent to SGS (SGS is a world
lasers and X-rays to help separate waste material from the
Spodumene Pegmatite, thereby increasing the overall grade of
the final product at a low cost per tonne. Snow Lake has collected
120 scoping samples from the Company’s drill core library. These
will be sent to Steinert for analysis. The Company also created 4
bench test “Bulk Samples” from the existing core library. These will
be used as trial material at Steinert on the full-scale ore-sorting
machine once DRA Global concludes the appropriate algorithm
for sorting.
Saskatchewan Research Council – As part of the Ore-Sorting
strategy the Company will need a higher degree of understanding
of the mineral assemblage of the Spodumene Pegmatite. The
Company has collected nine core samples from the Company’s
core library and left them with SRC in Saskatoon. They will
commence a QEM-SCAN petrography analysis and provide DRA a
report on the mineral assemblage of the Pegmatite. From the nine
samples the Company will select three samples for microprobe
analysis of the various mineral phases. This will help support the
X-Ray sorting works, as there may be a chemical element that
the X-Ray sorter can focus on to eliminate the feldspars from the
Spodumene Pegmatite feed.
As part of the Bulk Sample program for 2020, the Company will
also provide samples to SRC to conduct ABA testing. Acid-base
accounting (ABA) is an analytical procedure that provides values
to help assess the acid-producing and acid-neutralizing potential
of rocks prior to large-scale excavations.
Tanco Mine Off Take – Dale Schultz and Christopher Gerteisen
conducted a field trip to Southern Manitoba’s Tanco mining
district. The purpose was to meet with Tanco Mining Corporation
of Canada Limited officials, and map out a future working
relationship between Snow Lake Resources and Tanco Mining
Corporation of Canada Limited in line with the Memorandum
of Understanding (MoU) signed on 2 August 2019 (ASX
announcement: 2 August 2019).
Core Shack and Housing - As Snow Lake Resources is now
transitioning from exploration to pre-production, the Company
decided that SLR would reduce its facilties foot print in the town of
Snow Lake. Storage was moved to the Lake Lot which has brought
Figure 7. Proposed West Susitna Access Road
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leading testing, inspection, verification and certification company)
a significant cost saving.
as an external laboratory check on the analytical results produced
by SRC. These samples have now been sent to SGS for testing.
Annual Report 2020Nova Minerals Limited
Figure 7. Cross section (Phase 2) for the Officer
Hill Project (EL23150)
OFFICER HILL GOLD PROJECT
(Nova Minerals 13.6%, Newmont Goldcorp 86.4%)
NOVA INVESTS IN TORIAN
RESOURCES LIMITED
The Officer Hill Gold Project is a joint venture between Nova
Minerals and Newmont Goldcorp Tanami Pty Ltd (a wholly
owned subsidiary of Newmont Goldcorp Corporation). Nova
Nova announced on 26 March 2020 that the Company had
entered into a secured convertible loan note with Torian
Resources Limited (TNR) for $413,000. The value of Nova’s
has decided to not invest any further capital into the Officer Hill
holding in TNR has increased significantly since this investment.
Project, and has been diluted accordingly.
The Officer Hill Project within EL23150 covers 206km2 and is
located 34km southwest of the Callie deposit at Dead Bullock
Soak part of Newmont Goldcorp’s gold operations in the
Tanami region of Newmont Goldcorp’s Tanami Operations.
The exploration program is targeting Callie-style mineralisation
within EL23150.
Assay results received from diamond drill holes OHD0007-
OHD00014 contained numerous zones of anomalous gold
values including significant intercepts of 1.0m @ 14 g/t Au and
0.9m @ 2.75g/t Au (OHD00011), 3.0m @ 1.94g/t Au, including
1m @ 4.36g/t Au (OHD0010) and 1.0m @ 1.44g/t Au
(OHD0007) (Figure 11).
Mineralisation consists of shear zone hosted quartz-chlorite-
pyrite veins within variably bedded sandstone and laminated
siltstones. Alteration is dominated by the regional greenschist
facies metamorphic assemblage. (ASX: 5 December 2019)
NOVA DIVESTS INTEREST IN
HPA PROJECT
Nova advised on 18 November 2019 that the Company has
divested its interest in Halcyon Resources Pty Ltd, which owns the
Tambellup Kaolin Project to Accelerate Resources Limited (ASX:
AX8) for an initial consideration of 1,335,600 ordinary shares in
AX8 and subsequent milestone shares.
Further details of the sale are included in the announcement
made by Accelerate Resources Limited (ASX: AX8) and can
be found here: https://www.asx.com.au/asxpdf/20191118/
pdf/44bnwl1zdfxw5n.pdf
The Exploration results were reported in accordance with Clause
18 of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (2012 Edition) (JORC Code).
Nova Minerals confirms in the subsequent public report that it is
not aware of any new information or data that materially affects the
information included in the relevant market announcements on
the 02 September 2019 and 9 December, 2019 and, in the case of
the exploration results, that all material assumptions and technical
parameters underpinning the results in the relevant market
announcement continue to apply and have not materially changed.
STREAMLINED COMPETENT PERSON STATEMENT
The information in the announcement dated 02 September
2019 and 9 December 2019 that relate to Exploration Results,
Exploration target and JORC Resource estimate is based on
information compiled by Mr Dale Schultz. Mr Dale Schultz,
Principle of DjS Consulting, who is Nova Group’s Chief Geologist
and COO of Nova Minerals subsidiary Snow Lake Resources Ltd.,
compiled the technical information in this release and is a member
of the Association of Professional Engineers and Geoscientists of
Saskatchewan (APEGS), which is ROPO, accepted for the purpose
of reporting in accordance with ASX listing rules. Mr Schultz has
sufficient experience relevant to the style of mineralization 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 ‘Australian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Schultz consents
to the inclusion in the report of the matters based on information
in the form and context in which it appears.
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Annual Report 2020Nova Minerals Limited
The Directors of Nova Minerals
Limited present their report for the
year ended 30 June 2020.
01 DIRECTORS
The Directors in office at any time during or since the end of the
AVI GELLER (Non-Executive Director)
year to the date of this report are:
CURRENT DIRECTORS
November 2018.
Mr Geller was appointed as a Director of the Company on 19
CHRISTOPHER GERTEISEN (Executive Director / CEO)
Mr Gerteisen was appointed as a Director of the Company on 23
September 2019 and CEO on 27 February 2020.
Christopher Gerteisen has over 20 years of experience as a
professional geologist with an extensive record of managing and
advancing complex and challenging resource projects across
North America, Australia, and Asia. His work experience spans
greenfields through to production stage projects, focused on a
Avi Geller has extensive investment experience and a deep
knowledge of corporate finance, including capital markets,
venture capital, hybrid, debt and private equity. He served as
Chief Investment Officer of Leonite Capital, a family office he
co-founded focusing on real estate and capital markets. Mr.
Geller also serves as a director of the real estate company Parkit
Enterprise Inc (TSX-V: PKT | OTCQX: PKTEF) and the events and
technology company Dealflow Financial Products. He previously
served as chairman of Axios Mobile Assets.
wide range of commodities, including gold and copper. Most
COMPANY SECRETARIES
recently, through his technical contributions and management
skills, Mr Gerteisen played a significant role at several prominent
Mr Ian Pamensky was appointed on 18 September 2019 and
projects in the Australasian region, including Oxiana’s Sepon and
has over 25 years’ experience in the finance and secretarial sector
PanAust’s Phu Bia in Laos, overseeing the successful start-up,
for both SME and ASX-listed entities. Since 1997, Mr Pamen
operations, and exploration which resulted in further mine-life
sky has held various roles with ASX-listed companies in a number
extending discoveries. Mr Gerteisen also worked as a geologist
of sectors.
on the Carlin Trend in Nevada and on exploration in Alaska
with Newmont. He has held senior positions at several projects
Mr Romy Hersham was appointed on 1 June 2020, having worked
throughout the goldfields of Western Australia. As a research
with Nova Minerals for 3 years. He has recently completed a
geologist with Newmont, he worked on the Batu Hijau Porhryry
Bachelor of Law (Hons) and Arts at Monash University.
FORMER OFFICE HOLDERS
AVI KIMELMAN
Mr Kimelman was appointed as Director of the Company on 30
April 2016. He has previously served as both Executive Chairman
and CEO of Nova Minerals Limited. Mr Kimelman resigned as
Executive Chairman and Director of the Company on 18 June 2020.
MR ADRIEN WING
Mr Wing was appointed the Company Secretary of Nova Minerals
Limited on 19 April 2016 and resigned on 18 September 2019.
Cu-Au deposit in Indonesia. Mr Gerteisen holds a BSc. Geology
from the University of Idaho and a MSc. Economic Geology from
the Western Australia School of Mines.
DAVID HERSHAM (Non Executive Chairman)
Mr Hersham was appointed Chairman on 18 June 2020.
David Hersham was born in the UK and educated at Oxford
University. He is an established corporate manager and
entrepreneur with a successful history of developing and
transforming small-cap companies, particularly in the international
real estate and technology sectors. He started his career with
diamond miner De Beers and mining remains his original passion.
LOUIE SIMENS (Executive Director)
Mr Louie Simens has almost a decade of experience in micro-
cap equities and startup investing and has had extensive roles in
corporate restructuring, due diligence, mergers & acquisitions. Mr
Simens understands the fundamental parameters, strategic drivers
and market requirements for growth within the junior resources
sector. Mr Simens has a successful track record spanning over a
decade in owning and operating contracting businesses, both
in civil and building construction. Building on his early business
background, he has gained a unique knowledge of corporate
governance and project management, including understanding
the requirements of working within budgets, putting in place
adequate strategies and exceeding the fulfilment of safety
regulatory requirements.
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Annual Report 2020Nova Minerals Limited
04 REMUNERATION OF DIRECTORS AND
KEY MANAGEMENT PERSONNEL
Information about the remuneration of directors and key
management personnel is set out in the Remuneration Report of this
Directors’ Report.
05 SHARE BASED PAYMENTS
TO DIRECTORS AND
SENIOR MANAGEMENT
Information about the share based payments granted
to Directors during the financial year is set out in the
Remuneration Report of this Directors’ Report.
02 MEETINGS OF DIRECTORS
The number of meetings of Directors held, including meetings of
Committees of the Board, during the financial year including their
attendance was as follows:
BOARD
Eligible to Attend
Attended
4
4
4
1
3
4
3
4
1
3
Louie Simens
Avi Geller
Christopher Gerteisen
David Hersham
Avi Kimelman*
* as at date of resignation.
03 DIRECTORS’ INTERESTS
IN SECURITIES
The following table sets out the relevant interests in shares and
options over unissued shares in the Company which are held by
each Director.
This information is current at the date of this report or, in the case
of former directors, as at the date of resignation.
Directors
Fully Paid
Ordinary Shares
Options
Louie Simens
58,943,712
Avi Geller
13,855,204
Christopher
Gerteisen
1,000,000
David Hersham
14,903,125
-
-
-
-
Incentive
Employee
Options
Class A
Class 8
Performance
Performance
Rights
Rights
20,000,000
5,000,000
10,000,000
10,000,000
-
-
5,000,000
2,000,000
4,000,000
-
-
-
Avi Kimelman
37,410,096
33,305,336
20,000,000
5,000,000
10,000,000
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Annual Report 2020Nova Minerals Limited
06 SECURITIES ON ISSUE
As at the end of the financial year on 30 June 2020, the following
securities were on issue:
Fully paid
ordinary shares
Listed options
Unlisted Options
Unlisted Options
Unlisted Options
Class A
Performance Shares
Class B
Performance Shares
1,079,512,182*
438,772,580**
(Expired 31 August 2020)
61,000,000
(Exercisable at $0.04 and expiring
19 September 2022)
1,500,000
(Exercisable at $0.056 and expiring
28 October 2022)
18,000,000
(Exercisable at $0.07 and expiring on
2 June 2022)
12,000,000
24,000,000
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* Fully paid ordinary shares at 3 September 2020 – 1,514,988,663
**~486.8 million quoted options exercisable at $0.0325 were exercised for a total of ~$15.8m
Annual Report 2020Nova Minerals Limited 07 FINANCIAL RESULTS
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
As an exploration company, Nova does not have an ongoing
source of revenue. Its revenue stream is normally from ad-hoc
tenement disposals and interest received on cash at bank.
Administration expenses increased from $1,244,503 in 2019 to
$1,531,479 in 2020 primarily due to increase in legal, personal
and share registry costs. Share based expense was $1,318,825 in
2019 compared to $1,878,750 in 2020.
As a result, the Company made a net loss after tax of $4,276,995
in 2020 compared to a net loss after tax of $3,146,966 in 2019.
STATEMENT OF FINANCIAL POSITION
At 30 June 2020, the Company had cash at bank of $4,197,221
(2019: $1,030,734).
During the year, trade and other receivables increased from
$283,317 to $399,634 and capitalised exploration expenditure
increased from $9,790,760 to $15,033,203 as result of
expenditure incurred on the Estelle Gold project.
At 30 June 2020, the Company had total liabilities of $3,295,286.
As a result, the Company had net assets of $18,036,850 June
2020 (30 June 2019: $11,119,277).
CASH FLOW
During the year, the Company paid $2,213,021 (2019:
$1,658,732) for operating activities; paid $5,415,678 (2019:
$2,492,798) for investing activities; and received $10,852,785
(2018: 2,268,402) from financing activities.
18
19
Annual Report 2020Nova Minerals Limited 08 KEY BUSINESS STRATEGIES
FOR FY2020
NOVA HAS A CLEAR FOCUS AND
STRATEGY FOR SUCCESS.
Our immediate key milestones and goals:
Continuous upgrade of the
JORC Gold resource in the
Estelle Gold district -
• Targeting an announcement to the market in the short-term of
an expanded Inferred JORC resource at Estelle
• With results from the remainder of the 2020 drill program,
targeting the announcement of a Resource Upgrade, with the
intention of increasing tonnage and confidence towards the
Indicated category
• Commencing ore sorting, feasibility and baseline
environmental studies
• Unlocking the project pipeline with a view to increasing gold
discovery across the Estelle district with an initial focus on the
RPM, Stoney, T5, Discovery, Shadow, Train, Shoeshine and
Revelation prospects
Advance the Thompson Brothers
Lithium Project held within Snow
Lake Resources Ltd
Expand investor reach in Europe,
North America and Asia
While meeting these growth objectives, we need to ensure
the capital markets are fully informed of our progress. We will
therefore be enhancing our engagement with the investment
community to help build our profile and maximize valuations for
our shareholders through this journey.
20
21
Annual Report 2020Nova Minerals Limited
09 KEY BUSINESS RISKS
A number of specific risk factors
that may impact the business
strategies, future performance
and financial position of Nova
are described below.
It is not possible to identify every risk that could affect Nova’s
business, and whilst the Company implements risk mitigation
measures to the extent possible, actions taken by the Company
to mitigate the risks described below cannot provide absolute
assurance that a risk will not materialise.
TITLE RISKS AND NATIVE TITLE
The Company’s exploration projects are primarily governed by
State-based legislation and are evidenced by the granting of
exploration licenses. Each exploration license is for a specific
term and carries with it annual expenditure and reporting
commitments, as well as other conditions requiring compliance.
Nova may lose title to its interest in tenements if license
conditions are not met or if insufficient funds are available to meet
expenditure commitments.
It is also possible that, in relation to tenements which Nova has an
interest in or will in the future acquire such an interest, there may
be areas over which legitimate native title rights exist. If native title
rights do exist, the ability of Nova to gain access to tenements
(through obtaining consent of any relevant landowner), or to
progress from the exploration phase to the development and
mining phases of operations, may be adversely affected.
RESOURCE AND RESERVE ESTIMATES
There is a risk that the mineral resources and ore reserves of
Nova, which are estimated and published in accordance with ASX
Listing Rules and the JORC Code, are incorrect. If those estimates
are materially in excess of the recoverable mineral content of the
tenements, the production and financial performance of Nova
would be adversely affected.
DISCOVERY RISK
Any discovery by Nova may not be commercially viable or
recoverable: that is no resources within the meaning of the
JORC Code may be able to be established and it may be that
consequently no reserves can be established.
OPERATING RISK
The nature of exploration, mining and mineral processing involves
hazards which could result in Nova incurring uninsured losses
and liabilities to third parties, for example arising from pollution,
environmental damage or other damage, injury or death. These
could include rock falls, flooding, unfavorable ground conditions
or seismic activity, ore grades being lower than expected and
the physical or metallurgical characteristics of the ore being less
amenable to mining or treatment than expected.
22
23
Annual Report 2020Nova Minerals Limited 10 EVENTS SUBSEQUENT TO
BALANCE DATE
The following events have occurred
subsequent to the period end:
On 2 July 2020, the Company announced that it had elected
to convert the secured convertible notes (Notes) it holds in
Torian Resources Limited (ASX: TNR) into fully paid shares. The
Notes had a face value of $413,325 and were converted into
91,850,000 fully paid ordinary shares in Torian at the conversion
price of $0.0045 per share, subject to various conditions,
including the issue of a further 2,755,500 ordinary shares in lieu
of interest payments owing on the Notes.
On 13 August 2020, the Company announced the appointment
of RSM Australia Partners (RSM) as Company Auditors, replacing
BDO East Coast Partnership. In accordance with section 327(c)
of the Corporation Act 2001, a resolution will be tabled at
the Company’s 2020 Annual General Meeting to ratify the
appointment of RSM as the Company’s auditor.
On 1 September 2020, the Company announced that ~486.8
million quoted options exercisable at $0.0325 (ASX: NVAO)
(Options) had been exercised since January 2020, before
their expiry on 31 August 2020. Total funds raised from the
exercise of the Options amounted to ~$15.8m. The remaining
3,296,099 Options that were not exercised, were cancelled on 3
September 2020.
The full impact of the COVID-19 outbreak continues to evolve at
the date of this report. The Company is therefore uncertain as to
the full impact the pandemic will have on its financial condition,
liquidity, and future results of operation during 2020.
Management is actively monitoring the global situation and
its impact on the Company’s financial condition, liquidity,
operations, suppliers, industry; and workforce. Given the daily
evolution of the COVID-19 outbreak and the global responses
to curb the spread, the Company is not able to estimate the
effects of the COVID-19 outbreak on its results of operations,
financial condition, or liquidity in the 2020 financial year.
Although the Company cannot estimate the length or gravity
of the impact of the COVID-19 outbreak at this time, if the
pandemic continues, it may have a material adverse effect on
the Company’s results of future operations, financial position,
and liquidity in fiscal year 2020.
Other than what is noted above and as disclosed elsewhere in
this report, there has not arisen in the interval between the end
of the full year to 30 June 2020 and the date of this report any
matter or circumstance that has significantly affected, or may
significantly affect, the Group’s operations, the results of
those operations, or the Group’s state of affairs, in future
financial years.
24
25
Annual Report 2020Nova Minerals Limited 11 DIVIDENDS
The Directors do not recommend the payment of a dividend
and no amount has been paid or declared by way of dividend
since the end of the previous financial year and up to the date
of this Annual Report.
12 FUTURE
DEVELOPMENTS
AND RESULTS
There are no likely developments of which the Directors are
aware which could be expected to significantly affect the results
of the Company’s operations in subsequent financial years not
otherwise disclosed in this Annual Report.
13 OPTIONS
At the date of this Report, the Company has 438,772,580
(Expired 31 August 2020) listed options and 80,500,000
unlisted options over fully paid ordinary shares on issue.
During the year and up to the date of this Report, 53,222,952
listed options and 80,500,000 unlisted options have been
issued. 51,688,654 listed options and 7,500,000 unlisted
options have been exercised during the year.
14 INDEMNIFICATION OF DIRECTORS,
OFFICERS AND AUDITORS
During the financial year, the Company paid a premium in
The insurance premiums relate to:
respect of a contract insuring the Directors of the Company, the
Company Secretaries and all executive officers of the Company
• Cost and expenses incurred by the relevant officers in
and of any related body corporate against a liability incurred as
defending proceedings, whether civil or criminal and whatever
a Director, Secretary or executive officer to the extent permitted
their outcome; and
by the Corporations Act 2001. The contract of insurance
• Other liabilities that may arise from their position, with the
prohibits disclosure of the nature of the liability and the amount
exception of conduct involving a willful breach of duty or
of the premium.
improper use of information or position to gain a personal
The Company has not otherwise, during or since the financial
advantage.
year, indemnified or agreed to indemnify an officer or auditor of
This does not include such liabilities that arise from conduct
the Company or of any related body corporate against a liability
involving a willful breach of duty by the officers or the improper
incurred as an officer or auditor.
use by the officers of their position or of information to gain
advantage for themselves or someone else or to cause detriment
to the company.
15 ENVIRONMENTAL REGULATION
AND PERFORMANCE
The exploration activities of the Company are conducted
The Company is committed to minimising the impact of its
in accordance with and controlled principally by Australian
activities on the surrounding environment at the same time
state and territory government legislation as well as those in
aiming to maximise the social, environmental and economic
Manitoba, Canada.
returns for the local community. To this end, the environment is
a key consideration in our exploration activities and during the
The Company has exploration land holdings in Manitoba
rehabilitation of disturbed areas.
(Canada), Western Australia and Northern Territory. The
Company employs a system for reporting environmental
Generally rehabilitation occurs immediately following the
incidents, establishing and communicating accountability,
completion of a particular phase of exploration. In addition, the
and rating environmental performance. During the year data
Company continues to develop and maintain mutually beneficial
on environmental performance was reported as part of the
relationships with the local communities affected by its activities.
monthly exploration reporting regime. In addition, as required
under various state and territory legislation, procedures are in
place to ensure that the relevant authorities are notified prior to
the commencement of ground disturbing exploration activities.
26
27
Annual Report 2020Nova Minerals Limited
16 AUDITOR INDEPENDENCE AND
NON-AUDIT SERVICES
19 REMUNERATION COMMITTEE
The Board has not established a formal remuneration committee,
having regard to the size of the Company and its operations.
The Board acknowledges that when the size and nature of
the Company warrants the necessity of a formal remuneration
committee, such a committee will operate under a remuneration
committee charter to be approved by the Board. Presently, the
Board as a whole, excluding any relevant affected director, serves
as a nomination committee to the Company.
The auditor’s independence declaration is included immediately
after the Directors’ Report.
17 NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-
audit services provided during the financial year by the auditor
are outlined in note 24 to the financial statements.
The directors are satisfied that the provision of non-audit
services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the
general standard of independence for auditors imposed by the
Corporations Act 2001. The directors are of the opinion that the
services as disclosed in note 24 to the financial statements do not
compromise the external auditor’s independence requirements of
the Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed and approved to
ensure that they do not impact the integrity and objectivity of
the auditor; and
• none of the services undermine the general principles relating
to auditor independence as set out in APES 110 Code of
Ethics for Professional Accountants issued by the Accounting
Professional and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a management or
decision-making capacity for the company, acting as advocate
for the company or jointly sharing economic risks and rewards.
18 PROCEEDINGS ON BEHALF
OF THE COMPANY
No person has applied for leave of a Court to bring proceedings
on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of
those proceedings. The Company was not a party to any such
proceedings during the year.
28
29
Annual Report 2020Nova Minerals Limited
20 REMUNERATION
REPORT - AUDITED
This Remuneration Report, which forms part of the Directors’
Report, sets out information about the remuneration of Nova’s
directors and its key management personnel for the financial year
ended 30 June 2020.
The prescribed details for each person covered by this report are
detailed below under the following headings:
OVERVIEW OF REMUNERATION POLICIES
Key management personnel have authority and responsibility for
planning, directing and controlling the activities of the Company,
including Directors of the Company and other Executives.
Remuneration levels for Directors of the Company are
competitively set to attract and retain appropriately qualified and
experienced Directors.
The remuneration structures explained below are designed to
attract suitably qualified candidates, reward the achievement of
strategic objectives, and achieve the broader outcome of
creation of value for shareholders. The remuneration structures
take into account:
• the capability and experience of the Directors;
• the Directors’ ability to control the Company’s performance;
• the Company’s performance including:
- the Company’s earnings.
- the growth in share price and returns on shareholder wealth.
The Company’s financial performance during the current year and
over the past four years has been as follows:
2020
$
Revenue
104,662
2019
$
5,572
2018
$
2017
$
11,850
23
2016
$
38
Net loss
(4,276,995)
(3,146,966)
(1,370,786)
(1,637,956)
(2,062,999)
Basic loss per
share (cents)
Diluted loss per
share (cents)
Net assets/
(deficiency)
(0.43)
(0.34)
(0.20)
(0.49)
(1.29)
(0.43)
(0.34)
(0.20)
(0.49)
(1.29)
18,036,550
11,119,277
7,428,055
3,900,084
(1,045)
The Directors do not believe the financial or share price
performance of the Company is an accurate measure when
considering remuneration structures as the Company is in the
mineral exploration industry. Companies in this industry do not
have an ongoing source of revenue, as revenue is normally from
ad-hoc transactions.
The more appropriate measure is the identification of exploration
targets, identification and/or increase of mineral resources and
reserves and the ultimate conversion of the Company from
explorer status to mining status.
30
31
Annual Report 2020Nova Minerals Limited REMUNERATION REPORT
DETAILS OF DIRECTORS, EXECUTIVES
AND REMUNERATION
The names of the key management personnel in office during
the year are as follows:-
• L Simens – Executive Director from 19 December 2017
• A Geller – Non-Executive Director from 19 November 2018
• C Gerteisen – Executive Director from 23 September 2019
• D Hersham – Non-Executive Chairman from 18 June 2020
• A Kimelman – Executive Chairman from 30 April 2016
(resigned 18 June 2020)
Details of the nature and amount of each major element of
remuneration of each Director of the Company and each
Executive of the Company are:
Short term
Post-
Equity
employment
compensation
Cash
Non-
Super-
Salary &
Payables $
monetary
annuation
fees $
benefits $
benefits $
Value of options
$
Total $
Options as
Performance
propor-tion
related %
of remun-
eration %
Directors
A Kimelman
2019
198,000
2020
197,500
L Simens
2019
120,000
2020
162,000
C Gerteisen
2019
-
-
-
-
-
-
2020
93,301
6,650
D Fry
2019
51,000
2020
-
O Fredrickson
2019
35,000
2020
-
-
-
-
-
A Geller
2019
30,015
10,000
2020
15,000
45,000
Total Directors
2019
434,015
10,000
2020
467,801
51,650
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,525
10,806
N/A
N/A
-
-
N/A
-
N/A
-
N/A
N/A
216,178*
435,703
620,000*
828,306
193,968*
313,968
620,000*
782,000
-
-
75,000*
174,951
N/A
51,000
-
-
-
-
35,000
-
N/A
40,015
310,000
370,000
21,525
410,146
875,686
10,806
1,625,000
2,155,257
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
49.6%
74.9%
61.8%
79.3%
-
42.9%
-
-
-
-
-
83.8%
-
-
*Information about the options granted to key management
personnel during the financial year is set out in the Share-based
compensation section of this report.
32
SHARE-BASED REMUNERATION
Options
The terms and conditions of each grant of options over ordinary
shares affecting remuneration of directors and other key
management personnel in this financial year or future reporting
years are as follows:
Name
Entity
of options
Grant date
Number
granted
Vesting
date
Expiry date
Fair value
Exercise
per option
price
at grant
date
L Simens
Nova
20,000,000
19/09/2019
19/09/2019
19/09/2022
AUD 0.04
AUD 0.031
A Kimelman
Nova
20,000,000
19/09/2019
19/09/2019
19/09/2022
AUD 0.04
AUD 0.031
A Geller
Nova
10,000,000
19/09/2019
19/09/2019
19/09/2022
AUD 0.04
AUD 0.031
C Gerteisen
Nova
5,000,000
19/09/2019
19/09/2019
19/09/2022
AUD 0.04
AUD 0.015
A Kimelman
Nova
3,500,000
20/09/2018
20/09/2018
21/08/2020
AUD 0.0325
AUD 0.011*
A Kimelman
Snow Lake
800,000
24/05/2019
24/05/2019
24/09/2023
CAD 0.5
CAD 0.2221
L Simens
Nova
3,500,000
20/09/2018
20/09/2018
21/08/2020
AUD 0.0325
AUD 0.011*
L Simens
Snow Lake
700,000
24/05/2019
24/05/2019
24/09/2023
CAD 0.5
CAD 0.222
*Listed options (NVAO.ASX) have been valued in reference to last traded price
Options granted carry no dividend or voting rights
All options were granted over unissued fully paid ordinary shares
in the company. The number of options granted was determined
having regard to the satisfaction of performance measures and
weightings as described above in the section ‘Consolidated entity
performance and link to remuneration’. Options vest based on the
provision of service over the vesting period whereby the executive
becomes beneficially entitled to the option on vesting date.
Options are exercisable by the holder as from the vesting date.
There has not been any alteration to the terms or conditions of the
grant since the grant date. There are no amounts paid or payable
by the recipient in relation to the granting of such options other
than on their potential exercise.
33
Annual Report 2020Nova Minerals Limited
NON-EXECUTIVE DIRECTORS
OTHER TRANSACTIONS
Total remuneration for all Non-Executive Directors, last voted
2020
upon by shareholders at the 1999 AGM, is not to exceed
$200,000 per annum.
Directors’ fees cover all board activities. Non-Executive
Directors do not receive any benefits on retirement.
PERFORMANCE-LINKED REMUNERATION
During the 2020 year $10,271 was paid to AK81 Pty Ltd for
Office Rental, AK81 Pty Ltd is a company of which Mr Avi
Kimelman is a Director.
2019
During the 2019 year $15,526 was paid to AK81 Pty Ltd for
Office Rental, AK81 Pty Ltd is a company of which Mr Avi
Performance linked remuneration focuses on long-term
Kimelman is a Director.
incentives and was designed to reward key management
personnel for meeting or exceeding their objectives.
EQUITY INSTRUMENT DISCLOSURES RELATING TO KEY
MANAGEMENT PERSONNEL
Equity holdings and transactions
The number of ordinary shares in the Company held during the
financial year by each director of Nova Minerals Limited and
other key management personnel of the Company, including
their personally related parties are set out below:
Directors and their related entities are reimbursed for out-of-
pocket expenses incurred in the performance of their duties.
VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL
GENERAL MEETING
Nova Minerals Limited received 100% of “yes” votes on its
remuneration report for the 2019 financial year. The company
did not receive any specific feedback at the AGM or throughout
the year on its remuneration practices.
End of remuneration report, which has been audited.
Held at
beginning of
year
Purchased
during the year
Received On
exercise of
options
Held at end
Held nominally
Disposal
of year / at
at end of year/
during the year
resignation
at resignation
date
date
30 June 2020
A Geller
9,230,769
9,050
-
A Kimelman
36,413,846
600,000
396,250
D Hersham
10,968,750*
-
C Gerteisen
-*
1,000,000
-
-
L Simens
35,525,275
1,200,000
4,000,000
92,138,640
2,809,050
4,396,250
-
-
-
-
-
9,239,819
9,239,819
37,410,096
37,410,096
10,968,750
10,968,750
1,000,000
1,000,000
40,725,275
40,725,275
99,343,940
99,343,940
* At the date of appointment
21 AUDITOR
RSM Australia Partners commenced in office as the Company’s
auditor in accordance with section 327 of the Corporations Act
2001 (Cth).
34
35
Annual Report 2020Nova Minerals Limited
22 DIRECTORS’ RESOLUTION
This Directors’ Report, incorporating the Remuneration Report,
is signed in accordance with a resolution of the Directors made
pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the Directors of Nova Minerals Limited
David Hersham
Chairman
25 September 2020
CORPORATE
GOVERNANCE STATEMENT
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditorf or thea udit of thef inancial report of NovaM ineralsL imited for they eare nded 30 June 2020,I
declaret hat, tot he best of my knowledge and belief,t here have been no contraventions of:
(i)t
(ii)
he auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professionalc onduct in relation to the audit.
The Company’s Directors and management are committed
The Appendix 4G will identify each Recommendation that needs
to conducting the business of Nova Minerals Limited in an
to be reported against by Nova Minerals Limited, and will provide
ethical manner and in accordance with the highest standards of
shareholders with information as to where relevant governance
corporate governance.
disclosures can be found.
The Company has adopted and complies with where
The Company’s corporate governance statement, policies and
practicable with the ASX Corporate Governance Principles
charters are all available on the Website.
and Recommendations (Third Edition) (Recommendations) to
the extent appropriate to the size and nature of the Group’s
operations.
The Company has prepared a statement which sets out
the corporate governance practices that were in operation
throughout the financial year for the Company, identifies any
Recommendations that have not been followed, and provides
reasons for not following such Recommendations (Corporate
Governance Statement).
In accordance with ASX Listing Rules 4.10.3 and 4.7.4, the
Corporate Governance Statement will be available for review on
Nova Minerals Limited’s website (http://www.novaminerals.com.
au) (the Website), and will be lodged together with an Appendix
4G with ASX at the same time that this Annual Report is lodged
with ASX.
RSM AUSTRALIAP ARTNERS
J SC ROALL
Partner
Dated: 25S eptember 2020
Melbourne, Victoria
37
36
37
Annual Report 2020Nova Minerals Limited 38
39
Annual Report 2020Nova Minerals Limited CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE YEAR
ENDED 30 JUNE 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Note
4
18
5
3
6
Revenue
Interest Income
Expenses
Administration expenses
Contractors & Consultants
Share based payments
Recovery of Flow Through Share Liability
Impairment of exploration exploration and
evaluation Assets
Finance expense
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive income
Items that mat be reclassified to profit and loss
in the future
Foreign currency translation
Other comprehensive income for the year
net of income tax
2020
$
104,662
(1,531,479)
(519,040)
(1,878,750)
78,972
(526,655)
(4,705)
(4,276,995)
-
(4,276,995)
(194,738)
(194,738)
2019
$
5,572
(1,244,503)
(585,539)
(1,318,825)
-
-
(3,671)
(3,146,966)
-
(3,146,966)
216,333
216,333
Total comprehensive income for the year
(4,471,733)
(2,930,633)
Loss for the year attributable to:
Non-controlling Interest
Owners of Nova Minerals Limited
Total comprehensive Income for the year
attributable to:
Non-controlling Interest
Owners of Nova Minerals Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(81,606)
(4,195,388)
(4,276,995)
(89,090)
(4,382,643)
(4,471,733)
(0.43)
(0.43)
(527,411)
(2,619,555)
(3,146,966)
(477,981)
(2,452,652)
(2,930,633)
(0.34)
(0.34)
Note
30 June 2020
Restated 30 June 2019
$
$
Assets
Current Assets
Cash and cash equivalents
Other financial assets
Trade & other receivables
Total current assets
Non-current Assets
Other financial assets
Plant and equipment
Exploration and evaluation expenditure
Total non-current assets
Total assets
Liabilities
Current Liabilities
Derivative financial liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net Asset
Equity
Issued capital
Foreign currency reserves
Equity reserves
Accumulated losses
Non-controlling interest
Total Equity
19
9
8
25
10
11
13
12
14
17
15
4,197,221
413,325
399,634
5,010,180
30,719
1,258,034
15,033,203
16,321,956
21,332,136
1,314,000
1,981,286
3,295,286
3,295,286
1,030,734
-
283,317
1,314,051
52,570
619,577
9,790,760
10,462,907
11,776,95
-
657,681
657,681
657,681
18,036,850
11,119,277
78,401,191
25,854
4,468,607
(67,386,819)
2,528,017
18,036,850
69,483,015
166,903
1,969,248
(62,905,896)
2,406,007
11,119,277
The above consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes
40
41
Annual Report 2020Nova Minerals Limited
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY FOR THE YEAR
ENDED 30 JUNE 2020
Note
Issued
Capital $
Option
Reserves
$
68,631,884
920,185
-
-
-
-
-
991,040
14
(11,231)
Balance at 1 July
2018
Loss for the period
Other
comprehensive
income for the
period, net of tax
Total
comprehensive
income for the
period, net of tax
Transactions
with owners in
their capacity as
owners
Gain of control in
subsidiary AKCM
(Aust) Pty Ltd
Decrease of
ownership in
subsidiary Snow
Lake Resources
Limited without
loss of control
Share issue for
cash
Share issue
expense
Share options
granted
Balance at 30
June 2019
Foreign
Restated
Restated Non
Currency
Accumulated
Controlling
Total Equity
Reserve
Losses
Interest
$
$
-
-
$
(62,124,014)
$
-
7,428,055
(2,619,555)
(527,411)
(3,146,966)
166,903
-
49,430
216,333
166,903
(2,619,555)
(477,981)
(2,930,633)
-
-
-
-
-
-
(868,005)
851,190
(16,815)
2,705,677
1,765,755
4,471,432
-
-
-
-
-
991,040
(70,225)
(81,456)
-
(128,678)
337,269
1,386,332
-
-
-
-
-
-
-
-
Share buy back
(128,678)
17
-
1,049,063
69,483,015
1,969,248
166,903
(62,905,896)
2,406,007
11,119,277
42
43
Annual Report 2020Nova Minerals Limited
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY FOR THE YEAR (CONTINUED)
ENDED 30 JUNE 2020
Balance at 30
June 2019
Loss for the period
Other
comprehensive
income for the
period, net of tax
Total
comprehensive
income for the
period, net of tax
Transactions
with owners in
their capacity as
owners
Movement in non-
controlling interest
due to increase
of ownership of
AKCM Pty Ltd
Share issue for
cash
Issue of shares as
part of derivative
security
Share issue
expense
Share options
granted
Balance at 30
June 2020
-
-
-
-
9,137,883
200,000
(419,707)
-
-
-
-
-
-
-
-
2,499,359
14
17
Note
Issued
Capital $
Option
Reserves
$
Foreign
Currency
Reserve
$
Accumulated
Losses
$
Non
Controlling
Total Equity
Interest
$
$
69,483,015
1,969,248
166,903
(62,905,896)
2,406,007
11,119,277
-
(4,195,388)
(81,606)
(4,276,994)
CONSOLIDATED STATEMENT
OF CASH FLOWS FOR THE YEAR
ENDED 30 JUNE 2020
Cash flows from operating activities
Payments to suppliers and employees (inclusive of
GST)
Interest received
Bank charges
Refund received
Note
2020
$
2019
$
(2,260,397)
(1,672,602)
22,675
(4,705)
29,406
5,575
(2,982)
11,277
(187,255)
-
(7,483)
(194,738)
Net cash used in operating activities
19(b)
(2,213,021)
(1,658,732)
(187,255)
(4,195,388)
(89,089)
(4,471,732)
Payments for exploration expenditure
Cash flows from investing activities
Convertible note issued to Torian Resources
Loans to other entity
Payment for plant & equipment
Net cash used in investing activities
Cash flows from financing activities
46,206
(285,535)
211,100
(28,230)
Capital Raising Costs
-
-
-
-
-
-
-
-
-
-
-
-
Proceeds from Issue of Derivative Financial Liability
Proceeds from Issue of Shares
9,137,883
Proceeds from exercise of Options
200,000
(419,707)
2,499,359
Equity buy back
Net cash from financing activities
Net increase in cash and cash equivalents
Foreign Exchange Movement
Cash and cash equivalents at the beginning of the
financial year
Cash and cash equivalents at the end of the
(4,273,316)
(413,325)
-
(729,037)
(5,415,678)
(285,098)
2,000,000
7,308,002
1,829,881
-
10,852,785
3,224,086
(57,600)
1,030,734
(2,037,943)
-
43,650
(498,505)
(2,492,798)
(78,078)
-
2,478,570
-
(132,090)
2,268,402
(1,883,128)
49,495
2,864,367
19(a)
4,197,221
1,030,734
78,401,191
4,468,607
28,854
(67,386,819)
2,528,017
18,036,850
financial year
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes
The above consolidated statement of cash flows should be read in
conjunction with the accompanying notes
44
45
Annual Report 2020Nova Minerals Limited
Notes to the Consolidated Financial
Statements for the year ended 30
June 2020
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
These financial statements cover Nova
Minerals Limited as a consolidated
entity consisting of Nova Minerals
Limited and its subsidiaries for the
year ended 30 June 2020.
as the ‘consolidated entity’. Subsidiaries are all those entities
over which the consolidated entity has control. The consolidated
entity controls an entity when the consolidated entity is exposed
to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
consolidated entity. They are de-consolidated from the date that
The principal accounting policies adopted in preparation of the
financial statements are set out below. These policies have been
consistently applied to all years presented, unless otherwise stated.
control ceases.
Intercompany transactions, balances and unrealised gains on
transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the
The financial statements were authorised for issue by the Board of
transaction provides evidence of the impairment of the asset
Directors on 25 September 2020.
BASIS OF PREPARATION
These general purpose financial statements have been prepared
in accordance with Australian Accounting Standards and
interpretations issued by the Australian Accounting Standards
Board (‘AASB’) and the Corporations Act 2001, as appropriate
for for-profit oriented entities. The financial statements also
comply with International Financial Reporting Standards and
interpretations as issued by the International Accounting
Standards Board (‘IASB’).
HISTORICAL COST CONVENTION
The financial statements have been prepared on the historical
cost basis.
transferred. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.
Non-controlling interest in the results and equity of subsidiaries
are shown separately in the statement of profit or loss and other
comprehensive income, statement of financial position and
statement of changes in equity of the consolidated entity. Losses
incurred by the consolidated entity are attributed to the non-
controlling interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it
derecognises the assets including goodwill, liabilities and non-
controlling interest in the subsidiary together with any cumulative
translation differences recognised in equity. The consolidated
entity recognises the fair value of the consideration received and
the fair value of any investment retained together with any gain or
loss in profit or loss.
NEW, REVISED OR AMENDING ACCOUNTING
STANDARDS AND INTERPRETATIONS ADOPTED
PARENT ENTITY INFORMATION
The Company has adopted all of the new, revised or amending
Accounting Standards and interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the
current reporting period.
In accordance with the Corporations Act 2001, these financial
statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in
the notes to the financial statements.
The adoption of these Accounting Standards and Interpretations
did not have any significant impact on the financial performance or
Functional and presentation currency
FOREIGN CURRENCY TRANSLATION
position of the Company.
Any new, revised or amending Accounting Standards or
Interpretations that are not yet mandatory have not been
early adopted.
BASIS OF CONSOLIDATION
These financial statements are presented in Australian dollars,
which is the Company’s functional currency. The functional and
presentation currency of AKCM (Aust) Pty Ltd is the US Dollar. The
functional and presentation currency of Snow Lake Resources Ltd
is the Canadian Dollar.
During the year, the Company assessed Thompson Bros Lithium
Pty Ltd’s (Formerly “Manitoba Minerals Pty Ltd”) operating
The consolidated financial statements incorporate the assets
environment and concluded its functional currency should be the
and liabilities of all subsidiaries of Nova Minerals Limited
Canadian Dollar. The main factor for change were the tendency of
(‘company’ or ‘parent entity’) as at 30 June 2020 and the results
the entity to incur exploration expenditure in the Canadian Dollar
of all subsidiaries for the year then ended. Nova Limited and its
rather than the Australian Dollar. The Company identified 7 March
subsidiaries together are referred to in these financial statements
2019 to be the date of transition.
46
47
Annual Report 2020Nova Minerals Limited Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
An item of property, plant and equipment is derecognised
it is held primarily for the purpose of trading; it is due to be
upon disposal or when there is no future economic benefit to
settled within 12 months after the reporting period; or there is no
the consolidated entity. Gains and losses between the carrying
unconditional right to defer the settlement of the liability for at
amount and the disposal proceeds are taken to profit or loss.
least 12 months after the reporting period. All other liabilities are
EXPLORATION, EVALUATION AND
DEVELOPMENT ASSETS
classified as non-current.
INCOME TAX
Exploration and evaluation expenditure is charged against
earnings as incurred and included as part of cash flows from
operating activities.
The income tax expense or benefit for the year is the tax payable
on the current year’s taxable income based on the income tax
rate adjusted for changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and
Exploration for and evaluation of mineral resources is the search
adjustments for prior periods, where applicable.
for mineral resources after the entity has obtained legal rights
to explore in a specific area, as well as the determination of the
technical feasibility and commercial viability of extracting the
mineral resource.
Accounting for exploration and evaluation expenditures is
assessed separately for each ‘area of interest’ to determine
whether expenditure is expensed as incurred or capitalised as an
asset. An ‘area of interest’ is an individual geological area which
is considered to constitute a favourable environment for the
presence of a mineral deposit or has been proved to contain such
a deposit.
Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates
that are enacted or substantively enacted, except for when the
deferred income tax asset or liability arises from initial recognition
of goodwill or an asset or liability in a transaction other than a
business combination and that, at the time of the transaction,
affects neither accounting nor taxable profits. Deferred income tax
is determined using tax rates (and laws) that have been enacted or
substantially enacted by the reporting date and expected to apply
when the related deferred tax asset is realised or the deferred tax
liability is settled.
Pre-production costs are deferred as development costs until
such time as the asset is capable of being operated in a manner
intended by management. Capitalised expenses then becomes
active asset and is depreciated. Post-production costs are
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
recognised as a cost of production.
differences and losses.
Capitalisation of development expenditure ceases once the
mining property is capable of commercial production, at which
point it is transferred into a separate mining asset.
Current and deferred tax balances attributable to amounts
recognised directly in equity are also recognised directly in equity.
GOODS AND SERVICES TAX (GST)
Foreign currency transactions
FAIR VALUE MEASUREMENT
Foreign currency transactions are translated into Australian
dollars using the exchange rates prevailing at the dates of the
When an asset or liability, financial or non-financial, is measured
transactions. Foreign exchange gains and losses resulting from
at fair value for recognition or disclosure purposes, the fair value
the settlement of such transactions and from the translation
is based on the price that would be received to sell an asset or
at financial year-end exchange rates of monetary assets and
paid to transfer a liability in an orderly transaction between market
liabilities denominated in foreign currencies are recognised in
participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the
absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market
participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-
financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate
in the circumstances and for which sufficient data are available
to measure fair value, are used, maximising the use of relevant
observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three
levels, using a fair value hierarchy that reflects the significance of
the inputs used in making the measurements. Classifications are
reviewed at each reporting date and transfers between levels are
determined based on a reassessment of the lowest level of input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external
valuers may be used when internal expertise is either not available
or when the valuation is deemed to be significant. External valuers
are selected based on market knowledge and reputation. Where
there is a significant change in fair value of an asset or liability
from one period to another, an analysis is undertaken, which
includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external
sources of data.
profit or loss.
Foreign operations
The assets and liabilities of foreign operations are translated into
Australian dollars using the exchange rates at the reporting date.
The revenues and expenses of foreign operations are translated
into Australian dollars using the average exchange rates, which
approximate the rates at the dates of the transactions, for the
period. All resulting foreign exchange differences are recognised
in other comprehensive income through the foreign currency
reserve in equity. The foreign currency reserve is recognised in
profit or loss when the foreign operation or net investment is
disposed of.
IMPAIRMENT OF ASSETS
Assets that have an indefinite useful life are not subject to
amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash
generating units.
OPERATING SEGMENTS
Operating segments are presented using the ‘management
approach’, where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision
Makers (‘CODM’). The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
SHARE-BASED PAYMENTS
During the year the Company issued shares and share options
to advisors as compensation for their services. The shares and
share options constitute equity-settled transactions in accordance
with AASB 2 Share Based Payments. The fair value of the equity-
settled transactions (shares and share options) is determined by
their fair value at the date when the grant was approved using an
appropriate valuation model for the options issued respectively
in accordance with AASB 2. The cost is recognised together with
a corresponding increase in equity over the period in which the
services were received.
PLANT AND EQUIPMENT
Any development expenditure incurred once a mine property is
Plant and equipment is stated at historical cost less accumulated
or Loss and Other Comprehensive Income except where it is
of associated GST unless the GST incurred is not recoverable from
depreciation and impairment. Historical cost includes expenditure
probable that future economic benefits will flow to the entity, in
the taxation authority. In this case it is recognised as part of the
that is directly attributable to the acquisition of the items.
which case it is capitalised as property, plant and equipment.
cost of the acquisition of the asset or as part of the expense.
in production is immediately expensed to the Statement of Profit
Revenues, expenses and assets are recognised net of the amount
Depreciation is calculated on a straight-line basis to write off the
net cost of each item of property, plant and equipment (excluding
land) over their expected useful lives as follows:
CURRENT AND NON-CURRENT CLASSIFICATION
Assets and liabilities are presented in the statement of financial
position based on current and non-current classification.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the tax authority is included with other
receivables or payables in the Statement of Financial Position.
Plant and
equipment
5-10
years
The residual values, useful lives and depreciation methods are
reviewed, and adjusted if appropriate, at each reporting date.
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 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; 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.
A liability is classified as current when: it is either expected to
be settled in the consolidated entity’s normal operating cycle;
Cash flows are presented on a gross basis. The GST components
of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are
presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount
of GST recoverable from, or payable to, the tax authority.
48
49
Annual Report 2020Nova Minerals Limited LOSS PER SHARE
Basic loss per share
Basic loss per share is calculated by dividing operating loss
attributable to the owners of the Company, excluding any costs
of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the
financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in the determination
of basic earnings per share to take into account the after income
tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average
number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
TRADE AND OTHER PAYABLES
These amounts represent liabilities for goods and services
provided to the Company prior to the end of the financial year
and which are unpaid. Due to their short-term nature they are
initially recognised at fair value and subsequently at amortised
cost. The amounts are unsecured and are usually paid within 30
days of recognition.
ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from
the proceeds.
NEW ACCOUNTING STANDARDS AND
INTERPRETATIONS NOT YET MANDATORY OR
EARLY ADOPTED
expensed to profit or loss as incurred. A liability corresponding
to the capitalised lease will also be recognised, adjusted for
lease prepayments, lease incentives received, initial direct costs
incurred and an estimate of any future restoration, removal
or dismantling costs. Straight-line operating lease expense
recognition will be replaced with a depreciation charge for
the leased asset (included in operating costs) and an interest
expense on the recognised lease liability (included in finance
costs). For classification within the statement of cash flows, the
lease payments will be separated into both a principal (financing
activities) and interest (either operating or financing activities)
component. For lessor accounting, the standard does not
substantially change how a lessor accounts for leases. The Group
has adopted this standard from financial year beginning 1 July
2019 and the application of AASB 16 does not have a material
impact on the financial statements as at 30 June 2020.
CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with AASBs
requires management to make judgements, estimates and
Australian Accounting Standards and Interpretations that have
assumptions that affect the application of accounting policies and
recently been issued or amended but are not yet mandatory, have
the reported amounts of assets, liabilities, income and expenses.
not been early adopted by the Company for the annual reporting
period ended 30 June 2020. The Company’s assessment of the
Estimates and judgements are continually evaluated and based
impact of these new or amended Accounting Standards and
on historical experience and other factors, including expectations
Interpretations, most relevant to the Company, are set out below.
of future events that may have a financial impact on the entity and
that are believed to be reasonable under the circumstances.
Conceptual Framework for Financial Reporting
(Conceptual Framework)
The revised Conceptual Framework is applicable to annual
reporting periods beginning on or after 1 January 2020 and early
adoption is permitted. The Conceptual Framework contains new
definition and recognition criteria as well as new guidance on
measurement that affects several Accounting Standards. Where
the consolidated entity has relied on the existing framework in
determining its accounting policies for transactions, events or
The resulting accounting judgements and estimates will seldom
equal the related actual results. The judgements, estimates and
assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities
(refer to the respective notes) within the next financial year are
discussed below. Disclosures areas involving significant accounting
judgements and estimates are found in the following notes:
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
conditions that are not otherwise dealt with under the Australian
Exploration and evaluation expenditure
Accounting Standards, the consolidated entity may need to
review such policies under the revised framework. At this time, the
application of the Conceptual Framework is not expected to have
a material impact on the consolidated entity’s financial statements.
AASB 16 Leases
Exploration and evaluation costs have been capitalised on the
basis that the consolidated entity will commence commercial
production in the future, from which time the costs will be
amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to
This standard is applicable to annual reporting periods beginning
these activities and allocating overheads between those that are
on or after 1 January 2019. The standard replaces AASB 117
expensed and capitalised. In addition, costs are only capitalised
‘Leases’ and for lessees will eliminate the classifications of
that are expected to be recovered either through successful
operating leases and finance leases. Subject to exceptions, a
development or sale of the relevant mining interest. Factors
‘right-of-use’ asset will be capitalised in the statement of financial
that could impact the future commercial production at the mine
position, measured at the present value of the unavoidable future
include the level of reserves and resources, future technology
lease payments to be made over the lease term. The exceptions
changes, which could impact the cost of mining, future legal
relate to short-term leases of 12 months or less and leases of
changes and changes in commodity prices. To the extent that
based on the lowest level of input that is significant to the
entire fair value measurement, being: Level 1: Quoted prices
(unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date; Level 2:
Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly;
and Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what is
significant to fair value and therefore which category the asset or
liability is placed in can be subjective.
The fair value of assets and liabilities classified as level 3 is
determined by the use of valuation models. These include
discounted cash flow analysis or the use of observable inputs that
require significant adjustments based on unobservable inputs.
low-value assets (such as personal computers and small office
capitalised costs are determined not to be recoverable in
Refer to note 20 for further information.
furniture) where an accounting policy choice exists whereby
the future, they will be written off in the period in which this
either a ‘right-of-use’ asset is recognised or lease payments are
determination is made.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that
the Coronavirus (COVID-19) pandemic has had, or may have,
on the consolidated entity based on known information. This
consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic
regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to
be either any significant impact upon the financial statements or
any significant uncertainties with respect to events or conditions
which may impact the consolidated entity unfavourably as at the
reporting date or subsequently as a result of the Coronavirus
(COVID-19) pandemic.
Share-based payment transactions
The consolidated entity 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 is determined by using either the Binomial or Black-Scholes
model taking into account the terms and conditions upon which
the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact
profit or loss and equity. Refer to note 16 for further information.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and
related depreciation and amortisation charges for its property,
plant and equipment and finite life intangible assets. The useful
lives could change significantly as a result of technical innovations
or some other event. The depreciation and amortisation charge
will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non-strategic assets that
have been abandoned or sold will be written off or written down.
Employee benefits provision
As discussed in note 1, the liability for employee benefits
expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of
the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present
value of the liability, estimates of attrition rates and pay increases
through promotion and inflation have been taken into account.
Fair value measurement hierarchy
The consolidated entity is required to classify all assets and
liabilities, measured at fair value, using a three level hierarchy,
50
51
Annual Report 2020Nova Minerals Limited
RESTATEMENT OF COMPARATIVES – CORRECTION
OF PRIOR PERIOD MISSTATEMENT
Correction of prior period misstatement
The consolidated entity identified that previously reported
balance of Non-Controlling Interest (NCI) at 30 June 2019, was
not reflective of equity interest of NCI in subsidiaries AKCM and
Snow Lake Resources, due to changes in NCI’s share in prior
period. Correction of this misstatement has resulted in decrease in
opening balances of NCI and Accumulated losses, as summarised
in the table below:
The impact on the statement of financial position is as follows:
Statement of financial position at the end of the earliest comparative period
1-Jul-19
Reported
Consolidated
Adjustment
1-Jul-19
Restated
Extract
Equity
2 SEGMENT REPORTING
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Operating segment information is disclosed on the same basis
values of exploration permits and Company cash forecast for
as information used for internal reporting purposes by the
the next twelve months of operation. On this basis, the board
Board of Directors.
considers the consolidated entity operates in one segment being
exploration of minerals and three geographical areas, being
At regular intervals, the board is provided management
Australia, Canada and United States.
information for the Company’s cash position, the carrying
GEOGRAPHICAL INFORMATION
Australia
Canada
United States
Total
Interest Income
Geographical non-current asset
2020
$
65,359
-
103
2019
$
5,549
-
23
2020
$
30,179
8,160,439
8,130,799
2019
$
277,640
8,732,592
1,452,675
65,462
5,572
16,321,417
10,462,907
Non-controlling interest
4,243,680
(1,837,673)
2,406,007
Accumulated losses
(64,743,569)
1,837,673
(62,905,896)
Total equity
11,119,277
-
11,119,277
3 EXPENSES
Loss before tax includes the following specific items:
Depreciation
Superannuation
2020
$
90,580
10,806
4 CONTRACTORS AND CONSULTANTS
Corporate and Consultants
2020
$
519,040
519,040
2019
$
65,113
23,275
2019
$
585,539
585,539
52
53
Annual Report 2020Nova Minerals Limited
5 FINANCE EXPENSES
7 LOSS PER SHARE
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
2020
(0.43)
(0.43)
2019
(0.34)
(0.34)
Basic loss per share (cents)
Diluted loss per share (cents)
The loss used for the purposes of calculating basic and diluted
loss per share are as follows:
Loss attributable to ordinary shareholders (basic)
(4,195,388)
(2,619,555)
Loss attributable to ordinary shareholders (diluted)
(4,195,388)
(2,619,555)
2020
$
2019
$
The weighted average number of shares used for the purposes of
calculating diluted loss per share reconciles to the number used
to calculate basic loss per share as follows:
2020
Shares
2019
Shares
Weighted average number of shares
Basic loss per ordinary share denominator
965,739,107
773,260,487
Diluted loss per ordinary share denominator
965,739,107
773,260,487
Bank charges
Total Finance Expense
2020
$
4,705
4,705
6 INCOME TAX
Reconciliation between tax credit expense and pre-tax accounting loss
Loss before tax
Income tax benefit on loss at Australian tax rate of 27.5% (2019: 27.5%)
Tax Effect on non-deductible items
Impairment of Exploration an Evaluation Assets
Share Based Payments
Over/Under provision
Other
Current year losses for which no deferred tax asset was recognized
Income tax
Tax losses
2020
$
(4,276,995)
(1,176,174)
144,830
516,656
-
-
(514,687)
514,687
-
2019
$
3,671
3,671
2019
$
(865,416)
65,113
362,677
-
-
(502,739)
502,739
-
Unused tax losses for which no deferred tax asset has been recognized
26,927,163
26,412,476
Potential tax benefit @ 27.5%
(2019: 27.5%)
7,404,970
7,263,431
2020
$
2019
$
The tax losses do not expire under current tax legislation.
Deferred tax assets have not been recognised in respect of/ these
The tax losses are subject to further review to determine if they
satisfy the necessary legislative requirements under Income Tax
items because it is not probable that future taxable profit will be
legislation for carry forward and recoupment of tax losses.
available against which the Company can utilise the benefits.
These tax losses are also subject to final determination by the
taxation authorities when the company derives taxable income.
54
55
Annual Report 2020Nova Minerals Limited 8 TRADE & OTHER RECEIVABLES
30 June 2020
$
30 June 2019
$
BAS Receivables
Placement Funds (a)
Placement Funds (b)
Capital raising funds receivable (c)
Prepayment (d)
Prepaid Insurance
Rent Bond
Receivables
Interest Receivable
171,459
78,267
88,048
-
-
15,933
6,880
1,848
37,199
112,322
78,267
-
21,432
71,296
-
-
-
-
399,634
283,317
The Company’s exposure to credit risk related to trade and other
receivables are disclosed in note 19.
a. The amounts relate to funds not yet received from the
December 2017 and June 2018 Placements.
b. The amounts relate to funds not yet received from the January
2020 Placements
c. The $21,432 relates to funds received from capital raising of
Snow Lake held in legal trust account.
d. The $71,286 relates to prepaid exploration expenditure.
56
57
Annual Report 2020Nova Minerals Limited 9 CURRENT OTHER
FINANCIAL ASSETS
10 PLANT & EQUIPMENT
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Convertible Note
Total
2020
$
413,325
413,325
2019
$
-
-
-
Plant and equipment – at cost
Less: accumulated depreciation
Carrying amount at end of period
30 June 2020
$
1,413,726
(155,692)
1,258,034
2020
$
619,577
729,037
(90,580)
30 June 2019
$
684,689
(65,113)
619,577
2019
$
-
684,690
(65,113)
619,577
Reconciliations:
Plant and equipment
Balance at 1 July 2019
Additions
Depreciation
Carrying amount at end of period
1,258,034
On 25 March 2020 Nova signed a
Convertible Note Deed to invest in
Torian Resources Limited, an ASX gold
exploration and development entity
with operations in WA.
The key terms of the convertible note between Torian Resources
and Nova are as follows:
• Torian Resources Limited issued 413, 325 of notes with a face
value of $1 to Nova;
• The Interest rate 12% per annum payable in cash monthly or, at
the election of the Investor, capitalised monthly and payable in
cash on conversion or redemption of the Notes.;
• The term of the note 365 days;
• Torian, within 2 business days of the date of this Deed, issue the
Investor (or its nominee) with 45,925,000 options which have
an exercise price of $0.02 (2 cents), expire on 7 February 2022
and, upon exercise, will entitle the holder to one ordinary share
in the Company. The Options will be issued by the Company
under the Company’s capacity under the ASX Listing Rule 7.1
and will, as part of their terms of issue, require the Company to
seek approvals from shareholders necessary for conversion of
the Options (if any); and
• The Conversion Price $0.0045 (0.45 cents) per ordinary share
(“Issue Price”), with fractional entitlements rounded up.
• The convertible note was converted to 91,850,000 ordinary
shares subsequent to year end
58
59
Annual Report 2020Nova Minerals Limited 11 EXPLORATION AND
EVALUATION EXPENDITURE
Balance at beginning of year
Reduction due to increase in ownership in AKCM
Expenditure incurred
Acquisition of remaining 20% interests in Thomson Bros.
Cash call paid for Officer Hill Project
Impairment of Officer Hill Project (a)
2020
$
9,790,760
-
5,519,836
-
249,262
(526,655)
2019
$
4,509,396
(196,020)
1,576,803
3,623,188
277,393
-
Carrying amount at end of year
15,033,203
9,790,760
a. The amount has been impaired as Nova Mineral has decided
to no longer commit to the funding contributions required
under the Joint Venture Agreement.
Under the terms of the agreement where Nova fails to contribute
to the project on the basis of their 30% share in the project,
Newmont are entitled to dilute Nova’s interest at a rate of $32.5k
per 1% held. As a result, based on the owed amounts at present,
this would reduce Nova’s interest in the JV to 13.6% from 30% as
per the agreement as at August 2020.
12 TRADE AND OTHER PAYABLES
Trade and other payables
2020
$
1,981,286
1,981,286
2019
$
657,681
657,681
60
61
Annual Report 2020Nova Minerals Limited 13 DERIVATIVE FINANCIAL LIABILITIES
14 ISSUED CAPITAL
Funding Facility
Options Issued
Shares Issued
Total
2020
$
2,000,000
(486,000)
(200,000)
1,314,000
2019
$
-
-
-
-
Issued Capital
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
2020
$
78,401,191
78,401,191
2019
$
69,483,015
69,483,015
The Funding Facility provide by Collins St Asset Management
• If the note has not been redeemed in the repayment period
Pty Ltd ATF Collins St Value Fund (CSVF) has been treated as a
CSVF has the right to convert a portion or all of the remaining
derivative financial Liability held at fair value through the Profit and
debt into ordinary shares at the conversion price ($0.07 per
Loss which represents the choice Nova have of how the facility will
share) in the 5 days following the end of the 120 day
be settled.
repayment term
Ordinary share - issued and fully paid
30-Jun-20
$
30-Jun-19
$
At the beginning of the period
774,134,151
69,483,015
749,765,436
68,631,884
Shares issued during the period
-
-
-
-
No.
$
No.
$
• After the 5 day election period the parties will negotiate
- Contributions of equity
246,189,377
7,508,002
30,729,589
991,040
The Key Terms of Funding Facility between Nova Minerals Limited
payment terms. In absence of this:
and CSVF) are as follows:
- The outstanding face value increases by 5%
- Outstanding face value is converted into ordinary shares
- Shares issued on conversion of options
59,188,654
1,829,881
-
-
• On 28th May 2020 Nova signed an agreement with Collins St
at the lower of the conversion price or a 20% discount of
Asset Management (aka Collins St Value Fund, CSVF), already a
the VWAP
major shareholder, securing $2m AUD in a “prepayment
• 20% cap on ordinary share issues to CSVF
Share buy back
Share issue costs
-
-
-
(6,360,874)
(128,678)
(419,707)
-
(11,231)
funding facility”
• $2m received immediately, with additional facility of up to
$4m available
• On receipt of initial $2m funding Nova agreed to:
- Issue CSVF with a number of ordinary shares equal to
$200k at the issue price, being a 10% discount on the 5 day
volume weighted average price (4.3m shares)
- Issue 18m options with a term of 2 years which can
subsequently be converted to ordinary shares at an exercise
price of $0.07
- Issue CSVF with a Note Certificate for face value of $2.2m
• CSVF have three options in relation to settling the facility:
- Either convert to shares at $0.07 x $2.2m
- Negotiate an alternative repayment option, or
- Receive six monthly instalments of Nova shares to the value
of $2.2m+5% at the lower of $0.07 and VWAP-20%
• Interest is only payable on the outstanding face value unpaid
after the repayment date @ 15%, being the earlier of 120 days
from issue, the happening of an Event of Default or a date by
mutual agreement
• Nova Minerals has the right to repay the face value of the
loan at any time within the 120 day period, provided that the
minimum repayment amount is not less than $550,000 on each
occasion
At the end of the period
1,079,512,182
78,401,191
774,134,151
69,483,015
Ordinary shares entitle the holder to participate in dividends and
the proceeds on winding up of the Company in proportion to the
number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a
meeting in person or by proxy, is entitled to one vote, and upon a
poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have
a limited amount of authorised capital.
At shareholder meetings each ordinary share is entitled to one vote
in proportion to the paid up amount of share when a poll is called,
otherwise each shareholder has one vote on a show of hands.
62
63
Annual Report 2020Nova Minerals Limited
Set out below are movements in options on issue over ordinary
shares of Nova Minerals Limited:
PARENT INFORMATION
16 PARENT ENTITY & CONTROLLED ENTITIES
Listed options:
On or before 31
August 2020
Unlisted options:
On or before 31
August 2019
On or before 19
September 2022
On or before 28
October 2022
On or before 28
January 2023
On or before 2
June 2022
Exercise period
Exercise price
Beginning
balance
Issued
Exercised
Lapsed
3.25 cents
437,238,282
53,222,952
(51,688,654)
2 cents
7,500,000
-
(7,500,000)
4 cents
61,000,000
-
5.6 cents
1,500,000
-
-
-
Ending
balance
438,772,580
Parent entity information
Set out below is the supplementary
information about the parent entity.
Statement of profit or loss and other
comprehensive income
Loss after income tax
-
Other comprehensive income
Statement of financial position
61,000,000
1,500,000
Current assets
Non-current assets
Total assets
6 cents
7,500,000
7,500,000
Current liabilities
Non-current liabilities
7 cents
18,000,000
18,000,000
Total liabilities
15 EQUITY – NON CONTROLLING INTEREST
Issued Capital
Reserves
Foreign Currency Reserve
Retained Profits/(Loss)
30 June 2020
$
2,737,493
337,281
(4,258)
(542,499)
2,528,017
30 June 2019
(restated)
$
2,539,925
337,281
49,430
(520,630)
2,406,007
Net assets
Equity
Issued Capital
Equity Reserves
Accumulated losses
Foreign Exchange Reserve
Total Equity
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June
2020 and 30 June 2019.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property,
plant and equipment as at 30 June 2020 and 30 June 2019.
Significant accounting policies
The accounting policies of the parent entity are consistent with
those of the consolidated entity, as disclosed in note 1.
Parent
2020
(3,900,411)
(293,955)
937,251
7,212,499
8,149,750
942,557
-
942,557
7,207,193
78,535,800
3,518,544
(67,650,252)
14,404,092
2019
(1,318,665)
37,299
808,544
6,393,150
7,201,694
133,560
-
133,560
7,068,134
69,483,016
1,019,185
(63,434,067)
-
7,068,134
64
65
Annual Report 2020Nova Minerals Limited CONTROLLED ENTITIES INFORMATION
AKCM (AUST) PTY LTD
Subsidiary Entities
Consolidated
Country of
Incorporation
Class of
Shares
Parent Ownership
Non-Controlling interest
Ownership
Ownership
Ownership
Ownership
Interest
Interest
Interest
Interest
2020
%
2019
%
2020
%
2019
%
Snow Lake Resources Ltd^
Canada
Ordinary
73.80%
73.80%
26.2%
26.2%
Snow Lake (Crowduck) Ltd
Canada
Ordinary
100%
100%
SnowLake Exploration Ltd
Canada
Ordinary
100%
100%
Thompson Bros Lithium Pty Ltd
Australia
Ordinary
100%
100%
AKCM (Aust) Pty Ltd*
Australia
Ordinary
85%
51%
15%
49%
AK Operations LLC
USA
Ordinary
100%
100%
AK Mining LLC
USA
Ordinary
100%
100%
^ Snow Lake Resources Ltd is the immediate parent of Snow Lake
(Crowduck) Ltd, Snow Lake Exploration Ltd and Thompson Bros
Lithium Pty Ltd (Formerly “Manitobal Minerals Pty Ltd”)
*ACKM (AUS) Pty Ltd is the immediate parent of AK Operations
LLC and Ak Mining LLC
In December 2017 Nova entered into a JV agreement with
AK Minerals Pty Ltd, a private company registered in NSW,
comprising a farm-in for a number of exploration projects. As
part of the agreement the JV entity AKCM (AUST) Pty Ltd was
formed, with tenements transferred from AK Minerals to the JVCo.
Based on a number of stages of expenditure as set out per the
agreement Nova is entitled to increasing shareholding in the
entity, acquiring 51% of shares after Stage 2 and 70% after stage
3 per the original agreement.
During the financial year Nova now has a 85% interest in
the Estelle Gold Camp through surpassing ongoing
expenditure requirements.
The consolidated financial statements incorporate the assets,
liabilities and results of the following subsidiary with non-
controlling interests in accordance with the accounting policy
described in Note 1:
AKCM (Aust) Pty Ltd
Summarised statement of financial
position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss
and other comprehensive income
Revenue
Expenses
Loss before income tax expense
Other comprehensive income
Total comprehensive income
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Other financial information
Loss attributable to non-controlling
interests
Accumulated non-controlling interests at
the end of reporting period
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
2020
$’000
937,251
7,212,499
8,149,750
942,557
-
942,557
7,207,193
103
152,391
(152,288)
-
-
(71,684)
1,002,158
-
930,474
(22,843)
(126,886)
2019
$’000
77,242
1,942,252
2,019,494
282,372
-
282,372
1,737,121
22
212,355
(212,333)
-
-
(857,752)
843,970
-
(13,782)
(104,043)
(104,043)
66
67
Annual Report 2020Nova Minerals Limited
SNOW LAKE RESOURCES LTD
The consolidated financial statements incorporate the assets,
liabilities and results of the following subsidiary with non-
controlling interests in accordance with the accounting policy
described in Note 1.
Snow Lake Resources Ltd
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and other comprehensive income
Revenue
Expenses
Loss before income tax expense
Other comprehensive income
Total comprehensive income
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Other financial information
Loss attributable to non-controlling interests
Accumulated non-controlling interests at the end of reporting period
2020
$’000
165,953
5,735,889
5,901,842
378,551
-
378,551
5,523,291
-
(224,295)
(224,295)
-
-
(254,193)
(178,770)
127
(432,836)
(58,765)
(482,149)
2019
$’000
701,487
5,636,144
6,337,631
467,396
-
467,396
5,870,235
-
(1,615,968)
(1,615,968)
-
-
(794,373)
106,524
1,304,227
616,378
(423,384)
(423,384)
17 EQUITY RESERVE
The reserves are used to record the value of equity instruments
issued to advisors and key management personnel as part of
compensation for their services. Details of the share-based
payments are in Note 5.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Share Based Payment (1)
Reser Option Reserve (2)
Option Reserve (3)
Option Reserve (4)
As of
30 June 2020
$
240,000
3,607,998
134,609
486,000
As of
30 June 2019
$
240,000
1,729,248
4,468,607
1,969,248
1. The reserve is used to record the value of 2.5 million NVA
3. The reserve is used to record 7,478,260 listed options
shares per year for 5 years issued to Bull Run Capital Inc.
(NVAO:ASX) that were issued on 15th January 2020 to
upon, or before, the annual anniversary of the execution of
advisors as part of capital raising costs . The options have
the Option (i.e. a total of up to 12.5 million NVA shares) under
been valued in reference to the last traded price at $0.018 per
the terms of its arrangement with Bull Run Capital which was
option giving rise to transactional value of $134,609
entered into in April 2016. If Nova Minerals withdraws from the
project and elects not to pursue its earn-in rights its obligation
4. The reserve is used to record 18,000,000 unlisted options
to issue any unissued tranches of shares to Bull Run shall
that were issued on the 2 June 2020 to Collins St Asset
terminate. The shares to be issued to Bull Run Capital have
Management Pty Ltd as part of the Convertible Note
been valued in accordance with the requirements of AASB2
Agreement. These were estimated at the date of grant, being
Share Based Payments. The shares have been valued using the
28 May 2020, using the Black Scholes pricing method, taking
spot rate of $0.024 per share being the fair value of the shares
into account the terms and conditions under which the
at the date of settlement and completion of the service. In
options were granted. The Options can be exercised at any
February 2019 Nova Minerals entered into an agreement with
time until 24 months from the Closing Date of 28 May 2020.
Bull Run Capital where instead of issuing shares would pay Bull
The grant date fair value of the options granted was $0.027
Run Capital $90,000.
per option giving rise to total transactional value of $486,000.
2. The value of options issued to the Directors of the Company
and advisors of Snow Lake Resources Limited (subsidiary) as
part of compensation for their services. Details of the share-
based payments are in Note 118.
68
69
Annual Report 2020Nova Minerals Limited 18 SHARE BASED PAYMENTS
30 June 2020
$
-
-
1,898,750
1,878,750
30 June 2019
$
28,855
1,219,825
99,000
1,347,680
30 June 2020
30 June 2019
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
1. On 3 December 2018 in Snow Lake Resources Limited, 160,000
2. On 20 September 2018 7,000,000 listed options (NVAO:ASX)
Warrants were issued to advisors in lieu of fees for services
were issued to directors. The options have been valued in
related to capital raising. These were estimated at the date of
reference to the last traded price at $0.011 per option giving
grant, being 3 December 2018, using the Black Scholes pricing
rise to transactional value of $77,000.
method, taking into account the terms and conditions under
which the options were granted. The warrants can be exercised
3. On 20 September 2018 2,000,000 listed options (NVAO:ASX)
at any time until the earlier of:
were issued to advisors. The options have been valued in
reference to the last traded price at $0.011 per option giving
- 60 months from the Closing Date of 3 December 2018; or
rise to transactional value of $22,000
- 24 months from the completion of a listing on a Canadian
stock exchange or quotation system
4. On 24 May 2019 in Snow Lake Resources Limited, 5,200,000
Warrants were issued to Directors, Officers and Consultants
The grant date fair value of the options granted was CAD$0.17
of Snow Lake as part of an employee stock option plan. These
per option giving rise to total transactional value of $28,855
were estimated at the date of grant, being 24 May 2019, using
$AUD (CAD$27,200).
the Black Scholes pricing method, taking into account the terms
and conditions under which the options were granted. The
- The option reserve movement arising from the issue of
warrants can be exercised at any time until the earlier of:
options is recorded as share issue costs (equity) and it
forms part of the non-controlling interest.
- 60 months from the Closing Date of 3 December 2018; or
- 24 months from the completion of a listing on a Canadian
The fair value of options granted during the period was estimated
stock exchange or quotation system
using the following assumptions:
$
-
-
-
-
1,550,000
165,000
31,500
51,750
80,500
1,219,825
Market rate ($)
Grant date
Strike price ($)
Expected volatility (%)
Risk-free interest rate (%)
Days to expiration (days)
$
28,855
77,000
22,000
-
-
-
-
-
Fair value
CAD 0.17
The grant date fair value of the options granted was $0.22 per
option giving rise to total transactional value of $1,219,825
3/12/2018
$AUD ($1,154,904 CAD)
- The option reserve movement arising from the issue of
options is recorded as part of the non-controlling interest.
CAD 0.25
CAD 0.25
100
2.14
1353
Options Granted Snow Lake Resources (see
below)
Options Granted Snow Lake Resources (see
below)
Options Granted Nova Minerals (see below)
Granted Options (1)
Granted Options (2)
Granted Options (3)
Granted Options (4)
Granted Options (5)
Granted Options (6)
Granted Options (7)
Granted Options (8)
Granted Options (9)
1,878,750
1,347,680
70
71
Annual Report 2020Nova Minerals Limited The following table summarizes the stock options issued as part
Snow Lake Resources Employee Stock Option Plan:
The following table summarizes the options issued as part of Nova
Minerals’ Employees Stock Option Plan:
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Grant Date
Exercise
Price
Balance
June 30,
2018
Granted
Exercised
Expired /
Terminated
24 May 2019 (1)
$0.50
Total
Weighted Average
Exercise Price
-
-
-
5,200,000
5,200,000
$0.50
-
-
-
-
-
-
Balance
June 30,
2019
5,200,000
September 19, 2019 (a)
$0.04
50,000,000
5,200,000
August 6, 2019 (b)
$0.04
11,000,000
$0.50
October 28, 2019 (c)
$0.056
1,500,000
Total
62,500,000
Grant Date
Exercise
Price
Granted
Exercised
Expired /
Balance
Terminated
30 June 2020
The options vested on issuance and have an expiry date of 24
method, taking into account the terms and conditions under
May 2023.
which the options were granted. The Options can be exercised
at any time until 36 months from the Closing Date of 28
As at 30 June 2020, the weighted average remaining
October 2019. The grant date fair value of the options granted
contractual life of the stock options is 2.90 years.
was $0.021 per option giving rise to total transactional value of
Using the Black Scholes valuation model, the Company
$31,500.
determined that the fair value of the 5,200,000 stock options
8. On 27 January 2020 2,500,000 Unlisted Options were issued to
issued was $1,258,478 $AUD, ($1,154,905 CAD) based on the
consultants, subject to the vesting conditions detailed below:
following assumptions: expected life: 4.0 years; volatility: 100%;
dividend yield: nil; risk-free rate: 1.55%, market price: $0.35;
- 2,500,000 Option (Expiry 3year from Effective Grant Date)
and exercise price of $0.50.
on the announcement of a 5Moz inferred Gold Resources
being proved up.
5. On 19 September 2019 in Nova Minerals, 50,000,0000 unlisted
- These were estimated at the date of grant, being 27
options were issued to Directors of Nova Minerals as part of an
January 2020, using the Black Scholes pricing method,
employee stock option plan. These were estimated at the date
taking into account the terms and conditions under which
of grant, being 19th September 2019, using the Black Scholes
the options were granted. The Options can be exercised
pricing method, taking into account the terms and conditions
once vested at any time until 36 months from the Closing
under which the options were granted. The Options can be
Date of 27 January 2020. The grant date fair value of the
exercised at any time until 35 months from the Closing Date of
options granted was $0.023 per option giving rise to total
19th September 2019. The grant date fair value of the options
transactional value of $51,750.
granted was $0.031 per option giving rise to total transactional
value of $1,550,000.
6. On 6 August 2019 in Nova Minerals, 11,000,000 unlisted
9. On 27 January 2020 5,000,000 Unlisted Options were issued to
consultants, subject to the vesting conditions detailed below:
options were issued Consultants of Nova Minerals as part of
5,000,000 Options (Expiry 3year from Effective Grant Date) on
an employee stock option plan. Estimated at the date of grant,
the announcement of a 10Moz inferred Gold Resources being
being 6th August 2019, using the Black Scholes pricing method,
proved up.
taking into account the terms and conditions under which the
options were granted. The Options can be exercised at any
These were estimated at the date of grant, being 27 January
time until 35 months from the Closing Date of 6th August 2019.
2020, using the Black Scholes pricing method, taking into
The grant date fair value of the options granted was $0.015 per
option giving rise to total transactional value of $165,000.
account the terms and conditions under which the options were
granted. The Options can be exercised once vested at any time
until 36months from the Closing Date of 27 January 2020. The
7. On 28 October 2019 in Nova Minerals, 1,500,000 unlisted
grant date fair value of the options granted was $0.023 per
options were issued to consultants of Nova Minerals as part
option giving rise to total transactional value of $80,500.
of an employee stock option plan. Estimated at the date of
grant, being 28 October 2019, using the Black Scholes pricing
-
-
-
-
-
-
-
-
50,000,000
11,000,000
1,500,000
62,500,000
a. The options vested on issuance and have an expiry date
on 19 September 2022. As at 30 June, 2020, the weighted
average remaining contractual life of the stock options is 2.22
years Using the Black Scholes valuation model, the Company
determined that the fair value of the options based on the
following assumptions: expected life: 3 years; volatility: 100%;
dividend yield: nil; risk-free rate: 0.7%, market price: $0.048;
and exercise price of $0.04.
b. The options vested on issuance and have an expiry date
of 19 September 2022. As at 30 June, 2020, the weighted
average remaining contractual life of the stock options is 2.22
years Using the Black Scholes valuation model, the Company
determined that the fair value of the options based on the
following assumptions: expected life: 3 years; volatility: 100%;
dividend yield: nil; risk-free rate: 0.7%, market price: $0.028;
and exercise price of $0.04.)
c. The options vested on issuance and have an expiry date of
28 October 2022. As at 30 June, 2020, the weighted average
remaining contractual life of the stock options is 2.33 years
Using the Black Scholes valuation model, the Company
determined that the fair value of the options based on the
following assumptions: expected life: 3 years; volatility: 100%;
dividend yield: nil; risk-free rate: 0.7%, market price: $0.038;
and exercise price of $0.056.
72
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Annual Report 2020Nova Minerals Limited
19 CASH FLOW INFORMATION AND
CASH EQUIVALENT
20 CONTINGENCIES
There are no contingent liabilities that the consolidated entity has
become aware of at 30 June 2020 and 30 June 2019.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
A. RECONCILIATION OF CASH
Cash at the end of the financial year as shown in the statement of
cash flows is reconciled to the related items in the statement of
financial position as follows:
Cash at bank and on hand
Cash and cash equivalents
The consolidated entity exposure to interest rate risk is disclosed
in note 19.
B. RECONCILIATION OF LOSS AFTER
INCOME TAX TO NET CASH FROM
OPERATING ACTIVITIES
2020
$
4,197,221
4,197,221
2019
$
1,030,734
1,030,734
Loss for the year
Adjustments for
Exoloration costs Impaired
for sale investments
Depreciation
Note
2020
$
2019
$
(4,276,995)
(3,146,966)
526,655
-
90,580
65,113
Share based payments (Note 16)
1,878,750
1,318,825
Net cash used in operating activities before change in assets and liabilities
(1,781,040)
(1,763,028)
Change in trade and other receivables
116,318
(19,012)
Change in trade and other payables
(939,773)
108,086
Change in other financial assets
391,474
15,222
Net cash used in operating activities
(2,213,021)
(1,658,732)
74
75
Annual Report 2020Nova Minerals Limited 21 FINANCIAL INSTRUMENTS
The consolidated entity activities expose it to a variety of financial
risks, market risk, credit risk and liquidity risk.
The Company’s overall risk management program focuses on
the unpredictability of financial markets and seeks to minimize
potential adverse effects of the financial performance of the entity.
MARKET RISK
Market risk is the risk that changes in market prices, such as
foreign exchange risk, interest rates and equity prices will affect
the Company’s income or the value of its holdings of financial
instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable
parameters, while optimizing the return.
The Company operates internationally and therefore there
is exposure to foreign exchange risk arising from currency
exposures. The Company is not exposed to equity security price
risk and holds no equity investments. The Company is not
exposed to commodity price risk as the Company is still
carrying out exploration.
INTEREST RATE RISK
Interest rate risk arises from investment of cash at variable rates.
The consolidated entity income and operating cash flows are not
materially exposed to changes in market interest rates.
At the reporting date, the interest rate profile of the Company’s
interest bearing financial instruments was:
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Interest rate risk arises from investment of cash at variable rates.
The Company’s income and operating cash flows are not materially
exposed to changes in market interest rates.
An increase of 100 basis points (decrease of 100 basis points)
in interest rates at the reporting date would have increased
(decreased) equity and profit or loss by the amounts presented
below. This analysis assumes that all other variables remain
constant. The analysis was performed on the same basis for 2019.
The following table summarises the sensitivity of the Company’s
financial assets (cash) to interest rate risk:
Profit or loss
Equity
Carrying
amount
$
100 bp
increase
$
100 bp
decrease
$
100 bp
increase
$
100 bp
decrease
$
30 June 2020
Variable rate instruments
Cash and cash equivalents
4,197,221
41,972
(41,972)
41,927
(41,927)
4,197,221
41,972
(41,972)
41,927
(41,927)
Carrying amount
2020
$
2019
$
Profit or loss
Equity
Carrying
amount
$
100 bp
increase
$
100 bp
decrease
$
100 bp
increase
$
100 bp
decrease
$
Variable rate instruments
Cash and cash equivalents
4,197,221
1,030,734
30 June 2019
4,197,221
1,030,734
Variable rate instruments
Cash and cash equivalents
1,030,734
10,307
(10,307)
10,307
(10,307)
1,030,734
10,307
(10,307)
10,307
(10,307)
76
77
Annual Report 2020Nova Minerals Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
CREDIT RISK
Credit risk is the risk of financial loss to the Company if a
customer or counterparty to a financial instrument fails to meet its
contractual obligations.
The Company has no significant concentration of credit risk. Credit
risk arises from cash and cash equivalents held with the bank and
financial institutions and receivables due from other entities. For
banks and financial institutions, only independently rated parties
with a minimum rating of ‘A’ are accepted.
The maximum exposure to credit risk is the carrying amount of
the financial asset. The maximum exposure to credit risk at the
reporting date was:
LIQUIDITY RISK
Liquidity risk is the risk that the consolidated entity will
encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or
another financial asset. The Company’s liquidity risk arises from
operational commitments. Prudent liquidity risk management
implies maintaining sufficient cash and marketable securities.
Management aims at maintaining flexibility in funding by regularly
reviewing cash requirements and monitoring forecast cash flows.
The following are the contractual maturities of financial liabilities:
Cash and cash equivalents
4,197,221
1,030,734
30 June 2020
Financial liabilities
Current
2020
$
2019
$
Interet Rate
Carrying
amount
$
Total
contractual
cash flows
$
6 months
or less
$
6 to 12
Greater than
months
12 months
$
$
BAS Receivables
171,459
112,322
Financial derivative liability
15%
1,314,000
1,314,000
1,314,000
Trade and other payables
1,981,286
-
1,981,286
4,368,680
1,143,056
3,295,286
1,314,000
3,295,286
Carrying amount
$
Total
contractual
cash flows
30 June 2019
Financial liabilities
Current
Trade and other payables
657,681
657,681
$
-
-
6 months
or less
$
657,681
657,681
6 to 12 months
$
-
-
-
-
-
-
-
-
Greater than
12 months
$
-
-
79
78
Annual Report 2020Nova Minerals Limited FAIR VALUE
The carrying amount of financial assets and financial liabilities
recorded in the financial statements represent their respective
net fair value determined in accordance with the
accounting policies.
CAPITAL MANAGEMENT
The Company’s policy in relation to capital management is for
management to regularly and consistently monitor future cash
flows against expected expenditures for a rolling period of up
to 12 months in advance. The Board determines the Company’s
need for additional funding by way of either share placements
or loan funds depending on market conditions at the time.
Management defines working capital in such circumstances
as its excess liquid funds over liabilities, and defines capital as
being the ordinary share capital of the Company. There were
no changes in the Company’s approach to capital management
during the year. The Company is not subject to externally
imposed capital requirements.
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
22 KEY MANAGEMENT
PERSONNEL COMPENSATION
The aggregate compensation made to directors and other
members of key management personnel compensation of the
Company is set out below:
Short-term employee Benefits
Value of options
Post-employment
Total
2020
$
519,451
1,625,000
10,806
2,155,257
2019
$
444,015
410,146
21,525
875,686
23 RELATED PARTY TRANSACTIONS
KEY MANAGEMENT PERSONNEL
Disclosures relating to key management personnel are set out in
the Remuneration Report of the Directors’ Report.
TRANSACTIONS WITH OTHER ENTITIES
2020
• During the 2020 year $10,271 was paid to AK81 Pty Ltd for
Office Rental, AK81 Pty Ltd is a company of which Mr Avi
Kimelman is a Director.
• During the 2020 year $4,203 was paid to Nova Minerals by
Cohiba Minerals Limited, a company of which Mr Avi Kimelman
was a director as a contribution to office rent.
2019
• During the 2019 year $15,526 was paid to AK81 Pty Ltd for
Office Rental, AK81 Pty Ltd is a company of which Mr Avi
Kimelman is a Director.
Directors and their related entities are reimbursed for out-of-
pocket expenses incurred in the performance of their duties.
80
81
Annual Report 2020Nova Minerals Limited 24 AUDITORS REMUNERATION
25 NON-CURRENT OTHER
FINANCIAL ASSETS
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
Audit services
BDO East Coast Partnership
RSM Australia Partners
Snowlake Audit
Taxation services
BDO East Coast Partnership
Total Auditors remuneration
2020
$
18,025
26,000
11,787
55,812
6,352
6,352
62,164
2019
$
60,710
-
-
60,710
31,023
31,023
91,733
2020
$
30,719
30,719
2020
$
52,569
-
-
(21,850) ^
30,719
2019
$
52,569
-
52,569
2019
$
67,791
-
(15,222)*
-
52,569
Investments at fair value through profit or loss
Total
Other financial assets relate to equity investment reclassified as
other financial assets at fair value through profit or loss.
RECONCILIATION
Reconciliation of the fair values at the beginning and end of the
current and previous year are set out below:
Opening balance
Addition
Loss on disposal of shares
Movement in fair value
Closing fair value
*In 2017, the Group acquired 250,000 shares in Progressive
Planet Solutions Inc (“PLAN”, formerly “Ashburton Ventures
Inc”) upon the acquisition of Manitoba Minerals Pty Ltd (Name
changed to Thomson Bros Lithium Pty Ltd). On 3 August 2018
the shares were transferred to Strider Resources Limited under
an agreement with PLAN to transfer the shares to Strider
Resources Limited, a loss on disposal has been recognised upon
the completion of the share transfer
^On 18 October 2019, Halycon Resources was acquired by
Accelerate Resources Ltd (ASX listed company. ASX code: AX8).
As a result of the transaction, Nova Minerals received 1,335,600
AX8 shares as consideration in exchange of the Halycon shares.
The AX8 shares were fair valued at the closing price of their last
traded price ($0.023 per share), resulting in a change in fair value
of $21,850.
82
83
Annual Report 2020Nova Minerals Limited
26 FAIR VALUE MEASUREMENT
27 SUBSEQUENT EVENTS
Notes to the Consolidated Financial Statements
for the year ended 30 June 2020
FAIR VALUE HIERARCHY
The following tables detail the Consolidated Entity’s assets and
liabilities, measured or disclosed at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to
the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly
or indirectly.
Level 3: Unobservable inputs for the asset or liability.
2020
Assets
Level 1
$
Level 2
$
Level 3
$
Investments at fair value
-
30,719
Convertible Note
413,325
413,325
30,719
Total
$
-
-
-
-
Total
2020
Liabilites
Derivative Financial Liability
Total
2019
Assets
Investments at fair value
Total
Assets and liabilities held for sale are measured at fair value on a
non-recurring basis. There were no transfers between levels during
the financial year.
Level 1
$
1,314,000
1,314,000
Level 1
$
-
-
Level 2
Level 3
Total
$
-
-
Level 2
$
52,569
52,569
$
-
-
$
-
-
Level 3
Total
$
-
-
$
-
-
The following events have occurred
subsequent to the period end:
On 2 July 2020, the Company announced that it had elected to
convert the secured convertible notes (Notes) it holds in Torian
Resources Limited (ASX: TNR) (Torian) into fully paid shares. The
Notes had a face value of $413,325 and were converted into
91,850,000 fully paid ordinary shares in Torian at the conversion
price of $0.0045 per share, subject to various conditions, including
the issue of a further 2,755,500 ordinary shares in lieu of interest
payments owing on the Notes.
On 13 August 2020, the Company announced that RSM Australia
Partners (RSM) have been appointed as the Company Auditors,
replacing BDO East Coast Partnership who had resigned. In
accordance with section 327(c) of the Corporation Act 2001,
a resolution will be tabled at the Company’s 2020 Annual
General Meeting to ratify the appointment of RSM as the
Company’s auditor.
On 1 September, the Company announced that ~486.8 million
quoted options exercisable at $0.0325 (ASX: NVAO) (Options) had
been exercised since January 2020, before the Options expired
on 31 August 2020. Total funds raised from the exercise of the
Options amounted to ~$15.8m. The remaining 3,296,099 Options
that were not exercised, were cancelled on 3 September 2020.
The full impact of the COVID-19 outbreak continues to evolve
at the date of this report. The company is therefore uncertain
as to the full impact that the pandemic will have on its financial
condition, liquidity, and future results of operation during 2020.
Management is actively monitoring the global situation and its
impact on the Company’s financial condition, liquidity, operations,
supplier, industry, and workforce. Given the daily evolution of the
COVID-19 outbreak and the global responses to curb the spread,
the Company is not able to estimate the effects of the COVID-19
outbreak on its results of operations, financial condition, or
liquidity in the 2020 financial year.
Although the Company cannot estimate the length or gravity of
the impact of the COVID-19 outbreak at this time, if the pandemic
continues, it may have a material adverse effect on the Company’s
results of future operations, financial position, and liquidity in fiscal
year 2020.
Other than what is noted above and as disclosed elsewhere in this
report, there has not arisen in the interval between the end of the
full year to 30 June 2020 and the date of this report any matter or
circumstance that has significantly affected, or may significantly
affect, the Group’s operations, the
results of those operations, or the Group’s state of affairs, in future
financial years.
84
85
Annual Report 2020Nova Minerals Limited DIRECTORS’ DECLARATION
The Directors of Nova Minerals
Limited declare that:
a. In the Directors’ opinion the financial statements and notes
set out on pages 40-85 and the Remuneration report in the
Directors Report set out on pages 30-35, are in accordance with
the Corporations Act 2001, including:
i. giving a true and fair view of the Consolidate Entity’s
financial position as at 30 June 2020 and of its
performance, for the financial year ended on that date; and
ii. complying with Australian Accounting Standards
(including the Australian Accounting Interpretations) and
Corporations Regulations 2001.
b. the financial report also complies with International Financial
Reporting Standards adopted by the International Accounting
Standards Board (IASB) as disclosed in note 1(b); and
c. there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations required by
Section 295A of the Corporations Act 2001 by the Chief Executive
Officer and Chief Financial Officer for the financial year ended 30
June 2020.
Signed in accordance with a resolution of directors made pursuant
to section 295(5)(a) of the Corporations Act 2001.
Dated at Melbourne this 25th day of September 2020
David Hersham
Non-Executive Chairman
86
87
Annual Report 2020Nova Minerals Limited
INDEPENDENT AUDITOR’S REPORT
To the Members of Nova Minerals Limited
Opinion
We have audited the financial report of Nova Minerals Limited (the Company) and its subsidiaries (the Group), which comprises
the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial 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 2020 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.
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, an d
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
88
Key Audit Matters (Continued)
Key Audit Matter
How our audit addressed this matter
Exploration and Evaluation Expenditure
Refer to Note 11 in the financial statements
At 30 June 2020 the Group held capitalised exploration and
evaluation assets (“E&E Asset”) of $15,033,203. This represents
70% of the total assets of the Group at that date.
We consider the carrying amount of these assets to be a key audit
matter, under AASB 6 Exploration for and Evaluation of Mineral
judgments
Resources, due to the significant management
involved, including:
whether
the exploration and evaluation spend can be
associated with finding specific mineral resources, and the
basis on which that expenditure is allocated to an area of
interest;
the Group's ability and intention to continue to explore the area;
which costs should be capitalised;
the existence of any impairment indicators, and if so, those
applied to determine and quantify any impairment loss; and
whether exploration activities have reached the stage at which
the existence of an economically recoverable reserve may be
determined.
Convertible Loan Notes
Refer to Note 13 in the financial statements
The Group has Convertible Loan notes with face values of $2m,
as well as an additional facility of up to $4m. Key terms of these
agreements are disclosed in note 13 in the financial statements.
Accounting for convertible loan notes has been considered a key
audit matter, due to the complexity of the accounting treatment
required, under Australian Accounting Standards.
Our audit procedures included, among others:
Obtaining evidence that the Group has valid rights to explore in the
specific areas of interest;
Critically assessing and evaluating management’s assessment that
no indicators of impairment existed;
Agreeing a sample of the additions to capitalised exploration assets
to supporting documentation, to confirm they were capitalised in line
with the measurement and other criteria of the Group's policy and
Australian Accounting Standards;
Holding discussions with, and making enquiries of,
the Group’s
management team, reviewing of the Group’s ASX announcements,
and other relevant documentation;
Confirming the existence of plans to determine that the Group will
incur substantive expenditure on further exploration for and
evaluation of mineral resources in the specific areas of interest;
Confirming the Group's intention to carry out significant exploration
and evaluation activity in the relevant exploration area,
through
enquiries, and by assessing the Group's future cashflow forecasts,
and reviewing the Group's business and financial strategy; and
Confirming that management has not
activities in the specific area of interest.
resolved to discontinue
Our audit procedures included, among others:
Reviewing the convertible note deed, to evaluate its terms;
Evaluating the accounting treatment proposed to determine whether
it is in compliance with Australian Accounting Standards;
Confirming that its classification as a compound instrument under
AASB 132 is appropriate, and verifying that the measurement of the
host
liability and non-derivative equity conversion option are
materially accurate;
Evaluating the reasonableness of the fair value of the instrument at
inception, and its subsequent measurement as at balance date; and
Assessing the appropriateness of the disclosures in respect of the
borrowings and the derivative financial liability.
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 2020, 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.
88
89
89
Annual Report 2020Nova Minerals Limited Other Information (Continued)
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.
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.
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: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of
our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Nova Minerals Limited, for the year ended 30 June 2020, complies with
section 300A of the Corporations Act 2001.
Report on the Remuneration Report (Continued)
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:
Melbourne, Victoria
2020
90
90
91
Annual Report 2020Nova Minerals Limited ADDITIONAL SECURITIES
EXCHANGE INFORMATION
In accordance with ASX Listing Rule
4.10, the Company provides the
following information to shareholders
not elsewhere disclosed in this
Annual Report.
The information provided is current as at 23 September 2020
(Reporting Date).
92
93
Annual Report 2020Nova Minerals Limited 1 CORPORATE GOVERNANCE STATEMENT
4 VOTING RIGHTS
The Company has prepared a Corporate Governance Statement
which sets out the corporate governance practices that were
in operation throughout the financial year for the Company.
In accordance with ASX Listing Rule 4.10.3, the Corporate
Governance Statement will be available for review on the
Company’s website (www.novaminerals.com.au),and will be
lodged with ASX at the same time that this Annual Report is
lodged with ASX.
2 SUBSTANTIAL SHAREHOLDERS
As at the Reporting Date, there are no substantial shareholders.
3 SECURITIES ON ISSUE AND
NUMBER OF HOLDERS
As at the Reporting Date, there are 1,514,988,663 fully paid
ordinary shares on issue in the Company. There are no other
classes of equity securities on issue in the Company.
The number of holders of fully paid ordinary shares in the
Company is 3,392.
The voting rights of the ordinary shares are as follows:
a. at meetings of members each member entitled to vote may
vote in person or by proxy or attorney;
b. on a show of hands each person present who is a member has
one vote; and
c. on a poll each person present in person or by proxy or by
attorney has one vote for each ordinary share held.
There are no voting rights attached to any of the options and
performance shares that the Company currently has on issue.
Upon exercise of these options, the shares issued will have the
same voting rights as existing ordinary shares.
5 DISTRIBUTION OF HOLDERS
The distribution of holders of fully paid ordinary shares is
as follows:
Category
Shares
%
Holding between
100,001 and Over
1,437,439,546
94.88
Holding between
10,001 to 100,000
75,394,573
Holding between
5,001 to 10,000
2,042,329
Holding between
1,001 to 5,000
100,906
Holding more than
1 to 1,000
11,309
4.98
0.13
0.01
0.00
Number of
Shareholders
1,243
1,715
252
46
136
%
36.65
50.56
7.43
1.36
4.01
6 UNMARKETABLE PARCELS
The number of holders with less than a marketable parcel of fully
paid ordinary shares is 180.
94
95
Annual Report 2020Nova Minerals Limited 7 TWENTY LARGEST SHAREHOLDERS
8 UNQUOTED SECURITIES
The top 20 shareholders are as follows:
As at 23 September 2020 the following securities are on issue:
Rank
Name
No of fully paid shares
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
77,913,155
SL INVESTORS PTY LTD
MR PETER ANDREW PROKSA
KUSHKUSH INVESTMENTS PTY LTD
SWIFT GLOBAL LTD
BNP PARIBAS NOMINEES PTY LTD
MURTAGH BROS VINEYARDS PTY LTD
PATRON PARTNERS PTY LTD
MR DAVID FAGAN
MURTAGH BROS VINEYARDS PTY LTD
CITICORP NOMINEES PTY LIMITED
HERSHAM HOLDINGS PTY LTD
53,884,883
45,000,000
42,339,390
40,423,978
26,389,837
20,950,000
19,832,143
18,000,000
16,673,808
15,643,470
14,903,125
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
14,294,769
MR MAHMOUD EL HORR
LEONITE CAPITAL LLC
LETTERED MANAGEMENT PTY LTD
13,916,125
13,846,154
13,500,000
MR DARRYL REECE CARSON & MRS LISA ANN CARSON
13,430,906
MRS ROZETTE BENEDIKT & MR ITZHAK BENEDIKT
13,288,580
MR DARREN JEFFERY HARGREAVES
SANDHURST TRUSTEES LTD
12,000,000
10,565,957
%
4.63
3.56
2.97
2.79
2.67
2.15
1.38
1.31
1.19
1.10
0.98
0.94
0.91
0.89
0.89
0.88
0.83
0.80
0.79
0.73
Total
496,796,28
Balance of register
1,018,192,383
32.7
67.21
Grand total
1,514,988,663
100.00
12,000,000 PERFORMANCE RIGHTS CLASS A – 3 HOLDERS1
HOLDERS WITH MORE THAN 20%
Holder Name
KIKCETO PTY LTD
KUSHKUSH INVESTMENTS PTY LTD
24,000,000 PERFORMANCE RIGHTS CLASS B – 3 HOLDERS2
HOLDERS WITH MORE THAN 20%
Holder Name
KIKCETO PTY LTD
KUSHKUSH INVESTMENTS PTY LTD
Holding
5,000,000
5,000,000
Holding
10,000,000
10,000,000
61,000,000 UNQUOTED OPTIONS EXPIRING 19/09/2022 @ $0.04 – 6 HOLDERS
HOLDERS WITH MORE THAN 20%
Holder Name
KIKCETO PTY LTD
KUSHKUSH INVESTMENTS PTY LTD
Holding
20,000,000
20,000,000
1,500,000 UNQUOTED OPTIONS EXPIRING 28/10/2022 @ $0.056 – 1 HOLDERS
HOLDERS WITH MORE THAN 20%
Holder Name
Ian Craig Pamensky
Holding
1,500,000
18,000,000 UNQUOTED OPTIONS EXPIRING 02/06/2022 @ $0.07 – 1 HOLDERS
HOLDERS WITH MORE THAN 20%
Holder Name
SANDHURST TRUSTEES LTD
Holding
18,000,000
1Details on the performance conditions surrounding the Performance Shares are contained in the Directors’ Report.
2Details on the performance conditions surrounding the Performance Shares are contained in the Directors’ Report.
% IC
41.67
41.67
% IC
41.67
41.67
% IC
32.79
32.79
% IC
100.00
% IC
100.00
96
97
Annual Report 2020Nova Minerals Limited 9 ON-MARKET BUY-BACK
CORPORATE DIRECTORY
The Company is not currently conducting an on-market buy-back
10 ITEM 7, SECTION 611 ISSUES
OF SECURITIES
There are no issues of securities approved for the purposes of
item 7 of section 611 of the Corporations Act 2001 (Cth) which
have not yet been completed.
11 ON-MARKET PURCHASE OF SECURITIES
UNDER EMPLOYEE INCENTIVE SCHEME
No securities were purchased on-market during the reporting
period under or for the purposes of an employee incentive
scheme; or to satisfy the entitlements of the holders of options
or other rights to acquire securities granted under an employee
incentive scheme.
DIRECTORS
David Hersham
Louie Simens
Avi Gelller
Christopher Gerteisen
AUDITORS
RSM Australia Pty Ltd
Level 21, 55 Collins Street
Melbourne Victoria 3000
Australia
COMPANY SECRETARIES
ASX: NVA
OTC: NVAAF
BANKERS
Westpac
Level 6, 360 Collins Street
Melbourne Victoria 3000
Australia
Ian Pamensky
Romy Hersham
REGISTERED OFFICE AND DOMICILE
Suite 602
566 St Kilda Road
Melbourne Victoria 3004
Australia
Telephone: +61 3 9537 1238
Internet:
http://www.novaminerals.com.au
LEGAL FORM
A public company limited by shares
COUNTRY OF INCORPORATION
Australia
SHARE REGISTRY
Link Market Services Limited
Level 13, Tower 4
727 Collins Street
Melbourne VIC 3000
Australia
Telephone: 1300 554 474 or +61 3 9067 2005
Facsimile:
Email:
registrars@linkmarketservices.com.au
+61 2 9287 0303
98
99
Annual Report 2020Nova Minerals Limited