ANNUAL
REPORT
2021
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 FY2021
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 26
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
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 Evaluation Expenditure
12. Trade and Other Payables
13. Derivative Financial Liabilities
14. Convertible Notes
15. Issued Capital
16. Equity - Non Controlling Interest
17. Parent Entity & Controlled Entities
18. Equity Reserve
19. Share Based Payments
20. Contingencies
21. Cash Flow Information and Cash Equivalent
22. Financial Instruments
23. Key Management Personnel Compensation
24. Related Party Transactions
25. Auditors Remuneration
26. Non-Current Other Financial Assets
27. Fair Value Measurement
28. 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 2021Nova Minerals Limited
EXECUTIVE SUMMARY
"OUR MISSION IS TO UNLOCK
THE ESTELLE GOLD DISTRICT AND
DEVELOP A PIPELINE OF DEPOSITS"
ESTELLE GOLD PROJECT
Nova Minerals Limited (“Nova” or the “Company”) has increased the
size of its Estelle Gold resource during the course of the 20/21 year.
Currently standing at 4.7Moz, Estelle is being explored extensively,
Four diamond drill rigs are operating on both the Korbel and RPM
prospects.
The Estelle Gold project, which is 85% owned by Nova Minerals, is
located 185km northwest of Anchorage, and is currently accessible
by helicopter and winter road from Nova's Whiskey Bravo Camp.
Estelle Gold is situated within the Tintina Gold Province which
spans portions of Alaska and Western Canada, containing some of
the largest gold deposits in the world. Over the last 3 years, Nova
has focused on developing the Korbel prospect at the northern
end of the tenement. Drilling to date has revealed a convergence
of the initially separate Blocks A-D, into Korbel Main.
Nova’s drilling at Korbel Main has revealed an extensive high-
grade feeder zone in the Southeast portion of the deposit, which
remains wide open. Step out drilling has uncovered extensive
mineralisation, increasing the length of strike at Korbel Main to
3.3km. Concurrently, the Company has been conducting infill
drilling to increase the confidence of the resource. During FY20/21
alone, Nova increased the size of the resource at Korbel Main
from 2.5Moz to 4.7Moz. Drilling is ongoing, and the Company
plans to release a resource update for Korbel Main in late 2021,
accompanied by a maiden resource for the RPM prospect.
During the year, Nova was able to complete the majority of its first
scoping study for Korbel Main, from a technical perspective. Nova
intends to release it alongside the resource upgrade in late 2021.
Figure 1. Estelle Location Map
Figure 2. Estelle Within the Tintina Gold Belt
SIGNIFICANT DRILL INTERCEPT HIGHLIGHTS INCLUDE
(ASX:16 FEB 2021, 8 JUNE 2021 AND 19 JULY 2021)
KBDH-072
• 113m @ 1.0 g/t Au
• 49m @ 1.5 g/t Au
• 30m @ 1.9 g/t Au
• 21m @ 2.5 g/t Au
• 3m @ 11.7 g/t Au
KBDH-080
• 110m @ 0.5 g/t Au
• 21 m @ 1.2 g/t Au
• 6m @ 2.3 g/t Au
• 3m @ 2.8 g/t Au
• 3m @ 3.7 g/t Au
KBDH-066
• 67m @ 1.0 g/t Au
• 44m @ 1.5 g/t Au
• 13m @ 3.9 g/t Au
• 6m @ 8.0 g/t Au
• 3m @ 12.3 g/t Au
KBDH-047
• 287m @ 0.4 g/t Au from 5m
Includes
• 3m @ 1.3 g/t Au from 79m
• 43m @ 0.9 g/t Au from 210m
• 3m @ 5.8 g/t Au from 243m
KBDH-050
• 439m @ 0.3 g/t Au from 54m
Includes
• 168m @ 0.6 g/t Au from 76m
• 12m @ 0.9 g/t Au from 109m
• 6m @ 3.1 g/t Au from 179m
• 3m @ 5.2 g/t Au from 179m
• 15m @ 1.5 g/t Au from 228m
• 3m @ 2.5 g/t Au from 231m
KBDH-060
• 521m @ 0.3 g/t Au from 30m
Includes
• 3m @ 1.1 g/t Au from 103m
• 12m @ 0.8 g/t Au from 252m
• 3m @ 2.0 g/t Au from 258m
• 24m @ 0.9 g/t Au from 329m
• 3m @ 3.1 g/t Au from 332m
INFERRED RESOURCE - KORBEL
(ASX 7 APRIL 2021)
Cut-Off Au g/t
Tonnes (Millions)
Grade Au g/t
Gold Ounces (Millions)
0.10
0.15
0.25
0.35
0.45
748
518
234
112
57
0.2
0.3
0.4
0.5
0.6
5.6
4.7
3.0
1.8
1.1
Table 1. Mineral Resource Statement, Korbel deposit, Estelle property
4
Figure 3. Current Strike Length at Korbel
5
Annual Report 2021Nova Minerals Limited METALLURGICAL TEST WORK
Metallurgical test work to date has established the outline of what
Metallurgical test work conducted over the last year has hence
the future detailed flow sheet is likely to be based upon. Initial test
been aimed at compiling sufficient metallurgical information to
work was reasonably aimed at the viability of heap leach and/or
enable the circuit outline to be determined for the purpose of
whole ore cyanide leaching options, as well as the gravity option.
preparing a Scoping Study. Further work will be then be conducted
The results obtained from this work guided the flow sheet towards
in preparation of a Pre-Feasibility Study (PFS), and refined yet again
establishing of a treatment circuit based upon pre-concentration
for the purpose of establishing a Definitive Feasibility Study (DFS).
through XRT ore sorting, followed by flotation, fine grinding of
Refer to ASX announcement: 5 May 2021
flotation concentrates, and intensive cyanide leaching of final
concentrates.
Figure 4. Simplified process flow sheet
TOMRA XRT ORE SORTING
With what is likely to be a very large gold resource, (current Inferred
cost and reduced long-term operating costs for these downstream
Resource of 4.7Moz Au at a cut-off grade of 0.15gpt), it was logical
sections. And a distinct advantage of XRT ore sorting technology is
to determine whether XRT ore sorting would be effective in pre-
its flexibility – the ore sorting machines can be quickly re-calibrated
concentrating Run of Mine (ROM) ore prior to it being delivered to
to handle different types of ores in terms of grade, mineralogy, and
the mill for grinding and downstream treatment.
dilution, such that an optimum and steady-state product can be
delivered to downstream sections of the mill.
To this end, test work was conducted by TOMRA (world leader in
XRT ore sorting technology and equipment) on samples selected
from several recent diamond drill holes from the Korbel Main
deposit. The results received have been positive and indicate the
following:
After primary and secondary crushing of ROM material, and after
processing through the ore sorting installation, a quantity of ROM
tonnage, as yet to be determined, will be rejected as waste, with a
substantial portion of the ROM tonnage of significantly elevated
gold grade being delivered to the grinding section of the mill.
Some gold will be lost with ore sorting rejects. However, in that
ROM rejected tonnage will be delivered to downstream sections,
this loss is likely to be far outweighed by considerable economic
benefits gained through reduced initial capital costs, environmental
Figure 5. TOMRA XRT Ore Sorter
FLOTATION, FINE GRINDING AND INTENSIVE CYNANIDE
LEACH
Running in parallel with the ore sorting tests conducted by TOMRA
in Australia, and using samples from the same source, flotation
tests were conducted by Bureau Veritas in Vancouver on material
ground to 75 microns. Flotation concentrates were then ground to
22 microns and subject to intensive cyanide leaching. The stage
gold recovery of the flotation process was 95.4% of flotation feed
grade within concentrates now 2% of ROM feed tonnage, and the
stage recovery of the intensive cyanide leach section was 92.4%.
FLOW SHEET DEVELOPMENT
The flow sheet developed is an optimal design based on the
scoping level test work, which incorporates two stages of pre-
concentration prior to fine grinding and intensive cyanidation
of flotation concentrates. Further test work is aimed at greater
flowsheet definition prior to the PFS Study.
An immediate focus will be to determine if Dense Media Separation
(DMS) will be effective for pre-concentration of fines which by-pass
the XTR ore sorting section and, if so, DMS inclusion at this stage
would further reduce the tonnage reporting to the grinding and
flotation sections downstream, with a commensurate reduction
in the expensive operating costs of these sections – power and
reagents particularly.
Further work will also be conducted to determine the grind size
required for optimum economic flotation performance – there
is the possibility that a grind size coarser than 75 microns may
not compromise recovery and thereby reduce grinding power
consumption. And further work will be conducted on determining
the optimum grind size for the fine grinding of flotation concentrates
in order to maximise the stage recovery of this section.
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Annual Report 2021Nova Minerals Limited PREPARATION LAB AT ESTELLE
On 26 July 2021, Nova announced the completion of its on-
site sample preparation lab at the Estelle Gold project.
With a capacity to process up to 7,500 samples per month,
the prep lab is expected to reduce costs and improve assay
turnaround times.
The prep lab forms part of the Whiskey Bravo Camp, which
enables the Company to continue exploration throughout
the year.
RPM PROSPECT
Nova's next target at the Estelle Gold project is the southern
RPM prospect.
Exploration has commenced at RPM, and a maiden resource
for the prospect is expected in late 2021.
Previously, sampling of high-grade reconnaissance rock
chips have defined an expanded footprint of high priority
targets within the prospect, that have formed the basis for
the current exploration program.
Rock samples returned high grade gold results, including:
291 g/t, 103 g/t, 13.1 g/t, 9.3 g/t, 9.0 g/t, 8.8 g/t and 5 g/t
Figure 6. Estelle Gold Prep Lab
Figure 7. Estelle Gold Prep Lab
8
Figure 8. Estelle Gold Prep Lab
THOMPSON BROS. LITHIUM PROJECT –
MANITOBA, CANADA
(73.8% Interest in Snow Lake Resources Ltd)
years ago, the records of which are intact. Snow Lake will begin
the environmental studies process during late 2021, and sometime
in 2022 Snow Lake will begin the permitting for the start of future
mining operations.
Nova Minerals Limited 73.8% held subsidiary, Snow Lake Resources
Ltd. (“Snow Lake”), owns 100% of the Thompson Bros. Lithium
LISTING UPDATE
Property in Wekusko Lake, Manitoba.
Snow Lake is committed to being the first fully renewable energy
powered electric mine in the world that can deliver a completely
traceable, conflict free, net zero carbon, battery grade lithium to the
electric vehicle, or EV, consumer market. Snow Lake aspires to not
On 30 March 2021, Snow Lake Resources filed a registration
statement on Form F-1 with the Securities and Exchange Commission
(SEC) to raise up to $23 million in an initial public offering (IPO). On
30 July 2021, Snow Lake filed its Amendment No 2 to Form F-1 with
the SEC. ThinkEquity, a division of Fordham Financial Management
only set the standard for responsible lithium battery manufacturing
Inc. is the sole bookrunner for the offering.
but intends to be the first lithium producer in the world to achieve
Certified B Corporation status in the process. As a Certified B
Memorandums of Understanding
Corporation (defined on page 3 of F1 Filling), Snow Lake would
hope to participate in accelerating the global culture shift to
redefine success in business and help to build a more inclusive and
sustainable economy.
During the 20/21 year, Snow Lake has entered into a number of
MOUs, with the intention of achieving an environmentally friendly
and sustainable strategy in producing lithium.
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.
•
Snow Lake has entered into a MOU with Meglab Electronique
Inc. for Meglab’s delivery to of the first all-electric lithium mine
in the world.
•
Snow Lake has also entered into a MOU with CentrePort
Canada Inc., designating CentrePort as the potential location
to build a hydroxide plant.
•
In April 2021, Snow Lake entered into a MOU with IMG
Investitions- und Marketinggesellschaft Sachsen-Anhalt mbH,
the economic development agency for the state of Saxony-
Anhalt, to consider investment in a lithium hydroxide plant in
the Saxony-Anhalt region for final processing.
On 3 June 2021, Nova announced a resource upgrade for the
Thompson Bros Lithium project.
Snow Lake cannot guarantee however, that the above
non-binding MOUs will lead to definitive agreements.
Mineral Resource Estimate (ASX: 3 June 2021):
•
•
Indicated Resource Estimate of 9.08 Mt @ 1.00 % Li2O using a
0.3 % Li2O cut-off grade and;
Inferred Resource Estimate of 1.97 Mt @ 0.98 % Li2O using a
0.3 % Li2O cut-off grade.
OPERATIONAL UPDATE
Snow Lake has launched a PEA, which will include in depth
metallurgy analysis, resource definition, engineering assessment
and ore sorting optimization, among other studies, during the third
calendar quarter of 2021.
During the third or fourth quarter of 2021, Snow Lake plans to
begin an additional drilling program to further expand the existing
resource, as well as a planned mag drone survey that will be partially
financed by a grant from the Manitoba Government.
In 2022, Snow Lake intends to initiate a PFS with additional drilling
exploration programs on the TBL property to survey historic drilling
holes from Sherritt Gordon’s lithium discoveries more than 50
Figure 9. Thompson Brothers Tenement Map
9
Annual Report 2021Nova Minerals Limited The Directors of Nova Minerals
Limited present their report for the
year ended 30 June 2021.
TORIAN RESOURCES LIMITED
Nova owns 12.99% of Torian Resources Limited (ASX:TNR) a gold
exploration company that is currently drilling at its Mt Stirling
project. TNR has recently acquired Tarmoola Station, which
includes Carhill Contracting, a mining services business. The station
purchase agreement included cash flow positive businesses with
an unaudited cumulative free cash flow of ~$1,000,000 p.a.
ROTORX AIRCRAFT MANUFACTURING CO.
Nova acquired a 9.9% interest in RotorX Aircraft Manufacturing Co,
which manufactures and sells helicopter kits and parts. RotorX's
main product offering is the Phoenix A600 Turbo, an advanced,
high quality, two-seat helicopter, with a range of 170 miles.
As of April 2021, RotorX is developing an electric version of the
Phoenix A600 helicopter and hybrid versions of the Transporter
A and B, which are autonomous flying vehicles designed to carry
payload at range. RotorX aims to revolutionise the electric air taxi
industry, by developing vehicles that outperform competition in
reliability, performance, maintainability and cost.
Nova's vision includes the use of the RX eTransporter eVTOLs at the
Estelle Gold project, to facilitate cargo and personnel flights.
STREAMLINED COMPETENT PERSON STATEMENT
The information that relates 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.
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 this report, 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.
Figure 10. The Phoenix A600 Turbo (currently
manufactured by RotorX)
Figure 11. The RX eTransporter (eVTOL concept)
Figure 12. The RX eTransporter (eVTOL concept)
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Annual Report 2021Nova Minerals Limited
01 DIRECTORS
02 MEETINGS OF 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
wide range of commodities, including gold and copper. Most
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.
COLIN BELSHAW (Non-Executive Director)
recently, through his technical contributions and management
Mr Belshaw was appointed as a Director of the Company on 7
skills, Mr Gerteisen played a significant role at several prominent
December 2020.
projects in the Australasian region, including Oxiana’s Sepon and
PanAust’s Phu Bia in Laos, overseeing the successful start-up,
Colin Belshaw studied mining engineering at the Camborne School
operations, and exploration which resulted in further mine-life
of Mines in Cornwall, UK, graduating in 1979 with the Dip.CSM
extending discoveries. Mr Gerteisen also worked as a geologist
(First Class). Colin is a Fellow of the Institute of Materials Minerals
on the Carlin Trend in Nevada and on exploration in Alaska
and Mining (FIMMM), he is registered as an Incorporated Engineer
with Newmont. He has held senior positions at several projects
(IEng) with the Engineering Council of the UK, and holds the Mine
throughout the goldfields of Western Australia. As a research
Managers Certificate (Ghana). Colin’s formative years were spent
geologist with Newmont, he worked on the Batu Hijau Porhryry Cu-
on the Zambian Copperbelt at the Nkana Division and at the South
Au deposit in Indonesia. Mr Gerteisen holds a BSc. Geology from
Crofty Mine in Cornwall, and subsequently held senior operating
the University of Idaho and a MSc. Economic Geology from the
and corporate positions worldwide, including: Navan Mining’s
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-
Director of Operations, Bulgaria and Spain; Managing Director of
Kinross Gold’s Russian subsidiary, Omolon Gold, Magadan region;
Kinross Gold’s Group Consulting Mining Engineer, Nevada, USA;
Vice President Operations with Golden Star Resources, Ghana;
Chief Operating Officer with Banro Corporation in the DRC; and
Non-Executive Director of Highland Gold, where he was Chairman
of the HSE Committee and sat on the Remuneration Committee.
cap companies, particularly in the international real estate and
COMPANY SECRETARIES
technology sectors. He started his career with diamond miner De
Beers and mining remains his original passion.
Mr Ian Pamensky was appointed on 18 September 2019 and
has over 25 years’ experience in the finance and secretarial sector
for both SME and ASX-listed entities. Since 1997, Mr Pamensky
has held various roles with ASX-listed companies in a number of
sectors.
Mr Romy Hersham was appointed on 1 June 2020, having worked
with Nova Minerals for 4 years. He is also a Non-Executive Director
of Monger Gold Limited. He holds a Bachelor of Law (Hons) and
Arts at Monash University.
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 fulfillment of safety
regulatory requirements.
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
David Hersham
Christopher Gerteisen
Louie Simens
Avi Geller
Colin Belshaw
6
6
6
6
4
5
6
6
5
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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
14,046,154
Christopher
Gerteisen
1,000,000
David Hersham
14,903,125
Colin Belshaw
-
-
-
-
-
-
Incentive
Employee
Options
Class A
Class 8
Performance
Performance
Rights
Rights
20,000,000
5,000,000
10,000,000
10,000,000
-
-
10,000,000
2,000,000
4,000,000
5,000,000
-
-
-
-
-
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Annual Report 2021Nova 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.
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Annual Report 2021Nova Minerals Limited
06 SECURITIES ON ISSUE
As at the end of the financial year on 30 June 2021, the following
securities were on issue:
Fully Paid
Ordinary Shares
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Class A and B
Performance Shares
1,680,946,647
61,000,000
(Exercisable at $0.04 and expiring
19 September 2022)
1,500,000
(Exercisable at $0.056 and expiring
28 October 2022)
10,500,000
(Exercisable at $0.30 and expiring on
2 December 2022)
6,000,000
(Exercisable at $0.135 and expiring on
20 May 2023)
11,000,000
(Exercisable at $0.075 and expiring on
29 December 2023)
7,500,000
(Exercisable at $0.06 and expiring on
28 January 2023)
36,000,000
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Annual Report 2021Nova 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 $1,531,479 in 2020 to
$1,693,195 in 2021 primarily due to an increase in legal, personal
and share registry costs. Share based expense was $1,878,750 in
2020 compared to $1,470,936 in 2021.
As a result, the Company made a net loss after tax of $3,343,467 in
2021 compared to a net loss after tax of $4,276,995 in 2020.
STATEMENT OF FINANCIAL POSITION
At 30 June 2021, the Company had cash at bank of $15,516,112
(2020: $4,197,221).
During the year, trade and other receivables decreased from
$399,634 to $195,012 and capitalised exploration expenditure
increased from $15,033,203 to $35,843,069 as result of expenditure
incurred on the Estelle Gold project.
At 30 June 2021, the Company had total liabilities of $4,287,061.
As a result, the Company had net assets of $52,580,191 on 30 June
2021 (30 June 2020: $18,036,850).
CASH FLOW
During the year, the Company paid $2,138,336 (2020: $2,213,021)
for operating activities; paid $21,055,527 (2020: $5,415,678) for
investing activities; and received $34,883,982 (2020: $10,852,785)
from financing activities.
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Annual Report 2021Nova Minerals Limited 08 KEY BUSINESS STRATEGIES
FOR FY2021
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
Nova is targeting an announcement to the market in the short-term
of an expanded global JORC resource across the Estelle Gold
District by:
•
Increasing Korbel Main in size and confidence beyond the
current 4.7Moz inferred resource;
• Maiden inferred resource for the RPM Prospect
Overall Nova is focusing on increasing tonnage and confidence
towards the Indicated category at Korbel Main.
Nova is continuing exploration, releasing results and expanding
resources beyond the 15th October 2021 data cut-off date.
Ore sorting, feasibility and baseline environmental studies have
commenced and will feed into scoping study and PFS upon
scoping study completion.
Nova intends to unlock the project pipeline with a view to
increasing gold discovery across the Estelle Gold district with
an initial focus on the RPM, Stoney, T5, Discovery, Shadow, Train,
Shoeshine and Revelation prospects with field crews completing
first pass activities.
Listing Snow Lake Resources Ltd on
NASDAQ
Expanding 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 2021Nova 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 2021Nova Minerals Limited 10 EVENTS SUBSEQUENT
TO BALANCE DATE
The following events have occurred
subsequent to the period end:
On 27 September 2021 a capital raising was announced. The
Company is in the process of finalising a raise of AUD 12 million
at a price of 11c per share. The Company is to issue Broker
Options as part of the raise.
On 19 July 2021 further drill results were announced at the
Korbel Main prospect, with respect to drill holes KBDH-072 and
KBDH-080.
On 21 July 2021, mineralisation at RPM was announced to have a
strong correlation to historic drill data at the prospect.
On 26 July 2021, Nova announced that a prep lab had been
successfully commissioned at the Estelle Gold project.
On 2 August 2021, Nova announced that Snow Lake Resources
Ltd had filed its Amendment No 2 to Form F-1 (on 30 July 2021)
with the SEC, with respect to its intended IPO.
On 1 September 2021, infill drilling results were announced at
the Korbel Main prospect, with respect to drill holes KBDH-075
(average grade of 0.5 g/t Au over 216m) and KBDH-077 (average
grade of 0.4 g/t Au over 219m).
On 3 September 2021, further
infill drilling results were
announced at the Korbel Main prospect, with respect to drill
holes KBDH-082 (average grade of 0.4 g/t Au over 324m),
KBDH-076 (average grade of 0.3 g/t Au over 349m) and KBDH-
073 (average grade of 0.3 g/t Au over 211m).
On 9 September 2021, Nova confirmed gold discovery at RPM.
Drill results were announced for RPM-002 (average grade of 0.6
g/t Au over 274m) and RPM-001 (average grade of 0.3 g/t Au
over 326m).
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 2021 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.
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 97,500,000 unlisted
options over fully paid ordinary shares on issue.
During the year and up to the date of this Report, 27,500,000
unlisted options have been issued. 435,476,481 listed options
were exercised and 3,296,099 were cancelled. 18,000,000
unlisted options have been exercised during the year.
24
25
Annual Report 2021Nova Minerals Limited
14 INDEMNIFICATION OF DIRECTORS,
OFFICERS AND AUDITORS
16 AUDITOR INDEPENDENCE AND
NON-AUDIT SERVICES
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 defending
and of any related body corporate against a liability incurred as
proceedings, whether civil or criminal and whatever their
a Director, Secretary or executive officer to the extent permitted
outcome; and
by the Corporations Act 2001. The contract of insurance prohibits
• Other liabilities that may arise from their position, with the
disclosure of the nature of the liability and the amount of the
exception of conduct involving a willful breach of duty or
premium.
improper use of information or position to gain a personal
The Company has not otherwise, during or since the financial
advantage.
The auditor’s independence declaration is included immediately
after the Directors’ Report.
17 NON-AUDIT SERVICES
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
Details of the amounts paid or payable to the auditor for non-
audit services provided during the financial year by the auditor are
incurred as an officer or auditor.
use by the officers of their position or of information to gain
outlined in note 25 to the financial statements.
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 in
The Company is committed to minimising the impact of its
accordance with and controlled principally by Australian state
activities on the surrounding environment at the same time
and territory government legislation as well as those in Manitoba,
aiming to maximise the social, environmental and economic
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 Alaska (USA) and
rehabilitation of disturbed areas.
Manitoba (Canada). The Company employs a system for reporting
environmental
incidents, establishing and communicating
Generally
rehabilitation occurs
immediately
following
the
accountability, and rating environmental performance. During
completion of a particular phase of exploration. In addition, the
the year data on environmental performance was reported as
Company continues to develop and maintain mutually beneficial
part of the monthly exploration reporting regime. In addition, as
relationships with the local communities affected by its activities.
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.
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 25 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.
26
27
Annual Report 2021Nova Minerals Limited
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.
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 2021.
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.
28
29
Annual Report 2021Nova Minerals Limited The Company’s financial performance during the current year and
over the past four years has been as follows:
2021
$
2,145
2020
$
104,662
2019
$
5,572
Revenue
2018
$
2017
$
REMUNERATION REPORT
DETAILS OF DIRECTORS, EXECUTIVES
AND REMUNERATION
11,850
23
year are as follows:
The names of the key management personnel in office during the
Net loss
(3,343,467)
(4,276,995)
(3,146,966)
(1,370,786)
(1,637,956)
Basic loss per
share (cents)
Diluted loss per
share (cents)
Net assets/
(deficiency)
(0.20)
(0.43)
(0.34)
(0.20)
(0.49)
(0.20)
(0.43)
(0.34)
(0.20)
(0.49)
52,580,191
18,036,550
11,119,277
7,428,055
3,900,084
• L Simens – Executive Director from 19 December 2017
• C Gerteisen – Executive Director from 23 September 2019
• A Geller – Non-Executive Director from 19 November 2018
• D Hersham – Non-Executive Chairman from 18 June 2020
• C Belshaw – Non-Executive Director from 7 December 2020
• A Kimelman – Resigned as Executive Chairman on 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:
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
Short term
Post-
Equity
employment
compensation
Cash
Non-
Super-
Salary &
Payables $
monetary
annuation
fees $
benefits $
benefits $
Value of options
$
Total $
Options as
Performance
proportion
related %
of remun-
eration %
Directors
A Kimelman
2020
197,500
2021
-
L Simens
2020
162,000
2021
176,000
-
-
-
-
C Gerteisen
2020
93,301
6,650
2021
182,804
C Belshaw
2020
-
2021
45,380
D Hersham
2020
-
2021
62,000
-
-
-
-
-
A Geller
2020
15,000
45,000
2021
10,000
50,000
Total Directors
2020
467,801
51,650
2021
476,184
50,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,806
620,000*
828,306
-
N/A
-
-
-
-
-
-
-
N/A
-
-
-
620,000*
782,000
-
176,000
75,000*
174,951
487,894
670,698
-
-
-
-
45,380
-
487,894
549,894
310,000
370,000
-
60,000
10,806
1,625,000
2,155,257
-
975,788
1,501,972
-%
-
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
-%
*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.
74.9%
-
79.3%
0.0%
42.9%
72.7%
-
0.0%
-
88.7%
83.8%
0.0%
-
-
31
Annual Report 2021Nova Minerals Limited 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
2021
D Hersham
Nova
5,000,000
29/12/2020
29/12/2020
29/12/2023
AUD 0.075
AUD 0.098
C Gerteisen
Nova
5,000,000
29/12/2020
29/12/2020
29/12/2023
AUD 0.075
AUD 0.098
2020
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
06/08/2019
06/08/2019
06/08/2022
AUD 0.04
AUD 0.015
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.
32
33
Annual Report 2021Nova Minerals Limited
NON-EXECUTIVE DIRECTORS
OTHER TRANSACTIONS
Directors’ fees cover all board activities. Non-Executive Directors
2021
do not receive any benefits on retirement.
There were no related party transactions in the 2021 year.
PERFORMANCE-LINKED REMUNERATION
2020
Performance
linked
remuneration
focuses on
long-term
incentives and was designed to reward key management
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
personnel for meeting or exceeding their objectives.
a Director.
EQUITY INSTRUMENT DISCLOSURES RELATING TO KEY
MANAGEMENT PERSONNEL
Directors and their related entities are reimbursed for out-of-
pocket expenses incurred in the performance of their duties.
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
VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL
GENERAL MEETING
Nova Minerals Limited received 93.32% of “yes” votes on its
remuneration report for the 2020 financial year. The company
their personally related parties are set out below:
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.
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
27 September 2021
CORPORATE
GOVERNANCE STATEMENT
The Company’s Directors and management are committed to
shareholders with information as to where relevant governance
conducting the business of Nova Minerals Limited in an ethical
disclosures can be found.
manner and in accordance with the highest standards of corporate
Held at
beginning of
year
Purchased
during the year
Received On
exercise of
options
Disposal
of year / at
at end of year/
during the year
resignation
at resignation
date
date
Held at end
Held nominally
governance.
30 June 2021
A Geller
9,430,769
D Hersham
12,203,125
C Gerteisen
1,000,000
L Simens
42,725,275
C Belshaw
-
-
-
-
-
-
4,615,385
2,700,000
-
16,218,437
-
65,159,169
200,000
23,533,822
-
-
-
-
-
-
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
14,046,154
14,046,154
14,903,125
14,903,125
1,000,000
1,000,000
The Company has adopted and complies with where practicable with
the ASX Corporate Governance Principles 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
58,943,712
58,943,712
such Recommendations (Corporate Governance Statement).
-
-
88,892,991
88,892,991
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.
The Appendix 4G will identify each Recommendation that needs
to be reported against by Nova Minerals Limited, and will provide
The Company’s corporate governance statement, policies and
charters are all available on the Website.
35
Annual Report 2021Nova Minerals Limited
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Nova Minerals Limited for the year ended 30 June 2021, I
declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
J S CROALL
Partner
Dated: 27 September 2021
Melbourne, Victoria
36
37
Annual Report 2021Nova Minerals Limited
38
39
Annual Report 2021Nova Minerals Limited CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE YEAR
ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
Note
13
4
18
5
3
6
Revenue
Interest Income
Other Income
Gain from sale of investment
Fair value gain on investments
Fair value loss on derivative liabilities
Expenses
Administration expenses
Contractors & Consultants
Share based payments
Recovery of Flow Through Share Liability
Finance expense
Reclassification of exploration and evaluation
assets
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Other comprehensive loss
Items that mat be reclassified to profit and loss
in the future
Foreign currency translation
Other comprehensive loss for the year net
of income tax
Total comprehensive income/loss for the
year
Loss for the year attributable to:
Non-controlling Interest
Owners of Nova Minerals Limited
Total comprehensive Income/loss 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
2021
$
2,145
376,507
2,108,624
(1,828,857)
(1,693,195)
(637,524)
(1,470,936)
-
(102,010)
(98,221)
(3,343,467)
-
(3,343,467)
(957,107)
(957,107)
2020
$
104,662
-
-
-
(1,531,479)
(519,040)
(1,878,750)
78,972
(4,705)
(526,655)
(4,276,995)
-
(4,276,995)
(194,738)
(194,738)
(4,300,574)
(4,471,733)
(215,597)
(3,127,870)
(3,343,467)
(357,376)
(3,943,198)
(4,300,574)
(0.20)
(0.20)
(81,606)
(4,195,388)
(4,276,995)
(89,090)
(4,382,643)
(4,471,733)
(0.43)
(0.43)
The above consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.
40
Note
30 June 2021
$
30 June 2020
$
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
Trade and other payables
Derivative financial liabilities
Convertible notes
Total current liabilities
Total liabilities
Net Asset
Equity
Issued capital
Foreign Currency Reserves
Reserves
Accumulated losses
Non-controlling interest
Total Equity
21
9
8
26
10
11
12
13
14
15
18
16
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes
15,516,112
-
195,012
15,711,124
2,942,087
2,370,972
35,843,069
41,156,128
56,867,252
3,424,690
-
862,371
4,287,061
4,287,061
52,580,191
114,922,698
(816,390)
6,733,118
(74,055,061)
5,795,826
52,580,191
4,197,221
413,325
399,634
5,010,180
30,719
1,258,034
15,033,203
16,321,956
21,332,136
1,981,286
1,314,000
-
3,295,286
3,295,286
18,036,850
78,401,191
25,854
4,468,607
(67,386,819)
2,528,017
18,036,850
41
Annual Report 2021Nova Minerals Limited
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY FOR THE YEAR
ENDED 30 JUNE 2020
Note
Issued
Reserves
Capital $
$
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
-
-
-
-
9,137,883
200,000
(419,707)
-
-
-
-
-
-
-
-
2,499,359
15
17
-
(4,195,388)
(81,606)
(4,276,994)
(187,255)
-
(7,483)
(194,738)
(187,255)
(4,195,388)
(89,089)
(4,471,732)
46,206
(285,535)
211,100
(28,230)
-
-
-
-
-
-
-
-
-
-
-
-
9,137,883
200,000
(419,707)
2,499,359
78,401,191
4,468,607
25,854
(67,386,819)
2,528,017
18,036,850
Balance at 1 July
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
42
43
Annual Report 2021Nova Minerals Limited
Note
Issued
Capital $
Option
Reserves
$
Foreign
Currency
Reserve
$
Accumulated
Losses
$
Non
Controlling
Total Equity
Interest
$
$
78,401,191
4,468,607
28,854
(67,386,819)
2,528,017
18,039,850
-
(3,127,870)
(215,597)
(3,343,467)
CONSOLIDATED STATEMENT
OF CASH FLOWS FOR THE YEAR
ENDED 30 JUNE 2021
Cash flows from operating activities
Payments to suppliers and employees (inclusive of
GST)
Interest received
Bank charges
Refund received
Note
June 2021
$
June 2020
$
(2,161,971)
(2,260,397)
26,957
(3,322)
-
22,675
(4,705)
29,406
(815,328)
-
(141,779)
(957,107)
Net cash used in operating activities
21b
(2,138,336)
(2,213,021)
(815,328)
(3,127,870)
(357,376)
(4,300,574)
Convertible note issued to Torian Resources
Cash flows from investing activities
Payments for exploration expenditure
Loans to other entity
Investments in other entities
Proceeds from disposal of Investments
Payment for plant & equipment
Net cash used in investing activities
Cash flows from financing activities
(29,916)
(3,540,372)
3,625,185
54,897
Capital Raising Costs
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,000,000
15,441,257
3,142,857
(997,018)
(2,065,589)
2,183,480
81,031
Proceeds from Issue of derivative financial liability
Proceeds from issue of shares
Proceeds from exercise of options
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
financial year
(20,015,645)
-
(219,052)
(200,000)
407,225
(1,028,055)
(21,055,527)
(1,481,130)
805,000
21,110,883
15,446,247
(997,018)
34,883,982
11,690,119
(371,227)
4,197,220
(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
19(a)
15,516,112
4,197,221
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY FOR THE YEAR (CONTINUED)
ENDED 30 JUNE 2021
Balance at 1 July
2020
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 in
issued capital of
AKCM Pty Ltd
Issue of shares for
cash
-
-
-
-
21,000,000
Options converted
15
15,441,257
Derivative security
converted
3,142,857
Share buy back
(997,018)
(2,065,589)
14
19
19
Share issue
expense
Share options
granted
Convertible note
reserve
Balance at 30
June 2021
-
-
2,183,480
81,031
-
-
-
-
-
-
-
-
-
114,922,698
6,733,118
(816,390)
(74,055,061)
5,795,826
52,580,191
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 2021Nova Minerals Limited
Notes to the Consolidated Financial
Statements for the year ended 30
June 2021
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 2021.
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.
are referred to in these financial statements 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 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 2021.
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 under the historical
cost convention, except for, where applicable, the revaluation of
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
financial assets and liabilities at fair value through profit or loss and
loss in profit or loss.
derivative financial instruments.
NEW, REVISED OR AMENDING ACCOUNTING
STANDARDS AND INTERPRETATIONS ADOPTED
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
PARENT ENTITY INFORMATION
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.
current reporting period.
FOREIGN CURRENCY TRANSLATION
The adoption of these Accounting Standards and Interpretations
Functional and presentation currency
did not have any significant impact on the financial performance or
position of the Company.
Any new,
revised or amending Accounting Standards or
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
Interpretations
that are not yet mandatory have not been
is the Canadian Dollar.
early adopted.
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the assets and
liabilities of all subsidiaries of Nova Minerals Limited (‘company’ or
‘parent entity’) as at 30 June 2021 and the results of all subsidiaries
for the year then ended. Nova Limited and its subsidiaries together
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars
using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation at financial year-end
46
47
Annual Report 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021Nova Minerals Limited The cost of equity-settled transactions are recognised as an
exchange rates of monetary assets and liabilities denominated in
expense with a corresponding increase in equity over the vesting
foreign currencies are recognised in profit or loss.
period. The cumulative charge to profit or loss is calculated based
Foreign operations
The assets and liabilities of foreign operations are translated into
on the grant date fair value of the award, the best estimate of the
number of awards that are likely to vest and the expired portion of
Australian dollars using the exchange rates at the reporting date.
the vesting period. The amount recognised in profit or loss for the
The revenues and expenses of foreign operations are translated
period is the cumulative amount calculated at each reporting date
into Australian dollars using the average exchange rates, which
less amounts already recognised in previous periods.
approximate the rates at the dates of the transactions, for the
period. All resulting foreign exchange differences are recognised in
The cost of cash-settled transactions is initially, and at each reporting
other comprehensive income through the foreign currency reserve
date until vested, determined by applying either the Binomial or
in equity. The foreign currency reserve is recognised in profit or loss
Black-Scholes option pricing model, taking into consideration
when the foreign operation or net investment is disposed of.
the terms and conditions on which the award was granted. The
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
Equity-settled and cash-settled share-based compensation benefits
are provided to employees.
Equity-settled transactions are awards of shares, or options over
shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of
cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value
on grant date. Fair value is independently determined using either
the Binomial or Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility
of the underlying share, the expected dividend yield and the risk
free interest rate for the term of the option, together with non-
vesting conditions that do not determine whether the consolidated
entity receives the services that entitle the employees to receive
payment. No account is taken of any other vesting conditions.
cumulative charge to profit or loss until settlement of the liability is
calculated as follows:
•
during the vesting period, the liability at each reporting date
is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
•
from the end of the vesting period until settlement of the
award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The
ultimate cost of cash-settled transactions is the cash paid to settle
the liability.
Market conditions are taken into consideration in determining
fair value. Therefore any awards subject to market conditions
are considered to vest irrespective of whether or not that market
condition has been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is
recognised as if the modification has not been made. An additional
expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based
compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated
entity or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has
vested on the date of cancellation, and any remaining expense is
recognised immediately. If a new replacement award is substituted
for the cancelled award, the cancelled and new award is treated as
if they were a modification.
FAIR VALUE MEASUREMENT
When an asset or liability, financial or non-financial, is measured
at fair value for recognition or disclosure purposes, the fair value
is based on the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market
participants at the measurement date; and assumes that the
consolidated entity. Gains and losses between the carrying amount
and the disposal proceeds are taken to profit or loss.
EXPLORATION, EVALUATION AND
DEVELOPMENT ASSETS
Exploration and evaluation expenditure is charged against earnings
as incurred and included as part of cash flows from operating
transaction will take place either: in the principal market; or in the
activities.
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,
Exploration for and evaluation of mineral resources is the search
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
the fair value measurement is based on its highest and best use.
mineral resource.
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.
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.
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 recognised as a cost
For recurring and non-recurring fair value measurements, external
of production.
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
Capitalisation of development expenditure ceases once the mining
property is capable of commercial production, at which point it is
there is a significant change in fair value of an asset or liability from
transferred into a separate mining asset.
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.
PLANT AND EQUIPMENT
Plant and equipment is stated at historical cost less accumulated
depreciation and impairment. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
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:
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 item of property, plant and equipment is derecognised upon
disposal or when there is no future economic benefit to the
Any development expenditure incurred once a mine property is in
production is immediately expensed to the Statement of Profit or
Loss and Other Comprehensive Income except where it is probable
that future economic benefits will flow to the entity, in which case it
is capitalised as property, plant and equipment.
INVESTMENTS AND OTHER FINANCIAL ASSETS
Investments and other financial assets are initially measured at
fair value. Transaction costs are included as part of the initial
measurement, except for financial assets at fair value through profit
or loss. Such assets are subsequently measured at either amortised
cost or fair value depending on their classification. Classification is
determined based on both the business model within which such
assets are held and the contractual cash flow characteristics of the
financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash
flows have expired or have been transferred and the consolidated
entity has transferred substantially all the risks and rewards of
ownership. When there is no reasonable expectation of recovering
part or all of a financial asset, it's carrying value is written off.
48
49
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value
A liability is classified as current when: it is either expected to be
settled in the consolidated entity’s normal operating cycle; it is held
Commitments and contingencies are disclosed net of the amount
Conceptual Framework for Financial Reporting (Conceptual
through other comprehensive income are classified as financial
primarily for the purpose of trading; it is due to be settled within
of GST recoverable from, or payable to, the tax authority.
Framework)
assets at fair value through profit or loss. Typically, such financial
12 months after the reporting period; or there is no unconditional
assets will be either: (i) held for trading, where they are acquired
right to defer the settlement of the liability for at least 12 months
for the purpose of selling in the short-term with an intention of
after the reporting period. All other liabilities are classified as non-
making a profit, or a derivative; or (ii) designated as such upon
current.
initial recognition where permitted. Fair value movements are
recognised in profit or loss.
INCOME TAX
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income
include equity investments which the consolidated entity intends
to hold for the foreseeable future and has irrevocably elected to
classify them as such upon initial recognition.
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
adjustments for prior periods, where applicable.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected
credit losses on financial assets which are either measured
at amortised cost or fair value through other comprehensive
income. The measurement of the
loss allowance depends
upon the consolidated entity's assessment at the end of each
reporting period as to whether the financial instrument's credit
risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without
undue cost or effort to obtain.
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
Where there has not been a significant increase in exposure to
liability is settled.
credit risk since initial recognition, a 12-month expected credit
loss allowance is estimated. This represents a portion of the asset's
lifetime expected credit losses that is attributable to a default event
that is possible within the next 12 months. Where a financial asset
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
has become credit impaired or where it is determined that credit
differences and losses.
risk has increased significantly, the loss allowance is based on the
asset's lifetime expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the probability
weighted present value of anticipated cash shortfalls over the life
of the instrument discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through
other comprehensive income, the loss allowance is recognised
in other comprehensive income with a corresponding expense
through profit or loss. In all other cases, the loss allowance reduces
the asset's carrying value with a corresponding expense through
profit or loss.
Current and deferred tax balances attributable to amounts
recognised directly in equity are also recognised directly in equity.
GOODS AND SERVICES TAX (GST)
Revenues, expenses and assets are recognised net of the amount
of associated GST unless the GST incurred is not recoverable from
the taxation authority. In this case it is recognised as part of the cost
of the acquisition of the asset or as part of the expense.
LOSS PER SHARE
Basic loss per share
Basic loss per share is calculated by dividing operating loss
The consolidated entity has adopted the revised Conceptual
Framework from 1 July 2020. The Conceptual Framework contains
new definition and recognition criteria as well as new guidance
on measurement that affects several Accounting Standards, but it
has not had a material impact on the consolidated entity’s financial
attributable to the owners of the Company, excluding any costs
statements.
of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the financial
CRITICAL ACCOUNTING ESTIMATES
year.
Diluted loss per share
The preparation of financial statements in conformity with AASBs
requires management
to make
judgements, estimates and
Diluted loss per share adjusts the figures used in the determination
assumptions that affect the application of accounting policies and
of basic earnings per share to take into account the after income tax
the reported amounts of assets, liabilities, income and expenses.
effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of
Estimates and judgements are continually evaluated and based on
shares assumed to have been issued for no consideration in relation
historical experience and other factors, including expectations of
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 OR AMENDED ACCOUNTING STANDARDS
AND INTERPRETATIONS ADOPTED
The consolidated entity has adopted all of the new or amended
Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the
future events that may have a financial impact on the entity and that
are believed to be reasonable under the circumstances.
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:
Exploration and evaluation expenditure
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
these activities and allocating overheads between those that are
expensed and capitalised. In addition, costs are only capitalised
that are expected to be recovered either through successful
development or sale of the relevant mining interest. Factors that
could impact the future commercial production at the mine include
the level of reserves and resources, future technology changes,
which could impact the cost of mining, future legal changes and
changes in commodity prices. To the extent that capitalised costs
are determined not to be recoverable in the future, they will be
written off in the period in which this determination is made.
Receivables and payables are stated inclusive of the amount of GST
current reporting period.
receivable or payable. The net amount of GST recoverable from, or
CURRENT AND NON-CURRENT CLASSIFICATION
payable to, the tax authority is included with other receivables or
Any new or amended Accounting Standards or Interpretations that
payables in the Statement of Financial Position.
are not yet mandatory have not been early adopted.
Assets and liabilities are presented in the statement of financial
position based on current and non-current classification.
Cash flows are presented on a gross basis. The GST components
The following Accounting Standards and Interpretations are most
Share-based payment transactions
of cash flows arising from investing or financing activities which
relevant to the consolidated entity:
The consolidated entity measures the cost of equity-settled
An asset is classified as current when: it is either expected to be
are recoverable from, or payable to the taxation authority, are
realised or intended to be sold or consumed in the consolidated
presented as operating cash flows.
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.
50
51
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 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.
Fair value measurement hierarchy
The consolidated entity is required to classify all assets and
liabilities, measured 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; 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.
Refer to note 20 for further information.
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.
2 SEGMENT REPORTING
Operating segment information is disclosed on the same basis
of exploration permits and Company cash forecast for the next
as information used for internal reporting purposes by the Board
twelve months of operation. On this basis, the board considers the
of Directors.
consolidated entity operates in one segment being exploration of
minerals and three geographical areas, being Australia, Canada
At regular
intervals, the board
is provided management
and United States.
information for the Company’s cash position, the carrying values
GEOGRAPHICAL INFORMATION
Australia
Canada
United States
Total
3 EXPENSES
2021
$
1,800
-
345
2,145
Interest Income
Geographical non-current asset
2020
$
65,359
-
103
2021
$
2,734,349
8,674,651
29,747,129
2020
$
30,179
8,160,439
8,130,799
65,462
41,156,128
16,321,417
Loss before tax includes the following specific items:
Depreciation
Superannuation
2021
$
205,738
7,270
4 CONTRACTORS AND CONSULTANTS
Corporate and Consultants
2021
$
637,524
637,524
2020
$
90,580
10,806
2020
$
519,040
519,040
52
53
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
5 FINANCE EXPENSES
7 LOSS PER SHARE
Finance charges
Total Finance Expense
2021
$
102,010
102,010
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 26% (2020: 27.5%)
Tax Effect on non-deductible items
Reclassification of Exploration and 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
$
4,705
4,705
2020
$
(4,276,995)
(1,176,174)
144,830
516,656
-
-
2021
$
(3,343,467)
(869,301)
25,537
382,443
-
-
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)
Loss attributable to ordinary shareholders (diluted)
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:
2021
(0.20)
(0.20)
2021
$
(3,127,870)
(3,127,870)
2020
(0.43)
(0.43)
2020
$
(4,195,388)
(4,195,388)
(461,321)
(514,687)
461,321
-
514,687
-
2021
Shares
2020
Shares
Weighted average number of shares
Basic loss per ordinary share denominator
1,554,605,632
965,739,107
Adjustments for calculation of diluted earnings per
share:
Unused tax losses for which no deferred tax asset has been recognized
28,701,474
26,927,163
Diluted loss per ordinary share denominator
1,652,105,632
1,492,511,687
2021
$
2020
$
Options outstanding
97,500,000
526,772,580
Potential tax benefit @ 26%
(2020: 27.5%)
7,462,383
7,404,970
The tax losses do not expire under current tax legislation. Deferred
tax assets have not been recognised in respect of these items
The tax losses are subject to further review to determine if they
satisfy the necessary legislative requirements under Income Tax
because it is not probable that future taxable profit will be available
legislation for carry forward and recoupment of tax losses.
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 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 8 TRADE & OTHER RECEIVABLES
30 June 2021
$
30 June 2020
$
GST (Payable)/Receivable
Placement Funds (a)
Placement Funds (b)
Placement Funds (c)
Prepaid Insurance
Prepayments (d)
Prepayments (e)
Rent Bond
Receivables
Interest Receivable
(18,609)
44,987
-
10,037
-
86,172
66,595
5,830
-
-
195,012
171,459
78,267
88,048
-
15,933
-
-
6,880
1,848
37,199
399,634
The Company’s exposure to credit risk related to trade and other
receivables are disclosed in note 22.
a. The amounts relate to funds not yet received from the December
2017 and June 2018 and 2019 Placements.
b. The amounts relate to funds not yet received from the January
2020 Placements.
c. The amounts relate to funds not yet received from the November
2020 Placement.
d. The amount relates to prepaid Administration Expenses and
Exploration Expenses.
e. The amount relates to prepaid Insurance Premiums
56
57
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021 9 CURRENT OTHER
FINANCIAL ASSETS
10 PLANT & EQUIPMENT
Convertible Note
Total
2021
$
-
-
2020
$
413,325
413,325
On 25 March 2020 Nova signed a Convertible Note Deed to invest in
and will, as part of their terms of issue, require the Company to
Torian Resources Limited, an ASX gold exploration and development
seek approvals from shareholders necessary for conversion of
entity with operations in WA.
the Options (if any); and
• The Conversion Price $0.0045 (0.45 cents) per ordinary share
The key terms of the convertible note between Torian Resources
(“Issue Price”), with fractional entitlements rounded up.
and Nova are as follows:
• The convertible note was converted to 91,850,000 ordinary
shares subsequent to year end.
• 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
Plant and equipment – at cost
Less: accumulated depreciation
Carrying amount at end of period
Reconciliations:
Plant and equipment
Balance at 1 July 2020
Additions
Depreciation
Foreign Exchange
30 June 2021
$
2,729,709
(358,737)
2,370,972
2021
$
1,258,034
1,379,500
(205,738)
(60,824)
30 June 2020
$
1,413,726
(155,692)
1,258,034
2020
$
619,577
729,037
(90,580)
-
Carrying amount at end of period
2,370,972
1,258,034
58
59
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 11 EXPLORATION AND
EVALUATION EXPENDITURE
Balance at beginning of year
Revaluation due to Foreign Exchange
Expenditure incurred
Cash call paid for Officer Hill Project
Reclassification of exploration expenditure to profit and
loss
2021
$
15,033,203
(531,111)
21,439,198
-
(98,221)
2020
$
9,790,760
(97,244)
5,617,080
249,262
-
Impairment of Officer Hill Project (a)
-
(526,655)
Carrying amount at end of year
35,843,069
15,033,203
a. The amount was been impaired as Nova Minerals decided
to no longer commit to the funding contributions required
under the Joint Venture Agreement. As a result, Nova no longer
owns these tenements.
12 TRADE AND OTHER PAYABLES
Trade and other payables
2021
$
3,424,690
3,424,690
2020
$
1,981,286
1,981,286
60
61
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 13 DERIVATIVE FINANCIAL LIABILITIES
Opening Balance
Fair value loss on conversion
Funding Facility
Options Issued
Shares Issued
Total
• On 1 Oct 2020, Collins St Asset Management Pty Ltd ATF Collins
St Value Fund (CSVF) notified Nova Minerals that they wished to
convert the note into 31,428,572 NVA shares.
• The derivative security has been recognised at its fair value on
the issue of shares and revalued at the date of conversion.
• On 1 Oct 2020, Nova Minerals’ share price was 0.10c and the
value of the Shares issued to CSVF was $3,142,857, Resulting in a
fair value loss on derivative financial liability of $1,828,857.
14 CONVERTIBLE NOTES
However, because this
instrument also contains an equity
component, further consideration is necessary because IAS 32
defines equity as a residual amount, and where an instrument
contains a liability and an equity component, the liability component
should be determined first, and the residual amount is equity.
15 ISSUED CAPITAL
2021
$
1,314,000
1,828,857
-
-
(3,142,857)
2020
$
-
-
2,000,000
(486,000)
(200,000)
-
1,314,000
Issued Capital
Ordinary share - issued and fully paid
2021
$
114,922,698
114,922,698
30-Jun-21
$
2020
$
78,401,191
78,401,191
30-Jun-20
$
Convertible Notes
Total
2021
$
862,371
862,371
2020
$
-
-
During the year ended 30 June 2021, Snow Lake Inc (a Canadian
Other terms included:
subsidiary of Nova Minerals), raised funds by issuing $865k (CAD)
The issuer may prepay the entire principal amount of the debenture
of convertible loan notes.
+ interest at 110% of the current principal of the debenture and
The transaction is the issue of Convertible Debentures in Canadian
accrued interest.
Dollars, at a 5% discount, to a number of holders.
The maturity date is the earlier of December 23, 2022; the date of
In exchange for giving the company cash, each holder of the notes
an IPO, or any earlier date by mutual agreement.
receives:
Commission costs of CAD15,000 were paid as a transaction cost
Interest, which accrues on the notes, at the higher of 12% or the
75,000 warrants were issued to bankers in compensation for
WSJ prime rate + 7%, and is payable on maturity.
entering the agreement.
Warrants (issued at the date of issue of the debenture note), which
The instrument contains the following features:
give the holder the right to convert them to a fixed number of
There is an underlying loan representing the obligation to pay cash
shares at CAD0.30 per warrant, for 2 years from the date the entity
achieves a public offering.
if the holder does not elect to exercise the conversion option, plus
the interest.
The right to convert the principal and interest to a variable number
There is conversion feature, which does not meet the fixed-for-fixed
of shares (because the number of shares to be issued is based on a
test, so is a derivative financial liability.
variable conversion price)
There is an equity component of the instrument, being the warrants
The initial conversion price is the lesser of CAD0.25 per share, and
issued on day 1.
20% discount on the issue price upon sale or conversion of offered
In such circumstances, AASB 9 requires the fair value of the
securities issued in a “qualified financing” (defined as any capital
embedded derivative to be determined first, and the residual
raise or sale of securities after the date of the debenture).
amount be allocated to the host liability.
At the beginning of the period
1,079,512,182
78,401,191
774,134,151
69,483,015
No.
$
No.
$
Shares issued during the period
- Contributions of equity
123,529,412
21,000,000
246,189,377
7,508,002
- Shares issued on conversion of options
453,476,481
15,441,257
59,188,654
1,829,881
- Shares issued on conversion of
derivative security
31,428,572
3,142,857
Share buy back
(7,000,000)
(997,018)
Share issue costs
-
(2,065,589)
-
-
-
(419,707)
At the end of the period
1,680,946,647
114,922,698
1,079,512,182
78,401,191
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and
the proceeds on the winding up of the company in proportion to
the number of and amounts paid on the shares held. The fully paid
ordinary shares have no par value and the company does not have a
limited amount of authorised capital.
On a show of hands every member present at a meeting in person
or by proxy shall have one vote and upon a poll each share shall
have one vote.
Capital risk management
The consolidated entity’s objectives when managing capital is to
safeguard its ability to continue as a going concern, so that it can
provide returns for shareholders and benefits for other stakeholders
and to maintain an optimum capital structure to reduce the cost of
capital.
62
63
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
17 PARENT ENTITY & CONTROLLED ENTITIES
Set out below are movements in options on issue over ordinary
shares of Nova Minerals Limited:
PARENT INFORMATION
Exercise period
Exercise price
Beginning
balance
Issued
Exercised
Lapsed
Ending
balance
Listed options:
On or before 31
August 2020
Unlisted options:
On or before 19
September 2022
On or before 28
October 2022
On or before 28
January 2023
On or before 2
June 2022
On or before 25
November 2022
On or before 2 Dec
2023
On or before 20
May 2023
Total
3.25 cents
438,772,580
(435,476,481)
(3,296,099)
-
4 cents
61,000,000
5.6 cents
1,500,000
6 cents
7,500,000
-
-
-
7 cents
18,000,000
(18,000,000)
30 cents
8 cents
10,500,000
11,000,000
13.5 cents
6,000,000
-
-
-
-
61,000,000
-
-
-
-
-
-
1,500,000
7,500,000
-
10,500,000
11,000,000
6,000,000
526,772,580
27,500,000
(453,476,481)
(3,296,099)
97,500,000
16 EQUITY – NON CONTROLLING INTEREST
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
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued Capital
Equity Reserves
Accumulated losses
Foreign Exchange Reserve
Total Equity
Issued capital
Reserves
Foreign currency reserve
Retained (loss)
30 June 2021
$
6,326,959
370,576
(147,793)
(753,916)
5,795,826
30 June 2020
$
2,737,493
337,281
(4,258)
(542,499)
2,528,017
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2021
and 30 June 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant
and equipment as at 30 June 2021 and 30 June 2020.
Significant accounting policies
The accounting policies of the parent entity are consistent with
those of the consolidated entity, as disclosed in note 1.
The non-controlling interest has a 26.20% (2020: 26.20%) equity holding in Snow Lake Resources, and a
15% (2020: 15%) in AKCM Pty Ltd.
Parent
2021
(2,397,161)
-
12,398,226
38,561,878
50,960,105
101,595
-
101,595
50,858,509
114,922,698
5,689,270
(69,753,459)
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
50,858,509
14,404,092
64
65
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 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
2021
%
2020
%
2021
%
2020
%
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%
85%
15%
15%
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 “Manitoba 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.
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
2021
$
3,081,182
29,764,042
32,845,224
2,978,781
-
2,978,781
29,866,443
345
(289,051)
(288,706)
-
577,414
(7,944,812)
10,316,343
-
2,371,531
(43,306)
(170,192)
2020
$
937,251
7,212,499
8,149,750
942,557
-
942,557
7,207,193
103
152,391
(152,288)
-
304,576
(71,684)
1,002,158
-
930,474
(22,843)
(126,886)
66
67
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
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
2021
$’000
439,453
6,120,100
6,559,553
662,987
862,370
1,525,357
5,034,196
-
(657,599)
(657,599)
-
2020
$’000
165,953
5,735,889
5,901,842
378,551
-
378,551
5,523,291
-
(224,295)
(224,295)
-
(657,599)
(224,295)
(660,456)
-
825,235
(164,779)
(172,291)
(654,440)
(254,193)
(178,770)
127
(432,836)
(58,765)
(482,149)
18 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.
RESERVES
Equity Reserves
Convertible Notes
EQUITY RESERVES
Share Based Payment (1)
Option Reserve (2)
Option Reserve (Recognised in equity)
(3)
Option Reserve (4)
Option Reserve (5)
Option Reserve (6)
Option Reserve (Recoginsed in equity)
(7)
Option Reserve (8)
Option Reserve (Recognised in equity)
(9)
2021
$
6,652,087
81,031
6,733,118
2020
$
4,468,607
-
4,468,607
30 Jun 2021
30 June 2020
240,000
3,607,998
134,609
486,000
240,000
3,607,998
134,609
486,000
975,788
97,579
699,790
397,569
12,754
6,652,087
4,468,607
1. The reserve is used to record the value of 2.5 million NVA shares
February 2019 Nova Minerals entered into an agreement with Bull
per year for 5 years issued to Bull Run Capital Inc. upon, or before,
Run Capital where instead of issuing shares would pay Bull Run
the annual anniversary of the execution of the Option (i.e. a total of
Capital $90,000.
up to 12.5 million NVA shares) under the terms of its arrangement
2. The reserve is used to record the value of options issued to
with Bull Run Capital which was entered into in April 2016. If Nova
the Directors of the Nova Minerals and advisors of Snow Lake
Minerals withdraws from the project and elects not to pursue
Resources Limited (subsidiary) as part of compensation for their
its earn-in rights its obligation to issue any unissued tranches of
services. Details of the share-based payments are in Note 19.
shares to Bull Run shall terminate. The shares to be issued to Bull
3. The reserve is used to record 7,478,260 listed options that were
Run Capital have been valued in accordance with the requirements
issued on 15th January 2020 to advisors as part of capital raising
of AASB2 Share Based Payments. The shares have been valued
costs . The options have been valued in reference to the last traded
using the spot rate of $0.024 per share being the fair value of the
price at $0.018 per option giving rise to transactional value of
shares at the date of settlement and completion of the service. In
$134,609.
68
69
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 4. The reserve is used to record 18,000,000 unlisted options that
8. The reserve is used to record the value of options issued to
were issued on the 2 June 2020 to Collins St Asset Management
the Advisors of the company as part of compensation for their
Pty Ltd as part of the Convertible Note Agreement. These were
services. Details of the share-based payments are in Note 19.
estimated at the date of grant, being 28 May 2020, using the
9. Balance comprises options issued to advisors of Snow Lake
Black Scholes pricing method, taking into account the terms and
Resources as part of capital raising costs.
19 SHARE BASED PAYMENTS
conditions under which the options were granted. The Options can
be exercised at any time until 24 months from the Closing Date
of 28 May 2020. The grant date fair value of the options granted
was $0.027 per option giving rise to total transactional value of
$486,000.
5. The reserve is used to record the value of options issued to
the Directors of the company as part of compensation for their
services. Details of the share-based payments are in Note 19.
6. The reserve is used to record the value of options issued to the
Advisors of the company as part of compensation for their services.
Details of the share-based payments are in Note 19.
7. The reserve is used to record 10,500,000 Unlisted options that
were issued to advisors as part of capital raising costs. The fair
value arising from the issue of the Options has been assessed
as $699,790. The Options have been valued using a Trinomial
Valuation pricing model based on the fair value of a Company
share at the grant date, using the following assumptions:
2/12/2020
2/12/2022
0.30
0.18
100%
1%
-
2.50
200.00
0.067
Grant date
Expiry date ($)
Exercise price ($)
Share price at grant
Volatility (%)
Risk free rate
Dividend yield
Early exercise factor
Trinomial step
Fair value at grant date
CONVERTIBLE NOTE RESERVES
Convertible note reserve
The Convertible Note reserve relates to the portion of convertible notes
issued by Snow Lake Resources.
2021
$
81,031
81,031
2020
$
-
-
Options Granted
Director Stock Option
Employee Stock Options
Employee Stock Options
Consultant Options
Consultant Options
Employee Stock Options (1)
Director Stock Option (2)
Consultant Options (3)
30 June 2020
$
1,898,750
1,878,750
30 June 2020
$
1,550,000
165,000
31,500
51,750
80,500
30 June 2021
$
1,470,936
1,470,936
30 June 2021
$
97,579
975,788
397,569
1,470,936
1,878,750
The share based payment does not include $12,754 broker option
Table 1
reserves and 699,790 broker options as they have been recognised
in equity. These are transaction costs related to the convertible note
Grant date
in Snow Lake Resources and the capital raising for Nova and are
recognised in issued capital.
Expiry date ($)
1) On 29 December 2020, 1,000,000 unlisted options were issued
Exercise price ($)
to Consultants of Nova Minerals as part of an employee stock
option plan. The fair value arising from the issue of the Options has
Share price at grant
been assessed as $97,579. The Options have been valued using
a Trinomial Valuation pricing model based on the fair value of a
Company share at the grant date, using the following assumptions
in Table 1:
Volatility (%)
Risk free rate
2 ) On 29 December 2020 the Company issued 10,000,000 Unlisted
Options to directors as part of compensation for their services. The
Dividend yield
fair value arising from the issue of the Options has been assessed
as $975,788. The Options have been valued using a Trinomial
Valuation pricing model based on the fair value of a Company share
at the grant date, using the following assumptions in Table 1:
Early exercise factor
Trinomial step
Fair value at grant date
29/12/2020
29/12/2023
.075
.17
100%
1%
0.00
2.50
200
0.10
70
71
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
20 CONTINGENCIES
There are no contingent liabilities that the consolidated entity has
become aware of at 30 June 2021 and 30 June 2020.
3) On 20 May 2021, 6,000,000 unlisted options were issued to a
consultant in connection with investor relations and marketing services.
Table 2
The fair value of the Options has been assessed as $397,569. The
Grant date
options have been valued using Trinomial Valuation pricing model,
based on the fair value of the Company's share at the grant date, using
Expiry date ($)
the following assumptions in Table 2:
Exercise price ($)
Share price at grant
Volatility (%)
Risk free rate
Dividend yield
Early exercise factor
Trinomial Step
Fair value at grant date
20/05/2021
20/05/2023
.135
.14
100%
.26%
0.00
2.50
200
0.066
The following table summarizes the options issued as part of Nova
Minerals’ Employees Stock Option Plan:
Grant Date
Exercise
Price
Granted
Exercised
Expired /
Balance
Terminated
30 June 2021
September 19, 2019 (a)
$0.04
50,000,000
August 6, 2019 (b)
$0.04
11,000,000
October 28, 2019 (c)
$0.056
1,500,000
December 29, 2020 (d)
$0.075
11,000,000
Total
73,500,000
-
-
-
-
-
-
-
-
50,000,000
11,000,000
1,500,000
11,000,000
73,500,000
a. The options vested on issuance and have an expiry date of 19
September 2022. Using the Black Scholes valuation model, the
d. The options vested on issuance and have an expiry date of 29
December 2023. Using the Trinomial Valuation pricing model,
Company determined the fair value of the options based on the
the Company determined the fair value of the options based
following assumptions: expected life: 3 years; volatility: 100%;
on the following assumptions: expected life 3 years; volatility:
dividend yield: nil; risk-free rate: 0.7%, market price: $0.048; and
100%; dividend yield: nil; risk-free rate: 1%, market price: $0.17;
exercise price of $0.04.
and exercise price of $0.075.
b. The options vested on issuance and have an expiry date of 19
September 2022. 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. Using the Black Scholes valuation model, the
Company determined 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
73
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 21 CASH FLOW INFORMATION AND
CASH EQUIVALENT
22 FINANCIAL INSTRUMENTS
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
B. RECONCILIATION OF LOSS AFTER
INCOME TAX TO NET CASH FROM
OPERATING ACTIVITIES
Note
Loss for the year
Adjustments for
Gain from sale of investment
Fair value gain on investments
Exploration costs reclassified
Depreciation
2021
$
15,516,112
15,516,112
2020
$
4,197,221
4,197,221
2021
$
2020
$
(3,343,467)
(4,276,995)
376,507
(2,108,624)
-
-
98,222
526,655
205,739
90,580
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:
Fair value loss on derivative liabilities
1,828,857
-
Share based payments (Note 19)
1,470,936
1,878,750
Non-Cash Finance Costs
102,010
-
Variable rate instruments
Carrying amount
2021
$
2020
$
Net cash used in operating activities before change in assets and liabilities
(2,122,834)
(1,781,040)
Cash and cash equivalents
15,516,112
4,197,221
Change in trade and other receivables
15,502
116,318
Change in trade and other payables
Change in other financial assets
-
-
(939,773)
391,474
Net cash used in operating activities
(2,138,336)
2,213,021
15,516,112
4,197,221
74
75
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 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 June 2020.
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 2021
Variable rate instruments
Cash and cash equivalents
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:
Cash and cash equivalents
15,516,112
4,197,221
2021
$
2020
$
15,516,112
155,161
(155,161)
155,161
(155,161)
BAS Receivables
Interest Receivable
-
-
171,459
-
15,516,112
4,368,680
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)
76
77
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
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.
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:
Interest Rate
Carrying
amount
$
Total
contractual
cash flows
$
6 months
or less
$
6 to 12
Greater than
months
12 months
$
$
30 June 2021
Financial liabilities
Current
Trade and other payables
3,424,690
3,424,690
Convertible Note
12%
862,371
862,371
2,143,531
3,424,690
862,371
Interest Rate
Carrying
amount
$
Total
contractual
cash flows
$
6 months
or less
$
6 to 12
Greater than
months
12 months
$
$
30 June 2020
Financial liabilities
Current
Financial derivative liability
15%
1,314,000
1,314,000
1,314,000
Trade and other payables
1,981,286
-
1,981,286
3,295,286
1,314,000
3,295,286
-
-
-
-
-
-
78
79
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021 23 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
2021
$
526,184
975,788
-
1,501,973
2020
$
519,451
1,625,000
10,806
2,155,257
24 RELATED PARTY TRANSACTIONS
25 AUDITORS REMUNERATION
Audit services
BDO East Coast Partnership
RSM Australia Partners
Snow Lake Audit
Taxation services
BDO East Coast Partnership
Total Auditors remuneration
2021
$
-
61,000
34,920
95,920
6,500
6,500
102,420
2020
$
18,025
26,000
11,787
55,812
6,352
6,352
62,164
KEY MANAGEMENT PERSONNEL
Disclosures relating to key management personnel are set out in
the Remuneration Report of the Directors’ Report.
TRANSACTIONS WITH OTHER ENTITIES
2021
• During the 2021 year there were no related party transactions.
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.
Loans to/from related parties
There were no loans to or from related parties at the current and
previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and
conditions and at market
80
81
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
26 NON-CURRENT OTHER
FINANCIAL ASSETS
27 FAIR VALUE MEASUREMENT
2021
$
2,734,348
207,738
-
2020
$
30,719
-
-
2,942,087
30,719
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.
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.
Investments at fair value through profit or loss
Loans granted
Deferred charges
Total
RECONCILIATION
Reconciliation of the fair values at the beginning and end of the
current and previous year are set out below:
Opening balance
Addition
Loans Granted
Deferred Charges
Conversion of Torian Resources Convertible Note and Interest (1)
Torian Resources Shares (2)
Disposal
AX8 Shares (3)
Gain on Disposal of Shares:
AX8 Shares (3)
Loss on disposal of shares
Movement in fair value:
AX8 Shares
Torian Resources Shares (4)
Closing fair value
JUNE 2021
Assets
Investments at fair value
Total
JUNE 2021
Liabilities
Convertible Note
Total
JUNE 2020
Assets
Total
JUNE 2020
Liabilities
Derivative Financial Liability
2021
$
30,719
-
207,738
-
425,725
200,000
-
(93,623)
-
62,904
-
-
-
2,108,624
2,942,087
2020
$
52,569
-
-
-
-
-
-
-
-
-
-
(21,850)
-
-
1 ) On 1 July 2020 the convertible note was converted to
2) On 30 October 2020 , Nova Minerals invested $200,000 being
91,850,000 ordinary shares being the face value of the Notes of
6,666,667 Shares at $0.03 in Torian Resources as part of a private
$413,325 , divided by conversion price of 0.45 cents. In addition
placement.
2,755,500 TNR shares were issued in lieu of $12,399. 75 interest
3) In September 2020 Nova Minerals disposed of its AX8 Shares
payments for the months of July , August and September 2020.
4) The Torian Resources shares were fair valued at the 30 June
Total Value $425,725.
closing price ($0.028 per share), resulting in a change in fair value
82
of $2,835,621.
30,719
Total
Level 1 $
Level 2 $
Level 3 $
Total $
2,734,349
2,734,349
-
-
-
-
-
-
Level 1 $
Level 2 $
Level 3 $
Total $
862,371
862,371
-
-
-
-
-
-
Level 1 $
Level 2 $
Level 3 $
Total $
Level 1 $
Level 2 $
Level 3 $
Total $
1,314,000
1,314,000
-
-
-
-
-
-
83
Investments at fair value
-
30,719
Convertible Note
413,325
-
52,569
-
-
-
-
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021Notes to the Consolidated Financial Statements for the year ended 30 June 2021
28 SUBSEQUENT EVENTS
DIRECTORS’ DECLARATION
The following events have occurred
subsequent to the period end:
On 27 September 2021 a capital raising was announced. The
Company is in the process of finalising a raise of AUD 12 million at
a price of 11c per share. The Company is to issue Broker Options
as part of the raise.
On 19 July 2021 further drill results were announced at the Korbel
Main prospect, with respect to drill holes KBDH-072 and KBDH-080.
On 21 July 2021, mineralisation at RPM was announced to have a
strong correlation to historic drill data at the prospect.
On 26 July 2021, Nova announced that a prep lab had been
successfully commissioned at the Estelle Gold project.
On 2 August 2021, Nova announced that Snow Lake Resources Ltd
had filed its Amendment No 2 to Form F-1 (on 30 July 2021) with
the SEC, with respect to its intended IPO.
On 1 September 2021, infill drilling results were announced at
the Korbel Main prospect, with respect to drill holes KBDH-075
(average grade of 0.5 g/t Au over 216m) and KBDH-077 (average
grade of 0.4 g/t Au over 219m).
On 3 September 2021, further infill drilling results were announced
at the Korbel Main prospect, with respect to drill holes KBDH-082
(average grade of 0.4 g/t Au over 324m), KBDH-076 (average grade
of 0.3 g/t Au over 349m) and KBDH-073 (average grade of 0.3 g/t
Au over 211m).
On 9 September 2021, Nova confirmed gold discovery at RPM. Drill
results were announced for RPM-002 (average grade of 0.6 g/t Au
over 274m) and RPM-001 (average grade of 0.3 g/t Au over 326m).
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 2021 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.
The Directors of Nova Minerals
Limited declare that:
a. In the Directors’ opinion the financial statements and notes
set out on pages 40-84 and the Remuneration report in the
Directors Report set out on pages 29-34, 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 2021 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
2021.
Signed in accordance with a resolution of directors made pursuant
to section 295(5)(a) of the Corporations Act 2001.
Dated at Melbourne this 27th day of September 2021
David Hersham
Non-Executive Chairman
84
85
Annual Report 2021Nova Minerals LimitedNotes to the Consolidated Financial Statements for the year ended 30 June 2021
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 2021, 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 2021 and of its financial
performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
86
87
Annual Report 2021Nova Minerals Limited
Key Audit Matter
How our audit addressed this matter
Exploration and Evaluation Expenditure
Refer to Note 11 in the financial statements
the Group held capitalised
At 30 June 2021
exploration and evaluation assets (“E&E Asset”) of
$35,843,071. This represents 63% 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 Resources, due to the
involved,
significant management
including:
judgments
whether the exploration and evaluation spend can
finding specific mineral
that
be associated with
resources, and
expenditure is allocated to an area of interest;
the basis on which
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.
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 resolved to
discontinue activities in the specific area of interest.
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 2021.
In our opinion, the Remuneration Report of Nova Minerals Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021, but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
RSM AUSTRALIA PARTNERS
J S CROALL
Partner
Dated: 27 September 2021
Melbourne, Victoria
88
89
Annual Report 2021Nova Minerals Limited
ADDITIONAL SECURITIES
EXCHANGE INFORMATION
In accordance with ASX Listing Rule
4.10,
the
the Company provides
following information to shareholders
not elsewhere disclosed in this Annual
Report.
The information provided is current as at 17 September 2021
(Reporting Date).
90
91
Annual Report 2021Nova 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 1,680,946,647 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 6,758.
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
%
Number of
Shareholders
Holding between
100,001 and Over
1,540,107,056
91.62
Holding between
10,001 to 100,000
130,621,244
Holding between
5,001 to 10,000
7,542,227
Holding between
1,001 to 5,000
2,659,437
Holding more than
1 to 1,000
16,683
Total
1,680,946,647
7.77
0.45
0.16
0.00
100
1,530
3,302
1,003
748
175
6,758
%
22.64
48.86
14.84
11.07
2.59
100
6 UNMARKETABLE PARCELS
The number of holders with less than a marketable parcel of
fully paid ordinary shares is 536. The total number of shares is
1,017,060 shares.
92
93
Annual Report 2021Nova Minerals Limited 7 TWENTY LARGEST SHAREHOLDERS
8 UNQUOTED SECURITIES
The top 20 shareholders are as follows:
As at 17 September 2021 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
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
81,145,895
SL INVESTORS PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
KUSHKUSH INVESTMENTS PTY LTD
SWIFT GLOBAL LTD
MR PETER ANDREW PROKSA
BNP PARIBAS NOMINEES PTY LTD
MURTAGH BROS VINEYARDS PTY LTD
MURTAGH BROS VINEYARDS PTY LTD
MRS KRISTIN PHILLIPS & MR JUSTIN GARE
53,884,883
51,519,776
48,000,000
45,948,625
36,000,000
31,454,570
24,400,000
21,673,808
20,171,057
PATRON PARTNERS PTY LTD
19,832,143
LETTERED MANAGEMENT PTY LTD BALMORAL FAMILY
CITICORP NOMINEES PTY LIMITED
MR MAHMOUD EL HORR
HERSHAM HOLDINGS PTY LTD
MR DAVID FAGAN
LEONITE CAPITAL LLC
M & T K PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR DARRYL REECE CARSON & MRS LISA ANN CARSON
18,000,000
16,304,977
15,500,000
14,903,125
14,000,000
13,846,154
13,000,000
12,382,727
10,530,906
%
4.83
3.21
3.06
2.86
2.73
2.14
1.87
1.45
1.29
1.20
1.18
1.07
0.97
0.92
0.89
0.83
0.82
0.77
0.74
0.63
Total
562,498,646
Balance of register
1,118,448,001
33.46
66.54
Grand total
1,680,946,647
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 HOLDER
HOLDERS WITH MORE THAN 20%
Holder Name
IAN CRAIG PAMENSKY
Holding
1,500,000
6,000,000 UNQUOTED OPTIONS EXPIRING 20/05/2023 @ $0.13 – 1 HOLDER
HOLDERS WITH MORE THAN 20%
Holder Name
INTERNATIONAL MARKETING CORP LLC
Holding
6,000,000
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
94
95
Annual Report 2021Nova Minerals Limited 11,000,000 UNQUOTED OPTIONS EXPIRING 29/12/2023 @ $0.075 – 3 HOLDERS
HOLDERS WITH MORE THAN 20%
CORPORATE DIRECTORY
% IC
45.45
45.45
% IC
80.95
% IC
100
Holder Name
HERSHAM HOLDINGS PTY LTD
AJ HOLDINGS INTERNATIONAL LTD
Holding
5,000,000
5,000,000
10,500,000 UNQUOTED OPTIONS EXPIRING 29/12/2023 @ $0.30 – 4 HOLDERS
HOLDERS WITH MORE THAN 20%
Holder Name
LTL CAPITAL PTY LTD
Holding
8,500,000
7,500,000 UNQUOTED OPTIONS EXPIRING 29/12/2023 @ $0.30 – 4 HOLDERS
HOLDERS WITH MORE THAN 20%
Holder Name
DALE JOEL SCHULTZ
Holding
7,500,000
9 ON-MARKET BUY-BACK
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.
12 ASX ADMISSION STATEMENT
During the financial year, the Compamy applied its cash in a way
that is consistent with its business objectives.
96
AUDITORS
RSM Australia Pty Ltd
Level 21, 55 Collins Street
Melbourne Victoria 3000
Australia
ASX: NVA
OTC: NVAAF
BANKERS
Westpac
Level 6, 360 Collins Street
Melbourne Victoria 3000
Australia
DIRECTORS
Christopher Gerteisen
David Hersham
Louie Simens
Avi Geller
Colin Belshaw
COMPANY SECRETARIES
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 Victoria 3000
Australia
Telephone: 1300 554 474 or +61 3 9067 2005
Facsimile:
Email:
registrars@linkmarketservices.com.au
+61 2 9287 0303
97
Annual Report 2021Nova Minerals Limited 98
Nova Minerals Limited