ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2019
Okapi Resources Limited
Corporate Directory
ABN
DIRECTORS
21 619 387 085
Klaus Eckhof – Non-executive Chairman
Nigel M Ferguson – Managing Director
Michael Montgomery – Technical Director
Raymond (Jinyu) Liu – Non-executive Director
COMPANY SECRETARY
Leonard Math
REGISTERED OFFICE &
PRINCIPAL PLACE OF BUSINESS
POSTAL ADDRESS
AUDITORS
SHARE REGISTRY
Level 2, 8 Colin Street
West Perth
Western Australia 6005
Telephone: (08) 6117 9338
(08) 6118 2106
Facsimile:
PO Box 520
West Perth Western Australia 6872
Butler Settineri (Audit) Pty Ltd
Unit 16, First Floor Spectrum Offices
100 Railway Road
Subiaco Western Australia 6008
Advanced Share Registry Limited
trading as Advanced Share Registry Services
110 Stirling Highway,
Nedlands, Western Australia 6009
WEBSITE
www.okapiresources.com
STOCK EXCHANGE LISTING
Australian Securities Exchange Limited
(ASX Code OKR)
Okapi Resources Limited
Contents
Contents
Corporate Directory
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
ASX Additional Information
1
3
7
17
18
19
20
21
22
42
43
48
P a g e | 2
Okapi Resources Limited
Review of Operations
Review of Operations
Mambasa Project
(Option to earn in to 70% interest)
Background
The Mambasa Gold Project is a brownfields project with
several historical colonial gold workings and current
artisanal gold activity covering over a 600m strike length
and up to 25m in depth. The Mambasa Project consists of
two granted
located
approximately 18km to the south of the town of Mambasa,
in the Mambasa District of Ituri Province in the north-
eastern DRC.
licences, PE364 and PE480,
and
production
stratigraphic
The Mambasa Project is located
in a region of well documented
gold
has
impressive potential within a
and
favourable
structural setting that is similar to
other large-scale gold deposits
within
including
region
Ashanti's Geita
AngloGold
(20Moz) mine in Tanzania and
Loncor Resources Inc's recently
defined Makapela (1Moz) and
Kilo Gold’s Adumbi (1.3Moz) gold
projects (Figure 1).
the
The region is an area that is
considered to be under explored
and having significant potential
for large gold resources.
The Company executed the Mambasa Joint Venture
Agreement with Kalubamba SARL and Medidoc FZE which
granted Okapi the right to earn a 70% interest in the
Mambasa Project and to act as the manager. The
Mambasa Joint Venture Agreement provides
for an
exploration expenditure earn-in by the Company over an
approximate 4-year period, with a minimum spend of
US$150,000 on exploration work (Phase 1 Assessment)
within 12 months of the ASX listing date having already
been achieved.
Figure 1: Regional Location Map of the Mambasa Gold Project
showing Nearby Significant Gold Projects.
P a g e | 3
Mambasa Project
Exploration Activities for the Year
Okapi Resources Limited
Review of Operations
During the year, the Company completed Stage 1 & 2
Soil Sampling programs, after receiving the assay
results from the 2nd Stage infill sampling program. This
program was designed around areas of interest defined
in the initial Stage 1 program. This second round of
sampling infilled previous lines at an approximate 125
metre line spacing and at 50 metre centres, with a total
of 500 samples analysed returning gold results up to
0.31 g/t gold in soils (Figure 2).
latter results
The
further supported the regional
northwest fabric and added more detail to the north-
south trending structure identified in the initial in Stage
1 program. The confluence of these 2 orientations is of
particular interest as it possibly defines a control on gold
is
mineralisation
supported by the fact that Mount Pede, an area of
significant artisanal mining activity, is located at this
juncture.
in the district. This observation
Desktop analysis of these results was carried out as well
as planning of follow up exploration programs.
Okapi has met the Year 1 expenditure commitments for
the Mambasa Gold Project as defined by the Joint
Venture Agreement.
Figure 2: Mambasa Phase 1 Exploration Program Gold Soil Sampling Results- Stages 1 & 2
P a g e | 4
Okapi Resources Limited
Review of Operations
The Crackerjack Project
(100% owned)
Background
The Crackerjack Project (“Crackerjack”) is
located approximately 85 kilometres south-
west of Halls Creek in the Kimberley District
of Western Australia (Figure 3).
presence
There had previously been very limited
modern exploration work undertaken at
Crackerjack, with historic results indicating
the
gold
mineralisation. The Mount Dockrell area has
been worked for alluvial gold and hard rock
gold for decades with significant amounts of
gold being won.
high-grade
of
Exploration Activities for the Year
results. This
During the year, the Company completed a
Phase 2 mapping and sampling program,
that focused upon following up on the initial
program so as to better understand those
initial
follow-up program
consisted of 77 hard rock samples. The
assay results have further defined the initial
results at and around several prospects
(Figure 4) on the tenement and included the
following significant Phase 2 assay results;
The Sisters - 5.0 g/t Au;
Crackerjack NE – up to 3.8 g/t Au;
Crackerjack – up to 1.9 g/t Au; and
‘Crackerjack Shear’ – results included 1.5 g/t
Au & 0.9 g/t Au
Figure 3: Location Map of the Crackerjack Project
Figure 4: Crackerjack Project Prospectivity Locality Map
P a g e | 5
Okapi Resources Limited
Review of Operations
CORPORATE
During year, the Company continued to assess mineral resources projects and investment opportunities that would
complement its existing portfolio of assets.
In December 2018, Okapi participated in a strategic private placement ($200,000 investment) in ASX listed Amani
Gold Limited (“Amani”). Amani owns the Giro Gold Project (“Giro”), which comprises two exploration permits
covering a surface area of 497km² and lying within the Kilo-Moto Belt (Democratic Republic of Congo), a significant
under-explored greenstone belt and which hosts Barrick Gold’s 13 million-ounce Kibali group of deposits within
35km of Giro.
In March 2019, Okapi has made a further $521,000 investment in Amani and now holds an ~8% interest.
Amani owns 55.25% of the Giro Gold Project (“Giro”), which comprises two exploration permits covering a surface
area of 497km². The Giro Gold project is located and lying within the Kilo-Moto Belt, (Democratic Republic of
Congo), a significant under-explored greenstone belt and with numerous major gold projects including AngloGold
Ashanti and Barrick’s 13 million-ounce Kibali gold mine Group of deposits situated some 35km east of the Giro
Project. The acquisition is part of Okapi’s strategy to seek our mineral resources investment opportunities in the
DRC.
During the year, the Board was further strengthened with the appointment of Mr Michael Montgomery as Technical
Director. Mr Montgomery has been Okapi’s General Manager – Technical since January 2018. Mr. Montgomery
is an industry professional with over 25 years’ experience in the resource industry including significant experience
in sub-Saharan Africa and in particular the DRC. His experience in the DRC dates back to 2008 where he worked
on several projects in the Katanga Province to his more recent appointment with Okapi.
The information in this report that relates to Exploration Results is based on and fairly represents information and
supporting documentation compiled by Mr. Nigel Ferguson, a Competent Person whom is a Fellow of the
Australasian Institute of Mining and Metallurgy (FAusIMM) and Member of the Australian Institute of Geoscientists
(MAIG). Mr. Ferguson is a full-time employee of Ridgeback Holdings Pty Ltd and Director of Okapi Resources
Limited. Mr Ferguson has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Ferguson consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.
P a g e | 6
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
The directors present their report on the consolidated entity comprising Okapi Resources Limited (“Okapi” or “the
Company”) and its controlled entities (“the consolidated entity” or “Group”) for the financial year ended 30 June
2019.
DIRECTORS
The following persons were directors of the Company during the whole of the financial period and up to the date
of this report unless otherwise indicated:
Klaus Eckhof – Non-executive Chairman
Nigel M Ferguson – Managing Director
Michael Montgomery – Technical Director (appointed 26 April 2019)
Raymond (Jinyu) Liu – Non-executive Director
INFORMATION ON DIRECTORS
Mr. Klaus Eckhof (Dip. Geol. TU, AusIMM)
Appointed 29 May 2017
Mr Eckhof is a geologist with more than 20 years of experience identifying, exploring and developing mineral
deposits around the world. Mr Eckhof worked for Mount Edon Gold Mines Ltd before it was acquired by Canadian
mining company Teck. In 1994, he founded Spinifex Gold Ltd and Lafayette Mining Ltd, both of which successfully
delineated gold and base metal deposits. In 2003, Mr Eckhof founded Moto Goldmines which acquired the Moto
Gold Project in the Democratic Republic of Congo. There, Mr Eckhof and his team delineated more than 20 million
ounces of gold and delivered a feasibility study within four years from the commencement of exploration. Moto
Goldmines was subsequently acquired by Randgold Resources who poured first gold in September 2013.
During the past three years, Mr. Eckhof has also served as a Director of the following listed companies:
Company
Date Appointed
Date Ceased
Amani Gold Limited
12 August 2014
11 July 2017
30 January 2019
-
Argent Minerals Limited
6 December 2017
23 April 2018
AVZ Minerals Limited
12 May 2014
26 June 2018
Interest in shares and performance rights:
1,833,333 ordinary fully paid shares
1,666,667 performance rights
P a g e | 7
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
Mr. Nigel Ferguson (BSc Geology, FAusIMM, MAIG)
Appointed 29 May 2017
Mr Ferguson is a geologist with 30 years of experience having worked in senior management positions for the past
20 years in a variety of locations. He has experience in the exploration and definition of precious and base metal
mineral resources throughout the world, including DRC, Zambia, Tanzania, Saudi Arabia, South East Asia and
Central America. He has been active in the DRC since 2004 in gold and base metals exploration and resource
development.
During the past three years, Mr. Ferguson has also served as a Director of the following listed companies:
Company
Date Appointed
Date Ceased
AVZ Minerals Limited
2 February 2017
-
Interest in shares and performance rights:
2,654,911 ordinary fully paid shares
1,000,000 performance rights
Mr. Jinyu (Raymond) Liu
Appointed 25 October 2017
Mr Liu is a qualified mining engineer with a commercial background and received his degree in Mining Engineering
from University of Western Australia. He also holds a Master of Mineral Economics from Curtin University and a
Western Australia Unrestricted Quarry Manager’s licence. Mr Liu is the founding Managing Partner of Havelock
Mining Investment, a Hong Kong investment company and has been involved with numerous investments in ASX
listed companies. Previously, he has served as a Director of Fosun International Australia, a Chinese conglomerate
and investment company and prior to this, he held technical roles at Rio Tinto, KCGM and Mt Gibson Iron.
During the past three years, Mr. Liu has also served as a Director of the following listed companies:
Company
Date Appointed
Date Ceased
Galan Lithium Limited
25 June 2018
-
Interest in shares and performance rights:
300,000 ordinary fully paid shares
Mr. Michael Montgomery
Appointed 26 April 2019
Mr. Montgomery is an industry professional with over 25 years’ experience including in Africa and particularly DRC.
His experience in the DRC dates back to 2008 where he worked on several projects in the Katanga Province to
his more recent appointment with Okapi. Mr. Montgomery brings with him significant hands on experience in due
diligence, exploration, mining and JORC compliance as well as more recent exposure to Corporate compliance
matters.
Mr. Montgomery has not held any Director position of a listed company in the past three years.
Interest in shares and performance rights:
100,000 ordinary fully paid shares
200,000 performance rights
P a g e | 8
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
COMPANY SECRETARY
Mr. Leonard Math (BCom, CA)
Appointed 26 April 2019
Mr. Math is a Chartered Accountant with more than 14 years of resources industry experience. He previously
worked as an auditor at Deloitte and is experienced with public company responsibilities including ASX and ASIC
compliance, control and implementation of corporate governance, statutory financial reporting and shareholder
relations. He has previously acted as a Director, Chief Financial Officer and Company Secretary of a number of
ASX listed Company.
Interest in shares and performance rights:
Nil
Craig Nelmes (B. Bus Accounting & Finance)
Resigned 31 July 2019
PRINCIPAL ACTIVITIES
The Group is in the business of mineral exploration with a specific focus on gold exploration. The Group's primary
aim in the near-term is to explore for, discover and develop gold deposits on the mineral exploration projects within
Australia and Africa.
The Group’s Mineral Exploration Projects are prospective for gold and/or base metals. They range from early-stage
exploration over areas that have not been subject to significant exploration such as the Crackerjack Project,
Australia, to more advanced exploration within the Democratic Republic of Congo (“DRC”) in areas that have
recorded historical mining activity and current artisanal activity at the Mambasa Project, as well assessing projects
in the Katanga Cobalt/Copper belt.
The Group continues to actively review other resource projects, with a focus on advanced project opportunities
that offer the best potential to generate wealth for the Group and its shareholders.
FINANCIAL REVIEW
The result of the Group for the financial year ended 30 June 2019 was a loss after tax of $1,071,307 (2018:
$1,147,328).
EARNINGS PER SHARE
The basic loss per share for the year ended 30 June 2019 was 3.12 cents (2018: 4.18 cents).
P a g e | 9
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
Audited Remuneration Report
This report details the nature and amount of remuneration for all key management personnel of Okapi Resources
Limited and its subsidiaries. The information provided in this remuneration report has been audited as required by
section 308(C) of the Corporations Act 2001. For the purposes of this report, key management personnel of the
Group are defined as those persons having authority and responsibility for planning, directing and controlling the
major activities of the Group and the Company, directly or indirectly, including any Director (whether executive or
otherwise) of the Group.
The individuals included in this report are:
Klaus Eckhof
Nigel Ferguson
Michael Montgomery
Raymond (Jinyu) Liu
Leonard Math
Craig Nelmes
Non-Executive Chairman
Managing Director
Technical Director
Non-Executive Director
Company Secretary
Company Secretary
(a)
Remuneration Policy
Appointed – 26 April 2019
Appointed – 26 April 2019
Resigned – 31 July 2019
The remuneration policy of Okapi Resources Limited has been designed to align director objectives with
shareholder and business objectives by providing a fixed remuneration component which is assessed on an annual
basis in line with market rates. By providing components of remuneration that are indirectly linked to share price
appreciation (in the form of options and/or performance rights), executive, business and shareholder objectives
are aligned. The board of Okapi Resources Limited believes the remuneration policy to be appropriate and effective
in its ability to attract and retain the best directors to run and manage the Group, as well as create goal congruence
between directors and shareholders. The board’s policy for determining the nature and amount of remuneration
for board members is as follows:
(i) Executive Directors & Other Key Management Personnel
The remuneration policy and the relevant terms and conditions has been developed by the full Board of
Directors as the Group does not have a Remuneration Committee due to the size of the Group and the Board.
In determining competitive remuneration rates, the Board reviews local and international trends among
comparative companies and industry generally. It examines terms and conditions for employee incentive
schemes, benefit plans and share plans. Reviews are performed to confirm that executive remuneration is in
line with market practice and is reasonable in the context of Australian executive reward practices.
The Group is an exploration entity, and therefore speculative in terms of performance. Consistent with
attracting and retaining talented executives, directors and senior executives are paid market rates associated
with individuals in similar positions, within the same industry.
Mr. Ferguson was appointed as Managing Director on 29 May 2017 and received an annual remuneration
package of $139,375 through an Executive Services Agreement. Mr. Ferguson provides his services as
Managing Director through Ridgeback Holdings Pty Ltd as trustee for the Ferguson Family Trust. Mr
Ferguson’s employment may be terminated by the Group giving 6 months’ notice. The Group may otherwise
terminate his employment immediately for cause.
P a g e | 10
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
Mr. Montgomery was appointed as Technical Director on 26 April 2019 and received an annual
remuneration package of $135,400 through a Consultancy Agreement. Mr. Montgomery provides his
services as Technical Director through Geosure Geological Consultants. Mr. Montgomery’s consultancy
agreement may be terminated by the Group giving 60 days’ notice. The Group may otherwise terminate his
employment immediately for cause.
There are no other service or consulting agreements in place with key management personnel. At this stage
due to the size of the Group, no remuneration consultants have been used. The Board’s remuneration
policies are outlined below:
Fixed Remuneration
All executives receive a base cash salary which is based on factors such as length of service and experience
as well as other fringe benefits. If entitled, all executives also receive a superannuation guarantee
contribution required by the government, which is currently 9.50% and do not receive any other retirement
benefits.
Short-term Incentives (STI)
Under the Group’s current remuneration policy, executives can from time to time receive short-term
incentives in the form of cash bonuses. No short-term incentives were paid in the current financial year. The
Board is currently determining the criteria of eligibility for short-term incentives and will set key performance
indicators to appropriately align shareholder wealth and executive remuneration.
Long-term Incentives (LTI)
Executives are encouraged by the Board to hold shares in the Group and it is therefore the Group’s objective
to provide incentives for participants to partake in the future growth of the Group and, upon becoming
shareholders in the Group, to participate in the Group’s profits and dividends that may be realised in future
years. The Board considers that this equity performance linked remuneration structure is effective in aligning
the long-term interests of Group executives and shareholders as there exists a direct correlation between
shareholder wealth and executive remuneration.
(ii)
Non-Executive Directors
The board policy is to remunerate non-executive directors at market rates for comparable companies for
time, commitment and responsibilities. In determining competitive remuneration rates, the Board review
local and international trends among comparative companies and the industry generally. Typically, the
Group will compare non-executive remuneration to companies with similar market capitalisations in the
exploration and resource development sector.
(b) Group Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration
No relationship exists between the Group performance, earnings, shareholder wealth and Directors’ and
Executive remuneration for this financial period. With the exception of the Managing Director and Technical
Director, no executive is receiving any base remuneration. No remuneration is currently performance
related.
P a g e | 11
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
(c) Details of Key Management Personnel Remuneration
Name
Fees
Post-Employment
Share Based Payments
Total
Remuneration as
Share payments
2019
Nigel Ferguson – Managing Director
Klaus Eckhof - Non-executive Chairman
Michael Montgomery¹ – Technical Director
Jinju (Raymond) Liu – Non-executive Director
Leonard Math2
Craig Nelmes
TOTAL
$
$
$
$
%
139,375
84,583
135,400
30,000
389,358
4,000
68,306
461,664
-
-
-
-
-
-
-
-
25,041
41,736
-
-
66,777
-
15,363
82,140
164,416
126,319
135,400
30,000
456,135
4,000
83,669
543,804
15
33
15
¹ Mr. Montgomery appointed on 26 April 2019. During the financial year, Mr. Montgomery provided consulting services to Okapi Resources Limited through Geosure Geological
Consultants.
² Mr. Math appointed on 26 April 2019.
2018
Nigel Ferguson – Managing Director
Klaus Eckhof - Non-executive Chairman
Jinju (Raymond) Liu¹ – Non-executive Director
Leonard Math² - Non-executive Director
Craig Nelmes3
TOTAL
¹ Mr. Liu was appointed on 25 October 2017
² Mr. Math resigned on 28 November 2017
³ Mr. Nelmes provided CFO and secretarial services directly from April 2018.
156,797
35,000
20,000
12,500
224,297
18,332
242,629
-
-
-
-
-
-
-
118,850
198,082
-
-
316,932
275,647
233,082
20,000
12,500
541,229
8,015
324,947
26,347
585,576
43
85
-
-
30
P a g e | 12
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
(d) Share based compensation
The number of performance rights and their respective vesting status as at 30 June 2019 are set out below:
Class A¹
No.
Class B
No.
Class C
No.
Total
No.
Klaus Eckhof – Non-executive Chairman
833,333
833,333
833,334 2,500,000
Nigel Ferguson – Managing Director
500,000
500,000
500,000 1,500,000
Michael Montgomery – Technical Director (appointed 26 Apr 2019)
Craig Nelmes – Company Secretary/CFO (resigned 31 July 2019)
-
-
100.000
100,000
200,000
100,000
100,000
200,000
¹ The Class A performance rights vesting conditions were met on 14 December 2017 however no exercise
notice had been received at the date of this report. The Class A performance rights were subsequently
exercised on 9 August 2019.
During the year ended 30 June 2019, there was no performance rights granted to directors and key
management personnel.
(e) Key Management Personnel Compensation – other transactions
(i) Options provided as remuneration and shares issued on exercise of such options.
No options were provided as remuneration during the year.
(ii) Loans to key management personnel
No loans were made to any director or other key management personnel of the Group, including related parties
during the financial year.
(iii) Other transactions with key management personnel
No other transactions with key management personnel occurred during the financial year.
Terms and conditions of related party transactions
Transactions between related parties are on commercial terms and conditions, no more favourable than those
available to other parties unless otherwise stated.
P a g e | 13
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
(iv) Share-holdings of Key Management Personnel
The number of shares in the Company held during the financial year by each director of Okapi Resources
Limited and other key management personnel of the Company, including related parties, are set out below.
There were no shares granted during the year as remuneration.
2019
Directors
Klaus Eckhof
Nigel Ferguson
Michael Montgomery¹
Junju (Raymond) Liu
Other executives
Leonard Math2
Craig Nelmes3
Total
Opening Balance
1 July 2018
Other changes
during the year
Closing Balance
30 June 2019
No.
No.
No.
1,000,000
2,000,010
-
300,000
-
100,000
3,400,010
-
154,901
100,000
-
-
-
254,901
1,000,000
2,154,911
100,000
300,000
-
100,000
3,654,911
1Mr Montgomery was appointed on 26 April 2019 and held those shares at the time of appointment.
2Mr Math was appointed as Company Secretary on 26 April 2019.
3Mr Nelmes resigned on 31 July 2019.
2018
Directors
Klaus Eckhof
Nigel Ferguson
Leonard Math¹
Junju (Raymond) Liu²
Other executives
Craig Nelmes
Total
Opening Balance
1 July 2017
Other changes
during the year
Closing Balance
30 June 2018
No.
No.
No.
1,000,000
2,000,010
-
-
100,000
3,100,010
-
-
-
300,000
-
-
1,000,000
2,000,010
-
300,000
100,000
3,400,010
1Mr Math resigned at the 2017 AGM on 28 November 2017.
2Mr Liu was appointed on 25 October 2017.
This is the end of the audited remuneration report.
P a g e | 14
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
SHARE OPTIONS
As at 30 June 2019, there were no options over unissued ordinary shares in the Company outstanding, with no
options having been issued from incorporation up to the date of this report.
There have been no options issued subsequent to balance date and up to the date of this report.
LIKELY DEVELOPMENTS
The Group’s focus over the next financial year will be carry out early stage exploration works on its mineral resource
projects and to review additional projects that may be presented to the Group.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
On 26 April 2019, Mr. Michael Montgomery was appointed as Technical Director and Mr. Leonard Math was
appointed as Company Secretary.
There were no other significant changes in the state of affairs of the Group during the financial year.
SUBSEQUENT EVENTS
Mr. Craig Nelmes resigned as CFO and Company Secretary on 31 July 2019.
Since the end of the financial period and to the date of this report, no other matter or circumstance has arisen
which has significantly affected, or may significantly affect, the operations of the Group, the results of those
operations or the state of affairs of the Group in the subsequent financial year.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of
a dividend to the date of this report.
ENVIRONMENTAL REGULATION
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it
complies with all regulations when carrying out any exploration work.
INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, Okapi Resources Limited paid a premium to insure the directors and officers of the Group.
The total amount of insurance contract premiums paid is confidential under the terms of the insurance policy.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of the Group, and any other payments arising from liabilities
incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from
conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of
information to gain advantage for themselves or someone else or to cause detriment to the Group. It is not possible
to apportion the premium between amounts relating to the insurance against legal costs and those relating to other
liabilities.
P a g e | 15
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2019
PROCEEDINGS ON BEHALF OF THE CONSOLIDATED ENTITY
No person has applied for leave of court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or
any part of those proceedings. The Group was not a party to any such proceedings during the year.
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2019 has been received and forms part
of the Directors’ report and can be found on page 17 of the financial report.
NON-AUDIT SERVICES
There have been no non-audit services provided by the Group’s auditor during the year.
Signed in accordance with a resolution of the directors.
On behalf of the Directors.
Nigel M Ferguson
Director
25 September 2019
Perth, Western Australia
P a g e | 16
Okapi Resources Limited
Auditor’s Independence Declaration
P a g e | 17
Okapi Resources Limited
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2019
Note
16
8
11
2019
$
46,077
23,662
69,739
(19,218)
(40,127)
(57,988)
(50,801)
(10,580)
(357,491)
(178,213)
(79,392)
(153,015)
(94,221)
(100,000)
2018
$
43,559
-
43,559
(20,076)
(51,925)
(87,266)
(69,333)
(6,193)
(242,628)
(86,666)
(138,281)
(440,155)
(48,364)
-
(1,071,307)
(1,147,328)
3
-
-
Revenue
Interest income
Other income
Expenditure
Audit fees
Compliance expenses
Consulting expenses
Corporate expenses
Depreciation
Director and employee fees
Exploration expenses
Promotional & website
Share based payments
Administration
Fair value adjustment to financial asset
Loss before income tax
Income tax expense
Loss after income tax from continuing operations
(1,071,307)
(1,147,328)
Other Comprehensive income
Items that may be reclassified to profit or loss
-
-
Total comprehensive income for the year
(1,071,307)
(1,147,328)
Loss per share attributable to the ordinary security
holders of the Company (cents per share)
3.12
4.18
The accompanying notes form part of these financial statements
P a g e | 18
Okapi Resources Limited
Consolidated Statement of Financial Position
As at 30 June 2019
Note
2019
$
2018
$
4
5
6
7
8
9
3,210,759
53,719
3,264,478
620,695
750,405
43,760
1,414,860
4,926,958
87,550
5,014,508
-
594,160
25,731
619,891
4,679,338
5,634,399
95,792
95,792
95,792
132,561
132,561
132,561
4,583,546
5,501,838
10
11(a)
11(b)
6,236,473
593,170
(2,246,097)
4,583,546
6,236,473
440,155
(1,174,790)
5,501,838
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Financial assets
Deferred exploration & evaluation expenditure
Property plant & equipment
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
The accompanying notes form part of these financial statements
P a g e | 19
Okapi Resources Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2019
Issued
Capital
$
Reserves
Accumulated
Losses
$
$
Total
$
2019
Opening Balance
6,236,473
440,155
(1,174,790)
5,501,838
Loss for the year
Total comprehensive income for the period
Share based payments (Note 11)
-
-
-
-
-
(1,071,307)
(1,071,307)
(1,071,307)
(1,071,307)
153,015
-
153,015
Balance as at 30 June 2019
6,236,473
593,170
(2,246,097)
4,583,546
2018
Opening Balance
Loss for the year
Total comprehensive income for the year
101,480
-
-
-
-
-
(27,462)
(74,018)
(1,147,328)
(1,147,328)
(1,147,328)
(1,147,328)
Shares issued during the year
Share issue costs
Share based payments (Note 11)
6,600,000
(465,007)
-
-
-
440,155
-
-
-
6,600,000
(465,007)
440,155
Balance as at 30 June 2018
6,236,473
440,155
(1,174,790)
5,501,838
P a g e | 20
Okapi Resources Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2019
Note
2019
$
2018
$
Cash flows from operating activities
Interest received
Payments for suppliers and employees
46,077
(1,020,956)
43,497
(1,085,677)
Net cash outflows from operating activities
19
(974,879)
(1,042,180)
Cash flows from investing activities
Payments for tenement acquisitions / option fees
Payments for shares in listed entity
Payments for purchases of other fixed assets
-
(711,320)
(30,000)
(113,215)
-
(29,234)
Net cash inflows from investing activities
(741,320)
(142,449)
Cash flows from financing activities
Proceeds from share issue
Share issue and IPO costs
Net cash inflows from financing activities
-
-
-
6,500,000
(407,475)
6,092,525
Net (decrease)/increase in cash and cash equivalents
held
(1,716,199)
4,907,896
Cash and cash equivalents at the beginning of the
period
4,926,958
19,062
Cash and cash equivalents at the end of the period
4
3,210,759
4,926,958
P a g e | 21
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) General information
The principal accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied, unless otherwise stated. The financial statements are for
Okapi Resources Limited and its controlled entity.
The financial statements are presented in the Australian currency.
Okapi Resources Limited is a Company limited by shares, domiciled and incorporated in Australia. The
financial statements were authorised for issue by the directors on 25 September 2019. The directors have
the power to amend and reissue the financial statements.
(b) 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 and the Corporations
Act 2001. Okapi Resources Limited is a for-profit entity for the purpose of preparing the financial statements.
Historical cost convention
These financial statements have been prepared on an accrual basis under the historical cost convention.
Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented
in Australian dollars, unless otherwise noted.
New standards and interpretations adopted in the 2019 financial year
The Company has adopted AASB 15 Revenue from Contracts with Customers and AASB 9 Financial
Instruments which became effective for financial reporting periods commencing on or after 1 January 2018.
(i)
AASB 15 Revenue from contracts with customers
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue related
Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue to be recognised at an amount that reflects the consideration to which
an entity expects to be entitled in exchange for transferring goods or services to a customer.
The Group has applied the new Standard effective from 1 July 2018 using the modified retrospective
approach. Under this method, the cumulative effect of initial application is recognised as an adjustment to
the opening balance of retained earnings at 1 July 2018 and comparatives are not restated.
The adoption of AASB 15 does not have a significant impact on the Group as the Group does not currently
have any revenue from customers.
(ii)
AASB 9 Financial Instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for
annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting
for financial instruments: classification and measurement, impairment, and hedge accounting.
As a result of adopting AASB 9 Financial Instruments, the Group has amended its financial instruments
accounting policies to align with AASB 9. AASB 9 makes major changes to the previous guidance on the
classification and measurement of financial assets and introduces an ‘expected credit loss’ model for
impairment of financial assets.
P a g e | 22
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
There were no financial instruments which the Group designated at fair value through profit or loss under
AASB 139 that were subject to reclassification. The Board assessed the Group’s financial assets and
determined the application of AASB 9 does not result in a change in the classification of the financial
instruments.
The adoption of AASB 9 does not have a significant impact on the financial report.
New and revised Accounting Standards for Application in Future Periods
AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2019.
This Standard supersedes AASB 117 Leases, Interpretation 4 Determining whether an Arrangement
contains a Lease, AASB interpretation 115 Operating Leases-Incentives and AASB interpretation 127
Evaluating the Substance of Transactions Involving the Legal Form of lease. AASB 16 sets out the principles
for the recognition, measurement, presentation and disclosure of leases and requires lessees to account
for all leases under a single on-balance sheet model similar to the accounting for finance leases under AASB
117.
The key features of AASB 16 are as follows:
-Lessees are required to recognise assets and liabilities for all leases with a term of more than 12 months,
unless the underlying asset is of low value.
-A lessee measures right-of-use assets similarly to other non-financial assets and lease liabilities similarly to
other financial liabilities.
-Assets and Liabilities arising from the lease are initially measured on a present value basis. The
measurement includes non-cancellable lease payments (including inflation-linked payments), and also
includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option
to extend to lease, or not to exercise an option to terminate the lease.
-AASB 16 contains disclosure requirements for leases.
(i) Lessor accounting
-AASB 16 substantially carries forward the lessor accounting requirements in AASB 117. Accordingly, a
lessor continues to classify its leases as operating leases or finance leases, and to account for those two
types of leases differently.
-AASB 16 also requires enhanced disclosures to be provided by lessors that will improve information
disclosed about a lessor’s risk exposure, particularly to residual value risk.
Estimated impact of AASB 16 on the Group when the standard is applied
Due to the adoption of AASB 16, the Group’s operating profit will improve, while its interest expense will
increase This is due to the change in the accounting for expenses of leases that were classified as operating
leases under AASB 117.
(ii) Other standards not yet applicable
There are no other standards that are not yet effective and that would be expected to have a material impact
on the entity in the current or future reporting periods and on foreseeable future transactions.
P a g e | 23
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
(c) Principals of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Okapi
Resources Limited (“Company” or “Parent Entity”) as at 30 June 2019 and the results of all subsidiaries
for the year. Okapi Resources Limited and its subsidiaries together are referred to in this financial report
as the Group or the consolidated entity.
Subsidiaries are entities the parent controls when it 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 over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de-
consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred.
(i) Subsidiaries (continued)
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of comprehensive income, statement of changes in equity and statement of financial position
respectively.
(ii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognised in a separate reserve within equity
attributable to owners of Okapi Resources Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. The
fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest
as an associate, jointly controlled entity or financial asset. In addition, any amounts previously recognised
in other comprehensive income in respect of that entity are accounted for as if the Group had directly
disposed of the related assets or liabilities. This may mean that amounts previously recognised in other
comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or associate is reduced but joint control or significant
influence is retained, only a proportionate share of the amounts previously recognised in other
comprehensive income are reclassified to profit or loss where appropriate.
These accounting policies are consistent with Australian Accounting Standards and with International
Financial Reporting Standards.
P a g e | 24
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
(d) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the full Board of Directors.
(e) Revenue recognition
Revenue from contract(s) with customers
Revenue is recognised at an amount that reflects the consideration to which the group is expected to be
entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the consolidated entity: identifies the contract with a customer; identifies the performance obligations in
the contract; determines the transaction price which takes into account estimates of variable
consideration and the time value of money; allocates the transaction price to the separate performance
obligations on the basis of the relative stand-alone selling price of each distinct good or service to be
delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that
depicts the transfer to the customer of the goods or services promised.
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on
the financial assets
(f) Financial instruments
Classification of financial instruments
The Group classifies its financial assets into the following measurement categories:
•
those to be measured at fair value (either through other comprehensive income, or through profit or
loss); and
those to be measured at amortised cost.
•
The classification depends on the Group’s business model for managing financial assets and the
contractual terms of the financial assets' cash flows.
The Group classifies its financial liabilities at amortised cost unless it has designated liabilities at fair value
through profit or loss or is required to measure liabilities at fair value through profit or loss such as derivative
liabilities.
Debt instruments
Investments in debt instruments are measured at amortised cost where they have:
•
contractual terms that give rise to cash flows on specified dates, that represent solely payments of
principal and interest on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash
flows.
•
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and
subsequently measured at amortised cost. The measurement of credit impairment is based on the three-
stage expected credit loss model described below regarding impairment of financial assets.
Financial instruments designated as measured at fair value through profit or loss
Financial instruments held at fair value through profit or loss are initially recognised at fair value, with
transaction costs recognised in the income statement as incurred. Subsequently, they are measured at
fair value and any gains or losses are recognised in the income statement as they arise.
P a g e | 25
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
Where a financial asset is measured at fair value, a credit valuation adjustment is included to reflect the
credit worthiness of the counterparty, representing the movement in fair value attributable to changes in
credit risk.
A financial liability may be designated at fair value through profit or loss if it eliminates or significantly
reduces an accounting mismatch or:
•
•
if a host contract contains one or more embedded derivatives; or
if financial assets and liabilities are both managed and their performance evaluated on a fair value
basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through profit or loss, the movement in fair value
attributable to changes in the Group’s own credit quality is calculated by determining the changes in credit
spreads above observable market interest rates and is presented separately in other comprehensive
income.
Impairment of financial assets
The 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 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.
Where there has not been a significant increase in exposure to 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 has become credit impaired or where it is determined that credit 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.
(f) Financial instruments (continued)
Recognition and derecognition of financial instruments
A financial asset or financial liability is recognised in the balance sheet when the Group becomes a party
to the contractual provisions of the instrument, which is generally on trade date. Loans and receivables
are recognised when cash is advanced (or settled) to the borrowers.
Financial assets at fair value through profit or loss are recognised initially at fair value. All other financial
assets are recognised initially at fair value plus directly attributable transaction costs.
The Group derecognises a financial asset when the contractual cash flows from the asset expire or it
transfers its rights to receive contractual cash flows from the financial asset in a transaction in which
substantially all the risks and rewards of ownership are transferred. Any interest in transferred financial
assets that is created or retained by the Group is recognised as a separate asset or liability.
A financial liability is derecognised from the balance sheet when the Group has discharged its obligations,
or the contract is cancelled or expires.
Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the
Group has a legal right to offset the amounts and intends to settle on a net basis or to realise the asset
and settle the liability simultaneously.
P a g e | 26
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
(g) Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the countries where the Group’s subsidiaries and associates operate
and generate taxable income. Management periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability
in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have
been enacted or substantially enacted by the reporting date and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
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 differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount
and tax bases of investments in controlled entities where the parent entity is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable
future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.
(h) Exploration, evaluation and development expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an
exploration and evaluation asset in the year in which they are incurred where the following conditions are
satisfied:
(i)
the rights to tenure of the area of interest are current; and
(ii)
at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached
a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or in relation to, the area of interest
are continuing.
P a g e | 27
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore,
studies, exploratory drilling, trenching and sampling and associated activities and an allocation of
depreciation and amortisation of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and evaluation costs where they
are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that
the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The
recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has
been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset
is increased to the revised estimate of its recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that would have been determined had no impairment
loss been recognised for the asset in previous years.
(i) Employee benefits
Wages and salaries, annual leave and long service leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled within 12 months of the reporting date are measured at the amounts expected to be
paid when the liabilities are settled. The liability for annual leave and long service leave is recognised in the
provision for employee benefits. All other short-term employee benefit obligations are presented as payables.
(j) Cash and cash equivalents
Cash reserves in the statement of financial position comprise cash on hand.
(k) 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
acquisition of the net asset or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount
of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables
in the balance sheet.
Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the taxation authority, are presented as
operating cash flows.
(l) Trade and other payables
Trade and other payables are carried at cost and represent liabilities for goods and services provided to the
Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to
make future payments in respect of the purchase of these goods and services.
(m) Contributed equity
Ordinary shares and options are classified as contributed 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.
P a g e | 28
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
Significant accounting judgements and key estimates
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other
various factors, including expectations of future events, management believes to be reasonable under the
circumstances.
Exploration expenditure
Exploration and evaluation costs are assessed on the basis of whether or not it is appropriate to carry as a
Deferred exploration asset – refer to (e) above.
(n) Share based payments
The Group provides benefits to employees (including directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled
transactions’), refer to note 11.
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the
date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes option
pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of options that, in the opinion of
the directors of the Group, will ultimately vest. This opinion is formed based on the best available information at
balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect
of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon a market condition.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for
the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and
new award are treated as if they were a modification of the original award.
Options over ordinary shares have also been issued as consideration for the acquisition of interests in tenements
and other services. These options have been treated in the same manner as employee options described above,
with the expense being included as part of exploration expenditure.
(o) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.
P a g e | 29
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
2.
FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk
and price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the Group.
Risk management is carried out by the full Board of Directors as the Group believes that it is crucial for all Board
members to be involved in this process. The Board, with the assistance of senior management as required, has
responsibility for identifying, assessing, treating and monitoring risks and reporting to the Board on risk
management.
(a) Market risk
(i) Foreign exchange risk
The Group has minimal operations internationally and there are currently limited exposures to foreign exchange
risk arising from currency exposures.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the entity’s functional currency and net investments in foreign operations.
The Group has not formalised a foreign currency risk management policy, however it monitors its foreign currency
expenditure in light of exchange rate movements.
(ii) Price risk
Given the current level of operations, the Group is not exposed to price risk.
(iii) Interest rate risk
The Group is exposed to movements in market interest rates on cash and cash equivalents.
The proportional mix of floating interest rates and fixed rates to a maximum of six months fluctuate during the year
depending on current working capital requirements. The weighted average interest rate received on cash and
cash equivalents by the Group was 1.15%. (2018: 1.1%). Balance subject to fixed rates is nil. Balance subject to
variable rates is $3,210,759 and balances subject to zero rates is nil.
(b) Credit risk
The maximum exposure to credit risk at reporting date is the carrying amount (net of provision for impairment) of
those assets as disclosed in the statement of financial position and notes to the financial statements. The only
significant concentration of credit risk for the Group is the cash and cash equivalents held with financial institutions.
All bank deposits are held with the major Australian banks for which the Board evaluate credit risk to be minimal.
As the Group does not presently have any trade debtors, lending, significant stock levels or any other credit risk,
a formal credit risk management policy is not maintained.
(c) Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient
cash and marketable securities are available to meet the current and future commitments of the Group. Due to
the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit
facilities, with the primary source of funding being equity raisings. The Board of Directors constantly monitor the
state of equity markets in conjunction with the Group’s current and future funding requirements, with a view to
initiating appropriate capital raisings as required.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the Statement of
financial position. All trade and other payables are non-interest bearing and due within 12 months of the reporting
date.
P a g e | 30
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
(d) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. All financial assets and financial liabilities of the Group at the balance date are recorded at
amounts approximating their carrying amount.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short-term nature.
3.
INCOME TAX
(a) Income tax expense
Current tax
Deferred tax
2019
$
2018
$
-
-
-
-
-
-
(b) Numerical reconciliation of income tax expense to prima facie
tax payable
Loss from continuing operations before income tax expense
(1,071,307)
(1,147,328)
Prima facie tax benefit at Australian tax rate of 27.5% (2018:
27.5%)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Capital raising fees
Non-deductible expenses
Other allowable expenditure
Overseas projects income & expenses
Provisions
Tax effect of current year tax losses for which no deferred tax asset
has been recognised
Income tax expense
(c) Unrecognised deferred tax assets (i)
Capital raising costs
Carry forward tax losses
Gross deferred tax assets
(294,609)
(315,515)
(25,575)
27,500
(12,388)
49,009
(13,185)
(25,575)
9,553
(54,808)
23,833
16,138
(269,248)
(346,374)
269,248
346,374
-
-
73,149
624,690
697,839
98,725
355,441
454,166
(i) No deferred tax asset has been recognised for the above balance as at 30 June 2019 as it is not considered
probable that future taxable profits will be available against which it can be utilised.
P a g e | 31
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
4.
CURRENT - CASH AND CASH EQUIVALENTS
Cash at bank & on hand
Cash – at call deposits (i)
2019
$
2018
$
90,416
3,120,343
3,210,759
92,462
4,834,496
4,926,958
(i) At call deposits earn interest at floating rates based on daily bank deposit rates.
5.
CURRENT - TRADE AND OTHER RECEIVABLES
Prepayments
GST receivables
Sundry debtors (i)
Exploration advances
-
13,319
5,445
34,955
53,719
9,375
17,098
641
60,436
87,550
(i) Exploration advances & sundry debtors are non-interest bearing and have repayment terms
between 30 and 60 days.
6.
NON-CURRENT – FINANCIAL ASSETS
Financial assets at fair value through profit or loss:
Listed Shares
620,695
620,695
7.
NON-CURRENT – DEFERRED EXPLORATION & EVALUATION EXPENDITURE
Deferred exploration and evaluation – at cost (i)
Beginning of financial year/(period)
Tenement acquisition costs – issue of shares to
Mambasa vendors
Tenement acquisition costs - other
Exploration & evaluation costs for the year
Exploration & project due diligence costs written-off
End of financial year/(period)
594,161
-
-
334,457
(178,213)
750,405
-
-
-
100,000
128,220
452,607
(86,666)
594,161
(i) The Group has capitalised all costs associated with its 100% Crackerjack (Australia) and its earn-into
the Mambasa Project (DRC). The recoverability of the carrying amount of these exploration and
evaluation assets is dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of interest.
P a g e | 32
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
8.
NON-CURRENT – PROPERTY PLANT & EQUIPMENT
Office Equipment – at cost (i)
Cost
Accumulated depreciation
Net book amount
Reconciliation
2019
$
2018
$
59,940
(16,180)
43,760
31,924
(6,193)
25,731
A reconciliation of the carrying amounts of property, plant and equipment at the beginning and end
of the current financial period.
Property, Plant & Equipment
Carrying amount at beginning of the year
Additions
Disposal
Depreciation
Carrying amount at end of the year
25,731
30,000
(1,391)
(10,580)
43,760
-
31,924
-
(6,193)
25,731
9.
TRADE AND OTHER PAYABLES
Current
Trade payables (i)
Accruals and other payables (i)
2019
$
2018
$
58,768
37,024
95,792
39,618
92,943
132,561
(i) Trade and other payables amounts represent liabilities for goods and services provided to the Group
with respect to the financial period and which are unpaid. The amounts are unsecured and are usually
paid within 30 days of invoice date.
P a g e | 33
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
10.
ISSUED CAPITAL
Ordinary shares - fully paid
Total Share Capital
(a) Movements in share capital
Balance at beginning of year
Issued during the year:
Share issue - IPO
Mambasa vendor shares (non-
cash)
Placement
Share issue costs
Issue Price
($)
2019
Number
2019
$
2018
Number
2018
$
34,342,867
6,236,473
34,342,867
6,236,473
34,342,867
6,236,473
34,342,867
6,236,473
34,342,867
6,236,473
5,200,100
101,480
$0.20
$0.05
$0.70
-
-
-
-
-
-
-
-
25,000,000
5,000,000
2,000,000
2,142,857
-
100,000
1,500,000
(465,007)
Balance at the end of year
34,342,867
6,236,473
34,342,867
6,236,473
(b) Ordinary Performance rights on issue for the year
There were no Performance Rights issued during the year.
As at 30 June 2019, a total of 6,000,000 unlisted Performance Rights were outstanding. There were
issued in prior year to directors, employees and/or key consultants of the Group, and for which there
exists three Class each with specific performance hurdles:
Class A
No.
Class B
No.
Class C
No.
Total
No.
Opening – 1 July 2017
28 Sep 2017 - performance rights issued
on ASX listing (d)
21 Dec 2017 – performance rights issued
under plan (d) (e)
Closing – 30 June 2018
-
-
-
-
1,699,999
1,699,999
1,700,002
5,100,000
-
450,000
450,000
900,000
1,699,999
2,149,999
2,150,002
6,000,000
Closing – 30 June 2019
1,699,999
2,149,999
2,150,002
6,000,000
P a g e | 34
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
10. ISSUED CAPITAL (CONTINUED)
(c) Performance rights – Vesting Conditions
The Performance Rights shall vest upon satisfaction of the following milestones:
Class A - the Company achieving and maintaining a market capitalisation of $12m or more for a continuous
period of 30 days on or before 31 December 2021, and the vesting condition was met on 14 December
2017. No exercise of these performance rights has been received as at the date of this report.
Class B - the Company achieving and maintaining a market capitalisation of $18m or more for a continuous
period of 30 days on or before 31 December 2021.
Class C - the Company achieving and maintaining a market capitalisation of $24m or more for a
continuous period of 30 days on or before 31 December 2021
(d) Performance Rights Plan
The Incentive Performance Rights Plan, was approved by shareholders at the 2017 AGM, held in
November 2017.
(e) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
Company in proportion to the number of and amounts paid on the shares held. On a show of hands every
holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a
poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
(f) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready
access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of
the Group’s capital risk management is the current working capital position against the requirements of
the Group to meet exploration programmes and corporate overheads. The Group’s strategy is to ensure
appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required.
The working capital position of the Group at 30 June 2019 and 30 June 2018 are as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
2019
$
2018
$
3,210,759
4,926,958
53,719
(95,792)
78,175
(132,561)
3,168,686
4,872,572
P a g e | 35
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
11. RESERVES & ACCUMULATED LOSSES
(a) Reserves
Share based payments reserve (i)
Movements:
Share based payments reserve
Balance at the beginning of the year
Share based payments (performance rights) – under IPO
prospectus
Share based payments (performance rights) – under PR plan
Balance as at the end of the year
(b) Accumulated losses - movements
Balance at beginning of year
Net loss for the year
Balance at end of year
2019
$
2018
$
593,170
440,155
440,155
-
153,015
593,170
-
404,088
36,067
440,155
(1,174,790)
(1,071,307)
(2,246,097)
(27,462)
(1,147,328)
(1,174,790)
(c) Share based payments – performance rights expense for the period
Class A
Class B
Class B
Class C
Class C
Number Issued (No.)
1,699,999
1,699,999
450,000
1,700,002
450,000
Grant Date
28-Sep-2017
28-Sep-2017 21-Dec-2017
28-Sep-2017 21-Dec-2017
Expiry/Amortisation Date
14-Dec-2017¹
31-Dec-2021 31-Dec-2021
31-Dec-2021 31-Dec-2021
Volatility percentage (%)
100%
100%
100%
100%
100%
Risk free rate (%)
1.5%
1.5%
1.5%
1.5%
1.5%
Underlying Fair Value on Grant ($)
$0.20
$0.1112
$0.3187
$0.1007
$0.2958
Total Fair Value ($) – Life of Right
$340,000
$189,040
$143,415
$171,190
$133,110
Total Fair Value ($) – Expensed 30
June 2019
-
$44,679
$35,854
$40,461
$32,021
¹ The vesting condition achieved on 14 December 2017 (Note 10 (d))
12. CONTINGENT LIABILITIES
The Group does not have any contingent liabilities as at reporting date.
$153,015
P a g e | 36
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
13. COMMITMENTS
(a) Exploration commitments
The Group has certain commitments to meet minimum expenditure on the mineral assets it has an interest
in or an option to earn an interest in.
2019
$
2018
$
Annual commitment Crackerjack Project – Western Australia
Less than one year (i)
15,000
10,000
Annual contractual commitment Mambasa Project, DRC
Less than one year (ii)
Greater than one and less than three years (ii)
-
746,288
-
676,498
13. COMMITMENTS (CONTINUED)
(i) Okapi, through its wholly owned subsidiary Panex Resources WA Pty Ltd is the 100% owner of the
tenement. In the current financial year, minimum expenditure commitments were far exceeded with
direct expenditure of $45,048 (2018:$171,114).
(ii) The Company has contractual exploration commitments under the Mambasa Joint Venture Agreement
(“Agreement”) between the Company and Kalubamba SARL and Medidoc FZE. Since entering into this
Agreement, Okapi has spent direct expenditures of $229,592 (approximately USD$172,194) in the
Mambasa Project and enabled it to meet its Phase 1 contractual commitment of USD$150,000. For
Okapi to acquire a 70% in the Mambasa Project, it must next have exploration expenditure of up to
USD$500,000 on or before 30 June 2021 (Refer 14 (a)). As at 30 June 2019, Okapi has not met this
commitment to earn 70% in the Mambasa Project.
14.
INTEREST IN JOINT VENTURES
Mambasa Project – Democratic Republic of Congo (“DRC”)
Since entering into the Mambasa Joint Venture Agreement, Okapi completed the Phase 1 minimum
expenditure obligations, being USD $150,000.
As at the date of this report, Okapi has commenced the Phase 2 stage but yet to complete the Phase 2.
Phase 2 – to acquire a 70% Interest in the Mambasa Project:
(a) Okapi must fund as sole contributor an aggregate Expenditure of up to US$500,000 before 30 June
2021;
(b) produce a JORC compliant report outlining an indicated and inferred resource in excess of 500,000
ounces of gold at the Tenements (Resource 1); and
(c) within 14 days of the announcement of Resource 1 on the ASX:
issue 1,000,000 fully paid ordinary shares to Kalubamba; and
(i)
(ii) pay US$50,000 to Kalubamba.
P a g e | 37
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
Phase 2 – Larger Resource:
If Okapi announces an indicated & inferred resource in excess of 1,000,000 ounces of gold at the
Tenements Resource 2, then Okapi must;
(a) within 14 days of the announcement of Resource 2 on the ASX:
issue a further 1,000,000 fully paid ordinary shares to Kalubamba; and
(i)
(ii) pay a further US$100,000 to Kalubamba.
Phase 3 – Decision to Mine
To retain its 70% Interest and having completed obligations under Phases 1 and 2, Okapi must;
(a) fund as sole contributor the production of a Definitive Feasibility Study on or before 31 December
2023; and
(b) within 14 days of the delivery of the Definitive Feasibility Study to Okapi:
issue 2,000,000 Okapi Shares to Kalubamba; and
(i)
(ii) pay US$250,000 to Kalubamba.
15. DIVIDENDS
No dividends were paid or recommended for payment during the financial year.
16. REMUNERATION OF AUDITORS
2019
$
2018
$
During the year the following fees were paid or payable for
services provided by the auditor of the parent entity, its related
practices and non-related audit firms:
(a) Audit services
Butler Settineri (Audit) Pty Ltd - audit and review of financial
reports
- Statutory audit – Okapi Resources Limited
19,218
20,076
Total remuneration for audit services
19,218
20,076
P a g e | 38
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
17. RELATED PARTY TRANSACTIONS
(a) Parent entity
Okapi Resources Limited (ASX Code: OKR)
(b) Subsidiaries
Interests in subsidiaries are set out in note 18.
(c) Transactions with related parties
Transactions between related parties are on commercial terms and conditions, no more favourable than
those available to other parties unless otherwise stated. As at reporting date the following amounts were
payable to the directors of the Company and included to Trade and other creditors (Note 9)
Mr. Jinju (Raymond) Liu
Mr. Klaus Eckhof
Mr. Nigel Ferguson
Mr. Michael Montgomery
18. SUBSIDIARIES
2019
$
2018
$
15,000
20,000
-
-
-
-
-
-
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiary in accordance with the accounting policy described in note 1(c):
Name
Country of
Incorporation
Class of Shares
Equity Holding¹
Panex Resources WA Pty Ltd
Australia
Ordinary
2019
2018
%
100
%
100
¹The proportion of ownership interest is equal to the proportion of voting power held.
P a g e | 39
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
19. STATEMENT OF CASH FLOWS
(a) Reconciliation of net loss after income tax to net cash outflow from
operating activities
Net loss for the year
Exploration expenditure capitalised
Depreciation of non-current assets
Net loss on available for sale asset
Share based payments – performance rights
Change in operating assets and liabilities
(Increase)/decrease in trade, other receivables and assets
Increase/(decrease) in trade and other payables
2019
$
2018
$
(1,071,307)
(1,147,328)
(156,244)
(346,881)
10,580
100,000
153,015
6,193
-
440,155
25,847
(36,770)
(64,840)
70,521
Net cash outflow from operating activities
(974,879)
(1,042,180)
(b) Non-cash investing and financing activities
There we no non-cash investing or financing transactions for the financial year.
20. LOSS PER SHARE
2019
$
2018
$
(a) Reconciliation of earnings used in calculating loss per share
Loss attributable to the owners of the Company used in calculating the
loss per share
(1,071,308)
(1,147,328)
(b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share
34,342,867
27,445,521
Number of
shares
Number of
shares
21. EVENTS SUBSEQUENT TO REPORTING DATE
Since the end of the financial year and to the date of this report, no matter or circumstance has arisen which
has significantly affected, or may significantly affect, the operations of the Group, the results of those
operations or the state of affairs of the Group in the subsequent financial year.
P a g e | 40
Okapi Resources Limited
Notes to the Financial Statements For the year ended 30 June 2019
22. SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. For management purposes,
the Group has identified one reportable operating segment being exploration activities undertaken in two geographical segments being Australasia and Africa. These segments include
the activities associated with the determination and assessment of the existence of commercial economic reserves, from the Group’s mineral assets in the sole geographic location.
Segment performance is evaluated based on the operating profit and loss and cash flows and is measured in accordance with the Group’s accounting policies.
Australasia
Africa
Consolidated Total
2019
$
2018
$
Segment revenue
Reconciliation of segment revenue to total revenue before tax:
Interest revenue
Segment results
Reconciliation of segment result to net loss before tax:
Share based payments – performance rights
Other corporate and administration
Net loss before tax
-
-
-
-
-
-
-
-
-
-
2019
$
-
-
2018
$
-
-
2019
$
-
2018
$
-
46,077
43,559
(178,213)
(86,666)
(178,213)
(86,666)
-
-
-
-
153,015
(786,156)
(440,155)
(664,066)
(1,071,307)
(1,147,328)
Segment operating assets
244,351
199,303
541,009
455,294
785,360
654,597
Reconciliation of segment operating assets to total assets:
Other corporate and administration assets
Total assets
3,893,978
4,679,338
4,979,803
5,634,400
Segment operating liabilities
242
726
2,332
22,477
2,574
23,203
Reconciliation of segment operating liabilities to total liabilities:
Other corporate and administration liabilities
Total liabilities
93,217
95,791
109,358
132,561
P a g e | 41
Okapi Resources Limited
Directors’ Declaration For the year ended 30 June 2019
In the directors’ opinion:
(a) the financial statements and notes set out on pages 18 to 41 are in accordance with the Corporations Act
2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
(ii) giving a true and fair view of the company’s and the consolidated entity’s financial position as at 30 June
2019 and of their performance for the financial year ended on that date;
(b) the audited remuneration disclosures set out on the pages 10 to 14 of the directors' report complies with
section 300A of the Corporations Act 2001;
(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; and
(d) a statement that the attached financial statements are in compliance with Australian Accounting Standards
has been included in the notes to the financial statements.
The directors have been given the declarations by the chief executive officer and chief financial officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
On behalf of the Board.
Nigel M Ferguson
Director
25 September 2019
Perth, Western Australia
P a g e | 42
Okapi Resources Limited
Independent Audit Report For the period ended 30 June 2019
P a g e | 43
Okapi Resources Limited
Independent Audit Report For the period ended 30 June 2019
P a g e | 44
Okapi Resources Limited
Independent Audit Report For the period ended 30 June 2019
P a g e | 45
Okapi Resources Limited
Independent Audit Report For the period ended 30 June 2019
P a g e | 46
Okapi Resources Limited
Independent Audit Report For the period ended 30 June 2019
P a g e | 47
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2019
(a) Shareholding
The distribution of members and their holdings of equity securities as at 9 October 2019 is as follows:
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
The number of shareholders holding less than a
marketable parcel of shares are:
(b) Twenty largest shareholders
Ordinary shares
Number of holders
Number of shares
20
89
98
220
41
468
41
6,229
262,748
849,935
7,135,462
27,788,492
36,042,866
36,964
The names of the twenty largest holders of quoted ordinary shares are as follows:
Listed ordinary shares
Kalubamba SARL
JP Morgan Nominees Australia PL
1 McNeil Nominees Pty Ltd
2 Havelock Mining Investment Ltd
3
Ridgeback Holdings Pty Ltd
4 Mr Klaus Eckhof
5 Mr David Samuel Nour
6
7 Windhager Holdings AG
8 HSBC Custody Nominees (Australia) Limited
9
10 Medidoc Fze
11 10 Bolivianos PL
12 Mr Colin Weekes
13
Ironside PL
14 Granet Superannuation and Investment Services PL
15 Hongze Group Ltd
16 Mr Stephen Baxter and Mrs Sarah-May Baxter
17 Mr Mark Gasson
18 Buckingham Investment Financial Services Pty Ltd
19 BNP Paribas Nominees PL
20 Mr Christopher Hooper and Mrs Moe Hooper
(c) Substantial shareholders
McNeil Nominees Pty Ltd
Havelock Mining Investment Ltd
Ridgeback Holdings Pty Ltd
Mr Klaus Eckhof
(d) On-Market Buy-back
There is no current on-market buy-back.
Number of shares
4,907,814
4,799,143
2,654,901
1,833,333
1,500,000
1,412,650
1,200,000
1,080,851
1,000,000
1,000,000
933,333
898,134
430,000
354,166
300,000
300,000
283,597
235,000
209,489
185,000
25,517,411
Percentage of
ordinary shares
13.62%
13.32%
7.37%
5.09%
4.16%
3.92%
3.33%
3.00%
2.77%
2.77%
2.59%
2.49%
1.19%
0.98%
0.83%
0.83%
0.79%
0.65%
0.58%
0.51%
70.79%
Number of Shares
4,907,814
4,799,814
2,654,901
1,833,333
P a g e | 48
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2019
(e) Unquoted equity securities – performance rights
Class Performance Hurdle
Number on issue Number of Holders
B
C
The Company achieving and maintaining a market capitalisation of
$18m or more for a continuous period of 30 days on or before 31
December 2021
2,149,999
The Company achieving and maintaining a market capitalisation of
$24m or more for a continuous period of 30 days on or before 31
December 2021
2,150,002
9
9
(f) Voting rights
The voting rights attaching to each class of equity securities are set out below:
(i) Ordinary shares
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(ii) Performance rights
These securities have no voting rights.
(g) Application of Funds
During the financial year, Okapi Resources Limited confirms that it has used its cash and assets (in a form readily
convertible to cash) in a manner which is consistent with the Company’s business objectives.
(h) Corporate Governance
The Board of Okapi Resources Limited is committed to Corporate Governance. The Board is responsible to its
Shareholders for the performance of the Company and seeks to communicate with Shareholders. In accordance
with ASX Listing Rule 4.10.3, the Company has elected to disclose its Corporate Governance policies and its
compliance with them on its website, rather than in the Annual Report.
Accordingly, information about the Company's Corporate Governance practices is set out on the Company's
website at https://okapiresources.com/corporate-governance.
(i) Tenement Schedule
Project/Location
Country
Tenement(s)
Percentage
held/earning
Crackerjack
Mambasa Project
Australia
DRC, Africa
E80/4675
PE364 & PE480
100%
0%¹
1 Okapi is earning an interest in the Mambasa Joint Venture Agreement (Refer to Note 14).
P a g e | 49