ANNUAL REPORT
For the year ended
30 June 2022
okapiresources.com
ASX:OKR | OTCQB:OKPRF
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2022
Okapi’s clear strategy is to become a
new leader in North American carbon-
free nuclear energy by assembling a
portfolio of high-quality uranium
assets through accretive acquisitions
and exploration.
Corporate Directory
Company Details
Okapi Resources Limited
ABN 21 619 387 085
Directors
Non-Executive Chairman
Mr Brian Hill
Managing Director
Mr Andrew Ferrier
Executive Director
Mr Leonard Math
Non-executive Director
Mr Benjamin Vallerine
Non-executive director
Mr Fabrizio Perilli
Company Secretary
Mr Leonard Math
Registered Office
London House
Level 3, 216 St Georges Terrace
Perth Western Australia 6008
Telephone: +61 (8) 6117 9338
Postal Address
PO Box 376
West Perth Western Australia 6872
Website
www.okapiresources.com
Auditors
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road,
Subiaco Western Australia 6008
Share Registry
Advanced Share Registry Limited
110 Stirling Highway,
Nedlands Western Australia 6009
Stock Exchange Listing
Australian Securities Exchange Limited
(ASX Code OKR, OKRO)
(OTCQB Code OKPRF)
P a g e | 1
Contents
01
Corporate
Directory
03
Chairman’s Letter
04
Director's Report
Managing
05
Operations
Review of
18
Directors’ Report
30
Declaration
Auditor’s
Independence
31
Consolidated
Statement of
Comprehensive
Income
32
Financial Position
Consolidated
Statement of
33
Consolidated
Statement of
Changes in Equity
34
Consolidated
Statement of Cash
Flows
35
Notes to the
Financial
Statements
61
Independent
Auditor’s Report
67
ASX Additional
Information
P a g e | 2
Chairman’s Letter
Dear shareholder
The 2022 financial year was a pivotal year for Okapi Resources, where the company shifted its core focus from
Australian gold to North American uranium.
The company’s new strategy is to answer North America’s growing call for locally produced uranium. There are
many signs the US Government is now embracing carbon-free nuclear energy to achieve its goal of a net zero
carbon economy by 2050. A new Inflation Reduction Bill, which includes major tax credits to any carbon-free
electricity generator, could be game-changing for the uptake of nuclear energy in the States while the Biden
administration is currently pushing lawmakers to support a $4.3 billion plan to buy enriched uranium directly from
domestic producers to wean the US off Russian imports of the nuclear-reactor fuel. This follows the US Government
allocating US$6 billion to aid nuclear reactors that are in danger of closing. Before that, President Trump’s 2021
budget included annual expenditure of US$150 million for 10 years to create a US$1.5 billion strategic uranium
reserve. Meanwhile, the USA Nuclear Energy Institute, the trade association for the country’s 60 nuclear plant
operators, says it hopes to nearly double their output over the next three decades.
The US Government, like many countries around the world such as Japan, China, the UK, and Germany, is
committed to shifting away from fossil fuel electricity generation to those that release minimal greenhouse gases.
Nuclear energy is the clear frontrunner for replacing fossil fuels over time and is hard to ignore in any national
energy mix. In addition to being the most reliable baseload, it’s clean, safe, and very energy dense. One uranium
pellet, the size of a gummy bear, is the equivalent of one tonne of coal or 17,000 cubic feet of natural gas.
Okapi’s confidence in the future of nuclear energy in North America continues to increase and in the space of one
year the company has established a strategic uranium position in both the United States and Canada. In the US,
our uranium projects include Tallahassee and Maybell in Colorado, and Rattler in Utah which covers the historic
Rattlesnake and Sunnyside uranium mines. Our US portfolio hosts a total JORC Mineral Resource of 49.8 million
pounds. In November, the company acquired six exploration assets in Canada’s Athabasca Basin, the world’s
premier uranium district.
The appointment of experienced mining executive Andrew Ferrier as Okapi’s new Managing Director in December
2021 was a major win for the execution of the company’s uranium strategy. Andrew has significant knowledge and
understanding of the North American uranium space having been heavily involved in the development, permitting
and sale of the Reno Creek ISR Uranium project in Wyoming, USA. Reno Creek is now the largest permitted
preconstruction ISR project in the USA. I’m pleased that Andrew and the Board appointed me as Okapi’s Chairman
in February. I am a very strong believer in Okapi and will work tirelessly to apply my mining background and US
experience to realising the company’s terrific potential.
Yours faithfully
Brian Hill
Executive Chairman
P a g e | 3
Managing Director’s Report
Okapi’s vision to establish a dominant uranium position in North America became clearer during the 2022 financial
year as nuclear generation emerged as a significant item on the US Government’s energy agenda.
The year opened with the transformational acquisition of our flagship Tallahassee Uranium Project in Colorado and
closed with field exploration programs across two of our six Athabasca projects in Canada. In between these two
major milestones were a series of major achievements that have left Okapi in a very strong position.
US acreage position hosts significant uranium resource
The Tallahassee Uranium Project hosts a total JORC Mineral Resource of 49.8 million pounds (Mlbs) of uranium
(at 540ppm U3O8) across six significant deposits Noah, Taylor, Boyer, Hansen, Picnic Tree and High Park. The
project lies within a district that has historically produced 435,000 pounds of uranium at an average grade of
2,500ppm. More than 2,200 holes have been drilled across the district for more than 350,000m returning a vast
library of exploration data. Okapi has received Colorado State approval to drill up to 18,200m at Tallahassee over
approximately 60 holes.
As part of the Tallahassee transaction, Okapi also secured the Rattler Uranium Project in Utah which includes the
historical high-grade Rattlesnake uranium mine. Rattler’s acreage was later increased via the acquisition of the
Sunnyside Uranium Mine in September 2021. Rattler and Sunnyside are located within the La Sal Uranium District,
85km north of the White Mesa Uranium/ Vanadium mill – the only operating conventional uranium mill in the USA.
In February, the company expanded its Colorado acreage position, staking 468 claims covering 3,600 hectares
to acquire the Maybell Uranium Project. It lies within a district located in north-western Colorado, that has produced
5.3Mlbs of uranium at an average grade of 1,300ppm U3O8.
Major foothold secured in Canada’s world premier Athabasca Basin
In January, Okapi announced it had closed the acquisition of six uranium projects in Canada’s Athabasca Basin,
the world’s premier uranium district. Following satellite image data analysis over the Newnham and Perch projects,
an extensive field exploration program began in June consisting of prospecting, outcrop, and boulder sampling.
The purpose is to generate high-priority targets ahead of a planned North American winter drilling program.
At Middle Lake, Okapi is currently converting all historical exploration data to digital format to generate viable drill
targets for testing. Permits have been obtained to drill up to 24 holes for a total of 10,000m of drilling.
Enmore Gold Project in Australia remains a key focus
Despite transitioning our focus away from Australian gold to North American uranium, the Enmore Gold Project in
New South Wales remains as a key project for Okapi. There is significant exploration potential at Enmore, with 36
identified mineral occurrences, the majority of which are untested by deep drilling, modern geophysics or other
targeting methods applied across the project. A diamond drilling program started at Enmore in June. The primary
objective is to follow up drilling at the Sunnyside Prospect, which returned promising results in Okapi’s maiden
drilling program completed in September 2021.
A lot of ground was covered over FY2022 as we assembled a world class uranium portfolio in the world’s premier
uranium basins. The next 12 months offer incredible upside as we now continue to explore, drill and advance our
acreage while evaluating new opportunities to expand it. The Board’s strong view is that Okapi remains well
undervalued compared to its peers given the size of our resource, the strength of our assets, and proven uranium
experience.
P a g e | 4
Okapi Resources Limited
Review of Operations
Review of Operations
Okapi Resources’ growth strategy is to answer North America’s growing call for locally produced uranium. The
USA is the world's largest producer of nuclear power, accounting for more than 30% of worldwide nuclear
generation of electricity, while Canada’s Athabasca Basin is responsible for 20% of global supply.
Driven by the difficulty of meeting clean energy goals and by surging electricity demands, a growing number of
political leaders led by the Biden administration are taking a fresh look at nuclear power — both extending the life
of existing reactors and building new ones. Moreover, in the US, the conflict in Ukraine has brought the discussion
on security of supply to the fore for uranium.
Over the past 12 months, Okapi has established strong strategic positions in North America’s including in the
Tallahassee Creek Uranium District in Colorado, and Canada’s Athabasca Basin.
Tallahassee Uranium Project
Our flagship Tallahassee Uranium Project comprises five major uranium deposits in Colorado, USA with an overall
JORC Resource of 49.8Mlbs U3O8 (average grade of 540ppm).
Athabasca Uranium Portfolio
Okapi has six exploration projects in Canada’s Athabasca Basin, best known as the world’s leading source of high-
grade uranium.
Rattler Uranium Project
Located within the recognised La Sal Uranium District in Utah, the Rattler Project is located 85km north of Energy
Fuels Inc’s White Mesa Uranium/Vanadium mill in Utah – the only conventional uranium mill in the USA.
P a g e | 5
Okapi Resources Limited
Review of Operations
Maybell Uranium Project
The Maybell Uranium Project is situated in a recognised historical uranium mining district in Colorado USA, with
historical production of 5.3Mlbs of U3O8 (average grade, 1,300ppm).
Okapi also has a portfolio of Australian gold assets. Exploration activities have been concentrated at the Enmore
Gold Project in New South Wales.
Enmore Gold Project
Okapi’s Enmore Gold Project in New South Wales lies in the New England Fold Belt near the Hillgrove Gold Mine
(ASX:RVR) which has produced over 730,000oz of gold.
Lake Johnson Project
The Lake Johnston Project consists of Okapi’s 100% owned tenement E63/2039 and a joint venture with Charger
Metals NL in relation to E63/1903. The tenements are located in the central Lake Johnston Greenstone Belt,
approximately 450km east of Perth. In August 2022, the Company completed the sale of tenement E63/2039 to
Nordau Pty Ltd.
P a g e | 6
Okapi Resources Limited
Review of Operations
Tallahassee Uranium Project
Colorado, USA
The Tallahassee Uranium Project has a total JORC Mineral Uranium Resource of 49.8 million pounds (42.0Mt
@ 540ppm U3O8 using a 250ppm cut-off grade) across five deposits.
Located 140km southwest of Denver and 30km northwest of Cañon City, Colorado, USA, the Tallahassee
Uranium Project encompass the Boyer, Noah, Taylor, Hansen, and Picnic Tree uranium deposits, as well as
mining claims that cover a portion of the High Park Uranium Deposit.
The Tallahassee Project was secured following the acquisition of Tallahassee Resources Pty Ltd in August
2021 in a scrip and production royalty deal and included an option to acquire 100% of the Rattler Project in
Utah.
Following the acquisition, Okapi declared a maiden JORC 2012 Mineral Resource estimate for Tallahassee in
October 2021 of 27.6Mlbs of U3O8 at 490ppm U3O8. In April 2022, Okapi increased its resource at
Tallahassee to 49.8Mlbs U3O8 and the grade to 540ppm U3O8 following its decision to acquire a 51% interest
in the Hansen and Picnic Tree uranium deposits. The deal with STB Minerals LLC was closed in July 2022.
Okapi is focused on further expansion and consolidation in the region and has a clear strategy to expand
Tallahassee’s existing resource.
Uranium mineralisation was first discovered in the Tallahassee Creek area in 1954. Between 1954 and 1972
sixteen small open pit and underground mines operated, with total production of approximately 80,000 tonnes
of ore at an average grade of 2,500ppm U3O8, for 435,000 pounds U3O8. More than 2,200 holes have been
drilled in the district for more than 350,000m which provides a rich bank of exploration data.
Okapi received approval for its notice of intent to conduct prospecting application on its Taylor -Boyer deposits
from the Colorado Division of Reclamation, Mining and Safety. The approval will allow Okapi to drill up to 60
drill holes; The permit is valid through to 31 December 2027.
P a g e | 7
Okapi Resources Limited
Review of Operations
Athabasca Uranium Projects
Saskatchewan, Canada
Okapi has six advanced exploration tenements located in Canada’s Athabasca Basin, the world’s premier high-
grade uranium district responsible for 20% of global supply.
The Athabasca Uranium Projects were acquired from ALX Resources Corp in November 2021 in a deal that
consisted of a beneficial interest in five uranium projects, and an 80% interest in a sixth. Okapi paid
A$1,000,000 for the assets plus issued ALX with A$1,050,000 worth of fully paid ordina ry shares in Okapi.
Additionally, ALX was granted a 1.5% net smelter returns (NSR) royalty. Okapi may at any time acquire up to
50% of the NSR from ALX by payment to the vendor of C$1,000,000.
The Athabasca Basin is home to the world’s largest and highest-grade uranium mines including
Cameco’s McArthur River and Cigar Lake uranium mines which contain total mineral reserves of 165.6mlbs
@ 15.9% U3O8 and 391.9mlbs @ 6.9% U3O8, respectively.
Okapi’s Athabasca portfolio includes 75 granted mineral claims covering over 55,000 hectares (ha) located
along the margin of the Athabasca Basin or in the Carswell Impact Structure where depth to the unconformity
is relatively shallow being 300m or less and typically closer to 100m, making them ideal for targeting shallo w
high-grade uranium deposits.
During the June quarter, Okapi kicked off the company’s North American summer exploration program across its
exploration projects at Athabasca.
Okapi completed satellite image data analysis over the entire Newnham Lake and Perch Projects. This analysis
included synthetic aperture radar (SAR) data, multispectral Sentinel and Aster data. The data collected generated
a number of target areas. The targets are positioned across east-west structural corridors, and the intersection of
those with north-south and northeast-southwest trending faults.
Subsequent to the end of FY2022, Okapi started an extensive field exploration program at Newnham Lake and
Perch, which consists of prospecting, outcrop, and boulder sampling with potential soil and vegetation sampling
to help identify favourable structural scenarios suitable for hosting uranium mineralisation. Results will be utilised
from the satellite analysis and compilation work received from Axiom Exploration Group to assist exploration efforts
in specific areas of interest.
Newnham Lake Project (100%)
Newnham Lake consists of 14 claims totalling 16,940 ha and straddles the north-eastern margin of the
Athabasca Basin. Newnham Lake is underlain by a series of graphitic metapelites where several fault zones
have been identified along strike and cross-cutting the basement rocks. Multiple intercepts with grades
between 1,000ppm U3O8 and 2,000ppm U3O8 have been intersected in relatively shallow historical drilling
within a 25km folded and faulted conductive trend. Details of the historical drilling is currently being compiled
by Okapi. Importantly, the depth to the Athabasca Basin unconformity at Newnham Lake is approximately
100m deep mitigating the need to drill deep holes in order to discover either sandstone or basement hosted
uranium mineralisation.
Middle Lake Project (80%)
The Middle Lake Exploration Project adjoins the former Cluff Lake Mine which was operated by Orano
(formerly Areva), the French multinational nuclear fuel company, from 1980 to 2002 producing 64.2mlbs of
U3O8 @ 0.92% U3O8. Middle Lake is also located 10km north of Orano-UEX’s Shea Creek deposit (resources
of 96mlbs @ 1.3% U3O8), 75km north of NextGen’s Arrow Deposit (Resources of 337.4mlbs @ 1.8% U 3O8)
and 75km from Fission Uranium Corp’s Triple R Deposit (Resources of 135.1mlbs @ 1.8% U 3O8).
Boulder-trains with grades of up to 16.9% U3O8 have been discovered in the northern portion of the project.
In the southern area there are six sandstone boulders together that assayed between 0.32% and 3.7% U 3O8
with adjacent basement boulders assaying 8.95% and 1.72% U3O8.
P a g e | 8
Okapi Resources Limited
Review of Operations
Limited historical work has been undertaken to explore for deeper basement style mineralisation despite
extensive alteration, anomalous geochemistry and favourable rock types, with most historical drill holes
continuing less than 25m beyond the Athabasca unconformity. Historical exploration in the Newn ham Lake
Project area was largely undertaken prior to the understanding of the importance of basement-hosted uranium
deposits.
During the June quarter, Okapi received from the Ministry of Environment, Government of Saskatchewan, a Crown
Resource Land Work Authorization, an Aquatic Habitat Protection Permit, a Temporary Work Camp Permit, and
Forest Product Permit. Together these permits will allow the company to drill up to 10,000m in 24 drill holes at its
Middle Lake Uranium Project as well as conduct ground based geophysical surveys of up to 100-line kilometres.
The permit is valid through to October 2023.
Okapi’s immediate aim is to take the historic data and reinterpret and remodel the historic surface and drill data,
geochemistry and geophysics to provide targets for drill testing. This will be combined with new remote sensing
image interpretation currently underway that, when integrated with the historic, existing geophysical survey results,
will provide a structural framework that can be incorporated into the geologic modelling. The application of multi-
spectral satellite imaging to exploration at Middle Lake, and the enhanced software capacity now available, can
readily detect areas of alteration associated with uranium mineralisation. The targets generated from the geologic
model will then be followed by a potential diamond core drilling program that is likely to be conducted in the North
America winter of Q1 2023.
Perch Project (100%)
The Perch Project consists of one mining claim, totalling 1,682 ha and straddles the north-eastern margin of
the Athabasca Basin approximately 20km northeast of the Newnham Lake Project. The depth to the basement
contact is less than 100m. Historical exploration has highlighted a prospective 4km long conductive trend.
Two holes have been drilled into the trend with one of those holes returned 498ppm U 3O8 and anomalous Cu-
Ni-Zn, pathfinder elements for uranium mineralisation and the other returning grades of up to 504ppm U 3O8.
These intercepts have not been followed up with further drilling.
Lazy Edward Bay Project (100%)
The Lazy Edward Bay Project consists of 42 mining claims, totalling 11,263 ha and straddles the southern
margin of the Athabasca Basin. Lazy Edward is approximately 55km west of the Key La ke Mill (Cameco) and
55km east of the Centennial Uranium Deposit (Orano-Cameco). Historical drilling has returned grades of up
to 908ppm U3O8 with anomalous nickel, boron and other pathfinder elements. Lazy Edward is a large package
containing multiple conductive trends that are either poorly tested or untested.
Kelic Lake Project (100%)
The Kelic Lake Project contains 12 mining claims covering an area of 13,620 ha and straddles the southern
boundary of the Athabasca Basin. Kelic Lake Project is located approximately 65km east of NextGen’s Arrow
Deposit and Fission Uranium Corp’s Triple R Deposit. Kelic Lake has strong structural zones with known
uranium enrichment and clay alteration within drill holes. Conductive graphitic pelites are defined by
geophysics and confirmed by drilling. These pelites are crucial in the formation and hosting of unconformity
related uranium deposits. Geochemical and biogeochemical sampling have returned anomalous uranium
values. Irregularities in the depth to the unconformity as defined by drilling indicates structural complexities
that may be conducive to the concentration of metalliferous hydrothermal fluids.
Argo Project (100%)
The Argo Project consists of three contiguous mining claims totalling 6,975 ha, that covers a prospective area
between the Company’s Kelic Lake Project to the west and Cameco Corporation’s Centennial Uranium
Deposit and Dufferin Uranium Zone. Argo straddles the southern uranium margin where sandstone thickness
is less than 250m. A high-sensitivity airborne radiometric survey was flown in 2018 and identified several
areas of anomalous radioactivity, including certain spot anomalies that could represent the p resence of
radioactive boulders. Approximately half of the targets have been ground truthed with the discovery of
P a g e | 9
Okapi Resources Limited
Review of Operations
boulders considered highly anomalous in uranium. Follow up of this target and the remaining unchecked
radioactive targets was strongly recommended but has not been undertaken.
Acquisition, processing, analysis and interpretation of satellite image data including SAR and multispectral
Sentinel & Aster data has now been completed over the entire project areas at the Kelic Lake and Argo
Projects.
The results of the image analysis will be combined with historic exploration data and summary reports
generated with recommendations for follow-up surface exploration work to confirm drill targets. The surface
work will dominantly comprise geologic mapping and sampling as well as soil geochemistry. The results of
these investigations will then be geologically modelled to assist with the generation of drill programs.
P a g e | 10
Okapi Resources Limited
Review of Operations
Rattler Uranium Project
Utah, USA
Located within the La Sal Uranium District, Utah, Okapi’s Rattler Uranium Project includes the historical
Rattlesnake and Sunnyside uranium mines and is 85km north of White Mesa’s Uranium/ Vanadium mill – the only
operating conventional uranium mill in the USA.
The Rattler Project was secured as part of Okapi’s acquisition of Tallahassee Resources Pty Ltd in August
2021. Rattler’s project area includes the historical Rattlesnake open pit mine, which produced 1.6Mlbs of
U3O8 and 4.5Mlbs of V2O5 between 1948 until 1954. Within 15km of the Rattlesnake mine, the Pandora, La
Sal, Beaver, Energy Queen and Pine Ridge mines all operated during the 1970s until the early 1980s, with
ore from these mines processed at mills in Uravan, Moab and Blanding (now Energy Fuels’ White Mesa Mill).
In September 2021, Okapi announced it had increased its Rattler landholding, acquiring 100% of the historic
Sunnyside Uranium Mine, which comprises several small past-producing pits and adits where uranium was
mined in the early 1900s at grades reported to have been 1,500ppm U3O8 and 1.5% V2O5.
Exploration commenced at Rattler in November 2021, which involved a detailed review of historical workings,
geological mapping and rock chip sampling concentrated around the old Rattlesnake and Sunnyside
mines. Assays later showed the presence of exceptional uranium mineralisation with15 of 28 rock samples
reporting values greater than 1,000ppm U 3O8. Meanwhile 18 rock samples reported values greater than 5,000
ppm V2O5 (0.5% V2O5).
During the June quarter, Okapi received approval from the Bureau of Land Management (BLM) and the State of
Utah, Division of Oil, Gas and Mining for the Notice of Intent to conduct an RC drill program comprising 100
shallow drill holes.
In 2014, Energy Fuels reported that remaining resources at the Pandora, La Sal, Beaver, Energy Queen and
Redd Deposits comprise a total 4.5Mlbs U3O8 and 23.4Mlbs of V2O5.
P a g e | 11
Okapi Resources Limited
Review of Operations
Maybell Uranium Project
Colorado, USA
The Maybell Uranium Project is located in a recognised uranium district with historical production of 5.3 million
pounds of uranium (average grade 1,300ppm).
During the March quarter, Okapi completed the staking of 468 federal unpatented mining claims covering 3,600
ha to acquire the Maybell Uranium Project in Colorado, USA.
Located in Colorado, 5km east of Maybell and 40km west of Craig, Maybell covers a significant portion of the
Maybell mineralised trend, which includes the area of historical production and other known mineralised
occurrences and prospects.
Union Carbide operated a series of shallow open pits along a two-kilometre strike for an 11-year period
between 1954 and 1964, producing 4.3Mlb U3O8 at an average grade of 1,300ppm U3O8 before resuming
mining operations from 1976 until 1981, producing another 1.0Mlb U 3O8.
Based on the historical production and exploration data there is significant potential for the further delineation
and discovery of near surface uranium resources at Maybell.
P a g e | 12
Okapi Resources Limited
Review of Operations
Enmore Gold Project
New South Wales, Australia
The Enmore Gold Project is located in the New England Fold Belt, approximately 30km south of the regional centre
of Armidale in northern New South Wales. The operating Hillgrove Gold Mine (ASX:RVR) is located approximately
20km north of Enmore and has produced over 730,000oz of gold.
In July 2021, Okapi completed 10 drill holes for 1,257m of reverse circulation (RC) drilling at Enmore across
three prospects, Sunnyside East, Sunnyside West and Bora, and confirmed the potential for a very large,
shallow, open pittable, high-grade gold deposit at Enmore, with mineralisation from surface.
Following the drill campaign, Okapi elected to proceed with acquisition of Enmore from Providence Gold and
Minerals Pty Ltd after meeting minimum expenditure requirements pursuant to the Acquisition Agreement
announced to the ASX on 17 December 2020. As part of the transaction, the company made a Milestone 1
payment of $300,000 to vendors to be satisfied through the issue of Okapi shares.
In June 2022, the company announced the start of a diamond drilling program at Enmore. The primary
objective was to follow up RC drilling at the Sunnyside East prospect with a diamond drilling program which
remains open at depth and along strike.
There is significant exploration potential at Enmore, with 36 identified mineral occurrences – the majority of
which are untested by deep drilling, modern geophysics or other targeting methods applied across the
project. The mineralisation at Enmore generally comprises structurally controlled orogenic style gold (±
antimony) mineralisation.
P a g e | 13
Okapi Resources Limited
Review of Operations
Lake Johnston Project
Western Australia, Australia
The Lake Johnston Project consists of Okapi’s 100% owned tenement E63/2039 and a joint venture with Charger
Metals NL in relation to E63/1903. The tenements are located in the central Lake Johnston Greenstone Belt,
approximately 450km east of Perth.
In August 2021, Okapi announced a lithium target 2km in length at Lake Johnston had been generated from the
results of a prior soil program comprising 664 samples across a 200m x 50m grid. Gold anomalies were also
determined that provided confirmation and extension of historically-reported anomalism. Significantly, the
anomalism extended over 5km on E63/2039 along interpreted structures where they lie under shallow soil cover.
During the June quarter, Okapi announced it had entered into a binding agreement to dispose its interest in Lake
Johnston to Nordau Pty Ltd, a privately held company.
Originally, the total consideration under the Sale Agreement was up to $1.2 million which included a non-
refundable cash payment of $20,000 on signing the Sale Agreement and a further $130,000 cash upon completion
of the sale. The remaining consideration consisted of performance shares subject to certain milestones being
achieved.
Subsequent to the end of the financial year, Okapi agreed to retain (and not sell) its interest in the joint venture
with Charger Metals. Nordau will now only purchase tenement E63/2039 from Okapi. To account for the varied
terms of the sale, the cash consideration payable at completion was reduced to $50,000. Okapi will retain the non-
refundable $20,000 cash payment and remains entitled to the issue of three performance share tranches as
described in the 24 May 2022 announcement.
Corporate
Capital Raising
In conjunction with the Tallahassee Project acquisition in the first quarter, the company completed a placement
raising $2.84 million (before costs) through the issue of 14.2 million fully-paid ordinary shares at A$0.20 per share
(Placement Shares) together with 14.2 million free-attaching unlisted options exercisable at $0.30 each and
expiring on 24 August 2023 (Placement Options) (together, the Placement Securities) on the basis of one option
for every one Share issued (the Placement). The Placement Securities were issued to sophisticated and
professional investors. Following receipt of shareholder approval at the GM, Okapi’s Board of Directors, Messrs
David Nour, Leonard Math and Peretz Schapiro subscribed for $200,000, $50,000 and $60,000 worth of
Placement Securities, respectively. In addition, Executive Director Mr Leonard Math invested a further $50,000 in
the Company as part of its May 2021 capital raising at $0.21 per share with free attaching listed options exercisable
at $0.30 expiring 31 March 2023 on the basis of one Option for every one Share issued.
Board changes
Following the completion of the acquisition of Tallahassee Resources Pty Ltd, Mr Ben Vallerine was appointed to
the Board of Okapi as Technical Director on 25 August 2021. Mr Vallerine is a qualified geologist with 20 years’
experience and brings considerable in-country experience to the Okapi Board. Ben spent six years as Head of
Exploration (USA) for Black Range Minerals where he gained considerable experience in the identification,
acquisition and exploration of uranium assets. More recently, Ben held the position of exploration manager at
Caspin Resources Limited (ASX:CPN).
In December, highly experienced mining executive, Mr Andrew Ferrier was appointed as Managing Director. Mr
Ferrier has more than 15 years of experience in both management, corporate finance and principal investing roles
in the global mining sector. He has previously held senior roles for Pacific Road Capital, a large mining-focused
private equity investment firm where he worked for 12 years across USA, Canada and Australia. Mr Ferrier has
P a g e | 14
Okapi Resources Limited
Review of Operations
significant knowledge and understanding of the North American Uranium space having been heavily involved in
the development, permitting and sale of the Reno Creek ISR Uranium project in Wyoming, USA.
Executive Director, Mr David Nour retired at the Company’s 2021 Annual General Meeting.
In February, Okapi announced the appointment of Brian Hill as Non-Executive Chairman of Okapi Resources. Brian
replaced interim Chairman Peretz Schapiro, who joined the Board in April 2021 and played a fundamental role in
the transition and growth of Okapi over a short period of time.
Subsequent to the end of the financial year, Mr Fabrizio Perilli was appointed to the company as a Non-Executive
Director in August 2022. Fabrizio is currently the Chief Executive Officer of the business at TOGA Development &
Construction and has over 25 years’ experience in the property development and construction sector.
Other key appointments
In April, Mr Jim Viellenave joined Okapi as a technical consultant.
Mr Viellenave’s background includes over 40 years of development and operational experience in the US mining
industry, especially in the US uranium industry, where he was fundamental to the development and resource
expansion of the Reno Creek ISR Uranium project in Wyoming for a period of over seven years until the project
was sold to Uranium Energy Corp (NYSE:UEC - Market Cap US$1.6 billion) in 2018.
OTCQB Trading in the USA
Okapi commenced trading on OTCQB market on 22 November 2021 in the USA, providing North American
investors with the opportunity to purchase Okapi stock as the company executes its strategy to establish a
dominant uranium position in North America. The company’s cross-trade allows Okapi shares to be traded on the
OTCQB market under the ticker code OKPRF. No new shares have been issued to facilitate this quotation. B. Riley
Securities acted as the company's OTCQB sponsor.
Cautionary Statement
This Annual Report prepared by Okapi Resources Limited (“Company”) does not purport to contain all the
information that a prospective investor may require in connection with any potential investment in the Company.
You should not treat the contents of this representation, or any information provided in connection with it, as
financial advice, financial product advice or advice relating to legal, taxation or investment matters. No
representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness
of the information, opinions and conclusions contained in this Annual Report. This Annual Report is provided
expressly on the basis that you will carry out your own independent inquiries into the matters contained in the
Annual Report and make your own independent decisions about the affairs, financial position or prospects of the
Company. The Company reserves the right to update, amend or supplement the information at any time in its
absolute discretion (without incurring any obligation to do so). To the maximum extent permitted by law, none of
the Company its directors, employees or agents, advisers, nor any other person accepts any liability, including,
without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for
any loss arising from the use of this Annual Report or its contents or otherwise arising in connection with it. This
Annual Report is not an offer, invitation, solicitation or other recommendation with respect to the subscription for,
purchase or sale of any security, and neither this Annual Report nor anything in it shall form the basis of any
contract or commitment whatsoever.
Forward Looking Statements
This Annual Report may contain forward looking statements that are subject to risk factors associated with mineral
exploration, mining and production businesses. It is believed that the expectations reflected in these statements
are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which
could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual
demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry
P a g e | 15
Okapi Resources Limited
Review of Operations
competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial
market conditions in various countries and regions, political risks, project delay or advancement, approvals and
cost estimates. This Annual Report also contains reference to certain intentions, expectations, future plans,
strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may
or may not be achieved. They are based on certain assumptions, which may not be met or on which views may
differ and may be affected by known and unknown risks. In particular, there is a risk that the Company will not be
able to expand or upgrade its existing JORC resource. The performance and operations of the Company may be
influenced by a number of factors, many of which are outside the control of the Company. No representation or
warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or
agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular
rate of return will be achieved. Given the risks and uncertainties that may cause the Company’s actual future
results, performance or achievements to be materially different from those expected, planned or intended,
recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects.
The Company does not warrant or represent that the actual results, performance or achievements will be as
expected, planned or intended. These forward-looking statements are expressed in good faith and believed to
have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the
future and assumptions based on currently available information. Should one or more risks or uncertainties
materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations,
intentions and strategies described in this announcement. The forward-looking statements are made as at the date
of this announcement and the Company disclaims any intent or obligation to update publicly such forward looking
statements, whether as the result of new information, future events or results or otherwise.
Competent Person’s Statement
The information in this announcement that relates to the Mineral Resources for the Tallahassee Uranium Project is
based on information compiled by Ms. Kira Johnson who is a Qualified Professional member of the Mining and
Metallurgical Society of America, a Recognized Professional Organization (RPO) for JORC Competent Persons.
Ms Johnson compiled this information in her capacity as a Senior Geological Engineer of Tetra Tech. Ms Johnson
has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity that she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms. Kira Johnson
consents to the inclusion in this announcement of the matters based on his information in the form and context in
which it appears.
The information in this announcement that relates to database compilation and exploration results at the
Tallahassee Uranium Project, in particular, Section’s 1 and 2 of Table 1 in Appendix 2, and geology, exploration
results, historic Mineral Resource estimates for other projects is based on information reviewed by Mr Ben
Vallerine. Mr Vallerine is a shareholder and Technical Director of Okapi Resources Limited. Mr Vallerine is a
member of The Australian Institute of Geoscientists. Mr Vallerine has sufficient experience that is relevant to the
style of mineralisation under consideration as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting on Exploration Results, Mineral resources and Ore Reserves”. Mr Vallerine
consents to the inclusion in this announcement of the matters based on his information in the form and context in
which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement of 7 April 2022 (titled “Agreement Executed to Acquire 51% of High-
Grade Hansen Uranium Deposit – JORC Resource Increased 81% to 49.8 Mlb U3O8”). The Company confirms
that all material assumptions and technical parameters underpinning the estimates in the 7 April 2022
announcement continue to apply and have not materially changed.
Refer to the Company’s ASX announcement dated 7 April 2022 titled “Agreement Executed to Acquire 51% of
High-Grade Hansen Uranium Deposit – JORC Resource Increased 81% to 49.8 Mlb U3O8” for full details of the
Tallahassee Uranium Project’s JORC 2012 Mineral Resource estimate.
Refer to the Company’s ASX announcement dated 9 November 2021 titled “Okapi to acquire High-Grade Uranium
Assets – Athabasca Basin” for the JORC details of the Athabasca Projects and other historical information. The
Company confirms that it is not aware of any new information or data that materially affects the information included
in the original market announcement of 9 November 2021.
P a g e | 16
Okapi Resources Limited
Review of Operations
Refer to the Company’s ASX announcement dated 14 September 2021 titled “Okapi Acquires Historical Sunnyside
Uranium Mine” for further details and other historical information. The Company confirms that it is not aware of any
new information or data that materially affects the information included in the original market announcement of 14
September 2021.
Refer to the Company’s ASX announcement dated 16 September 2021 titled “Outstanding Drill Results at the
Enmore Gold Project, NSW” for the full drilling results including the JORC tables 1 and 2. The Company confirms
that it is not aware of any new information or data that materially affects the information included in the original
market announcement of 16 September 2021.
Refer to the Company’s ASX announcements dated 1 June 2022 and 10 March 2022 for full details in relation to
the rock chip assay results at Rattler Uranium Project. The Company confirms that it is not aware of any new
information or data that materiality affects the information included in the original market announcement of 1 June
2022 and 10 March 2022.
P a g e | 17
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Directors’ Report
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
2022.
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:
Brian Hill – Non-executive Chairman (Appointed 16 February 2022)
Andrew Ferrier – Managing Director (Appointed 13 December 2021)
Leonard Math – Executive Director
Benjamin Vallerine – Non-executive Director (Appointed 25 August 2021)
Fabrizio Perilli – Non-executive Director (Appointed 31 August 2022)
David Nour –Executive Director (Retired 30 November 2021)
Peretz Schapiro – Non-executive Director (Resigned 16 February 2022)
INFORMATION ON DIRECTORS
Mr. Brian Hill – Non-executive Chairman
Appointed 16 February 2022
Mr Hill is a highly experienced mining executive with over thirty-five years’ global experience across building
businesses, mergers and acquisitions, due diligence, and corporate and social governance. He previously
worked at Newmont Mining Corporation, one of the world’s largest gold producers, where he served as
Executive Vice President Operations and Executive Vice-President Sustainability and External Relations. Mr
Hill also served as Newmont’s Senior Vice-President for its Asia Pacific Region based in Perth with
responsibility for Boddington, Jundee, the Kalgoorlie Consolidated Gold Mines JV and the Tanami operations
in Australia, along with Batu Hijau in Indonesia and Waihi in New Zealand. Brian also s erved as a member of
the Board of Directors of the Minerals Council of Australia and an Executive Committee Member of the
Chamber of Minerals and Energy of Western Australia. Prior to that, he served as Managing Director for
LionOre Australia Pty Ltd, and was Managing Director and CEO of Equatorial Mining Limited where during
his tenure, Equatorial reached a market capitalisation of $550 million prior to being purchased by Antofagasta
PLC. From 2000 to 2004, he was the Managing Director of Falconbridge (Australia) Pty Ltd. Brian is currently
an operating partner at Pacific Road Capital (mining private equity firm) and a Non-Executive Director of North
Coal Limited (metallurgical coal development company in BC, Canada) and Corbin Road Land Corporation.
Brian is based in Denver, Colorado.
Mr. Hill has not held any other directorship in the past three years.
Interest in shares and performance rights:
1,800,000 Performance Rights
P a g e | 18
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Mr. Andrew Ferrier – Managing Director
Appointed 13 December 2021
Mr Ferrier has more than 15 years of experience in both management, corporate finance and principal
investing roles in the global mining sector. He has previously held senior roles for Pacific Road Capital, a large
mining-focused private equity investment firm where he worked for 12 years across USA, Canada and
Australia. Andrew holds a Bachelor of Chemical Engineering (First Class Honours) and Bachelor of Commerce
from the University of Sydney. Andrew also holds a Masters of Applied Finance from Macquarie University
and is a CFA charter holder. He has significant knowledge and understanding of the North American Uranium
space having been heavily involved in the development, permitting and sale of the Reno Creek ISR Uranium
project in Wyoming, USA, the largest permitted preconstruction ISR project in the USA.
Mr. Ferrier has not held any other directorship in the past three years.
Interest in shares and performance rights:
2,250,000 Performance Rights
Mr. Leonard Math (BComm, CA) – Executive Director & Company Secretary
Mr Leonard Math is a Chartered Accountant with more than 15 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. Mr Math was the Chief Financial Officer and Company Secretary of AVZ Minerals Limited
(ASX: AVZ) owner of one of the largest undeveloped lithium hard rock deposits, for more than two and a half years.
Mr Math also previously held Company Secretary and directorship roles for a number of ASX listed companies. Mr
Math has been Okapi’s Company Secretary since April 2019.
Mr. Math has not held any other directorship in the past three years.
Interest in shares and performance rights:
2,757,631 ordinary fully paid shares
238,095 listed options exercisable at 30 cents each expiring 31 March 2023
250,000 options exercisable at 30 cents each expiring 24 August 2023
Mr. Benjamin Vallerine – Non-executive Director
Appointed 25 August 2021
Mr Vallerine is a qualified geologist with 20 years’ experience and brings considerable in-country (USA) experience
to the Okapi Board. Ben spent 6 years as Head of Exploration (USA) for Black Range Minerals where he gained
considerable experience in the identification, acquisition and exploration of uranium assets. More recently, Ben
held the position of exploration manager at Caspin Resources Limited (ASX:CPN). Ben is currently the Managing
Director of ASX listed, Koba Resources Limited.
During the past three years, Mr. Vallerine has also served as a Director of the following listed companies:
Company
Date Appointed
Date Ceased
Koba Resources Limited
21 December 2021
-
Interest in shares and performance rights:
6,654,680 ordinary fully paid shares
2,821,921 options exercisable at 30 cents each expiring 24 August 2023
2,000,000 Performance Rights
P a g e | 19
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Mr. Fabrizio Perilli – Non-executive Director
Appointed 31 August 2022
Mr Perilli has an outstanding track record of growing businesses using his broad skills, knowledge
and experience. Fabrizio was recently the Chief Executive Officer of the Development & Construction business at
TOGA, and has over 25 years’ experience in the property development and construction sector. In his time at
TOGA, Fabrizio has significantly grown the business and successfully led the company’s focus on achieving value
and quality outcomes for all stakeholders and has overseen the delivery of outstanding mixed-use, residential,
retail and commercial precincts nationwide. As well as delivering sustained long-term growth and performance of
TOGA’s Development & Construction business units, he has secured a strong portfolio of developments, and led
innovative initiatives during his time at TOGA. Prior to his appointment to TOGA, Fabrizio was a Director at Clifton
Coney Group (Coffey Projects) and over his ten-year tenure, was responsible for establishing and leading new
operations in Sydney, New Zealand, and Vietnam. Fabrizio’s dedication to delivering quality outcomes of which
all stakeholders are proud, has supported long-term recurring relationships and collaborations with partners,
affiliates and clients.
Mr. Perilli has not held any other directorship in the past three years.
Interest in shares and performance rights:
244,117 ordinary fully paid shares
100,000 listed options exercisable at 30 cents each expiring 31 March 2023
100,000 options exercisable at 30 cents each expiring 24 August 2023
PRINCIPAL ACTIVITIES
The Company is in the business of mineral exploration with a specific focus on uranium exploration in North
America and gold exploration in Australia. The Company's primary aim in the near-term is to explore for, discover
and develop uranium deposits on its uranium exploration projects in North America.
The Group has also been actively reviewing additional projects or mineral resources investment opportunities that
would create value for the Group and its shareholders.
FINANCIAL REVIEW
The result of the Group for the financial year ended 30 June 2022 was a loss after tax of $7,393,327 (2021:
$732,257).
EARNINGS PER SHARE
The basic loss per share for the year ended 30 June 2022 was 7.13 cents (2021: 1.73 cents).
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:
Brian Hill – Non-executive Chairman (Appointed 16 February 2022)
Andrew Ferrier – Managing Director (Appointed 13 December 2021)
Leonard Math – Executive Director
Benjamin Vallerine – Non-executive Director (Appointed 25 August 2021)
P a g e | 20
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Fabrizio Perilli – Non-executive Director (Appointed 31 August 2022)
David Nour –Executive Director (Retired 30 November 2021)
Peretz Schapiro – Non-executive Director (Resigned 16 February 2022)
(a)
Remuneration Policy
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. Ferrier was appointed as Managing Director on 13 December 2021 and received an annual remuneration
package of $300,000 (inclusive of superannuation) through an Executive Services Agreement. Mr. Ferrier’s
employment may be terminated without reason by the Group giving 3 months’ notice. The Group may
otherwise terminate his employment without notice for cause.
Mr. Math was appointed as Executive Director on 10 May 2021 and received an annual remuneration
package of $156,000 plus statutory superannuation through a Consultancy Agreement for a term of 18
months. The agreement may be terminated without reason by the Group giving 6 months’ notice. The Group
may otherwise terminate his employment without notice 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 10.50% (10% from 1 July 2022) 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.
P a g e | 21
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
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. No remuneration is currently performance related.
Overview of Group Performance
The table below sets out information about the Group’s earnings and movements in shareholder wealth for
the past five years up to and including the current financial year.
Net Loss After Tax
2022
2021
$7,393,327 $732,257 $2,830,305
2020
2019
$1,071,307
2018
$1,147,328
Share Price At Year End (ASX)
$0.185
Basic Loss Per Share (CENTS)
7.13
$0.20
1.73
$0.14
7.89
$0.18
3.12
Total Dividends
SHARE)
(CENTS PER
-
-
-
-
$0.31
4.18
-
P a g e | 22
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
(c) Details of Key Management Personnel Remuneration
Name
Fees
Post-Employment
Share Based Payments
Total
Remuneration as
Share payments
2022
Brian Hill – Non-executive Chairman1
Andrew Ferrier – Managing Director2
Leonard Math – Executive Director and Company Secretary3
Benjamin Vallerine – Non-executive Director4
Peretz Schapiro – Interim Chairman/Non-executive Director5
David Nour – Executive Director6
TOTAL
$
$
$
$
%
37,250
150,293
171,600
103,903
67,857
170,000
700,903
-
15,029
-
4,090
17,000
6,786
42,905
-
-
548,400
621,400
822,600
329,040
2,321,440
37,250
165,322
720,000
729,393
907,457
505,826
3,065,248
76%
85%
91%
65%
1 Mr. Hill appointed on 16 February 2022.
² Mr. Ferrier appointed on 13 December 2021
3 During the financial year, Mr. Math provided Directorship, Company Secretarial and Accounting services to Okapi Resources Limited through Lilhorse Corporate Pty Ltd.
4 Mr. Vallerine appointed on 25 August 2021. During the year, Mr. Vallerine provided geological consultancy services to Okapi Resources Limited through Peak 8 Geological Consultant Pty Ltd.
5 Mr. Schapiro resigned on 16 February 2022.
6 Mr. Nour retired on 30 November 2021.
2021
Peretz Schapiro – Interim Chairman/Non-executive Director1
David Nour – Executive Director2
Leonard Math – Executive Director3 and Company Secretary
Rhoderick Grivas – Non-executive Chairman4
Andrew Shearer – Executive Director5
Jinju (Raymond) Liu – Non-executive Director6
TOTAL
10,581
124,699
75,562
50,228
121,321
29,917
412,308
1,005
3,748
-
4,772
11,526
-
21,051
-
23,500
-
23,500
47,000
11,750
105,750
11,586
151,947
75,562
78,500
179,847
41,667
539,109
-
15%
-
30%
26%
28%
1 Mr. Schapiro appointed on 13 April 2021.
² Mr. Nour appointed as Executive Director on 10 May 2021. Mr Nour was Non-executive Director since 28 November 2019.
3 Mr. Math appointed as Executive Director on 10 May 2021. During the financial year, Mr. Math provided Directorship, Company Secretarial and Accounting services to Okapi Resources Limited through
Lilhorse Corporate Pty Ltd.
4 Mr. Grivas appointed on 30 June 2020 and resigned on 10 May 2021.
5 Mr. Shearer appointed on 20 July 2020 and resigned on 10 May 2021.
6 Mr. Liu resigned on 10 May 2021.
P a g e | 23
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
(d) Share based compensation
During the year, following receiving shareholders approval in August 2021, the directors were issued the
following Performance Rights.
Peretz Schapiro
1,200,000 Performance Rights
David Nour
3,000,000 Performance Rights
Leonard Math
2,000,000 Performance Rights
The Performance Rights were issued under the Company’s Performance Rights Plan and have the following
vesting conditions as set out below:
A) Class A Performance Rights: the Company achieving and maintaining a market capitalisation of $20 million
or more for a continuous period of 20 trading days on or before 31 December 2025;
B) Class B Performance Rights: the Company achieving and maintaining a market capitalisation of $35 million
or more for a continuous period of 20 trading days on or before 31 December 2025; and
C) Class C Performance Rights: the Company achieving and maintaining a market capitalisation of $50
million or more for a continuous period of 20 trading days on or before 31 December 2025.
On 29 October 2021, the Performance Rights have vested, and a total 6,200,000 shares were issued.
On 30 November 2021, following receiving shareholders approval, Mr. Benjamin Vallerine was issued
2,000,000 Performance Rights. The Performance Rights were issued under the Company’s Performance
Rights Plan and have the following vesting conditions as set out below:
A) Class A Performance Rights: the Company achieving and maintaining a share price of $0.75 or more for
a continuous period of 20 trading days on or before 31 December 2025;
B) Class B Performance Rights: the Company achieving and maintaining a share price of $1.00 or more for
a continuous period of 20 trading days on or before 31 December 2025; and
C) Class C Performance Rights: the Company achieving and maintaining a share price of $1.25 or more for
a continuous period of 20 trading days on or before 31 December 2025.
During the year ended 30 June 2022, there was no options granted to directors and key management
personnel as part of the remuneration package.
(e) Key Management Personnel Compensation – other transactions
(i) Options provided as remuneration and shares issued on exercise of such options.
Other than disclosed above, no further options were provided as remuneration during the year and no shares
were issued on exercise of such options.
(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 | 24
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
(f) 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.
2022
Directors
Brian Hill1
Andrew Ferrier2
Leonard Math
Benjamin Vallerine3
Peretz Schapiro4
David Nour5
Total
Opening Balance
1 July 2021
Other changes
during the year
Closing Balance
30 June 2022
No.
No.
No.
-
-
95,238
-
-
3,945,060
4,040,298
-
-
2,662,393
6,654,680
1,741,000
3,550,000
14,608,073
-
-
2,757,631
6,654,680
1,741,000
7,495,060
18,648,371
1 Mr Hill was appointed on 16 February 2022.
2 Mr Ferrier was appointed on 13 December 2021.
3 Mr Vallerine was appointed on 25 August 2021.
4 Mr Peretz resigned on 16 February 2022 and held those shares at the time of resignation.
5 Mr Nour retired on 30 November 2021 and held those shares at the time of resignation.
2021
Directors
Peretz Schapiro1
David Nour
Leonard Math2
Rhoderick Grivas3
Andrew Shearer3
Opening Balance
1 July 2020
Other changes
during the year
Closing Balance
30 June 2021
No.
No.
No.
-
2,955,133
-
-
-
-
989,927
95,238
105,263
105,264
-
1,295,692
-
3,945,060
95,238
105,263
105,264
300,000
4,550,825
Jinyu (Raymond) Liu3
Total
300,000
3,255,133
1 Mr Peretz was appointed on 13 April 2021.
2 Mr Math was appointed on 10 May 2021.
3 Messrs Grivas, Shearer and Liu held those shares at the time of resignation – 10 May 2021.
This is the end of the audited remuneration report.
P a g e | 25
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
SHARE OPTIONS
During the year, the following options were issued:
Options Description
Class A: Director Options exercisable
at $0.30 expiring 8 April 2024
Class B: Director Options exercisable
at $0.35 expiring 8 April 2024
Class C: Listed Options exercisable at
$0.30 expiring 31 March 2023
Class D: Unlisted Options exercisable
at $0.30 expiring 24 August 2023
Class E: Unlisted Options exercisable
at $0.50 expiring 31 December 2024
Class E: Unlisted Options exercisable
at $0.60 expiring 31 December 2024
Class E: Unlisted Options exercisable
at $0.70 expiring 31 December 2024
At 1 July 2021
No.
Issued during
the year
No.
Exercised/lapsed
during the year
No.
At 30 June 2022
No.
2,000,000
2,000,000
-
-
(875,000)1
1,125,000
(875,000)1
1,125,000
17,754,135
238,095
-
17,992,230
-
-
-
-
30,950,000
(1,575,000)
29,375,000
3,000,000
2,000,000
2,000,000
-
-
-
3,000,000
2,000,000
2,000,000
Total
21,754,135
38,188,095
(3,325,000)
56,617,230
1Lapsed during the year.
Subsequent to year end, the following options were issued:
Options Description
Class F: Unlisted Options exercisable at $0.30 expiring 19 July 2024
Total
LIKELY DEVELOPMENTS
No.
7,899,834
7,899,834
The Group’s focus over the next financial year will be to carry out 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 August 2021, Okapi Resources Limited completed the acquisition of Tallahassee Resources Pty Ltd by
issuing the shareholders of Tallahassee 33,500,000 Okapi shares and 16,750,000 options exercisable at 30 cents
each expiring 24 August 2023. Tallahassee holds a 100% interest in mineral rights that cover approximately 7,500
acres in the Tallahassee Creek Uranium District of Colorado, USA (Tallahassee Uranium Project) together with an
option to acquire 100% of the Rattler Uranium Project, including the historical high-grade Rattlesnake open pit
mine, in north-eastern Utah (Rattler Uranium Project).
Mr Benjamin Vallerine was appointed as Non-executive Technical Director on 25 August 2021 as part of the
Tallahassee Resources Pty Ltd acquisition.
Mr Andrew Ferrier was appointed as Managing Director on 13 December 2021.
P a g e | 26
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Mr David Nour retired as Executive Director at the conclusion of the Annual General Meeting held on 30 November
2021.
Mr Brian Hill was appointed as Non-executive Chairman on 16 February 2022, replacing Mr Peretz Schapiro.
There were no other significant changes in the state of affairs of the Group during the financial year.
SUBSEQUENT EVENTS
Subsequent to year end, the Company completed a placement raising $2,369,000 (before costs) through the
issue of 15,799,675 fully-paid ordinary shares at A$0.15 per share (Placement Shares) together with 7,899,834
free-attaching unlisted options exercisable at $0.30 each and expiring on 19 July 2024 (Placement Options)
(together, the Placement Securities) on the basis of one (1) option for every two (2) Shares issued (the Placement).
The Placement Securities were issued to sophisticated and professional investors.
Following receipt of shareholder approval at the General Meeting on 22 September 2022, Okapi’s Board of
Directors, Messrs Brian Hill, Andrew Ferrier, Leonard Math and Benjamin Vallerine subscribed for $30,000,
$71,000, $20,000 and $10,000 worth of Placement Securities, respectively, raising a further of $131,000.
In July 2022, the Company completed the agreement to acquire an option over a 51% interest in the Hansen
Uranium Project in Colorado, USA with STB Minerals LLC (STB).
Okapi paid a total of US$500,000 cash consideration and has an 8-year option to purchase the 51% mineral
interest from STB. Other key terms are disclosed below:
1.
2.
3.
4.
5.
Okapi can maintain the option for 5 years by paying US$250,000 annually subject to any inflation
adjustments.
During the option period, Okapi has the right to conduct mineral prospecting, exploration, development,
mining and related activities on the properties comprising the Hansen Uranium Project.
Okapi can continue the option for a further 3 years by paying US$500,000 annually subject to inflation
adjustments.
Okapi has the right to exercise the option at any time during the 8 years by payment of US$5,000,000 at
which time STB Minerals will transfer to Okapi it full 51% mineral interest reserving a royalty of 1.5% net
returns over their 51% mineral interest (STB Royalty). Upon exercise of the option, Okapi will not be required
to pay any further option fees.
Okapi would have the right to purchase 50% of STB Royalty at any time after Closing by paying STB Minerals
US$500,000.
On 22 August 2022, the Company completed the sale of the tenement E63/2039 to Nordau Pty Ltd. The Company
receive a total cash payment of $70,000 and the following performance share with the milestones set out below.
Class
Number of
Performance
Shares
Performance
Shares
Value
Class A 1
$50,000
Class B 1
$300,000
Performance Milestone
Expiry Date
Upon NewCo receiving approval from
ASX to be admitted to the official list of
ASX (Class A Milestone).
Twelve (12) months from
the Completion Date.
Upon the Purchaser completing a
drilling program and returning a drill
intercept of at least 2m @ 1.0% Li2O or
10m @ 0.8% Li2O on the Tenements
Three (3) years from the
date NewCo’s securities
are admitted to the official
P a g e | 27
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
Class
Number of
Performance
Shares
Performance
Shares
Value
Performance Milestone
Expiry Date
Class C 1
$700,000
verified by an
as
Technical
(Class B Milestone).
Independent
Consultant
the Purchaser
Upon
returning a
Mineral Resource in accordance with
the JORC Code 2012 Edition (or the
current edition at the time) (JORC
Code) of at least 5mt @ >1.0% Li2O on
the Tenements as verified by an
Independent Technical Consultant
(Class C Milestone).
list
(ASX Admission Date).
of
ASX
Five (5) years from the ASX
Admission Date.
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.
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.
P a g e | 28
Okapi Resources Limited
Directors’ Report For the year ended 30 June 2022
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 30 June 2022 has been received and forms part
of the Directors’ report and can be found on page 30 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.
Brian Hill
Non-executive Chairman
30 September 2022
Perth, Western Australia
P a g e | 29
Okapi Resources Limited
Auditor’s Independence Declaration
P a g e | 30
Okapi Resources Limited
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2022
Revenue
Interest income
Profit from sale of listed investments
Gain from foreign exchange transactions
Proceeds from sale of tenement
Expenditure
Audit fees
ASX, OTC Listing and other compliance expenses
Consulting expenses
Corporate, travel and insurance expenses
Non-cash transaction cost
Legal fees
Director and employee fees
Exploration expenses
Investor relations expenses
Promotional, marketing & website
Termination payments
Share based payments
Administration
Fixed assets written off
Fair value adjustment to financial asset
Loss before income tax
Income tax expense
Note
16
11
8
3
2022
$
333
24,029
24,886
20,000
69,248
(43,260)
(303,374)
(220,091)
(342,671)
(325,853)
(213,212)
(680,809)
(355,222)
(210,522)
(100,743)
(275,000)
(4,398,564)
(116,951)
(10,740)
134,437
2021
$
107
313,628
-
-
313,735
(17,186)
(75,989)
(100,000)
(65,797)
-
(53,641)
(433,358)
(47,177)
(84,150)
(840)
-
(105,750)
(20,290)
(26,276)
(15,538)
(7,393,327)
(732,257)
-
-
Loss after income tax from continuing operations
(7,393,327)
(732,257)
Other Comprehensive income
Items that may be reclassified to profit or loss
-
-
Total comprehensive income for the year
(7,393,327)
(732,257)
Loss per share attributable to the ordinary security
holders of the Company (cents per share)
20
7.13
1.73
The accompanying notes form part of these financial statements
P a g e | 31
Okapi Resources Limited
Consolidated Statement of Financial Position
As at 30 June 2022
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
Note
2022
$
2021
$
4
5
6
7
8
9
1,190,608
306,034
1,496,642
529,822
24,104,994
-
24,634,816
3,214,632
49,129
3,263,761
440,509
774,070
-
1,214,579
26,131,458
4,478,340
356,932
356,932
125,863
125,863
356,932
125,863
25,774,526
4,352,477
10
11(a)
11(b)
31,396,987
6,909,219
(12,531,680)
25,774,526
9,332,580
158,250
(5,138,353)
4,352,477
The accompanying notes form part of these financial statements
P a g e | 32
Okapi Resources Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2022
2022
Opening Balance
Issued
Capital
$
Reserves
Accumulated
Losses
$
$
Total
$
9,332,580
158,250
(5,138,353)
4,352,477
Loss for the year
Total comprehensive income for the period
-
-
Shares issued during the year (net costs)
Shares issued to vendors
Shares issued due to vesting of
performance rights
Share based payments (Note 11)
3,232,240
17,132,127
1,700,040
-
-
6,750,969
-
-
-
-
(7,393,327)
(7,393,327)
(7,393,327)
(7,393,327)
-
3,232,240
- 17,132,127
-
-
1,700,040
6,750,969
Balance as at 30 June 2022
31,396,987
6,909,219
(12,531,680) 25,774,526
2021
Opening Balance
Loss for the year
Total comprehensive income for the year
6,236,473
-
-
-
-
-
(4,406,096)
1,830,378
(732,257)
(732,257)
(732,257)
(732,257)
Shares issued during the year (net costs)
Share issue costs
Shares issued to vendors
Share based payments (Note 11)
3,150,000
(253,893)
200,000
-
-
-
-
158,250
-
-
-
-
3,150,000
(253,893)
200,000
158,250
Balance as at 30 June 2021
9,332,580
158,250
(5,138,353)
4,352,477
The accompanying notes form part of these financial statements
P a g e | 33
Okapi Resources Limited
Consolidated Statement of Cash Flows
For the year ended 30 June 2022
Note
2022
$
2021
$
Cash flows from operating activities
Interest received
Payments for suppliers and employees
333
(2,649,901)
107
(1,067,012)
Net cash outflows from operating activities
19
(2,649,568)
(1,066,905)
Cash flows from investing activities
Payments for tenement acquisitions / option fees
Payments for shares in listed entity
Payment for environmental bond
Proceeds from sale of equity investment
Acquisition of subsidiary (net)
(2,501,181)
-
(183,243)
69,153
8,575
(120,000)
(200,000)
-
773,526
-
Net cash inflows from investing activities
(2,606,696)
453,526
Cash flows from financing activities
Proceeds from share issue (nett of costs)
3,232,240
2,948,606
Net cash inflows from financing activities
3,232,240
2,948,606
Net (decrease)/increase in cash and cash equivalents
held
(2,024,024)
2,335,227
Cash and cash equivalents at the beginning of the
period
3,214,632
879,405
Cash and cash equivalents at the end of the period
4
1,190,608
3,214,632
The accompanying notes form part of these financial statements
P a g e | 34
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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 30 September 2022. 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.
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.
Going Concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course
of business.
The Company incurred an operating loss of $7,393,327 (30 June 2021: $732,257) and had cash outflows
from operating activities of $2,649,568 (30 June 2021: $1,066,905) for the year ended 30 June 2022. The
consolidated entity is in exploration phase and does not yet have an income stream.
The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash
flows to meet all commitments and working capital requirements for the 12 months period from the date of
signing this financial report. The Directors believe it is appropriate to prepare these accounts on going
concern basis because subsequent to the end of the reporting period:
•
in July 2022, the Company raised $2,369,000 (before costs) via the issue of 15,799,675 fully-paid
ordinary shares at A$0.15 per share together with 7,899,834 free-attaching unlisted options exercisable
at $0.30 each and expiring on 19 July 2024 on the basis of one (1) option for every two (2) Shares
issued;
P a g e | 35
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
•
•
the Company is still in the early stages of operations and is able to scale back activity if required; and
the Directors have prepared a budget which demonstrates that the Company has sufficient cash to
meet its expenditure requirements for a period of not less than twelve months from the date of signing
this report.
• The directors have an appropriate plan to raise additional funds and when they are required; and
• The consolidated entity has the ability scale down its operations in order to curtail expenditure, in the
event that any capital raisings are delayed or insufficient cash is available to meet projected expenditure.
Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the
going concern basis of preparation is appropriate. In particular, given the Company’s history of raising
capital to date, the directors are confident of the Company’s ability to raise additional funds as and when
they are required.
Should the Company be unable to continue as a going concern, there is material uncertainty whether it
would continue as a going concern and therefore whether it would realise its assets and extinguish its
liabilities other than in the normal course of business and at amounts different to those stated in the financial
statements. The financial statements do not include any adjustments relating to the recoverability and
classification of recorded asset amounts or to the amounts or classification of liabilities that might result
should the Company be unable to continue as a going concern and meet its debts as and when they fall
due.
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 (h) below.
Standards and Interpretations applicable to 30 June 2022
In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and
Interpretations issued by the AASB that are relevant to the Company and effective for the year reporting
periods beginning on or after 1 July 2021.
As a result of this review, the Directors have determined that there is no material impact of the new and
revised Standards and Interpretations on the Company and therefore no material change is necessary to
Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all of the new and revised Standards and Interpretations on issue not yet
adopted that are relevant to the Company and effective for the half-year reporting periods beginning on or
after 1 July 2021.
As a result of this review, the Directors have determined that there is no material impact of the new and
revised Standards and Interpretations in issue not yet adopted on the Company and therefore no material
change is necessary to Group accounting policies.
(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 2022 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
P a g e | 36
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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.
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.
(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
P a g e | 37
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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.
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 Group 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
P a g e | 38
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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.
Recognition and derecognition of financial instruments
A financial asset or financial liability is recognised in the statement of financial position 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 reporting date 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 Statement of Financial
Position 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.
(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.
P a g e | 39
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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.
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.
P a g e | 40
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
(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.
(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.
P a g e | 41
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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 | 42
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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 operates in USA and Canada and has 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 nil (2021: nil). Balance subject to fixed rates is nil. Balance subject to variable
rates is $1,190,608 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 | 43
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
(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
2022
$
2021
$
-
-
-
-
-
-
(b) Numerical reconciliation of income tax expense to prima facie
tax payable
Loss from continuing operations before income tax expense
(7,393,327)
(732,257)
Prima facie tax benefit at Australian tax rate of 25% (2021: 26%)
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
Gain on sale of financial assets
(1,848,332)
(190,387)
(22,343)
1,190,310
-
66,073
8,139
-
(26,619)
31,535
-
12,266
19,367
(81,543)
(606,153)
(235,381)
Tax effect of current year tax losses for which no deferred tax asset
has been recognised
606,153
235,381
Income tax expense
(c) Unrecognised deferred tax assets (i)
Capital raising costs
Revaluation of assets
Accruals & provisions
Carry forward tax losses
Gross deferred tax assets
Less: Offset of Deferred Tax Asset
-
-
-
34,470
900,732
935,202
(89,988)
845,214
-
20,799
-
27,385
936,760
984,944
(58,633)
926,451
(i) No deferred tax asset has been recognised for the above balance as at 30 June 2022 as it is not considered
probable that future taxable profits will be available against which it can be utilised.
P a g e | 44
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
4.
CURRENT - CASH AND CASH EQUIVALENTS
Cash at bank & on hand
Cash – at call deposits (i)
2022
$
1,190,608
-
1,190,608
2021
$
71,414
3,143,218
3,214,632
(i) At call deposits earn interest at floating rates based on daily bank deposit rates.
5.
CURRENT - TRADE AND OTHER RECEIVABLES
Prepayments
GST and tax receivables
Environmental bond
Other receivables
6.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss:
Listed Shares
Carrying amount at beginning of the year
Additions
Disposal
Fair value adjustment to financial asset
Carrying amount at end of the year
90,484
27,880
183,243
4,427
306,034
11,592
37,537
-
-
49,129
529,822
529,822
440,509
-
(45,124)
134,437
529,822
440,509
440,509
715,945
200,000
(459,898)
(15,538)
440,509
(i)
(ii)
Classification of financial assets at fair value through profit or loss
The Group classifies its equity based financial assets at fair value through profit or loss upon
adoption of AASB 9. They are presented as current assets if they are expected to be sold within
12 months after the end of the reporting period; otherwise they are presented as non-current
assets. Changes in the fair value of financial assets are recognised in other gains/(losses) in the
statement of profit or loss as applicable.
Amounts recognised in profit or loss Changes in the fair values of financial assets at fair value
have been recorded through profit or loss, representing a net gain of $134,437 for the year.
Fair value measurement of financial instruments
Financial assets and financial liabilities measured at fair value in the statement of financial position are
grouped into three (3) levels of a fair value hierarchy. The three (3) levels are defined based on the
observability of significant inputs to the measurement, as follows: Level 1: quoted prices (unadjusted) in
active markets for identical assets or liabilities 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 The following table shows the levels within the hierarchy of financial assets and
liabilities measured at fair value on a recurring basis:
30 June 2022
Listed equity securities
Fair value at 30 June 2022
Level 1
$
529,822
529,822
Level 2
$
-
-
Level 3
$
-
-
Total
$
529,822
529,822
P a g e | 45
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
7.
NON-CURRENT – DEFERRED EXPLORATION & EVALUATION EXPENDITURE
2022
$
2021
$
Deferred exploration and evaluation – at cost (i)
Beginning of financial year/(period)
Exploration & evaluation costs and acquisition for the year
Exploration & project due diligence costs written-off
End of financial year
774,070
23,686,146
(355,222)
24,104,994
249,250
571,996
(47,176)
774,070
(i) The Group has capitalised all costs associated with its Tallahassee Uranium Project (USA), Rattler
Uranium Project (USA), Athabasca Uranium Projects (Canada), Lake Johnston Project (Australia) and
Enmore Gold Project (Australia). 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. Okapi, through its wholly owned subsidiary
Tallahassee Resources Pty Ltd is the 100% owner of the Tallahassee Uranium Project and Rattler
Uranium Project in the USA. Okapi, through its wholly owned subsidiary Canada Resources Pty Ltd is
the 100% owner of the Athabasca Uranium Projects.
8.
NON-CURRENT – PROPERTY PLANT & EQUIPMENT
Office Equipment – at cost (i)
Cost
Accumulated depreciation
Written off
Net book amount
Reconciliation
70,680
(33,664)
(37,016)
-
59,940
(33,664)
(26,276)
-
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
Written Off
Depreciation
Carrying amount at end of the year
9.
TRADE AND OTHER PAYABLES
Current
Trade payables (i)
Accruals and other payables (i)
-
10,740
-
26,276
-
-
(10,740)
(26,276)
-
-
-
-
319,763
37,169
356,932
97,197
28,666
125,863
P a g e | 46
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
(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.
10.
ISSUED CAPITAL
Ordinary shares - fully paid
Total Share Capital
(a) Movements in share capital
Balance at beginning of year
Issued during the year:
of
Tallahassee
Acquisition
Resources Pty Ltd
Acquisition of uranium projects
from ALX Resources Inc.
Issue of shares to consultant
Placement Shares (nett of costs)
Conversion of Options at $0.30
Issue of Shares to vendors
Vesting of Performance Rights
Issue of milestone shares
Tallahassee
Issue of milestone shares –
Enmore Gold Project
Issue costs
-
Balance at the end of year
(b) Share Options on issue for the year
2022
Number
2022
$
2021
Number
2021
$
117,139,173
31,396,987
53,348,631
9,332,580
117,139,173
31,396,987
53,348,631
9,332,580
53,348,631
9,332,580
36,042,866
6,236,473
33,500,000
14,070,000
-
-
3,227,790
1,229,634
14,438,095
1,575,000
-
6,200,000
855,364
325,853
2,889,990
472,500
-
1,700,040
16,253,135
-
1,052,630
-
3,150,000
-
200,000
-
3,000,000
1,605,000
-
-
620,023
-
117,139,173
275,910
(130,250)
31,396,987
-
-
53,348,631
-
(253,893)
9,332,580
Expiry
Date
Exercise
Price
Balance at
start of
period
Issued
during the
period
Converted
during the
period
Cancelled/
lapsed
during the
period
Balance at
end of
period
31/03/23
08/04/24
08/04/24
24/08/23
31/12/24
31/12/24
31/12/24
$0.30
$0.30
$0.35
$0.30
$0.50
$0.60
$0.70
17,754,135
2,000,000
2,000,000
-
-
-
-
238,095
-
-
30,950,000
3,000,000
2,000,000
2,000,000
-
-
-
(1,575,000)
-
-
-
-
(875,000)
(875,000)
-
-
-
-
17,992,230
1,125,000
1,125,000
29,375,000
3,000,000
2,000,000
2,000,000
2022
Listed
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
The weighted average remaining contractual life for the options over ordinary shares outstanding as at
30 June 2022 was 2.45 years (2021: 2.70)
The weighted average fair value of options over the ordinary shares granted during the financial year
was 35.12 cents (2021: 34.08 cents).
The following table sets out the number and weighted average exercise prices of, and movements in,
options over ordinary shares during the financial year.
P a g e | 47
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
30 June 2022
30 June 2021
Number of
Options
Weighted
Average
Price
Number of
Options
Weighted
Average
Price
Balance at the start of financial year
21,754,135
$0.3408
-
-
Options:
Granted
Exercised
Expired
38,188,095
$0.3527
21,754,135
$0.3408
(1,575,000)
(1,750,000)
$0.30
$0.30
-
-
-
-
Balance at end of the financial year
56,617,230
$0.3512
21,754,135
$0.3408
(c) Ordinary Performance rights on issue for the year
Expiry
Date
Exercise
Price
Balance at
start of
period
Granted
during the
period
Converted
during the
period
Cancelled/
lapsed
during the
period
Balance at
end of
period
2022
Class A
Class B
Class C
Class D
Class E
Class F
31/12/25
31/12/25
31/12/25
31/12/25
31/12/25
31/12/25
-
-
-
-
-
-
-
-
-
-
-
-
2,066,666
2,066,667
2,066,667
666,666
666,667
666,667
(2,066,666)
(2,066,667)
(2,066,667)
-
-
-
-
-
-
-
-
-
-
-
-
666,666
666,667
666,667
Vesting Conditions:
Class A: The Company achieving and maintaining a market capitalisation of $20 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class B: The Company achieving and maintaining a market capitalisation of $35 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class C: The Company achieving and maintaining a market capitalisation of $50 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class D: The Company achieving and maintaining a share price of $0.75 or more for a continuous
period of 20 trading days on or before 31 December 2025.
Class E: The Company achieving and maintaining a share price of $1.00 or more for a continuous period
of 20 trading days on or before 31 December 2025.
Class F: The Company achieving and maintaining a share price of $1.25 or more for a continuous period
of 20 trading days on or before 31 December 2025.
P a g e | 48
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
Class A
Class B
Class C
Class D
Class E
Class F
Number Issued (No.)
2,066,666
2,066,667
2,066,667
666,666
666,667
666,667
Grant Date
20-08-21
20-08-21
20-08-21
30-11-21
30-11-21
30-11-21
Expiry/Amortisation Date
31-12-25
31-12-25
31-12-25
31-12-25
31-12-25
31-12-25
Volatility percentage (%)
94%
94%
94%
94%
94%
94%
Risk free rate (%)
0.37%
0.37%
0.37%
1.10%
1.10%
1.10%
Share price at grant date
$0.375
$0.375
$0.375
$0.445
$0.445
$0.445
Underlying Fair Value on Grant
$0.3046
$0.2700
$0.3480
$0.3302
$0.3123
$0.2896
Total Fair Value – Life of Right
$629,506
$558,000
$512,533
$220,133
$208,200
$193,067
Total Fair Value – Expensed to
30 June 2022
$629,506
$558,000
$512,533
$220,133
$208,200
$193,067
(d) 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.
(e) 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 2022 and 30 June 2021 are as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Working capital position
2022
$
2021
$
1,190,608
3,214,632
306,034
(356,932)
49,129
(100,073)
1,139,710
3,163,688
P a g e | 49
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
11. RESERVES & ACCUMULATED LOSSES
(a) Reserves
Share based payments reserve
Movements:
Share based payments reserve
Balance at the beginning of the year
Share based payments (options)
Share based payments lapsed (options)
Share based payments (performance rights)
Share based payments converted (performance rights)
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
(c) Share based payments – options expense for the period
2022
$
6,909,219
2021
$
158,250
158,250
6,175,835
(46,266)
2,321,440
(1,700,040)
6,909,219
-
158,250
-
-
158,250
(5,138,353)
(7,393,327)
(12,531,680)
(4,406,096)
(732,257)
(5,138,353)
Class E
Class F
Class G
Number Issued (No.)
3,000,000
2,000,000
2,000,000
Grant Date
3-Sep-2021
3-Sep-2021
3-Sep-2021
Expiry/Amortisation Date
31-Dec-2024
31-Dec-2024 31-Dec-2024
Volatility percentage (%)
93.7%
93.7%
93.7%
Risk free rate (%)
0.01%
0.01%
0.01%
Underlying Fair Value on Grant ($)
$0.52
$0.52
$0.52
Total Fair Value ($) – Life of Right
$956,358
$599,839
$567,193
Total Fair Value ($) – Expensed to
30 June 2022
$956,358
$599,839
$567,193
P a g e | 50
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
(d) Share based payments – performance rights expense for the period
During the year, 8,200,000 Performance Rights were issued to Directors of the Company. The
Performance Rights were valued using Hoadleys Hybrid ESO Model (a Monte Carlo simulation model).
Grant
Date
Expiry
Date
Number
Issued
Value per
Performance
Rights
$
2022
Class A
Class B
Class C
Class D
Class E
Class F
20/08/21
20/08/21
20/08/21
30/11/21
30/11/21
30/11/21
31/12/25
31/12/25
31/12/25
31/12/25
31/12/25
31/12/25
2,066,666
2,066,667
2,066,667
666,666
666,667
666,667
0.3046
0.2700
0.2480
0.3302
0.3123
0.2896
Total Fair
Value
Vested
$
629,506
558,000
512,533
220,133
208,200
193,067
%
100
100
100
-
-
-
Vesting Conditions:
Class A: The Company achieving and maintaining a market capitalisation of $20 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class B: The Company achieving and maintaining a market capitalisation of $35 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class C: The Company achieving and maintaining a market capitalisation of $50 million or more for a
continuous period of 20 trading days on or before 31 December 2025.
Class D: The Company achieving and maintaining a share price of $0.75 or more for a continuous
period of 20 trading days on or before 31 December 2025.
Class E: The Company achieving and maintaining a share price of $1.00 or more for a continuous period
of 20 trading days on or before 31 December 2025.
Class F: The Company achieving and maintaining a share price of $1.25 or more for a continuous period
of 20 trading days on or before 31 December 2025.
On 29 October 2021, Class A, B and C Performance Rights vested, and a total 6,200,000 shares were
issued.
Share based payments of $2,321,439 in relation to the above Performance Rights were expensed to
statement of profit or loss and other comprehensive income for the year 30 June 2022.
12. CONTINGENT LIABILITIES
Enmore Gold Project – NSW
The Company entered a binding heads of agreement with Providence Gold and Minerals Pty Ltd
(“Providence”) to acquire 100% of the Enmore Gold Project (EL8479) located in New South Wales.
As part of the acquisition consideration, the Company paid $100,000 cash and issued 1,052,630 shares at
a deemed price of $0.19 per share to Providence. To further acquire the 100% in the Enmore Gold Project,
the Company must meet Milestone 1.
Milestone 1
• Okapi having conducted a minimum of 1,000 metres of reverse circulation core drilling on the
Tenement, and releasing those drilling results on its ASX announcements platform; and
P a g e | 51
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
• Okapi having expended no less than $200,000 in assessing the Tenement’s viability and minerology
(“Minimum Expenditure”) and releasing a public report verifying that the Company has met the
Minimum Expenditure on its ASX announcements platform.
Upon satisfaction of Milestone 1, Okapi to pay $300,000 either by way of the issue of shares at a deemed
issue price equal to the 10-day VWAP immediately prior to the date of issue (in which case the issue will be
subject to shareholder approval), or in cash, at the sole and exclusive election of the Company.
In the event Okapi elects not to proceed with the Acquisition and therefore not to make the Milestone 1
payment, the Company shall pay any unspent portion of the Minimum Expenditure to Providence in cash
and the parties agree and acknowledge that they shall do all things required to transfer the Tenement back
to Providence as soon as is practicable following the Company’s decision not to continue with the
Acquisition.
During the year, Okapi satisfied Milestone 1 and issued 620,023 shares to Providence and acquired the
Enmore Gold Project 100%.
Milestone 2
Okapi defining a JORC Code 2012-compliant Mineral Resource (classified as either Measured or Indicated)
of no less than 100k oz gold equivalent at greater than 1.5g/t Au as verified by an Independent Technical
Consultant for the Enmore Gold Project.
Upon satisfaction of Milestone 2, Okapi to pay $400,000, either by way of the issue of Shares at a deemed
issue price equal to the 10-day VWAP immediately prior to the date of issue (in which case the issue will be
subject to shareholder approval), or in cash, at the sole and exclusive election of the Company.
Providence retains a two percent (2%) net smelter royalty in the Enmore Gold Project.
Tallahassee Uranium Project, Colorado – USA
During the year, Okapi completed the acquisition of Tallahassee Resources Pty Ltd. Tallahassee holds its
mineral rights by way of mining agreements with two privately-owned ranches through its wholly owned
subsidiary, Usuran Resources Inc.
Taylor Ranch Property
Tallahassee has an initial 10-year lease over the Taylor Ranch (until 10 November 2030), encompassing
approximately 5,505 acres, that provides Tallahassee the right to explore, develop and mine uranium
resources on that property by:
(i)
(ii)
Making a cash payment of US$25,000 on before 10 November 2021 (payment has been made);
Making further annual payments, on or before the subsequent anniversary date of that payment,
of:
o US$25,000, if the benchmark uranium price is less than US$60/lb U3O8;
o US$35,000, if the benchmark uranium price is greater than or equal to US$60/lb but less than
US$80/lb U3O8;
o US$45,000, if the benchmark uranium price is greater than or equal to US$80/lb but less than
US$100/lb U3O8; or
o US$55,000, if the benchmark uranium price is greater than or equal to US$100/lb U3O8.
Paying a production royalty in the amount of:
(iii)
a. 2.5% for production from land in which the owner holds both surface and mineral rights; and
b. 1.5% for production from land in which the owner holds only the surface rights.
If commercial operations have commenced within the initial 10-year lease period, Tallahassee will have the
right to extend the lease for as long as commercial production continues by paying the owner US$55,000
on the annual anniversary of the date of execution of the agreement.
P a g e | 52
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
Boyer Ranch Property
Tallahassee has an initial 10-year lease over the Boyer Ranch (until 10 November 2030), encompassing
approximately 1,875 acres, that provides Tallahassee the right to explore, develop and mine uranium
resources on that property by:
(i)
(ii)
Making a cash payment of US$10,000 on before 10 November 2021 (payment has been made);
Making further annual payments, on or before the subsequent anniversary date of that payment,
of:
o US$10,000, if the benchmark uranium price is less than US$60/lb U3O8;
o US$15,000, if the benchmark uranium price is greater than or equal to US$60/lb but less than
US$80/lb U3O8;
o US$20,000, if the benchmark uranium price is greater than or equal to US$80/lb but less than
US$100/lb U3O8; or
o US$30,000, if the benchmark uranium price is greater than or equal to US$100/lb U3O8.
Paying a production royalty in the amount of:
(iii)
a. 2.0% for production from land in which the owner holds both surface and mineral rights; and
b. 0.5% for production from land in which the owner holds only the surface rights.
If commercial operations have commenced within the initial 10-year lease period, Tallahassee will have the
right to extend the lease for as long as commercial production continues by paying the owner US$30,000
on the annual anniversary of the date of execution of the agreement.
High Park Uranium Project
During the year, Okapi entered into a 10 year mining lease with the State of Colorado to secure a 100%
interest in the 640 acre landholding at High Park. Okapi has the option to extend the lease for a further 10
years as long as minerals are being produced in paying quantities.
The financial terms of the lease include:
• One-off payment of US$42,000 (payment has been made);
• Annual rent US$3,200;
• Annual advanced royalty payment of $16,800 deductable from future royalty payments (payment has
been made); and
• Sliding scale gross production royalty linked to the uranium price ranging from 5% and increasing to
12%, depending on the prevailing uranium price.
Hansen Uranium Project
Subsequent to year end, in July 2022, Okapi completed the an 8-year option agreement to acquire 51%
mineral interest in the Hansen Uranium Project with STB Minerals LLC. The following are the key terms of
the agreement:
• A one-off payment of US$500,000 (payment has been made);
• Option for 5 years by paying US$250,000 annually subject to any inflation adjustments;
• Option for a further 3 years by paying US$500,000 annually subject to any inflation adjustments;
• Right to exercise the option at any time during the 8 years by payment of US$5 million to acquire 51%
of the mineral interest;
• STB will hold a royalty of 1.5% net returns over their 51% mineral interest (STB Royalty).
• Okapi has the right to purchase 50% of the STB Royalty at any time by paying STB US$500,000.
• Upon exercise of the option, Okapi will not be required to pay any further option fees.
During the options period, Okapi has the right to conduct mineral prospecting, exploration development,
mining and related activities on the properties comprising the Hansen Uranium Project.
Rattler Uranium Project
Tallahassee has the right to acquire a 100% interest in the 51 BLM claims that comprise the Rattler Project
by making further payments of:
i.
US$25,000 in cash or shares (at Tallahassee’s election) by 31 December 2021. If a benchmark
P a g e | 53
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
ii.
U3O8 price is >US$60/lb, this payment is to comprise US$50,000. (Payment has been made)
3 further annual payments of US$25,000 in cash or shares (at Tallahassee’s election) on or before
31 December each year. If a benchmark U3O8 price is >$60/lb at the time these payments are due,
consideration will be US$50,000.
Tallahassee is required to make all annual claim maintenance payments. Title will be transferred to
Tallahassee on completion of the fourth (and final) payment. The vendor will retain a 1% NSR royalty; with
Tallahassee having the right to purchase 50% of this for US$500,000 at any time.
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.
Annual commitment Crackerjack Project – WA
Less than one year (i)
Annual commitment Lake Johnston Project – E63/2039 - WA
Less than one year (ii)
Annual commitment Lake Johnston Project – E63/1903 – WA
Less than one year (iii)
More than one year and less than 5 years (iii)
2022
$
-
-
33,100
700,000
733,100
2021
$
38,000
20,000
-
800,000
858,000
(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 not met and the
Company has surrendered the tenement.
(ii) On 25 May 2021, the Company was granted tenement E63/2039 located in the Lake Johnston Project.
Subsequent to year end, the Company has sold the tenement to Nordau Pty Ltd.
(iii) During previous year, the Company entered into a binding Farm-In Agreement with Lithium Australia NL
on tenement E63/1903 in the Lake Johnston area, Western Australia. The key terms of the Farm-In
Agreement are:
• Okapi has the exclusive right to earn a 75% interest in mineral rights, other than lithium, over
tenement E63/1903;
• Okapi will undertake a minimum expenditure of A$100,000 on tenement E63/1903 within 2 years
from the execution date of the agreement (“Minimum Expenditure”);
• Okapi will be entitled to earn a 75% interest in tenement E63/1903 by undertaking exploration
expenditure of not less than $800,000 (inclusive of the $100,000 Minimum Expenditure) on the
Tenements within 48 months from the execution date of the Amended Agreement;
If Okapi earns the Farm-in Interest, Okapi must free carry Lithium Australia until completion of a
mine plan which is accepted by the Department of Mines, Industry Regulation and Safety as being
in compliance with the Mining Law.
•
14. DIVIDENDS
No dividends were paid or recommended for payment during the financial year.
P a g e | 54
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
15. REMUNERATION OF AUDITORS
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
Audit and review of financial reports
- Statutory audit – Okapi Resources Limited
Total remuneration for audit services
2022
$
2021
$
43,260
43,260
17,186
17,186
During the year, Hall Chadwick WA replaced Butler Settineri as the auditor of the Group.
16. RELATED PARTY TRANSACTIONS
(a) Parent entity
Okapi Resources Limited (ASX Code: OKR, OTCQB: OKPRF)
(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. The key management personnel compensation
is as follows:
Key Management Personnel Compensation
Summary Remuneration
Short-term benefits
Post-employment benefits
Share based payments
2022
$
2021
$
700,903
412,308
42,905
21,051
2,321,440
105,750
Total key management personnel compensation
3,065,248
539,109
Details of remuneration disclosures are provided within the audited remuneration report which can be
found on pages 20 to 25 of the Directors’ report.
P a g e | 55
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
17. SUBSIDIARIES
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
Okapi Resources Canada Ltd
Australia
Canada
Tallahassee Resources Pty Ltd
Australia
Usuran Resources Inc.2
Rattler LLC3
USA
USA
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
2022
2021
%
100
100
100
100
100
%
100
-
-
-
-
¹The proportion of ownership interest is equal to the proportion of voting power held.
2Usuran Resources Inc. is a wholly owned subsidiary of Tallahassee Resources Pty Ltd.
3Rattler LLC is a wholly owned subsidiary of Usuran Resources Inc.
18. PARENT ENTITY INFORMATION
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Equity
Contributed equity
Accumulated losses
Reserves
Total Equity
Total comprehensive loss for the year
Loss for the year
Other comprehensive income for the year
Total comprehensive loss for the year
2022
$
2021
$
1,997,598
24,357,703
26,355,301
3,674,916
576,698
4,251,614
355,613
-
355,613
100,073
-
100,073
25,999,688
4,151,541
31,396,986
(12,307,359)
6,910,061
25,999,688
9,185,079
(5,139,288)
105,750
4,151,541
(7,171,635)
-
(7,171,635)
(735,821)
-
(735,821)
The parent entity has not guaranteed any loans for any entity during the year. The parent entity does not
have any contingent liabilities, or capital commitments.
P a g e | 56
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
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
Exploration expenditure written off
Proceeds from sale of tenement and financial asset
Net (gain)/loss on available for sale asset
Fixed assets written off
Share based payments – performance rights/options
Expenses paid via share issuance
Change in operating assets and liabilities
(Increase)/decrease in trade, other receivables and assets
Increase/(decrease) in trade and other payables
2022
$
2021
$
(7,393,327)
-
355,222
(44,029)
(732,257)
(204,819)
-
-
(134,437)
(298,090)
-
4,398,564
325,853
26,276
105,750
(77,191)
(80,223)
8,502
27,733
Net cash outflow from operating activities
(2,649,568)
(1,066,905)
(b) Non-cash investing and financing activities
There were no non-cash investing or financing transactions for the financial year.
20.
LOSS PER SHARE
(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
(7,393,327)
(732,257)
2022
$
2021
$
(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
103,626,214
42,214,981
Number of
shares
Number of
shares
21. SEGMENT INFORMATION
The Group has identified its operating segments based on internal reports that are reviewed by the Board
and management. The Group operated in one operating segment during the year, being mineral exploration
and in two geographical areas, being Australia and North America. Expenditure, assets and liabilities not
directly related to either is referred to as other. In previous financial year, the Group only operated in one
operating segment and in one geographical area, being mineral exploration in Australia.
P a g e | 57
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
(a) Primary Reporting – Business Segments
Mineral
Exploration
$
Australia
Mineral
Exploration
$
North America
Corporate
Total
$
$
Year ended 30 June 2022
Revenue
Other
Total Segment Revenue
Segment Result
Profit/(loss) before income tax
Net Profit/(Loss)
20,000
20,000
17,305
17,305
31,943
31,943
69,248
69,248
(355,222)
(355,222)
(5,079)
(5,079)
(7,033,026)
(7,033,026)
(7,393,327)
(7,393,327)
Total Segment Assets
1,128,208
23,188,894
1,814,556
26,131,458
Total Segment Liabilities
(105,191)
(45,171)
(206,570)
(356,932)
22.
EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to year end, the Company completed a placement raising $2,369,000 (before costs) through the
issue of 15,799,675 fully-paid ordinary shares at A$0.15 per share (Placement Shares) together with 7,899,834
free-attaching unlisted options exercisable at $0.30 each and expiring on 19 July 2024 (Placement Options)
(together, the Placement Securities) on the basis of one (1) option for every two (2) Shares issued (the Placement).
The Placement Securities were issued to sophisticated and professional investors.
Following receipt of shareholder approval at the General Meeting on 22 September 2022, Okapi’s Board of
Directors, Messrs Brian Hill, Andrew Ferrier, Leonard Math and Benjamin Vallerine subscribed for $30,000,
$71,000, $20,000 and $10,000 worth of Placement Securities, respectively, raising a further of $131,000.
In July 2022, the Company completed the agreement to acquire an option over a 51% interest in the Hansen
Uranium Project in Colorado, USA with STB Minerals LLC (STB).
Okapi paid a total of US$500,000 cash consideration and has an 8-year option to purchase the 51% mineral
interest from STB. Other key terms are disclosed below:
1.
2.
3.
4.
5.
Okapi can maintain the option for 5 years by paying US$250,000 annually subject to any inflation
adjustments.
During the option period, Okapi has the right to conduct mineral prospecting, exploration, development,
mining and related activities on the properties comprising the Hansen Uranium Project.
Okapi can continue the option for a further 3 years by paying US$500,000 annually subject to inflation
adjustments.
Okapi has the right to exercise the option at any time during the 8 years by payment of US$5,000,000 at
which time STB Minerals will transfer to Okapi it full 51% mineral interest reserving a royalty of 1.5% net
returns over their 51% mineral interest (STB Royalty). Upon exercise of the option, Okapi will not be required
to pay any further option fees.
Okapi would have the right to purchase 50% of STB Royalty at any time after Closing by paying STB Minerals
US$500,000.
On 22 August 2022, the Company completed the sale of the tenement E63/2039 to Nordau Pty Ltd. The Company
receive a total cash payment of $70,000 and the following performance share with the milestones set out below.
P a g e | 58
Okapi Resources Limited
Notes to the Financial Statement For the year ended 30 June 2022
Class
Number of
Performance
Shares
Performance
Shares
Value
Class A 1
$50,000
Class B 1
$300,000
Class C 1
$700,000
Performance Milestone
Expiry Date
Upon NewCo receiving approval from
ASX to be admitted to the official list of
ASX (Class A Milestone).
Twelve (12) months from
the Completion Date.
Three (3) years from the
date NewCo’s securities
are admitted to the official
ASX
of
list
(ASX Admission Date).
Five (5) years from the ASX
Admission Date.
Upon the Purchaser completing a
drilling program and returning a drill
intercept of at least 2m @ 1.0% Li2O or
10m @ 0.8% Li2O on the Tenements
Independent
as
Technical
Consultant
(Class B Milestone).
verified by an
the Purchaser
returning a
Upon
Mineral Resource in accordance with
the JORC Code 2012 Edition (or the
current edition at the time) (JORC
Code) of at least 5mt @ >1.0% Li2O on
the Tenements as verified by an
Independent Technical Consultant
(Class C Milestone).
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.
P a g e | 59
Okapi Resources Limited
Directors’ Declaration
In the directors’ opinion:
(a) the financial statements and notes set out on pages 31 to 59 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
2022 and of their performance for the financial year ended on that date;
(b) the audited remuneration disclosures set out on the pages 20 to 25 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 executive directors and acting 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.
Brian Hill
Non-executive Chairman
30 September 2022
Perth, Western Australia
P a g e | 60
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 61
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 62
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 63
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 64
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 65
Okapi Resources Limited
Independent Auditor’s Report For the period ended 30 June 2022
P a g e | 66
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
(a) Shareholding
The distribution of members and their holdings of equity securities as at 28 September 2022 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:
Ordinary shares
Number of holders
Number of shares
48
283
202
481
176
1,190
152
18,091
826,865
1,644,109
18,059,262
115,390,521
135,938,848
190,475
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are as follows:
Silverpeak Nominees Pty Ltd
Equity Plan Services Pty Ltd
Bullseye Geoservices Pty Ltd
1
Evans Leap Holdings Pty Ltd
2 Mr Benjamin Vallerine & Ms Samantha Blount
3 HSBC Custody Nominees (Australia) Limited
4
5
6 David Nour
7
BNP Paribas Nominees Pty Ltd
8 Havelock Mining investment Limited
9
10 McNeil Nominees Pty Ltd
11 CH2 Investments Pty Ltd
12 ALX Resources Corp
13 Massif Holdings Pty Ltd
14 Stelabel Pty Ltd
15 Citicorp Nominees Pty Limited
16 Valorem Capital Pty Ltd
17 Windhager Holding AG
18 Colin Weekes
19 Kalubamba SARL
20 Tambourineman Pty Ltd
(c) Substantial shareholders
Evans Leap Holdings Pty Ltd
(d) Restricted Securities
There are no mandatory restricted securities currently on issue.
(e) On-Market Buy-back
There is no current on-market buy-back.
Listed ordinary shares
Number of shares
Percentage of
ordinary shares
8,425,000
6,654,680
6,620,845
6,200,000
5,869,258
4,780,000
4,601,886
4,594,181
4,488,994
4,337,036
2,962,628
2,162,619
2,000,000
1,633,743
1,616,242
1,400,000
1,360,000
1,284,666
1,000,000
1,000,000
72,991,778
6.2%
4.9%
4.87%
4.56%
4.32%
3.52%
3.39%
3.38%
3.30%
3.19%
2.18%
1.59%
1.47%
1.20%
1.19%
1.03%
1.00%
0.95%
0.74%
0.74%
53.72%
Number of Shares
8,425,000
P a g e | 67
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
(f) Listed Option Holders (ASX: OKRO)
The distribution of members and their holdings of equity securities as at 28 September 2022 is as follows:
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Listed Options
Number of holders
Number of Options
5
8
8
65
43
129
2,287
23,833
60,783
3,188,434
14,716,893
17,992,230
The names of the twenty largest holders of quoted options are as follows:
Listed Options
Number of Options
Percentage
Peter Andrew Proksa
Xcel Capital Pty Ltd
1
2
3 Chunyan Niu
Saba Nominees Pty Ltd
4
Evermind Pty Ltd
5
6
Scott Arthur Cluff
7 M&K Korkidas Pty Ltd
8 Muncha Cruncha Pty Ltd
9 Quid Capital Pty Ltd
10 Robert Sarkany
11 McNeil Nominees Pty Ltd
12 David Nour
13 Valorem Capital Pty Ltd
14 Buckingham Investment Financial Services PL
15 Louisa Aline Mitchell
16 Kalgoorlie Mine Management Pty Ltd
17 Accent Capital GMBH
18 Ayers Capital Pty Ltd
19 Martin Alexander Ziegler
20 Zhichong Zheng
2,013,535
1,023,095
1,009,357
907,498
800,000
750,000
542,469
438,207
365,790
354,951
326,316
300,000
300,000
285,000
280,000
265,000
263,158
256,135
254,778
250,000
10,985,289
(g) Unquoted Securities
(OKRAL) Options expiring 24 August 2023 exercisable at $0.30
11.19
5.69
5.61
5.04
4.45
4.17
3.02
2.44
2.03
1.97
1.81
1.67
1.67
1.58
1.56
1.47
1.46
1.42
1.42
1.39
61.06
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Options (OKRAL)
Number of holders
Number of Options
-
-
-
38
42
80
-
-
-
2,770,000
26,605,000
29,375,000
P a g e | 68
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
(OKRAI) Options expiring 8 April 2024 exercisable at $0.30
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
(OKRAJ) Options expiring 8 April 2024 exercisable at $0.35
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Options (OKRAI)
Number of holders
Number of Options
-
-
-
-
4
4
-
-
-
-
1,125,000
1,125,000
Options (OKRAJ)
Number of holders
Number of Options
-
-
-
-
4
4
-
-
-
-
1,125,000
1,125,000
(OKRAQ) Options expiring 19 July 2024 exercisable at $0.30
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Options (OKRAQ)
Number of holders
Number of Options
-
-
4
68
22
94
-
-
33,334
2,924,925
4,941,575
7,899,834
(OKRAM) Options expiring 31 December 2024 exercisable at $0.50
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Options (OKRAM)
Number of holders
Number of Options
-
-
-
-
1
1
-
-
-
-
3,000,000
3,000,000
(OKRAN) Options expiring 31 December 2024 exercisable at $0.60
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
Options (OKRAM)
Number of holders
Number of Options
-
-
-
-
1
1
-
-
-
-
2,000,000
2,000,000
P a g e | 69
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
(OKRAO) Options expiring 31 December 2024 exercisable at $0.70
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
(OKRAP) Performance Rights expiring 31 December 2025
1
1,001
5,001
10,001
100,001
-
-
-
-
1,000
5,000
10,000
100,000
and over
(h) Voting rights
Options (OKRAO)
Number of holders
Number of Options
-
-
-
-
1
1
-
-
-
-
2,000,000
2,000,000
Options (OKRAP)
Number of holders
Number of Rights
-
-
-
-
1
1
-
-
-
-
2,000,000
2,000,000
The voting rights attaching to each class of equity securities are set out below:
(i) Ordinary shares
All ordinary shares carry one vote per share without restriction.
(ii) Performance Rights and Unlisted Options
These securities have no voting rights.
(i) 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.
(j) 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.
P a g e | 70
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
(k) Tenement Schedule
Project/Location
Location
Tenement
Tallahassee Uranium Project
Colorado, USA
Taylor Ranch – Private Lease
Boyer Ranch – Private Lease
High Park – Unpatented Mining Claims
High Park (New Project Area) – State Lease
Hansen
Picnic Tree
Rattler Uranium Project
Utah, USA
Unpatented Mining Claims
Percentage
held/earning
100%
100%
100%
100%
0%1
0%1
0%2
Maybell Uranium Project
Colorado, USA
468 Federal Unpatented Mining Claims
100%
Athabasca Uranium Portfolio
Saskatchewan,
Canada
75 Granted Mineral Claims
Newnham Lake Project
Middle Lake Project
Perch Project
Kelic Lake Project
Argo Project
Lazy Edward Bay Project
Enmore Gold Project
Lake Johnston Project
New South Wales,
Australia
Western Australia,
Australia
EL8479
E63/1903
100%
80%
100%
100%
100%
100%
100%
0%3
1Okapi has executed a binding agreement with STB Minerals LLC to earn 51% interest in Hansen and Picnic Tree
uranium deposits.
2Okapi has the right to acquire 100% interest upon satisfaction of payments.
3Okapi has executed a binding farm-in agreement with Lithium Australia NL to earn an undivided 75% interest in
the tenements.
(l) Resource Estimate
JORC 2012 Resource Estimate as at the date of this report.
Measured
Indicated
Inferred
Tonnes
(000)
Grade
U3O8
(ppm)
lbs
U3O8
(000)
Tonnes
(000)
Grade
U3O8
(ppm)
lbs
U3O8
(000)
Tonne
s
(000)
Grade
U3O8
(ppm)
Lbs
U3O8
(000)
Tonnes
(000)
Total
Grade
U3O8
(ppm)
lbs
U3O8
(000)
-
-
-
-
-
-
7,309
640 10,360
9,277
580
11,874
16,586
610
22,234
7,641
520
8,705 14,869
460
15,172
22,513
480
23,877
2,451
550
2,960
24
590
30
434
770
734
2,907
580
3,724
Deposit
Hansen
& Picnic
Tree
Taylor &
Boyer
High
Park
Total
2,451
550
2,960
14,976
580 19,095 24,580
510
27,780
42,007
540
49,835
Notes: Calculated applying a cut-off grade of 250ppm U3O8. Numbers may not sum due to rounding. Grade rounded to nearest
10ppm. **Numbers reported are 51% of the Hansen/Picnic Tree due to ownership agreements.
P a g e | 71
Okapi Resources Limited
ASX Additional Information For the period ended 30 June 2022
Okapi Resources Limited
London House
Level 3, 216 St Georges Terrace
Perth Western Australia 6000
Telephone: (08) 6117 9338
info@okapiresources.com
ABN 21 619 387 085
ASX OKR
OTCQB OKPRF
P a g e | 72