RAIDEN RESOURCES LIMITED
ABN 68 009 161 522
ANNUAL REPORT
30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONTENTS
Corporate Directory
Chairman’s Letter
Directors’ Report
Auditor’s Independence Declaration
Financial Report
Directors’ Declaration
Independent Auditor’s Report
Corporate Governance Statement
Additional Shareholder Information
CORPORATE DIRECTORY
Directors
Mr Dusko Ljubojevic – Managing Director
Mr Michael Davy – Non-Executive Chairman
Mr Martin Pawlitschek – Non-Executive Director
Company Secretary
Ms Kyla Garic
Registered Office & Principal Place of Business
108 Outram Street
West Perth WA 6005
Auditor
RSM Australia Partners
Level 32, Exchange Tower, 2 The Esplanade
Perth WA 6000
Bankers
NAB
1232 Hay Street
West Perth WA 6005
Share Registry
Automic Pty Ltd
Level 2, St Georges Terrace
Perth WA 6000
Securities Exchange Listing
ASX Limited
20 Bridge Street
Sydney NSW 2000
ASX Code – RDN
Website
www.raidenresources.com.au
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CHAIRMAN’S LETTER
Dear Shareholders,
We hope this report finds you and your families all safe and healthy. Although the global pandemic has disrupted life and
business as we know it, the Company is pleased to inform you that through diligent planning, we have managed to progress
our projects whilst ensuring the safety of our staff and contractors. As a result, we are now planning additional activities on
our projects for the following year and look forward to realising the potential of Raiden’s portfolio.
On securing an entire portfolio of projects in Bulgaria, consisting of three high quality copper/gold permits, the Company
expedited historical data reviews, conducted field verification visits and planned for initial field work programs. As a result, a
number of new prospects were defined in addition to historical target areas. On the Kalabak project, the Company executed
geochemical and geophysical surveys across key targets, with the objective of delineating drill targets ahead of the planned
summer drill campaign. Further, adding to an impressive list of properties in Bulgaria, the Company was confirmed as the
winner of the BG-1 licence tender, which hosts two defined porphyry targets supported by historical drilling.
In Serbia, the Company announced results from the scout drilling campaigns on its 100% owned Majdanpek West and Donje
Nevlje projects. The Company is very encouraged by the fact that both initial drilling programs intercepted anomalous
mineralisation, which warrants further follow-up targeting and drill testing. Upon the Ministry confirming the renewal
requests on both of the projects, the Company plans to undertake further geophysical surveys in order to refine drill targeting.
At Zupa, preliminary mapping and sampling campaigns defined a large poly-metallic geochemical anomaly on the western
edge of the permit. The Company plans to advance the targeting on this anomaly, once the Ministry confirms the renewal of
the exploration permit.
Despite the significant progress made across our portfolio, the disruptions caused by Covid-19 restrictions brought a halt to
all the Company’s field activities for a period of time. The board turned its priority to the safety of its staff and contractors to
ensure that critical staff, which had to continue with statutory activities could do so as safely as possible. At the same time
the Board implemented a series of cost and asset preservation measures, to ensure that the Company was in a position to
recommence with business activities on easing of restrictions.
Whilst Covid-19 did impact field activities, the Company was able to focus its time on corporate and administrative matters
and continue to create value within the overall business. During this period the Company dual listed on the Frankfurt stock
exchange, as well as, advanced the drill permitting on the Kalabak project and completed the recent capital raising ensuring
that the drill campaign on the Kalabak project was fully funded.
With drilling currently underway on the Kalabak project, the Company announced that the exploration agreement for the
highly prospective Vuzel gold project was executed by the Ministry of Energy, which ensures the Company may plan for near
term field activities. Work is currently underway to expedite approvals of the work program in order to advance the high
grade gold target at Vuzel to drill ready status. The Company believes it will be in a position to drill the Vuzel gold prospect
during the second half of the year.
In line with the Raiden’s corporate strategy to generate value for all the shareholders and deliver a significant economic
discovery, the Company will continue to evaluate further opportunities, both in the current region of operations and further
afield, including in Australia.
Finally, as we look ahead to what should be an exciting period for the Company, the board wishes to thank all our employees
for their continued efforts and extend our further gratitude to all our shareholders who have continued to support the
Company over the last twelve months.
Yours faithfully,
Mr Michael Davy
Non-Executive Chairman
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT
Your Directors present their report together with the financial statements of Raiden Resources Limited (“the Company” or
“RDN”) and its subsidiaries (“the Group”) for the financial year ended 30 June 2020.
The names and the particulars of the Directors who held office during or since the end of the year and until the date of this
report are disclosed below. The Directors were in office for this entire period unless otherwise stated.
Directors
Mr Dusko Ljubojevic
Mr Michael Davy
Mr Martin Pawlitschek
Company Secretary
Ms Kyla Garic, held the position of Company Secretary at the end of the financial year.
Qualifications
BCom, MAcc, CA
Experience
Ms Garic was appointed as Company Secretary on 27 June 2017. Ms Garic is a Chartered Accountant
and Director of Onyx Corporate. Onyx Corporate provides financial reporting, accounting, company
secretarial and other services primarily to ASX listed companies. Ms Garic has acted as a Non-
Executive Director and Company Secretary for a number of ASX listed companies.
Principal activities
During the year the principal activities of the Group were mineral exploration in the Republic of Serbia and Republic of
Bulgaria.
Operating and financial review
The consolidated loss for the year amounted to $1,590,612 (Restated FY19: loss of $1,925,919).
Dividends paid or recommended
There were no dividends paid or recommended during the financial year ended 30 June 2020 (FY19: Nil).
Significant changes in state of affairs
There were no significant changes to the Company or the state of its affairs during the year.
Review of Operations
During the year ended 30 June 2020, the following activities occurred:
During the financial year, the Company has expanded its exploration portfolio and landholding in the Western Tethyan belt
The Company has established a substantial land position in Serbia and Bulgaria and is now controls a large package of
properties in the region.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
Figure 1: Locations of the Company’s projects in the Tethyan orogenic belts and relative to known porphyry and epithermal
gold and copper deposits
Kalabak
On 15 July 2019, the Company entered into an Option Agreement with QX Metals Corporation (“QX”) over the Kalabak Project
in Bulgaria. QX, a TSX-V listed company (TSXV Code: QX) is the 100% holder of the Kalabak licence, through its 100% owned
Bulgarian entity, Zelenrok EOOD. Under the terms of the agreement the Company has an Option to earn into a 75% position
within the Kalabak project under the following terms:
• Phase 1 Option: By spending US$1 million on project expenditure within a 2-year period, the Company has the option to
earn a 51% project level interest. The expenditure requires the completion of a minimum of 3,000 metres of reverse
circulation or diamond drilling. The Company was obliged to spend US$250,000 before 14 December 2019, this obligation
has been met.
• Phase 2 Option: By completing a 43-101 compliant Preliminary Feasibility Study (“PFS”), by the 7th anniversary of the
Conditions Precedent Satisfaction Date as well as meeting other conditions, Raiden has the option to earn additional 24%
interest to obtain a 75% position of the project.
Upon Raiden obtaining a 75% position in the project, QX shall have the option to:
• Maintain its 25% position within the project by financing its proportional share of further expenditure;
• Sell its remaining stake in the project, with Raiden having the first right of refusal to purchase the remaining stake; or
• Dilute its remaining stake to a 2% Net Smelter Royalty (“NSR”), where Raiden will have the option to purchase an initial
0.5% of the total NSR for US$2.5m and with a further 1% being purchasable for US$5m, prior to commencement of
commercial production
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
Raiden is the manager and operator of the work program.
The initial results from a technical review of historical data, geological maps and exploration data from an outcrop sampling
program carried out by QX and reconnaissance field visit to Kalabak project in Bulgaria has shown that the project host the
potential for a significant discovery.
Sbor Prospect
The Company’s geologists have observed alteration zones and quarts veining which may be indicative of a porphyry system
on the Sbor prospect. Sbor prospect is defined by a large, 1 km by 0.5km alteration zone, which may be related to a porphyry
intrusion and possibly related epithermal base and/or precious metals mineralised system.
The prospect covers an area where Teritary conglomerates (Podrumsche Formation) are in a faulted and/or discordant
contact with older metamorphosed basement rocks. At the Sbor Prospect these conglomerates show argillic alteration and
silicification.
As a result of the initial observations, the Company executed detailed geochemical and geophysical surveys, both of which
confirmed a target on the Sbor anomaly. In September 2020, the Company commenced with the maiden drilling campaign
on the Sbor prospect. Results are expected in the later part of October, or early November 2020.
Following prospects, which were defined by the Company in the reconissence stages and will be evaluated in more detail in
the following 12 month period.
White Cliff Prospect
The White Cliff prospect is defined by extensive alteration zone associated by an east-west trending sub-volcanic rhyolite
dyke and a large irregularly shaped rhyolite stock, which intruded into an Eocene and Oligocene volcano-sedimentary
package.
Sbor West Prospect
Processed satellite data and geological mapping demonstrated that the Sbor West Prospect comprises a one kilometer long
and north-west trending corridor, along with at least seven zones of total argillic alteration exist. Geologically, the prospect
occurs at the base of an Eocene and Oligocene volcano-clastic sequence of andesitic composition, directly overlying the
Podrumsche conglomerate.
Sbor West Prospect
Published geological maps as well as the technical team’s field observations outlined subvolcanic porphyritic andesite stocks,
that intruded the volcano-clastic sequence in the area of interest. These andesite stocks may relate to a larger concealed
feeder intrusive underneath the Sbor West Prospect and therefore underline the potential for deeper seated copper
porphyry mineralisation.
Raiden’s short-term exploration program over the Sbor West Prospect will include a multi-element soil geochemical survey,
geophysics and alteration mapping, with the objective of generating initial drill targets in the near future.
Belopoltsi Prospect
The Belopoltsi prospect is interpreted to be the westerly extension of the Popsko Gold and Poly-Metallic Ore Field, which is
located to the immediate east of the Kalabak license.
After initial mapping and rock sampling indicated the presence of prospective structures, Raiden completed a soil survey on
a 100 meter by 25 meter grid spacing (528 samples) over the target area. The prospect was defined by outcropping gold
bearing quartz veins, which are emplaced within the metamorphic basement and brecciated zones on the contacts of the
rhyolite bodies.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
A limited rock sampling program (12 samples) was carried out in parallel with the mapping program, focused on outcrops of
the prospective quartz veins and on the brecciated contacts between the rhyolite intrusions and their metamorphic host
rocks. Three of the 12 sampled outcrops yielded anomalous gold concentrations ranging from 0.1 g/t to 2.2 g/t. The geology
and mineralisation at the Belopoltsi prospect compares favorably with the style and nature of mineralisation found in the
Popsko polymetallic field, where gold-silver and poly-metallic base metal mineralization is associated with low temperature
quartz veins and linear vein swarms.
On the basis of the field observations and available data sets, the Company considers the Belopoltsi prospect to represent a
low sulpidation gold system. The follow up work will include further soil sampling to define the extent of the anomalies,
further mapping of the anomalous areas and trenching.
Chal prospect
Chal prospect was first recognised with the discovery of an outcropping alteration zone, in an area of gold anomalism defined
by the Company’s sampling program in 2019. Field observation, followed by an infill soil sampling program and ground
magnetics resulted in definition of a new geochemical anomaly and associated hydrothermal alteration, which may be
indicative of porphyry-related copper-gold mineralisation.
In response the COVID-19 and the declaration of state emergency in Bulgaria, the Company gave notice of “force majeure”
under the Kalabak Option Agreement to QX Metal Corp.
Zlatusha
On 15 July 2019, the Company entered into an Option Agreement over the Zlatusha Project in Bulgaria. Under the terms of
the agreement the Company has an Option to earn into a 75% position within the Zlatusha project under the following terms:
• Phase 1 Option: By spending a total of US$2.5 million on project expenditure within a 3-year period, the Company has
the option to earn into a 51% project level interest in the Zlatusha property. The expenditure requires the completion of
a minimum of 6,500 metres of reverse circulation or diamond drilling.
• Phase 2 Option: By completing a 43-101 compliant Preliminary Feasibility Study (“PFS”), by the 7th anniversary from when
the Zlatusha Exploration Agreement is signed by the Bulgarian Ministry of Energy, as well as, meeting other conditions,
Raiden has the option to earn additional 24% interest to obtain a 75% project level interest of the project.
Upon Raiden obtaining a 75% project level interest in the project, QX shall have the option to:
• Maintain its 25% interest within the project by financing its proportional share of further expenditure.
• Sell its remaining stake in the project, with Raiden having the first right of refusal.
• Dilute its remaining interest to a 2% Net Smelter Royalty (“NSR”), where Raiden will have the option to purchase an initial
0.5% of the total NSR for US$2.5m and a further 1% being purchasable for US$5m, prior to commencement of commercial
production.
Raiden is the manager and operator of the work program.
Following are some of the key prospects which the Company has defined in its review of historical data and which will be the
focus of exploration as soon as the Minister executes the final steps of the licensing protocol.
Rosoman Prospect
On 18 October 2019, Raiden announced that the Rosoman prospect lies in the central part of the Zlatusha project area
contains geological features typically associated with mineralised porphyry systems. The initial review and field visit at
Rosoman prospect confirmed an outcropping porphyry copper and epithermal gold alteration system. The historical rock
sampling indicated elevated Cu-Au values which are coincidental with large alteration zones.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
Pishtane Prospect
The result from Pishtane prospect evaluation indicated potential for epithermal gold mineralisation.
Further exploration activity on Rosoman and Pishtane prospects including geochemical survey and geophysical evaluations
are planned to commence once the exploration licence is signed by the Bulgarian Minister of Energy.
Vuzel
During the year Vuzel project in Bulgaria has progressed through one of the key phases of the approval process within the
Bulgarian Ministry of Energy. Subsequently, the Minister of Energy executed the exploration agreement for the license, which
is a key milestone which allows the Company to commence with preparation for field work and the Company expects that it
will be in a position to commence with exploration in the latter part of 2020.
Vuzel project hosts a low sulphidation, epithermal gold prospect which is defined by historical high-grade channel sampling
results, which presents an advanced, high grade gold target. Drilling test on the main gold target will be conducted once final
permitting completed.
Iglika
On 18 December 2019, Raiden entered into an earn-in and option to purchase agreement over Iglika project in Bulgaria. The
permit is located within upper cretaceous volcanic rocks, which host many significant porphyry copper and epithermal gold
deposits in the Balkans.
On completion of the due diligence over Iglika project and the holding company in Bulgaria, Raiden has notified the vendor
that it has not been satisfied with the due diligence and will not be pursuing further investments into the Company (Balkan
Mineral Development) or at the project level. As a result, Raiden was refunded its loan with interest, which was entered into
with Balkan Minerals Developments (owner of Iglika project).
Donje Nevlje
As a result of the maiden drilling program, which the Company executed in Q1 of 2019, the Company announced that it had
intercepted copper and gold mineralisation in one of the drill holes which targeted a blind porphyry system. . The Company
is evaluating options to undertake in following phase of exploration, which may include follow up geophysics (magnetic and
or gravity surveys), in order to refine the target at depth prior to executing a follow up drilling campaign.
The Company has submitted a request for the extension of the licence (expired July 2019) to the Serbian Ministry of Mines
and Energy (“Ministry”), for a further 3-year term and shall only be able to resume further work on the licence after the
Ministry granted the extension. At the date of this report the renewal outcome is pending.
Zupa
During the reporting period the transfer of the Zupa project from Balkan Mineral Corporation DOO to Skarnore Resources
DOO, a 100% held subsidiary of the Company had been approved by Serbian Ministry of Mines and Energy. The transfer was
completed and as a result the Company is the 100% owner of the project. The project is considered prospective for
polymetallic and intrusion related mineralisation.
During the year, the Company executed a detailed soil sampling campaign on the western periphery of the Zupa licence, with
over 1,200 samples were collected. The program targeted the contacts between the Triassic andesites and limestones. The
soil samples were analysed in a controlled field laboratory setting. Based on this analysis, the program has defined a 6.5 Km
long geochemical anomaly on the south-western flank of the project area. The anomaly is defined by a coherent zone of
elevated Zinc in soil values, as well as coincident elevated lead and copper trends. The soil anomalies are likely associated
with a NW-SE trending structural corridor and the andesite-limestone contact.
The Company has submitted a request for the extension of the exploration license for a further 3-year term. At this time the
Company is still awaiting the approval of the extension by the Serbian Ministry of Mining and Energy.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
Majdanpek
On 30 January 2020, Raiden received withdrawal notice from Rio Tinto from the Majdanpek West Earn in Joint Venture. The
Joint Venture covered two licences, Majdanpek West and Majdanpek Pojas. The Company did not conduct field operations
on these 2 licenses since receiving the withdrawal notice. The Company focused on the reinterpretation of the significant
data generated by Rio Tinto, with the objective of defining gold targets, which were not the focus of Rio Tinto’s exploration
efforts. The Company has submitted a request for the extension of the exploration licence, which is still pending at the time
of writing.
Tilva Njagra
During the financial year the Group relinquished the Tilva Njagra project based on poor initial results and lack of clear targets.
Corporate
On 22 October 2019, the Company issued 21,000,000 fully paid ordinary shares at nil consideration to Acuity Capital
Investment Management Pty Ltd pursuant to the controlled placement agreement.
On 29 November 2019, the Company issued 33,000,000 performance rights subject to the following conditions. of which,
30,000,000 Performance Rights were issued to Company’s Directors and as Management Performance Rights, as part of the
Company’s long-term strategy to remunerate the Board. 3,000,000 Performance Rights were issued to Company Secretary
under Employee Incentive Security Plan.
Number of Performance
Rights
Milestone 1
Milestone 2
Milestone 3
10,000,000
10,000,000
13,000,000
Performance
Milestones
20-day VWAP $0.03
Vesting
12 months from issue
20-day VWAP $0.05
12 months from issue
20-day VWAP $0.07
18 months from issue
On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency because of a new strain of
coronavirus originating in Wuhan, China (COVID-19 outbreak) and the risks to the international community as the virus
spreads globally beyond its point of origin. Because of the rapid increase in exposure globally, on 11 March 2020, the WHO
classified the COVID-19 outbreak as a pandemic. These events are having a significant negative impact on world stock
markets, currencies and general business activities.
The Board took steps to mitigate the impact of COVID-19 with immediate effect. Actions by the Board were in line with
Government directives where a state of emergency had been declared in both Serbia and Bulgaria, where the Group’s
projects are located. As a response the Board had implemented the following initiatives:
•
•
•
•
The Board initiated work-from-home protocols where possible to ensure that all of the staff could exercise ‘social
distancing’ in Serbia, Bulgaria and in Australia;
The Board implemented cost savings and asset preservation initiatives across the business, until such a time
where the Group could commenced field activities;
All business travel was cancelled until it was safe and practical to do so; and
The Group used the period to undertake in-house technical reviews of all the data which has been collected over
its portfolio of projects
Further to the above initiatives the Company provided a notice of “force majeure” under the Kalabak Option Agreement to
QX Metals Corp. (“QX Metals”) (TSX-V: QX.V) in light of the situation with COVID-19 and the declaration of a state of
emergency in Bulgaria. The effect of the notice was that the period of time for performance of obligations by all parties to
the option agreements was extended by the length of the period of the intervening force majeure.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Review of Operations (Continued)
On 1 June 2020, the Company announced that it had executed dual listing on the Frankfurt Stock Exchange (DAX) with the
Company shares trading under ticker code YM4. The listing was executed broaden the Company’s exposure to a large
European investment community.
Significant events after reporting date
Subsequent to balance date the following events occurred:
•
•
On 7 September 2020, the Company announced that the Exploration Agreement for the Vuzel project was executed by
the Minister of Energy in Bulgaria. The Company will expedite approvals of work program and advance towards drilling
the prospect as soon as practical.
The Group received applications from sophisticated, professional and other exempt investors to subscribe for a $1
million capital raising through the issue of 142,857,143 fully paid ordinary shares at offer price of $0.007. The shares
will be issued under two tranches (Tranche 1 – 107,142,857 and Tranche 2 – 35,714,286). Tranche 1 shares were issued
on 9 September 2020 raising $750,000 and Tranche 2 shares are subject to shareholder approval.
There have been no other material matters or circumstances that have arisen since 30 June 2020.
ANNUAL REPORT 30 JUNE 2020
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Information on Directors
Dusko Ljubojevic
Managing Director (Appointed 20-Feb-18)
Qualifications
B. Science - Geology (Honours)
Experience
Mr Ljubojevic is a geologist and resource industry entrepreneur with 15 years of industry
experience, which has spanned throughout Africa, Asia, North America and Europe. Mr
Ljubojevic has previously worked with several ASX listed companies throughout Africa;
consulted to clients throughout the resource industry spectrum, ranging from private
development companies in Asia and Africa, publicly listed junior and mid-tier exploration
companies, global ‘majors’, such as Barrick Gold and private equity funds.
Mr Ljubojevic has broad experience within the resource sector, which includes not only
exploration and mining technical aspects, but also has experience in corporate structuring,
negotiations and business development.
Interest in Shares,
9,625,000 Ordinary Shares
Performance Shares and
Performance Rights
7,812,500 A Class Performance Shares
7,812,500 B Class Performance Shares
9,375,000 C Class Performance Shares
3,000,000 A Class Performance Rights
3,000,000 B Class Performance Rights
4,000,000 C Class Performance Rights
Special Responsibilities
Directorships held in
other listed entities
Nil
Nil
Michael Davy
Non-Executive Chairman (Appointed 29-Jun-17)
Qualifications
BCom (Acc)
Experience
Mr Davy is an Australian executive and Accountant with over 16 years’ experience across a
range of industries. His last major role was Financial Controller of Songa Offshore (listed
Norwegian Oil and Gas drilling company acquired by Transocean Ltd [NYSE: RIG] in January
2018), where Mr Davy managed the finance function and team for the Australian operations.
Prior to that Mr Davy had worked in London for other large organisations in the finance
department. Mr Davy is currently a director and owner of a number of successful private
businesses, which are currently all run under management. During the past five years Mr Davy
has held directorships in several ASX listed companies.
Interest in Shares
2,850,000 Ordinary Shares
and Performance Rights
3,000,000 A Class Performance Rights
3,000,000 B Class Performance Rights
4,000,000 C Class Performance Rights
Special Responsibilities
Nil
ANNUAL REPORT 30 JUNE 2020
10
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Information on Directors
Michael Davy
Non-Executive Chairman (Appointed 29-Jun-17)
Directorships held in
Vanadium Resources (appointed 1 December 2019)
other listed entities
Riversgold Limited (resigned 24 June 2020)
Jadar Lithium Limited (resigned 15 April 2019)
Aus Asia Minerals Limited (resigned 18 March 2019)
Martin Pawlitschek
Non-Executive Director (Appointed 20-Feb-18)
Qualifications
M Science, B. Science - Applied Geology (Honours), Dip. Applied Chemistry
Experience
Mr Pawlitschek currently serves as Senior Vice President of Geology for a mining focused
Private Equity fund. Mr Pawlitschek is based in Europe and is responsible for undertaking
technical due diligence on mining projects, principally from a geology and resource risk
perspective, but also to evaluate exploration upside. He has part taken in over forty detailed
due diligence reviews and site visits over the last three years and was a key member in the
selection of the fund’s projects to date.
Mr Pawlitschek has over 21 years of experience primarily in exploration and resource drilling
with some exposure to underground and open pit mines. During his 11-year tenure with BHP
Billiton, he oversaw numerous exploration programs in Australia, Laos and several countries
in Southern and Central Africa. Later in his career with BHPB he was responsible for the
technical aspects setting up several new business opportunities in the diamond sector in
Botswana, South Africa, Angola and DRC. The Angolan projects resulted in the discovery of
several large, diamond-bearing kimberlites.
Mr Pawlitschek later joined one of the junior companies set up by BHP Billiton and moved
forward an ambitious diamond exploration program in the DRC. From there he continued his
career in the junior sector with a move to Senegal where he managed a large portfolio of
exploration permits for gold in Eastern Senegal, which resulted in the development of what is
now the 10MOz Sabodala gold camp with an annual output in excess of 200KOz of gold. He
also had early in put in the evaluation of the Grand Cote Mineral sands project on the coast
of Senegal; this is now the world’s largest mineral sands dredging operation. Mr Pawlitschek
is a Fellow of the Australasian Institute of Geoscientists.
Interest in Shares,
9,625,000 Ordinary Shares
Performance Shares and
Performance Rights
7,812,500 A Class Performance Shares
7,812,500 B Class Performance Shares
9,375,000 C Class Performance Shares
3,000,000 A Class Performance Rights
3,000,000 B Class Performance Rights
4,000,000 C Class Performance Rights
Special Responsibilities
Nil
Directorships held in
Jadar Lithium Limited (resigned 6 November 2018)
other listed entities
ANNUAL REPORT 30 JUNE 2020
11
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Meetings of directors
During the financial year six meetings of Directors were held. Attendances by each Director during the year are stated in
the following table.
Mr Dusko Ljubojevic
Mr Michael Davy
Mr Martin Pawlitschek
Share options
Number eligible to attend
Number attended
Director’s Meetings
6
6
6
6
6
6
At the date of this report, the un-issued ordinary shares of Raiden Resources Limited under option are as follows:
Grant Date
08/02/2018
Expiry Date
08/02/2021
Exercise Price
$0.02
Number
50,000,000
50,000,000
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related
body corporate. No options were exercised during the year (2019: Nil).
Performance Rights
At the date of this report, the performance rights in Raiden Resources Limited are as follows:
Grant Date
29/11/2019
29/11/2019
29/11/2019
Expiry Date
28/11/2021
28/11/2021
30/05/2022
Class
Class A
Class B
Class C
Number
10,000,000
10,000,000
13,000,000
33,000,000
The Milestones for each Class of Performance Rights is summarised below:
Class
Expiry
Milestones
Class A
Class B
Class C
28/11/2020
(24 months
from
issue
date)
28/11/2020
(24 months
issue
from
date)
30/05/2020
(30 months
issue
from
date)
10,000,000 Class A Performance Rights will vest upon the volume weighted average market
price of Shares calculated over 20 consecutive days on which Share trades occur (20-Day
VWAP) equalling or exceeding $0.03 per share on or before the date that is 12 months form
the date of issue;
10,000,000 Class B Performance Rights will vest upon the volume weighted average market
price of Shares calculated over 20 consecutive days on which Share trades occur (20-Day
VWAP) equalling or exceeding $0.05 per share on or before the date that is 12 months form
the date of issue;
13,000,000 Class C Performance Rights will vest upon the volume weighted average market
price of Shares calculated over 20 consecutive days on which Share trades occur (20-Day
VWAP) equalling or exceeding $0.07 per share on or before the date that is 18 months form
the date of issue1
Performance Shares
At the date of this report, the performance shares of Raiden Resources Limited are as follows:
Grant Date
08/02/2018
08/02/2018
08/02/2018
Expiry Date
07/02/2022
08/08/2022
07/02/2023
Class
Class A
Class B
Class C
ANNUAL REPORT 30 JUNE 2020
Number
62,500,000
62,500,000
75,000,000
200,000,000
12
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Performance Shares (Continued)
The Milestones for each Class of Performance Shares is summarised below:
Class
Expiry
Milestones
Class A
Class B
Class C
07/02/2022
(48 months
issue
from
date)
62,500,000 Class A Performance Shares will convert upon the announcement by the Company
to ASX of the delineation of a Mineral Resource on the Company Licences of at least 100Kt of
contained copper equivalent (reported in accordance with clause 50 of the JORC Code) at or
above 0.2% copper equivalent and which is prepared and reported in accordance with the JORC
Code;
62,500,000 Class B Performance Shares will convert upon the announcement by the Company
to ASX of the results of a Scoping Study and that the Board has resolved to undertake a Pre-
Feasibility Study on all or part of the Company Licences;
75,000,000 Class C Performance Shares will convert upon the announcement of a Positive Pre-
Feasibility Study in respect of a Company Project (or Company Projects).
08/08/2022
(54 months
from
issue
date)
07/02/2023
(60 months
from
issue
date)
No value has been allocated to the Performance Shares due to the significant uncertainty of meeting the performance
milestones which are based on future events. To date, none of the Milestones have been met.
Non-audit services
During the year RSM Australia Partners, the Company’s auditor did not provide any services other than statutory audit. Other
RSM Firms, provided other non-audit services totalling to $11,770. Details of their remuneration can be found in Note 4
Auditor’s Remuneration.
Auditor’s independence declaration
The auditor’s independence declaration for the year ended 30 June 2020 can be found after the Directors report.
Remuneration Report (Audited)
This remuneration report for the year ended 30 June 2020 outlines the remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 (Cth), as amended (Act) and its regulations. This information
has been audited as required by section 308(3C) of the Act.
The remuneration report is presented under the following sections:
Introduction
1.
2. Remuneration governance
3. Executive remuneration arrangements
4. Non-executive Director fee arrangements
5. Details of remuneration
6. Additional disclosures relating to equity instruments
7.
Loans to key management personnel (KMP) and their related parties
8. Other transactions and balances with KMP and their related parties
9. Voting of shareholders at last year’s annual general meeting
ANNUAL REPORT 30 JUNE 2020
13
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Remuneration Report (Audited)
1.
Introduction
Key Management Personnel (KMP) has authority and responsibility for planning, directing and controlling the major activities
of the Group. KMP comprise the directors of the Company and identified key management personnel.
Compensation levels for KMP are competitively set to attract and retain appropriately qualified and experienced directors
and executives. The Board may seek independent advice on the appropriateness of compensation packages, given trends in
comparable companies both locally and internationally and the objectives of the Group’s compensation strategy.
2. Remuneration governance
The Directors believe the Company is not currently of a size nor are its affairs of such complexity as to warrant the
establishment of a separate remuneration committee. Accordingly, all matters are considered by the full Board of Directors,
in accordance with a remuneration committee charter. During the financial year, the Company did not engage any
remuneration consultants.
3. Executive remuneration arrangements
The compensation structures are designed to attract suitably qualified candidates, reward the achievement of strategic
objectives, and achieve the broader outcome of creation of value for shareholders. Compensation packages may include a
mix of fixed compensation, equity-based compensation, as well as employer contributions to superannuation funds. Shares,
options and other equity instruments may only be issued subject to approval by shareholders in a general meeting.
At the date of this report the Company has one executive appointed, being Mr Dusko Ljubojevic as the Managing Director.
The terms of his Executive Employment Agreement with Raiden Resources Limited is summarised in the following table.
Executive Name
Remuneration
Mr Dusko Ljubojevic
•
•
•
•
The agreement commenced on 20 February 2018, successful readmission of Company to
the official list.
Executive salary of $147,000 per annum (inclusive of superannuation)
Reimbursement of reasonable business expenses incurred in ordinary course of the
businesses in accordance with Group’s remuneration policies
The agreement has no fixed terms with termination requiring not less three months’
written notice.
At this stage the Board does not consider the Group’s earnings or earning related measures to be an appropriate key
performance indicator (KPI). In considering the relationship between the Group’s remuneration policy and the consequences
for the Company’s shareholder wealth, changes in share price are analysed as well as measures such as successful completion
of exploration programs, business development and corporate activities.
4. Non-Executive Director fee arrangements
The Board policy is to remunerate Non-Executive Directors at a level to comparable Companies for time, commitment, and
responsibilities. Directors’ fees cover all main Board activities and membership of any committee. The Board has no
established retirement or redundancy schemes in relation to Non-executive Directors.
The Non-Executive Directors have or may be provided with options that are meant to incentivise the Non-Executive Directors.
The board determines payments to the Non-Executive Directors and reviews their remuneration annually based on market
practice, duties, and accountability. Independent external advice will be sought when required.
ANNUAL REPORT 30 JUNE 2020
14
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Remuneration Report (Audited)
4. Non-Executive Director fee arrangements (Continued)
The maximum aggregate amount of fees that can be paid to Non-Executive Directors is presently limited to an aggregate of
AU$225,000 per annum and any change is subject to approval by shareholders at the General Meeting. Fees for Non-
Executive Directors are not linked to the performance of the Company. However, to align Directors’ interests with shareholder
interests, the Directors are encouraged to hold shares in the Company.
Fees for the Non-Executive Directors for the financial year were $72,000 (2019: $119,138) and cover main Board activities
only. Non-Executive Directors may receive additional remuneration for other services provided to the Group. The key terms
of the Non-Executive Director service agreements existing at reporting date are as follows:
Non-Executive Name
Remuneration
Mr Michael Davy
Mr Martin Pawlitschek
•
•
•
•
•
•
•
•
The Company entered into an agreement with Mr Michael Davy as Non-Executive
Chairman on 29 June 2017.
Non-Executive salary of $36,000 per annum (inclusive of superannuation)
Reimbursement of reasonable business expenses incurred in ordinary course of the
businesses in accordance with Group’s remuneration policies
The agreement has no set term and may be terminated with immediate effect by either
Mr Davy or the Company and there are no termination benefits payable under the
agreement.
The Company entered into an agreement with Mr Martin Pawlitschek as Non-Executive
Director on 20 February 2018.
Non-Executive salary of $36,000 per annum (inclusive of superannuation)
Reimbursement of reasonable business expenses incurred in ordinary course of the
businesses in accordance with Group’s remuneration policies
The agreement has no set term and may be terminated with immediate effect by either
Mr Davy or the Company and there are no termination benefits payable under the
agreement.
5. Details of remuneration
The Key Management Personnel of Raiden Resources Limited includes the Directors of the Company. Other than is set out
below there are no other Key Management Personnel at 30 June 2020.
30-Jun-20
D Ljubojevic1
M Davy
M Pawlitschek
Total
Short Term
Salary, Fees &
Commissions
$
Post-
Employment
Superannuation
$
Other/
Bonus
$
247,964
36,000
36,000
319,964
-
-
-
-
-
-
-
-
Share-based
payments
Total
$
$
3,755
3,755
3,755
251,7219
39,755
39,755
11,265
331,229
Performance
based
remuneration
%
0%
0%
0%
since August 2019.
1 The remuneration for Mr Ljubojevic includes $147,000 relating to his salary and $100,964 relating to geological consulting services which have been accrued
ANNUAL REPORT 30 JUNE 2020
15
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Remuneration Report (Audited)
5. Details of remuneration
30-Jun-19
Short Term
Salary, Fees &
Commissions
$
Post-
Employment
Superannuation
$
Other/
Bonus
$
Share-based
payments
Total
$
$
Performance
based
remuneration
%
D Ljubojevic1
174,750
M Davy
M Pawlitschek2
N Young
C Hansen
Total
36,000
66,361
26,129
21,009
324,249
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
174,750
36,000
66,361
26,129
21,009
324,249
0%
0%
0%
0%
0%
6. Additional disclosures relating to equity instruments
Options and right issued as part of remuneration
No options (2019: Nil) and a total of 30,000,000 performance rights were issued as part of remuneration (2019: Nil)
KMP options and rights holdings
The number of performance shares in Raiden Resources Limited held by each Director of the Group during the financial year
was as follows:
30-Jun-20
D Ljubojevic
M Davy
M Pawlitschek
Total
Balance
at the
start of
the year
Granted as
Remuneration
during the
year
Exercised
during the
year
Other
changes
during the
year
Balance at
end of Year
Vested
and
exercisable
Unvested
and un-
exercisable
-
-
-
-
10,000,000
10,000,000
10,000,000
30,000,000
-
-
-
-
-
-
-
-
10,000,000
10,000,000
10,000,000
30,000,000
-
-
-
-
10,000,000
10,000,000
10,000,000
30,000,000
No shares were issued to KMP during the year on exercise of performance rights.
KMP ordinary shareholdings
The number of ordinary shares in Raiden Resources Limited held by each Director of the Group during the financial year
was as follows:
30-Jun-20
Balance at the
start of the year
Granted as
Remuneration
during the year
D Ljubojevic
M Davy
M Pawlitschek
Total
9,625,000
2,850,000
9,625,000
22,100,000
-
-
-
-
Issued on
exercise of
options during
the year
-
-
-
-
Other changes
during the year
Balance at
end of Year
-
-
-
-
9,625,000
2,850,000
9,625,000
22,100,000
1 The remuneration for Mr Ljubojevic includes $147,000 relating to his salary and $27,750 relating to geological consulting services through consulting
agreement with Horizon Capital Management LLC.
2 The remuneration of Mr Pawlitschek includes $36,000 for Non-Executive Director fees and $30,361 for consulting services provided to the Group.
ANNUAL REPORT 30 JUNE 2020
16
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Remuneration Report (Audited)
6. Additional disclosures relating to equity instruments (Continued)
KMP ordinary shareholdings (Continued)
30-Jun-19
Balance at the
start of the year
Granted as
Remuneration
during the year
D Ljubojevic
M Davy
M Pawlitschek
N Young1
C Hansen1
Total
9,625,000
850,000
9,625,000
1,000,000
-
21,100,000
KMP performance shareholding
-
-
-
-
-
-
Issued on
exercise of
options during
the year
-
-
-
-
-
-
Other changes
during the year
Balance at
end of Year
-
2,000,000
-
-
-
9,625,000
2,850,000
9,625,000
1,000,000
-
2,000,000
23,100,000
The number of performance shares in Raiden Resources Limited held by each Director of the Group during the financial year
was as follows:
30-Jun-20
D Ljubojevic
M Davy
Balance at
the start of
the year
25,000,000
-
M Pawlitschek
25,000,000
Total
30-Jun-19
D Ljubojevic
M Davy
50,000,000
Balance at
the start of
the year
25,000,000
-
M Pawlitschek
25,000,000
N Young
C Hansen
Total
-
-
50,000,000
Granted as
Remuneration
during the year
-
-
-
-
Granted as
Remuneration
during the year
-
-
-
-
-
-
Issued on
exercise of
options during
the year
-
-
-
-
Issued on
exercise of
options during
the year
-
-
-
-
-
-
Other changes
during the year
Balance at
end of Year
-
-
-
-
25,000,000
-
25,000,000
50,000,000
Other changes
during the year
Balance at
end of Year
-
-
-
-
-
-
25,000,000
-
25,000,000
-
-
50,000,000
7.
Loans to Key Management Personnel and their related parties
There were no loans to Key Management Personnel and their related parties during the financial year (2019: Nil).
1 Balance shown for N Young and C Hansen is as at resignation date on 22 March 2019.
ANNUAL REPORT 30 JUNE 2020
17
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Remuneration Report (Audited)
8. Other transactions and balances with KMP and their related parties
The Group acquired services from entities that are controlled by members of the Group’s KMP. Transactions between related
parties are on normal commercial terms and conditions no more favourable than those available to other parties unless
otherwise stated.
Entity
Nature of
transactions
Key Management
Personnel
Total Revenue /
(Expense)
Payable Balance
Horizon Capital
Management LLC*
Martin Pawlitschek
Geological
Consulting
Geological
Consulting
Dusko Ljubojevic
-
(60,000)
Martin Pawlitschek
(4,854)
(30,361)
-
-
-
-
2020
$
2019
$
2020
$
2019
$
During last financial year transactions of $60,000 were made with Horizon Capital Management LLC (“Horizon”) of which Mr
Dusko Ljubojevic is a director. $27,750 related directly to Mr Ljubojevic as disclosed in the director’s remuneration table for
financial year ended 30 June 2019. The transactions included the provision of geological, legal and administrative consulting
services undertaken by four consultants, including Mr Ljubojevic. Under the Horizon agreement each consultant was paid
directly by the Company.
During the year, Mr Martin Pawlitschek provided geological consulting to the Group and transaction of $4,854 were made
with Mr Pawlitschek (2019: $30,361)
There were no other related party transactions during the year.
9. Voting of shareholders at last year’s annual general meeting
At the AGM held on 29 November 2019, 94.13% of votes received supported the adoption of the remuneration report for
the year ended 30 June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration
practices.
REMUNERATION REPORT (END)
Proceedings on behalf of company
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings. The Company was not a party to any such proceedings during the year.
Indemnifying officers
The Company indemnifies each of its Directors, officers and company secretary. The Company indemnifies each director or
officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability
arises out of conduct involving lack of good faith, and in defending legal and administrative proceedings and application for
such proceedings.
The Company must use its best endeavours to insure a director or officers against any liability, which does not arise out of
conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Company must also use its
best endeavours to insure a Director or office against liability for costs and expenses incurred in defending proceedings
whether civil or criminal.
ANNUAL REPORT 30 JUNE 2020
18
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTOR’S REPORT (CONTINUED)
Insurance premiums
During the year the Company paid insurance premiums to insure directors and officer against certain liabilities arising out of
their conduct while acting as an officer of the Group. Under the terms and conditions of the insurance contract, the nature
of the liabilities insured against the premium paid cannot be disclosed.
Environmental regulations
The Group’s operations are subject to the environmental risks inherent in the mining industry.
Future developments, prospects and business strategies
The Company’s principal continuing activity is mineral exploration. The Company’s future developments, prospects and
business strategies are to continue mineral exploration.
Indemnification of auditors
To the extent permitted by law, the Company has agreed to indemnify its auditors, RSM Australia Partners, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount).
No payment has been made to indemnify RSM during or since the financial year.
Auditor
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Mr Michael Davy
Non-Executive Chairman
Dated: 29 September 2020
ANNUAL REPORT 30 JUNE 2020
19
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Raiden Resources Limited for the year ended 30 June 2020,
I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 29 September 2020
TUTU PHONG
Partner
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Interest income
15,211
54,312
30 June 2020
$
30 June 2019
Restated
$
Accounting and other professional fees
Administrative costs
Corporate advisor fees
Corporate expenses
Depreciation
Director fees
Exploration expenditure
Legal fees
Marketing and investor relations
Share based payments
Loss before income tax
Income tax expense
Loss for the period
(151,261)
(139,543)
(27,577)
(79,301)
(14,619)
(144,647)
(117,141)
(136,691)
(66,041)
(11,813)
(238,830)
(192,388)
(809,816)
(1,099,516)
(100,343)
(153,386)
(9,100)
(35,433)
(58,608)
-
(1,590,612)
(1,925,919)
-
-
(1,590,612)
(1,925,919)
8
13
2
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
9,660
25,155
Total comprehensive loss for the year
(1,580,952)
(1,900,764)
Basic and diluted loss per share (cents per share)
5
(0.37)
(0.47)
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2020
21
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020
Note
30 June 2020
$
30 June 2019
Restated
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Exploration and evaluation expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
6a
7
8
9
10
11
12
314,275
1,744,775
83,817
18,408
52,480
17,852
416,500
1,815,107
92,246
67,686
159,932
576,432
266,295
266,295
266,295
100,226
-
100,226
1,915,333
59,677
59,677
59,677
310,137
1,855,656
6,400,748
6,400,748
231,708
186,615
(6,322,319)
(4,731,707)
310,137
1,855,656
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2020
22
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2020
Issued Capital
Share Based
Payment
Reserves
FX Reserve Accumulated Losses
Total
$
$
$
$
$
6,400,748
163,200
23,415
(4,731,707)
1,855,656
-
-
-
-
-
-
-
-
9,660
9,660
(1,590,612)
(1,590,612)
-
9,660
(1,590,612)
(1,580,952)
35,433
-
-
35,433
Balance at 1 July 2019
Loss for the period
Other comprehensive loss
Total comprehensive loss for the period
Transactions with owners, recognised directly in
equity
Performance rights recognised during the year
Balance at 30 June 2020
6,400,748
198,633
33,075
(6,322,319)
310,137
Issued Capital
Share Based
Payment
Reserves
FX Reserve Accumulated Losses
Total
$
$
$
$
$
Balance at 1 July 2018
Loss for the period
Other comprehensive loss
Total comprehensive loss for the period
Transactions with owners, recognised directly in
equity
Issue of shares
Issue of options
6,400,748
163,200
(1,740)
(2,805,788)
3,756,420
-
-
-
-
-
-
-
-
-
-
-
(1,925,919)
(1,925,919)
25,155
25,155
-
25,155
(1,925,919)
(1,900,764)
-
-
-
-
-
-
Balance at 30 June 2019 (Restated)
6,400,748
163,200
23,415
(4,731,707)
1,855,656
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2020
23
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration and evaluation
Interest received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation
Purchase of plant and equipment
Net cash used in investing activities
30 June 2020
$
30 June 2019
Restated
$
(563,993)
(785,947)
(801,959)
(1,161,426)
14,319
54,312
6b
(1,351,633)
(1,893,061)
(67,686)
(6,639)
(74,325)
-
(85,573)
(85,573)
Net (decrease)/increase in cash and cash equivalents
(1,425,958)
(1,978,634)
Cash and cash equivalents at beginning of period
Foreign exchange
1,744,775
3,742,468
(4,542)
(19,059)
Cash and cash equivalents at end of period
6a
314,275
1,744,775
The accompanying notes form part of these financial statements
ANNUAL REPORT 30 JUNE 2020
24
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
These consolidated financial statements cover Raiden Resources Limited (“the Company”) and its controlled entities as a
consolidated entity (also referred to as “the Group”). The Company is a company limited by shares, incorporated and
domiciled in Australia. The Group is a for-profit entity. The financial statements are presented in Australian dollars, unless
otherwise stated, which is also the Parent’s functional currency.
The following is a summary of the material accounting policies adopted by the Group in the preparation and presentation of
the financial report. The accounting policies have been consistently applied, unless otherwise stated.
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation of the financial report
Statement of compliance
These financial statements are general purpose financial statements which have been prepared in accordance with Australian
Accounting Standards (including Australian interpretations) adopted by the Australian Accounting Standard Board (AASB)
and the Corporations Act 2001. The financial statements comply with International Financial Reporting Standards adopted by
the International Accounting Standards Board. The financial statements have been prepared on an accruals basis and are
based on historical costs.
b) New or Amended Accounting Standards and Interpretations Adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
AASB 16 Leases
The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 ‘Leases’ and for lessees
eliminates the classification of operating leases and finance leases. Except for short-term leases and leases of low-value
assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-
line operating lease expense recognition is replaced with a deprecation charge for the right-of-use assets (included in
operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods
of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under
AASB 117. However, EBITDA (Earnings Before Interest, Tax Depreciation and Amortisation) results improve as the operating
expense is now replaced by interest expense and deprecation in profit or loss. For classification within the statement of cash
flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately
disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for
leases.
Impact of Adoption
The Group has made an assessment and determined that this standard does not have a significant impact on the Group.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss.
ANNUAL REPORT 30 JUNE 2020
25
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
c) 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 Group incurred a
loss of $1,590,612 and had net cash outflows from operating activities of $1,351,633 for year ended 30 June 2020.
The spread of novel coronavirus (“COVID-19”) was declared a public health emergency by the World Health Organisation on
31 January 2020 and upgraded to a global pandemic on 11 March 2020. The rapid rise of the virus has seen unprecedented
global response by Government, regulators, and industry sector. In particular, a state of emergency had been declared in
both Serbia and Bulgaria, where the Group’s projects are located.
The COVID-19 pandemic resulted in uncertain economic market conditions and general business activities.
The timing and extent of the impact and recovery from COVID-19 is uncertain and may have an impact on Group’s activities.
Notwithstanding the uncertainty surrounding the COVID-19, these financial statements have been prepared on a going
concern basis. In context of the operating environment, the ability of the Group to continue as a going concern is dependent
on securing additional funding through debt or equity to continue to fund its operational activities.
The Directors believe that there will be sufficient funds available to continue to meet the Group’s working capital
requirements as at the date of this report and that sufficient funds will be available to finance the operations of the Group
for the following reasons:
•
•
•
•
The Directors of Raiden Resources Limited have assessed the likely cash flow for the 12 month period from the date of
signing this financial report and its impact on the Group and believe there will be sufficient funds to meet the Group’s
working capital requirements as at the date of this report;
The Group had received subsequent to balance date applications from sophisticated, professional and other exempt
investors to subscribe for a $1 million capital raising through the issue of 142,857,143 fully paid ordinary shares at offer
price of $0.007. The first Tranche of 107,142,857 shares were issued on 9 September 2020 with the second Tranche of
35,714,286 shares subject to shareholder approval;
The Group has the ability to reduce its administrative and discretionary exploration expenditure to conserve cash; and
The Company has the ability to raise capital, as and when required.
d) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2020.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and
has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and
only if the Group has:
•
•
•
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee),
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts
and circumstances in assessing whether it has power over an investee, including:
•
•
•
The contractual arrangement with the other vote holders of the investee,
Rights arising from other contractual arrangements,
The Group’s voting rights and potential voting rights.
ANNUAL REPORT 30 JUNE 2020
26
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d) Principles of Consolidation (continued)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the
subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the statement of profit or loss and other comprehensive income from
the date the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of
the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating
to transactions between members of the Group are eliminated in full on consolidation.
A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the
Group loses control over a subsidiary, it:
•
•
•
•
•
•
•
De-recognises the assets (including goodwill) and liabilities of the subsidiary
De-recognises the carrying amount of any non-controlling interests
De-recognises the cumulative translation differences recorded in equity
Recognises the fair value of the consideration received
Recognises the fair value of any investments retained
Recognises any surplus or deficit in profit and loss
Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as
appropriate, as would be required if the Group had directly disposed of the related assets or liabilities
e) Parent entity information
In accordance with the Corporations Act 2001 these financial statements present the results of the Group only.
Supplementary information about the parent entity is disclosed in note 16.
f)
Interest Income
Interest income is recognised as it accrues, taking into account the effective yield on the financial asset. If not received at
the end of reporting period, it is reflected in the statement of financial position as a receivable.
g) Goods and Services Tax (GST)/ Value Added Tax (VAT)
Revenues, expenses, and assets are recognised net of the amount of GST/ VAT, except where the amount of GST/VAT
incurred is not recoverable from the Australian Tax Office (ATO) or Ministry of Finance – Republic of Serbia (MFIN).
Receivable and payables are stated inclusive of the amount of GST/VAT receivable or payable. The net amount of the
GST/VAT recoverable from, or payable to, the ATO or MFIN is included with other receivables and payables in the statement
of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST/VAT component of investing
and financing activities, which are disclosed as operating cash flows.
ANNUAL REPORT 30 JUNE 2020
27
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
h)
Income Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured
at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when
the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been
fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement
also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or
liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference cannot be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods
in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
i)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, and short-term deposits available on demand with banks that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
j)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other
receivables are recognised at amortised cost, less any allowance for expected credit losses.
ANNUAL REPORT 30 JUNE 2020
28
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
k)
Financial Instruments
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party
to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered
within timeframes established by marketplace convention.
Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at
fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are
expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.
Classification and subsequent measurement
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to financial instruments.
(i)
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to mature within 12
months after the end of the reporting period. All other loans and receivables are classified as non-current assets.
(ii) Financial assets at fair value through profit and loss
Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of
short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an
accounting mismatch or to enable performance evaluation where a Group of financial assets is managed by Key
Management Personnel on a fair value basis in accordance with a documented risk management or investment
strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in
the period in which they arise.
(iii) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.
Gains or losses are recognised in profit and loss through the amortisation process and when the financial liability is
derecognised.
Derivative instruments
The Group does not trade or hold derivatives.
Financial guarantees
The Group has bank guarantees for contract performance.
Impairment
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument has
been impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an
incurred ‘loss event’) has an impact on the estimated future cash flows of the financial asset or the group of financial assets
that can be reliably estimated.
ANNUAL REPORT 30 JUNE 2020
29
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
k) Financial Instruments (continued)
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flow expires or the asset is transferred to
another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated
with the asset.
Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference
between the carrying value of the financial liability extinguished or transferred to another party and the fair value of
consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
l)
Impairment of Non-Financial Assets
At the end of each reporting period, the Directors assesses whether there is any indication that an asset may be impaired.
The assessment will include the consideration of external and internal sources of information, including dividends received
from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. Assets that have an
indefinite useful life are not subject to amortisation and are tested annually for impairment.
If any such indication exists, an impairment test is carried out on the asset by comparing the asset’s recoverable amount,
being the higher of its fair value less costs to sell and its value in use, to the asset’s carrying amount. Any excess of the
asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss. Where it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating
unit to which the asset belongs.
m) Property, Plant and Equipment
Property, plant and equipment are stated at historical costs less depreciation. Historical costs include expenditure that is
directly attributable to the acquisition of items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Group and the costs of the items can
be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to profit or loss during the period in which there are incurred.
Depreciation is calculated using the diminishing value method to allocate their cost, net of their residual values, over their
estimated useful lives of, in the case vehicles as follows:
Plant and Equipment and Vehicles
3 to 15 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the income
statement.
ANNUAL REPORT 30 JUNE 2020
30
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
n) Exploration and Evaluation Expenditure
The consolidated financial statements have been prepared incorporating retrospective application of a voluntary change in
accounting policy relating to exploration and evaluation expenditure. The new accounting policy was adopted on 30 June
2020 and has been applied retrospectively. The Board has determined that the change in the accounting policy will result in
more relevant and reliable information to users of the consolidated financial statements.
Accounting Policy
The Group previously adopted the accounting policy to fully capitalise exploration expenditure on each area of interest where
the Group has not reached the stage which permits a reasonable assessment of the existence of economically recoverable
reserves.
Under this accounting policy the exploration and evaluation costs, including the costs of acquiring licences, were capitalised
as exploration and evaluation assets on the area of interest (full-cost method). Costs incurred before the Group had obtained
the legal rights to explore an area of interest were recognised in the profit and loss statement.
For the financial year ended 30 June 2020, The Group accounts for exploration and evaluation activities by using successful
efforts method of accounting. The result of the change of accounting policy means that the Group will expenses exploration
and evaluation expenditure as incurred in respect of each identifiable area of interest until a time where the asset is in
development stage.
Recognition and measurement
Under the successful efforts method, only those costs that lead directly to the discovery, acquisition, or development of
specific discrete mineral reserves are capitalised. Costs that are known to fail to meet this criteria (at the time of occurrence)
are generally charged to the statement of profit or loss as an expense in the period they are incurred.
Accounting for exploration and evaluation expenditure is assessed separately for each area of interest. Each area of interest
is an individual geological area which is considered to constitute a favourable environment for the presence of a mineral
deposit or has been proved to contain such deposit.
Exploration and evaluation costs are written off in the year they are incurred, apart from exploration licence and acquisition
costs.
Licence costs paid in connection with a right to explore in an existing exploration area are capitalised and reviewed at each
reporting period to confirm that there is no indication that the carrying amount exceeds the recoverable amount. This review
includes the following:
Confirming that exploration activities are still under way or firmly planned; or
•
•
• Work is under way to determine that the discovery is economically viable based on a range of technical consideration
It has been determined; or
and sufficient progress is being made on establishing development plans and timing.
Acquisition costs are carried forward where a right to explore in the area of interest is current and are expected to be
recouped through sale or successful development of the area of interest. Where an area of interest is abandoned or the
Board decide that there no future activity is planned or the licence has been relinquished or has expired, the carrying value
of the licence and acquisition costs are written off in the financial period the decision is made through statement of profit or
loss and other comprehensive income.
ANNUAL REPORT 30 JUNE 2020
31
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
n) Exploration and Evaluation Expenditure (continued)
The voluntary change in the accounting policy has resulted in a change in presentation of the Consolidated Financial
Statements. The following table summarises the impact on the Consolidated Financial Statements from the application of a
voluntary change in the exploration and evaluation expenditure accounting policy.
30 June 2019
30 June 2018
Previous
policy
Increase/
(decrease)
Restated
Previous
policy
Increase/
(decrease)
Restated
Consolidated statement of financial
position
Exploration and evaluation expenditure
1,384,455
(1,384,455)
-
284,939
(284,939)
-
Net assets
3,240,112
(1,384,455)
1,855,657
4,041,360
(284,939)
3,756,420
Accumulated losses
(3,347,252)
(1,384,455)
(4,731,707)
(2,520,848)
(284,938)
(2,805,788)
Total equity
3,240,111
(1,384,455)
1,855,656
4,041,360
(284,938)
3,756,420
Consolidated statement of profit and
loss and comprehensive income
Exploration costs expensed
-
(1,099,516)
(1,099,516)
Loss for the year
(826,404)
(1,099,516)
(1,925,919)
Loss per share
Basic and diluted (cents per share)
(0.20)
(0.47)
30 June 2019
Previous
policy
Increase/
(decrease)
Restated
Consolidated statement of cash flow
Payment for exploration and evaluation expenditure
-
(1,161,426)
(1,161,426)
Net cash used in operating activities
(731,635)
(1,161,426)
(1,893,061)
Payment for exploration and evaluation expenditure
(1,161,426)
1,161,426
-
Net cash used in investing activities
(1,246,999)
1,161,426
(85,573)
o) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which
are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other payables are
presented as current liabilities unless payment is not due within 12 months from the reporting date. They are recognised
initially at their fair value and subsequently measured at amortised cost using the effective interest method.
ANNUAL REPORT 30 JUNE 2020
32
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
p) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised costs. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit and loss over the period of the borrowing using the effective interest method. Fees paid on the
establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
q) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result, and that outflow can be reliably measured. Provisions are
measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
r) Employee Benefits
Short-term obligations
Liabilities for wages, salaries and annual leave, including non-monetary benefits expected to be settled within 12 months
after the end of the period in which the employees render the related services are recognised in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities
are settled. Short-term employee benefit obligations are presented as payables.
The obligations are presented as current liabilities if the entity does not have an unconditional right to defer settlement for
at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination at the earliest
of the following dates; (a) when the group can no longer withdraw the offer of those benefits; and (b) when the entity
recognises costs for a restructuring what is within the scope of AASB137 and involved the payments of termination benefits.
Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
Profit sharing and bonus plans
The Group recognised a liability and an expense for bonuses and profit-sharing case on a formula that takes into
consideration the profit attributable to the company’s shareholders after certain adjustments. The Group recognises a
provision when contractually obliged or when it is past practice that has created a constructing obligation.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for
the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of
cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined
using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that
do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions.
ANNUAL REPORT 30 JUNE 2020
33
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r) Employee Benefits (Continued)
Share-based payments (Continued)
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition
is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not
satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period,
unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.
s) Foreign currency transactions and balances
Functional and presentation currency
The functional currency of each entity within the Group is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which
is the parent entity’s functional and presentation currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured
at fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the profit or loss.
Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive
income to the extent that the underlying gain or loss is recognized in other comprehensive Income; otherwise the exchange
difference is recognised in profit or loss.
t) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Raiden Resources Limited,
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 financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
ANNUAL REPORT 30 JUNE 2020
34
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
u) Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new share or options are shown
in equity as deduction, net of tax, from the proceeds.
v) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
w) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the Group for the annual reporting period ended 30 June 2020. The Group's assessment of
the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are
set out below.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020 and early
adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as well as new guidance
on measurement that affects several Accounting Standards. Where the consolidated entity has relied on the existing
framework in determining its accounting policies for transactions, events or conditions that are not otherwise dealt with
under the Australian Accounting Standards, the consolidated entity may need to review such policies under the revised
framework. At this time, the application of the Conceptual Framework is not expected to have a material impact on the
consolidated entity's financial statements.
x) Critical Accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on current
trends and economic data, obtained both externally and within the Group.
Key Estimates and judgements
Share based payments
Share-based payments are measured at the fair value of goods or services received or the fair value of the equity instruments
issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date
the goods or services are received. The fair value of options is determined using the Black-Scholes valuation model. The
number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the
amount recognised for services received as consideration for the equity instruments granted is based on the number of equity
instruments that eventually vest.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have,
on the Group based on known information. This consideration extends to the nature of the products and services offered,
customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed
in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any
significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting
date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
ANNUAL REPORT 30 JUNE 2020
35
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
x) Critical Accounting estimates and judgements
Exploration and evaluation costs
Certain exploration and evaluation costs have been capitalised on the basis that the Group will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources.
Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related
to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only
capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest.
Factors that could impact the future commercial production at the mine include the level of reserves and resources, future
technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the
extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which
this determination is made.
NOTE 2: INCOME TAX
30 June 2020
$
30 June 2019
Restated
$
The financial statements for the year ended 30 June 2020 comprise the results of the Group. The legal parent is incorporated
and domiciled in Australia where the applicable tax rate is 27.5%. Two of the Group’s subsidiaries are incorporated in the
Republic of Serbia where the applicable tax rate is 15%. One subsidiary is incorporated in Bulgaria where the applicable tax
rate is 10%.
(a) Income tax expense
Current tax
Deferred tax
-
-
-
-
-
-
(b) The prima facie tax payable on loss from ordinary activities before
income tax is reconciled to the income tax expense as follows:
Prima facie tax on operating loss at 27.5% (2019: 27.5%)
(437,418)
(529,628)
Non-deductable items
Non-deductible expenditure
Adjustments for differences in tax rates
Benefits from tax loss not brought to account
Income tax attributable to operating loss
(c) Deferred tax assets
Tax losses
Blackhole expenditure
Unrecognised deferred tax asset
(d) Tax losses
69,952
110,768
256,698
-
451,340
38,750
490,090
40,073
135,643
353,912
-
353,912
58,124
412,036
Unused tax losses and temporary differences for which no deferred tax asset
has been recognised
1,782,146
1,498,313
ANNUAL REPORT 30 JUNE 2020
36
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2: INCOME TAX (CONTINUED)
30 June 2020
$
30 June 2019
Restated
$
The Group has the following tax losses arising in entities in Australia and the Republic of Serbia and Republic of Bulgaria that
are available indefinitely to be offset against the future taxable profits of the Group.
Tax loss carried forward
Australia
Republic of Serbia
Republic of Bulgaria
Unrecognised deferred tax asset
Australia
Republic of Serbia
Republic of Bulgaria
Carry forward losses
1,366,482
415,664
-
906,416
591,897
-
1,782,146
1,498,313
375,783
114,307
-
249,265
162,771
-
490,090
412,036
Potential future income tax benefits attributable to tax losses carried forward have not been brought to account at 30 June
2020, because the Directors do not believe it is appropriate to regard realisation of the future income tax benefits as probable.
NOTE 3: KEY MANAGEMENT PERSONNEL
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each
member of the Group’s key management personnel (KMP) for the year ended 30 June 2020.
The totals of remuneration paid to KMP during the year are as follows:
Short-term employee benefits
Equity settled
Total KMP Compensation
Loans to Key Management Personnel
30 June 2020
$
319,964
11,265
331,229
30 June 2019
$
324,249
-
324,249
To the best of the Directors’ knowledge, they are not aware of any loans to Key Management Personnel during the financial
year.
Other KMP Transactions
To the best of the Directors’ knowledge, they are not aware of other transactions with Key Management Personnel. For
transactions with other related parties refer to Note 16.
ANNUAL REPORT 30 JUNE 2020
37
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: AUDITOR’S REMUNERATION
Remuneration of the auditor of the Group for:
- audit of the financial report – Australia
- audit of the financial report – Serbia
- other services – Serbia
NOTE 5: LOSS PER SHARE
Earnings per share (in cents)
Profit (Loss) used in calculation of basic EPS
Weighted average number of ordinary shares outstanding during the year used in
calculation of basic loss per share
30 June 2020
$
30 June 2019
$
34,450
3,473
11,770
49,693
34,450
4,865
12,158
51,473
30 June 2020
$
(0.37)
30 June 2019
Restated
$
(0.47)
(1,590,612)
(1,925,919)
424,929,426
410,430,796
Anti-dilutive options have not been used in the EPS calculation. As at 30 June 2020 there were 50,000,000 options on issue
(2019: 50,000,000).
NOTE 6 a: CASH AND CASH EQUIVALENTS
Cash at bank
Total cash and cash equivalents
NOTE 6 b: CASH FLOW INFORMATION
Loss after income tax
Non-cash flows in loss after income tax
Share based payments
Foreign exchange loss
Depreciation
Changes in assets and liabilities
- trade and other receivables
- prepayments
- payables
Cash flow used in operations
Credit Standby Facilities
30 June 2020
$
30 June 2019
$
314,275
314,275
1,744,775
1,744,775
30 June 2020
$
30 June 2019
Restated
$
(1,590,612)
(1,925,919)
35,433
14,202
14,619
(31,337)
(556)
206,618
-
2,930
11,813
17,303
(5,126)
5,938
(1,351,633)
(1,893,061)
The Group does not have any credit standby facilities.
Non-Cash investing and financing activities
There were nil non-cash investing and financing activities for the year.
ANNUAL REPORT 30 JUNE 2020
38
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7: TRADE AND OTHER RECEIVABLES
CURRENT
Other receivables (a)
Total other receivables
30 June 2020
$
30 June 2019
$
83,817
83,817
52,480
52,480
(a) Other receivables are non-interest bearing and have payment terms between 30 and 60 days. Due to the nature of the
receivables the Group has recognised expected credit losses of nil for the year ended 30 June 2020 (2019: nil).
NOTE 8: PLANT AND EQUIPMENT
Plant and equipment at cost
Opening balance at 1 July
Additions
Closing balance at 30 June
Accumulated depreciation
Opening balance at 1 July
Depreciation expense
Closing balance at 30 June
Net book value at 30 June
30 June 2020
$
30 June 2019
$
112,675
6,639
119,314
12,449
14,619
27,068
92,246
23,214
89,461
112,675
636
11,813
12,449
100,226
30 June 2019
Restated
$
-
-
-
-
-
NOTE 9: EXPLORATION AND EVALUATION EXPENDITURE
30 June 2020
(a) Non-current
Exploration expenditure capitalised:
Exploration and evaluation at cost
Net carrying value
(b) Movement in carrying amounts
Carrying amount at the beginning
Expenditure during the period
Carrying amount at the end
$
67,686
67,686
-
67,686
67,686
For the financial year ended 30 June 2020, The Group accounts for exploration and evaluation activities by using successful
efforts method of accounting. Refer to Note 1 (m) for the Group’s exploration and evaluation expenditure policy.
The carrying amount of the Group’s exploration and evaluation assets are reviewed at each reporting date to determine
whether there is indication of impairment or impairment reversal. Where an indication of impairment exists, a formal
estimate of the recoverable amount is made. The Group’s exploration and evaluation assets relate to the Kalabak project in
Bulgaria. The Company entered into an Option Agreement with QX Metals Corporation (“QX”) over the Kalabak project. Under
the terms of the agreement, the Company has an Option to earn into 75% position within the Kalabak project. Refer to the
Operational Review for further details.
ANNUAL REPORT 30 JUNE 2020
39
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 10: TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Other payables
(a) Fair value
30 June 2020
$
30 June 2019
$
92,722
173,573
266,295
40,767
18,910
59,677
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
NOTE 11: ISSUED CAPITAL
(a) Issued Capital:
Ordinary shares fully paid
30 June 2020
$
30 June 2019
$
6,400,748
6,400,748
(b) Movement in ordinary share capital of the Company during the period was as follows:
Opening balance at 1 July 2018
Closing balance at 30 June 2019
Opening balance at 1 July 2019
Issued shares to Acuity Capital Pty Ltd (i)
Closing balance at 30 June 2020
Number
$
410,430,796
6,400,748
410,430,796
6,400,748
410,430,796
6,400,748
21,000,000
-
431,430,796
6,400,748
(i) The shares have been issued, and are held by Acuity Capital Pty Ltd, only under the capacity to issue shares under a
Controlled Placement Deed. In the event that Acuity Capital Pty Ltd remain in possession of the collateral shares at the
expiry of the Controlled Placement Deed, these shares will be bought back by the Company for nil consideration. As at
the reporting date Acuity Capital Pty Ltd remained in possession of the collateral shares and no share placement had
been executed.
Ordinary shareholders are entitled 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. Every ordinary shareholder present at a meeting in person or by proxy
is entitled to one vote on a show of hands or by poll. Shares have no par value.
(a)
Capital Management
Due to the nature of the Group’s activities, 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 research and development programs 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. Any surplus funds are invested with major financial institutions.
(b) Performance Shares
In addition to the number of shares disclosed above there are also 200,000,000 performance shares which have been issued
as part of the consideration on the reverse takeover transaction. The performance shares will convert to ordinary shares on
1:1 basis subject to the performance milestones being met prior to expiry date. The performance shares are summarised
below;
ANNUAL REPORT 30 JUNE 2020
40
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11: ISSUED CAPITAL (CONTINUED)
(b) Performance Shares (Continued)
Class
Numbers of
Performance
Shares
Class A
62,500,000
Expiry
Milestones
07-Feb-2022
(48 months
issue
from
date)
Class A Performance Shares will convert upon the announcement by the
Company to ASX of the delineation of a Mineral Resource on the Company
Licences of at least 100Kt of contained copper equivalent (reported in
accordance with clause 50 of the JORC Code) at or above 0.2% copper
equivalent and which is prepared and reported in accordance with the JORC
Code;
Class B
62,500,000
Class C
75,000,000
08-Aug-2022
(54 months
from
issue
date)
07-Feb-2023
(60 months
from
issue
date)
Class B Performance Shares will convert upon the announcement by the
Company to ASX of the results of a Scoping Study and that the Board has
resolved to undertake a Pre-Feasibility Study on all or part of the Company
Licences;
Class C Performance Shares will convert upon the announcement of a Positive
Pre-Feasibility Study in respect of a Company Project (or Company Projects).
No value has been allocated to the Performance Shares due to the significant uncertainty of meeting the performance
milestones which are based on future events. To date, none of the Milestones have been met.
NOTE 12: RESERVES
(a) Reserves
Option reserve
Performance rights reserve
Foreign currency reserve
Total reserves
NOTE 12: RESERVES (CONTINUED)
(b) Option Reserve
Opening balance at 1 July 2018
Balance at 30 June 2019
Opening balance at 1 July 2019
Balance at 30 June 2020
(c) Performance Rights Reserve
Opening balance at 1 July 2019
Issued to Corporate advisor
Issued to Company’s Board of Directors
Issued to Company’s secretary
Balance at 30 June 2020
ANNUAL REPORT 30 JUNE 2020
30 June 2020
$
30 June 2019
$
163,200
35,433
33,075
231,708
163,200
-
23,415
186,615
30 June 2020
30 June 2019
No.
50,000,000
50,000,000
50,000,000
50,000,000
No.
-
10,000,000
30,000,000
3,000,000
43,000,000
$
163,200
163,200
163,200
163,200
$
-
23,000
11,265
1,168
35,433
41
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 12: RESERVES (CONTINUED)
(d) Foreign currency reserve
Opening balance at 1 July 2018
Difference arising on translation
Balance at 30 June 2019
Opening balance at 1 July 2019
Difference arising on translation
Balance at 30 June 2020
$
(1,740)
25,155
23,415
23,415
9,660
33,075
The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled
subsidiaries.
NOTE 13: SHARE BASED PAYMENTS
The following share-based payments existed at 30 June 2020:
On 8 February 2018, the Company issued 40,000,000 Facilitator Shares with issue price of $0.02 per share and 13,000,000
Facilitator Options with exercise price of $0.02 expiring 3 years from issue date.
On 2 July 2019, the Company announced the issue of 10,000,000 Performance Rights to Corporate Advisors of the Company.
The Performance Rights are subject to a 20-day VWAP of $0.02 or higher within 12 months from the date of issue date. During
the year ended 30 June 2020 a share-based payment expense of $23,000 was recognised.
On 29 November 2019, the Company issued 33,000,000 performance rights subject to the following conditions, of which,
30,000,000 Performance Rights were issued to Company’s Directors and as Management Performance Rights, as part of the
Company’s long-term strategy to remunerate the Board. 3,000,000 Performance Rights were issued to the Company
Secretary under Employee Incentive Security Plan. During the year ended 30 June 2020 a total of $12,433 were recognised
as share-based payment expense and $11,603 is to be recognised over the vesting period.
A summary of the inputs used in the valuation of the options and shares is as follows:
Facilitator Shares
Facilitator Options
Exercise price
Share price at date of issue
$Nil
$0.02
$0.02
$0.02
Issue date
Expected volatility
Expiry date
Expected dividends
Risk free interest rate
08-Feb-18
08-Feb-18
n/a
n/a
Nil
n/a
100%
08-Feb-21
Nil
2.09%
$0.0126
Value per option or share
$0.02
Number of shares/ options
40,000,000
13,000,000
Total value of share-based
payment
$800,000
$163,200
ANNUAL REPORT 30 JUNE 2020
42
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: SHARE BASED PAYMENTS (CONTINUED)
A summary of the inputs used in the valuation of the Performance Rights is as follows:
Corporate Advisors’
Performance Rights
Performance Rights
Class A
Performance Rights
Class B
Performance Rights
Class C
Exercise price
Share price at date of issue
Nil
$0.007
Nil
$0.007
Nil
$0.007
Nil
$0.007
Issue date
Expected volatility
Expiry date
Expected dividends
Risk free interest rate
Vesting date
Performance Hurdle
Value per right
Number of rights
Total value of share-based
payments expensed over
the vesting period
2-Jul-2019
29-Nov-2019
29-Nov-2019
29-Nov-2019
100%
1 year
Nil
1.041%
12 months from
issuance
20 Day VWAP of
$0.02 or higher
$0.0023
10,000,000
100%
100%
100%
24 months from
issuance
24 months from
issuance
30 months from
issuance
Nil
0.638%
12 months from
issuance
20 Day VWAP of
$0.03 or higher
$0.001130
10,000,000
Nil
0.638%
12 months from
issuance
20 Day VWAP of
$0.05 or higher
$0.000426
10,000,000
Nil
0.638%
18 months from
issuance
20 Day VWAP of
$0.07 or higher
$0.000652
13,000,000
$23,000
$11,300
$4,260
$8,476
NOTE 14: OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Group has identified one operating segment based on the internal reports that are reviewed and used by the Board of
Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The
Group’s sole operating segment is consistent with the presentation of these consolidated financial statements.
NOTE 15: FINANCIAL INSTRUMENTS
Financial Risk Management Policies
The Group’s financial instruments consist mainly of deposits with banks, other debtors and accounts payable. The main
purpose of non-derivative financial instruments is to raise finance for Group’s operations.
Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments are market risk (including fair value and interest rate
risk) and cash flow interest rate risk, credit risk and liquidity risk.
(a)
Interest Rate Risk
From time to time the Group has significant interest-bearing assets, but they are as a result of the timing of equity raising
and capital expenditure rather than a reliance on interest income. The interest rate risk arises on the rise and fall of interest
rates. The Group’s income and operating cash flows are not expected to be materially exposed to changes in market interest
rates in the future and the exposure to interest rates is limited to the cash and cash equivalents balances.
ANNUAL REPORT 30 JUNE 2020
43
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: FINANCIAL INSTRUMENTS (CONTINUED)
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of
changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial
liabilities, is below:
Floating
Interest
Rate
$
Non-
interest
bearing
$
2020
Total
Floating
Interest
Rate
$
$
Non-
interest
bearing
$
2019
Total
$
Financial assets
- Within one year
Cash and cash equivalents
314,275
-
314,275
1,744,775
-
1,744,775
Other receivables
Total financial assets
-
314,275
76,319
76,319
76,319
-
52,480
52,480
390,594
1,744,775
52,480
1,797,255
Weighted average interest rate
1.49%
3.11%
Financial Liabilities
- Within one year
Trade and other Payables
Other liabilities
Total financial liabilities
Weighted average interest rate
266,295
266,295
-
-
266,295
266,295
-
-
-
-
59,677
59,677
-
-
59,677
59,677
-
-
-
-
Net financial assets
314,275
(189,976)
124,299
1,744,775
(7,197)
1,737,578
Sensitivity Analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates. The table indicates the
impact on how profit and equity values reported at reporting date would have been affected by changes in the relevant risk
variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular
variable is independent of other variables.
30 June 2020 +/-1% in interest rates
30 June 2019 +/-1% in interest rates
10,295
27,436
10,295
27,436
Movement in Profit ($) Movement in Equity ($)
(b) Credit risk
The maximum exposure to credit risk is limited to the carrying amount, net of any provisions for impairment of those assets,
as disclosed in the Statement of Financial Position and notes to the financial statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in accordance with
approved Board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard and
Poor’s rating of at least AA-. The following table provides information regarding the credit risk relating to cash and money
market securities based on Standard and Poor’s counterparty credit ratings.
Cash and cash equivalents ($) - AA Rated
Note
6a
2020
314,275
2019
1,744,775
ANNUAL REPORT 30 JUNE 2020
44
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: FINANCIAL INSTRUMENTS (CONTINUED)
(c)
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting
its obligations related to financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that
it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate reserves by routinely monitoring forecast and actual cash flows.
The Group has no access to credit standby facilities or arrangements for further funding or borrowings in place. 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.
2020
Interest
rate
Less than
6 months
6-12
months
1-2 years
2-5 years
Over 5
years
$
$
$
$
$
Total
contractu
al cash
flows
$
Carrying
amount
assets/
(liabilities)
$
Financial
liabilities at
amortised cost
Trade and other
payables
-
-
(220,402)
(45,893)
(220,402)
(45,893)
-
-
-
-
-
-
(266,295)
(266,295)
(266,295)
(266,295)
2019
Interest
rate
Less than
6 months
6-12
months
1-2 years
2-5 years
Over 5
years
$
$
$
$
$
Total
contractu
al cash
flows
$
Carrying
amount
assets/
(liabilities)
$
Financial
liabilities at
amortised cost
Trade and other
payables
-
(59,677)
(59,677)
-
-
-
-
-
-
-
-
(59,677)
(59,677)
(59,677)
(59,677)
(d)
Net fair Value of financial assets and liabilities
Fair value estimation
Due to the short-term nature of the receivables and payables the carrying value approximates fair value.
(e) Financial arrangements
The Group had no other financial arrangements in place at 30 June 2020 (FY19: Nil) based on the information available to the
current board.
ANNUAL REPORT 30 JUNE 2020
45
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: FINANCIAL INSTRUMENTS (CONTINUED)
(f) Currency risk
The currency risk is the risk that the value of financial instruments will fluctuate due to change in foreign exchange rates.
Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency
that is not the Group’s functional currency. The Group is exposed to foreign exchange risk arising from various currency
exposures primarily with respect to the Australian Dollar (AUD), the Group’s functional currency. The Group’s policy is not to
enter into any currency hedging transactions.
Cash and cash equivalents
Foreign Currency
Equivalent AUD
Foreign Currency
Equivalent AUD
2020
2019
Serbian Dinar (RDS)
178,670
2,482
148,446
2,040
NOTE 16: RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
For key management personnel compensation details refer to Note 4.
(b) Other transactions and balance with KMP and their related parties
The Group acquired services from entities that are controlled by members of the Group’s KMP. Transactions between
related parties are on normal commercial terms and conditions no more favourable than those available to other parties
unless otherwise stated.
Entity
Nature of
transactions
Key Management
Personnel
Total Revenue /
(Expense)
Payable Balance
Horizon Capital
Management LLC*
Martin Pawlitschek
Geological
Consulting
Geological
Consulting
Dusko Ljubojevic
-
(60,000)
Martin Pawlitschek
(4,854)
(30,361)
-
-
-
-
2020
$
2019
$
2020
$
2019
$
During last financial year transactions of $60,000 were made with Horizon Capital Management LLC (“Horizon”) of which Mr
Dusko Ljubojevic is a director. $27,750 related directly to Mr Ljubojevic as disclosed in the director’s remuneration table for
financial year ended 30 June 2019. The transactions included the provision of geological, legal and administrative consulting
services undertaken by four consultants, including Mr Ljubojevic. Under the Horizon agreement each consultant was paid
directly by the Company.
During the year, Mr Martin Pawlitschek provided geological consulting to the Group and transaction of $4,854 were made
with Mr Pawlitschek (2019: $30,361)
There were no other related party transactions during the year.
NOTE 17: PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the legal parent Raiden Resources Limited and
has been prepared in accordance with Australian Accounting Standards and the accounting policies as outlined in Note 1.
ANNUAL REPORT 30 JUNE 2020
46
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 17: PARENT ENTITY DISCLOSURES (CONTINUED)
(a)
Financial Position of Raiden Resources Limited
ASSETS
Current assets
Non-current assets
Total assets
LIABILITIES
Current liabilities
Total liabilities
NET ASSETS
SHAREHOLDERS EQUITY
Issued capital
Reserves
Accumulated Losses
SHAREHOLDERS EQUITY
Note
30 June 2020
$
30 June 2019
Restated
$
394,668
1,613,459
67,686
-
462,354
1,613,459
246,971
246,971
28,178
28,178
215,383
1,585,281
24,569,982
24,569,982
198,633
163,200
(24,553,232)
(23,147,901)
215,383
1,585,281
(b)
Financial Performance of Raiden Resources Limited
Profit/(loss) for the year
Total comprehensive profit/(loss)
Note
30 June 2020
$
30 June 2019
Restated
$
(1,405,331)
(2,519,666)
(1,405,331)
(2,519,666)
(c) Guarantees entered into by Raiden Resources Limited for the debts of its subsidiary
There are no known guarantees entered into by Raiden Resources Limited for the debts of its subsidiaries as at 30 June
2020 (2019: Nil).
(d) Contingent liabilities of Raiden Resources Limited
There were no known contingent liabilities as at 30 June 2020 (2019: Nil).
(e) Commitments by Raiden Resources Limited
There were no known commitments as at 30 June 2020 (2019: Nil).
(f)
Significant accounting policies
Raiden Resources Limited accounting policies do not differ from the Group as disclosed in Note 1.
ANNUAL REPORT 30 JUNE 2020
47
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18: CONTROLLED ENTITIES CONSOLIDATED
Raiden Resources Limited (Parent)
Controlled entities
Timok Resources Pty Ltd
Skarnore Resources d.o.o., Belgrade
Kingstown Resources d.o.o, Belgrade
Western Tethyan Exploration Ltd
Country of Incorporation
Australia
Republic of Serbia
Republic of Serbia
Republic of Bulgaria
NOTE 19: COMMITMENTS
Exploration expenditure commitments:
No longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
Percentage Owned
2020
100%
100%
100%
100%
2019
100%
100%
100%
100%
30 June 2020
$
30 June 2019
$
1,028,350
268,904
-
598,747
769,303
-
1,297,254
1,368,050
NOTE 20: CONTINGENT LIABILITIES
The Group has no known contingent liabilities as at 30 June 2020 (2019: Nil).
NOTE 21: EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to balance date the following events occurred:
•
•
On 7 September 2020, the Company announced that the Exploration Agreement for the Vuzel project was executed by
the Minister of Energy in Bulgaria. The Company will expedite approvals of work program and advance towards drilling
the prospect.
The Group has received applications from sophisticated, professional and other exempt investors to subscribe for a $1
million capital raising through the issue of 142,857,143 fully paid ordinary shares at offer price of $0.007. The shares
will be issued under two tranches (Tranche 1 – 107,142,857 and Tranche 2 – 35,714,286). Tranche 1 shares were issued
on 9 September 2020 and Tranche 2 shares are subject to shareholder approval.
There have been no other material matters or circumstances that have arisen since 30 June 2020.
ANNUAL REPORT 30 JUNE 2020
48
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
In the Director’s opinion:
DIRECTOR’S DECLARATION
1.
The consolidated financial statements and notes within the financial report are in accordance with the Corporations
Act 2001, including:
a)
complying with Australian Accounting Standards and Corporations Regulations 2001;
b) giving a true and fair view, the Group’s financial position as at 30 June 2020 and of its performance for the year
ended on that date;
c)
complying with International Financial Reporting Standards; and
2.
3.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
This declaration has been made after receiving the declaration required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Mr Michael Davy
Non-Executive Chairman
Dated: 29 September 2020
ANNUAL REPORT 30 JUNE 2020
49
RSM Australia Partners
Level 32, Exchange Tower
2 The Esplanade Perth WA 6000
GPO Box R1253 Perth WA 6844
T +61 (0) 8 9261 9100
F +61 (0) 8 9261 9111
www.rsm.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
RAIDEN RESOURCES LIMITED
Opinion
We have audited the financial report of Raiden Resources Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement
of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2020 and of its financial
performance for the year then ended; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
THE POWER OF BEING UNDERSTOOD
AUDIT | TAX | CONSULTING
RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent
accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.
RSM Australia Partners ABN 36 965 185 036
Liability limited by a scheme approved under Professional Standards Legislation
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
Going Concern
Refer to Note 1 in the financial statements
For the year ended 30 June 2020, the Group
incurred a loss of $1,590,612 and had net cash
outflows from operating activities of $1,351,633 for
the year ended 30 June 2020. As at that date, the
Group had cash of $314,275.
The directors’ have prepared the financial report on
a going concern basis based on a cash flow forecast
which considers the factors disclosed in Note 1 to
the financial statements.
We determined this assessment of going concern to
be a key audit matter due to the significant
judgements involved in preparing the cash flow
forecast.
Other Information
How our audit addressed this matter
Our audit procedures included:
Assessing the appropriateness and mathematical
accuracy of the cash flow forecast prepared by
management;
Challenging
the
reasonableness of
the key
assumptions used in the cash flow forecast;
Critically assessing the directors’ reasons of why
they believe it is appropriate to prepare the financial
report on a going concern basis; and
Assessing the adequacy of the going concern
disclosures in the financial report.
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2020 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporation Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2020.
In our opinion, the Remuneration Report of Raiden Resources Limited, for the year ended 30 June 2020, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 29 September 2020
TUTU PHONG
Partner
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CORPORATE GOVERNANCE STATEMENT
Introduction
Raiden Resources Limited (Company) has established a corporate governance framework, the key features of which are set
out in this statement. In establishing its corporate governance framework, the Company refers to the recommended
corporate governance practices for ASX listed entities set out in the ASX Corporate Governance Council Principles and
Recommendations (Principles and Recommendations). During the period 1 July 2019 to 30 June 2020 (Reporting Period),
the Company's governance framework was established with reference to the 3rd edition of the Principles and
Recommendations. Subsequent to the Reporting Period, on 1 July 2020, the Company adopted a new corporate governance
framework with reference to the 4th edition of the Principles and Recommendations.
This Corporate Governance Statement discloses the extent to which the Company followed the recommendations set out in
the Principles and Recommendations (Recommendations) for the Reporting Period. The Recommendations are not
mandatory, however, the Recommendations not followed have been identified and reasons have been provided for not
following them along with what (if any) alternative governance practices the Company adopted in lieu of the
recommendation.
The 4th edition of the Principles and Recommendations will take effect for the Company's first full financial year commencing
on 1 July 2020. For the purposes of this statement, the Company has reported against the 3rd edition of the Principles and
Recommendations.
The information in the statement is current at 29 September 2020 and was approved by a resolution of the Board on the 29
September 2020.
Corporate governance policies and procedures
The Company has adopted the following suite of corporate governance policies and procedures (together, the Corporate
Governance Policies):
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Statement of Values
Board Charter
Corporate Code of Conduct
Audit and Risk Committee Charter
Remuneration Committee Charter
Nomination Committee Charter
Performance evaluation Policy
Continuous Disclosure Policy
Risk Management Policy
Trading Policy
Diversity Policy
Shareholder Communication Strategy
Whistleblower Protection Policy
Anti-Bribery and Corruption Policy
Annexure A – Definition of independence
Annexure B - Procedure for the selection, appointment and rotation of external auditor
Company’s
The
Corporate
https://raidenresources.com.au/corporate-governance/
Governance
Policies
are
available
on
the
Company’s website
at
ANNUAL REPORT 30 JUNE 2020
53
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Principle 1: Lay solid foundations for management and oversight
Recommendation 1.1
A listed entity should have and disclose a charter which:
Yes
(a) sets out the respective roles and responsibilities of
the board, the chair and management; and
(b)
includes a description of those matters expressly
reserved to the board and those delegated to
management.
Recommendation 1.2
A listed entity should:
Yes
(a) undertake appropriate checks before appointing a
person, or putting forward to security holders a
candidate for election, as a director; and
(b) provide security holders with all material
information relevant to a decision on whether or
not to elect or re-elect a director.
Recommendation 1.3
A listed entity should have a written agreement with
each director and senior executive setting out the terms
of their appointment.
Yes
Recommendation 1.4
The company secretary of a listed entity should be
accountable directly to the board, through the chair, on
all matters to do with the proper functioning of the
board.
Recommendation 1.5
A listed entity should:
(a) have a diversity policy which includes requirements
for the board to set measurable objectives for
achieving gender diversity and to assess annually
both the objectives and the entity’s progress in
achieving them;
Yes
No
(b) disclose that policy or a summary or it; and
(c) disclose as at the end of each reporting period:
The Company
has established the respective roles and
responsibilities of its Board and management, and those matters
expressly reserved to the Board and those delegated to
management, and has documented this in its Board Charter, which
is disclosed on the Company’s website.
(a) The Company has guidelines for the appointment and
selection of the Board in its Corporate Governance Plan. The
Company’s Nomination Committee Charter
the
Company’s Corporate Governance Plan) requires the
Nomination Committee (or, in its absence, the Board) to
ensure appropriate checks (including checks in respect of
character, experience, education, criminal record and
bankruptcy history (as appropriate)) are undertaken before
appointing a person, or putting forward to security holders a
candidate for election, as a Director.
(in
(b) The Company has appropriate procedures in place to ensure
that material information relevant to election or re-election of
a director, was disclosed in the Notice of Meeting provided to
Shareholders. The Company provided all material information
to Shareholders in relation to the re-election of Director
Martin Pawlitschek at the annual general meeting on 29
November 2019.
The Nomination Committee Charter outlines the requirement to
have a written agreement with each Director and senior executive
of the Company which sets out the terms of that Director’s or
senior executive’s appointment.
The Company has a written agreement with each of its Directors,
including its Executive Directors.
The material terms of any employment, service or consultancy
agreement the Company, or any of its child entities, has entered
into with its Chief Executive Officer, any of its directors, and any
other person or entity who is related party of the Chief Executive
Officer or any of its directors has been disclosed in accordance with
ASX Listing Rule 3.16.4 (taking into consideration the exclusions
from disclosure outlined in that rule).
The Company Secretary was during the reporting period
accountable directly to the Board, through the Chair, on all matters
to do with the proper functioning of the Board.
The Company has a Diversity Policy, which is disclosed on the
Company's website. The Diversity Policy does not include
requirements for the Board to set measurable objectives for
achieving gender diversity and to assess annually both the
objectives and the Company’s progress in achieving them. The
Board has not set measurable objectives for achieving gender
diversity.
Given the Company’s stage of development and the number of
employees, the Board considers it is not practical to set measurable
objectives for achieving gender diversity at this time.
ANNUAL REPORT 30 JUNE 2020
54
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
(i) the measurable objectives for achieving
gender diversity set by the board
in
accordance with the entity’s diversity policy
and its progress towards achieving them; and
(ii) either:
(A)
(B)
the respective proportions of men and
women on
in senior
the board,
executive positions and across the
whole organisation (including how the
entity has defined “senior executive” for
these purposes); or
if the entity is a “relevant employer”
under the Workplace Gender Equality
Act, the entity’s most recent “Gender
Equality Indicators”, as defined in and
published under the Workplace Gender
Equality Act.
Recommendation 1.6
A listed entity should:
No
(a) have and disclose a process for periodically
evaluating the performance of the board, its
committees and individual directors; and
(b) disclose in relation to each reporting period,
whether a performance evaluation was undertaken
in the reporting period in accordance with that
process.
The respective proportions of men and women on the Board, in
senior executive positions and across the whole organisations are
set out in the following table. Senior executives for these purposes
means those person who report directly to the chief executive
officer (or equivalent):
Board
Senior exec
(Company
Secretary)
Total
Male
3
-
Female
-
1
Total
3
1
3
1
4
(a) The Company’s Nomination Committee (or, in its absence, the
Board) is responsible for evaluating the performance of the
Board, its committees and individual Directors on an annual
basis. It may do so with the aid of an independent advisor. The
process for this is set out in the Company’s Corporate
Governance Plan which is available on the Company’s
website.
(b) The Company’s Corporate Governance Plan requires the
Board to disclose whether or not performance evaluations
were conducted during the relevant reporting period. The
Company intends to complete performance evaluations in
respect of the Board, its committees (if any) and individual
Directors for each financial year in accordance with the above
process.
No performance evaluation of the Board or individual Directors
was conducted during the Reporting Period.
Yes
The Company had one senior executive in FY20 year, Mr Dusko
Ljubojevic. An executive review was completed for Mr Ljubojevic in
August 2019, during the Reporting Period.
Recommendation 1.7
A listed entity should:
(a) have and disclose a process for periodically
evaluating the performance of its senior executives;
and
(b) disclose in relation to each reporting period,
whether a performance evaluation was undertaken
in the reporting period in accordance with that
process.
ANNUAL REPORT 30 JUNE 2020
55
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Principle 2: Structure the board to add value
Recommendation 2.1
The board of a listed entity should:
Yes
(a)
(a) have a nomination committee which:
(i)
has at least three members, a majority of
whom are independent directors; and
is chaired by an independent director,
(b)
(ii)
and disclose:
(iii)
(iv)
(v)
the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the
number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; or
(b)
if it does not have a nomination committee,
disclose that fact and the processes it employs to
address board succession issues and to ensure that
the board has the appropriate balance of skills,
experience, independence and knowledge of the
entity to enable it to discharge its duties and
responsibilities effectively.
Recommendation 2.2
A listed entity should have and disclose a board skill
matrix setting out the mix of skills and diversity that the
board currently has or is looking to achieve in its
membership.
Yes
The Company did not have a separate Nomination
Committee. The Company’s Nomination Committee Charter
provides for the creation of a Nomination Committee (if it is
considered it will benefit the Company), with at least three
members, a majority of whom are independent Directors,
and which must be chaired by an independent Director.
The Company does not have a Nomination Committee as the
Board considers the Company will not currently benefit from
its establishment. In accordance with the Company’s Board
Charter, the Board carries out the duties that would
ordinarily be carried out by the Nomination Committee
under the Nomination Committee Charter, including the
following processes to address succession issues and to
ensure the Board has the appropriate balance of skills,
experience, independence and knowledge of the entity to
enable
its duties and responsibilities
effectively:
it to discharge
(i) devoting time at least annually to discuss Board
succession matters and updating the Company’s
Board skills matrix; and
(ii) all Board members being involved in the Company’s
nomination process to the maximum extent permitted
under the Corporations Act and ASX Listing Rules
Details of director attendance at meetings of the full Board, during
the reporting period, are set out in a table in the Directors’ Report
on page 12 of the Company 2020 Annual Report.
.
Under the Nomination Committee Charter (in the Company’s
Corporate Governance Plan), the Nomination Committee (or, in its
absence, the Board) is required to prepare a Board skill matrix
setting out the mix of skills and diversity that the Board currently
has (or is looking to achieve) and to review this at least annually
against the Company’s Board skills matrix to ensure the
appropriate mix of skills and expertise is present to facilitate
successful strategic direction.
The Board has identified the appropriate mix of skills and diversity
required of its members to operate efficiently and effectively.
The Company’s Board Skills Matrix can be found at Appendix 1.
ANNUAL REPORT 30 JUNE 2020
56
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Recommendation 2.3
A listed entity should disclose:
(a)
the names of the directors considered by the board
to be independent directors;
(b)
if a director has an interest, position, association or
relationship of the type described in Box 2.3 of the
ASX Corporate Governance Principles and
Recommendation (3rd Edition), but the board is of
the opinion that it does not compromise the
independence of the director, the nature of the
interest, position, association or relationship in
question and an explanation of why the board is of
that opinion; and
(c)
the length of service of each director
Recommendation 2.4
A majority of the board of a listed entity should be
independent directors.
No
Recommendation 2.5
The chair of the board of a listed entity should be an
independent director and, in particular, should not be
the same person as the CEO of the entity.
Recommendation 2.6
A listed entity should have a program for inducting new
directors and providing appropriate professional
development opportunities for continuing directors to
develop and maintain the skills and knowledge needed
to perform their role as a director effectively.
Yes
Yes
Principle 3: Act ethically and responsibly
Recommendation 3.1
A listed entity should:
(a) have a code of conduct for its directors, senior
Yes
executives and employees; and
(b) disclose that code or a summary of it.
Comply Explanation
Yes
The board considered the independence of Directors with regards
to factors set out
in Box 2.3 of the ASX Principle and
Recommendations. During the Reporting Period the Company had
one independent director Mr Michael Davy.
Names of Directors during the Reporting Period and their length
of service up to the date of this statement, or their resignation
date is noted below:
Name
Mr Michael Davy
Non-Exec Chairman
Mr Dusko Ljubojevic
Managing Director
Length of Service
3 years, 3 months1
2 years, 7 months2
Mr Martin Pawlitschek
Non-Exec Director
2 years, 7 months3
The Company’s Board Charter requires that, where practical, the
majority of the Board should be independent.
The Board recognises the importance of the appropriate balance
between independent and non-independent representation on
the Board. However, the Board considered that a Board weighted
towards industry and technical experience is appropriate at the
stage of the Company’s development.
As the Company's operations progress, the Board will review the
composition of the Board, including independence of its Directors.
The Board Charter provides that, where practical, the Chair of the
Board should be an independent Director and should not be the
CEO/Managing Director.
The Non-executive Chair of the Board is Mr Michael Davy. Mr Davy
is considered to be an independent Director and he is not the
CEO/Managing Director.
In accordance with the Company’s Board Charter, the Nominations
Committee (or, in its absence, the Board) is responsible for the
approval and review of induction and continuing professional
development programs and procedures for Directors to ensure
that they can effectively discharge their responsibilities. The
Company Secretary is responsible for facilitating inductions and
professional development.
The Company’s Corporate Code of Conduct applies to the
Company’s Directors, senior executives and employees.
The Company’s Corporate Code of Conduct (which forms part of
the Company’s Corporate Governance Plan) is available on the
Company’s website. During the reporting period the Company
adopted an Anti-Bribery and Corruption policy and Whistle-blower
policy, which are available on the Company’s website.
1 At the date of this statement
2 At the date of this statement
3 At the date of this statement
ANNUAL REPORT 30 JUNE 2020
57
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Yes
The Company did not have an Audit and Risk Committee.
Given the current size and composition of the Board, the Board
believes that there would be no efficiencies gained by establishing
a separate Audit and Risk Committee. Accordingly, the Board
performs the role of the Audit and Risk Committee.
Although the Board does not have a separate Audit and Risk
Committee, it had adopted an Audit and Risk Committee Charter,
which is disclosed on the Company’s website.
During the Reporting Period, items that are usually required to be
discussed by an Audit and Risk Committee are marked as separate
agenda items at Board meetings when required, and when the
Board convened to address matters as the Audit and Risk
Committee it carried out the functions which are delegated to it in
the Company’s Audit and Risk Committee Charter. The Board deals
with any conflicts of interest that occur when it performs the
functions of an Audit and Risk, Committee by ensuring that any
Director with a conflicting interest is not party to the relevant
discussions.
During the Reporting Period, the Board was responsible for the
initial appointment of the external auditor and the appointment of
a new external auditor when any vacancy arises. Candidates for the
position of external auditor must demonstrate complete
independence from the Company through the engagement period.
The Board may otherwise select an external auditor based on
criteria relevant to the Company's business and circumstances. The
performance of the external auditor was reviewed on an annual
basis by the Board.
The Company has an established Procedure for the Selection,
Appointment and Rotation of its External Auditor, which is an
annexure to the Corporate Governance Plan.
Details of director attendance at meetings of the full Board, during
the reporting period, are set out in a table in the Directors’ Report
on page 12 of the Company 2020 Annual Report.
Yes
The Board received a signed declaration from the CFO and CEO in
accordance with Recommendation 4.2 and Section 295A of the
Corporations Act 2001 prior to the approval of the Company’s
financial statements.
Principle 4: Safeguard integrity in financial reporting
Recommendation 4.1
The board of a listed entity should:
(a) have an audit committee which:
(i)
(ii)
has at least three members, all of whom are
non-executive directors and a majority of
whom are independent directors; and
is chaired by an independent director, who
is not the chair of the board,
and disclose:
(iii)
(iv)
(v)
the charter of the committee;
the relevant qualifications and experience of
the members of the committee; and
in relation to each reporting period, the
number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; or
(b)
it employs
the processes
if it does not have an audit committee, disclose that
fact and
that
independently verify and safeguard the integrity of
its financial reporting, including the processes for
the appointment and removal of the external
auditor and the rotation of the audit engagement
partner.
Recommendation 4.2
The board of a listed entity should, before it approves the
entity’s financial statements for a financial period,
receive from its CEO and CFO a declaration that the
financial records of the entity have been properly
maintained and that the financial statements comply
with the appropriate accounting standards and give a
true and fair view of the financial position and
performance of the entity and that the opinion has been
formed on the basis of a sound system of risk
management and internal control which is operating
effectively.
Recommendation 4.3
A listed entity that has an AGM should ensure that its
external auditor attends its AGM and is available to
answer questions from security holders relevant to the
audit.
Yes
The Company ensures that its external auditor attends its Annual
General Meeting (AGM) and are available to answer questions
from security holders relevant to the audit.
A representative from the Company’s auditors RSM Australia
Partners (Perth) attended the AGM held on 29 November 2019.
ANNUAL REPORT 30 JUNE 2020
58
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should:
(a) have a written policy for complying with its
continuous disclosure obligations under the Listing
Rules; and
(b) disclose that policy or a summary of it.
Principle 6: Respect the rights of security holders
Recommendation 6.1
A listed entity should provide information about itself
and its governance to investors via its website.
Recommendation 6.2
A listed entity should design and implement an investor
relations program to facilitate effective two-way
communication with investors.
Recommendation 6.3
A listed entity should disclose the policies and processes
it has in place to facilitate and encourage participation at
meetings of security holders.
Recommendation 6.4
A listed entity should give security holders the option to
receive
send
communications to, the entity and its security registry
electronically.
communications
from,
and
Yes
Yes
Yes
Yes
Yes
The Company has adopted a Continuous Disclosure Policy which
sets out the processes the Company follows to comply with its
continuous disclosure obligations under the ASX Listing Rules and
other relevant legislation.
The Company’s Continuous Disclosure Policy (which forms part of
the Company’s Corporate Governance Plan) is available on the
Company’s website.
Information about the Company and its governance practices are
available on its website:
https://raidenresources.com.au/corporate-governance/
The Company has adopted a Shareholder Communications
Strategy which aims to promote and facilitate effective two-way
communication with investors. The Strategy outlines a range of
ways in which information is communicated to shareholders and is
available on the Company’s website as part of the Company’s
Corporate Governance Plan.
Shareholders are encouraged to participate at all general meetings
and AGMs of the Company. Upon the despatch of any notice of
meeting to Shareholders, the Company Secretary shall send out
material stating that all Shareholders are encouraged to participate
at the meeting.
The Shareholder Communication Strategy provides that security
holders can register with the Company to receive email
notifications when an announcement is made by the Company to
the ASX, including the release of the Annual Report, half yearly
reports and quarterly reports. Links are made available to the
Company’s website on which all information provided to the ASX is
immediately posted.
Principle 7: Recognise and manage risk
Recommendation 7.1
The board of a listed entity should:
(a) have a committee or committees to oversee risk,
Yes
The Company did not have a separate Risk Committee.
Please refer to disclosure in relation to Recommendation 4.1
above.
each of which:
(i)
(ii)
and disclose:
(iii)
(iv)
(v)
has at least three members, a majority of
whom are independent directors; and
is chaired by an independent director,
the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the
number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; or
(b)
if it does not have a risk committee or committees
that satisfy (a) above, disclose that fact and the
process it employs for overseeing the entity’s risk
management framework.
ANNUAL REPORT 30 JUNE 2020
59
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Recommendation 7.2
The board or a committee of the board should:
Yes
(a)
review the entity’s risk management framework
with management at least annually to satisfy itself
that it continues to be sound, to determine
whether there have been any changes in the
material business risks the entity faces and to
ensure that they remain within the risk appetite set
by the board; and
(b) disclose in relation to each reporting period,
whether such a review has taken place.
Recommendation 7.3
A listed entity should disclose:
Yes
(a)
(b)
if it has an internal audit function, how the function
is structured and what role it performs; or
if it does not have an internal audit function, that
fact and the processes it employs for evaluating and
continually improving the effectiveness of its risk
management and internal control processes.
Recommendation 7.4
A listed entity should disclose whether, and if so how, it
has regard to economic, environmental and social
sustainability risks and, if it does, how it manages or
intends to manage those risks.
Yes
The Audit and Risk Committee Charter requires that the Audit and
Risk Committee (or, in its absence, the Board) should, at least
annually, satisfy itself that the Company’s risk management
framework continues to be sound.
The Board continues to review the risk profile of the Company and
monitors risk throughout the year.
The Company does not have an internal audit function. The Audit
and Risk Committee Charter provides for the Audit and Risk
Committee to monitor the need for an internal audit function.
As set out in Recommendation 7.1, the Board is responsible for
overseeing the establishment and implementation of effective risk
management and
internal control systems to manage the
Company’s material business risks and for reviewing and
monitoring the Company’s application of those systems.
The Board devotes time formally at Board meetings and informally
through regular communication to fulfilling the roles and
responsibilities associated with overseeing risk and maintaining the
entity’s risk management framework and associated internal
compliance and control procedures.
The Audit and Risk Committee Charter requires the Audit and Risk
Committee (or, in its absence, the Board) to assist management
determine whether the Company has any material exposure to
economic, environmental and social sustainability risks and, if it
does, how it manages or intends to manage those risks.
The Company is currently exposed to minimal environmental and
social risks due to its present size and magnitude of operations.
ANNUAL REPORT 30 JUNE 2020
60
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Recommendations
Comply Explanation
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1
The board of a listed entity should:
Yes
The Company does not have a Remuneration Committee. The
Company’s Corporate Governance Plan contains a Remuneration
Committee Charter that provides for the creation of a
Remuneration Committee (if it is considered it will benefit the
Company), with at least three members, a majority of whom must
be independent Directors, and which must be chaired by an
independent Director.
The Company does not have a Remuneration Committee as the
Board considers the Company will not currently benefit from its
establishment. In accordance with the Company’s Board Charter,
the Board carries out the duties that would ordinarily be carried out
by the Remuneration Committee under the Remuneration
Committee Charter including the following processes to set the
level and composition of remuneration for Directors and senior
executives and ensuring that such remuneration is appropriate and
not excessive:
The Board devotes time at Board meetings to assess the level and
composition of remuneration for Directors and senior executives
as necessary when there are changes to Company, Director or
executives’ circumstances which
level and/or
composition of remuneration may require amendement to achive
consistency with the revised circumstance.
indicate the
The Company’s Corporate Governance Plan requires the Board to
disclose its policies and practices regarding the remuneration of
Directors and senior executives. This information is disclosed in the
Company’s Remuneration Report commencing on page 13. of the
Annual Report.
Yes
N/A
The Company does not have an equity based remuneration
scheme
(a) have a remuneration committee which:
(i)
(ii)
has at least three members, a majority of
whom are independent directors; and
is chaired by an independent director,
and disclose:
(iii)
(iv)
(v)
the charter of the committee;
the members of the committee; and
as at the end of each reporting period, the
number of times the committee met
throughout the period and the individual
attendances of the members at those
meetings; or
(b)
if it does not have a remuneration committee,
disclose that fact and the processes it employs for
setting the level and composition of remuneration
for directors and senior executives and ensuring
that such remuneration is appropriate and not
excessive.
Recommendation 8.2
A listed entity should separately disclose its policies and
practices regarding the remuneration of non-executive
directors and the remuneration of executive directors
and other senior executives and ensure that the different
roles and responsibilities of non-executive directors
compared to executive directors and other senior
executives are reflected in the level and composition of
their remuneration.
Recommendation 8.3
A listed entity which has an equity-based remuneration
scheme should:
(a) have a policy on whether participants are
permitted to enter into transactions (whether
through the use of derivatives or otherwise) which
limit the economic risk of participating in the
scheme; and
(b) disclose that policy or a summary of it.
ANNUAL REPORT 30 JUNE 2020
61
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CORPORATE GOVERNANCE STATEMENT – APPENDIX 1
BOARD SKILLS MATRIX
The Board has identified that the appropriate mix of skills and diversity required of its members to operate effectively and
efficiently is achieved by personnel having substantial skills and experience in the following Industry Skills: Health and Safety;
Operations and Technical; Mineral Exploration and Mining Skills; Capital Management; and Commercial Negotiation Skills.
The skills and experience of the Board in each of these areas is summarised as follows:
INDUSTRY SKILLS
a
e
r
A
l
l
i
k
S
Health and Safety
Operations and Technical
Mineral Exploration and Mining Skills
Capital Management
Commercial Negotiation Skills
0%
25%
50%
75%
100%
Percentage of Board Competent in Skill Area
In addition, directors of the Company are expected to be knowledgeable and experienced in the following areas: Legal;
Accounting and finance; Information technology; Corporate governance; Risk and compliance oversight; Director duties and
responsibilities; Strategic expertise; Commercial experience; and Executive management..
The skills and experience of the Board in each of these areas is summarised as follows:
PROFESSIONAL DIRECTOR SKILLS
a
e
r
A
l
l
i
k
S
Legal
Accounting and finance
Information technology
Corporate governance
Risk and compliance oversight
Director duties and responsibilities
Strategic expertise
Commercial experience
Executive management
0%
25%
50%
75%
100%
Percentage of Board Competent in Skill Area
Gaps in the collective skills of the Board are considered regularly by the full Board in its capacity as the Nomination and
Remuneration Committee.
ANNUAL REPORT 30 JUNE 2020
62
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
ADDITIONAL SHAREHOLDER INFORMATION
The following information is current as at 17 September 2020.
Ordinary Share Capital
538,573,653 fully paid ordinary shares are held by 568 individual holders.
Voting Rights
The voting rights attached to each class of equity security are as follows:
• Ordinary shares: Each ordinary share is entitled to vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
• Unlisted Options, Performance Shares and Performance Rights: Unlisted Options and Performance Shares do not
carry any voting rights.
Twenty Largest Shareholders
Rank Name
1
MICJUD PTY LTD
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
SUNSET CAPITAL MANAGEMENT PTY LTD
DISCOVERY SERVICES PTY LTD
ROMFAL SIFAT PTY LTD
REBO NOMINEES PTY LTD
HM Pension Fund Pty Ltd
ATTOLLO INVESTMENTS PTY LTD
BENEFICO PTY LTD
ALTOR CAPITAL MANAGEMENT PTY LTD
KOJIN PTY LTD
ARKALYA PTY LTD
BUZZ CAPITAL PTY LTD
OAK TRUST (GUERNSEY) LIMITED
Sunset Tidal Pty Ltd
SRDJAN VLAJKOVIC
MARKO CURIC
MARTIN PAWLITSCHEK
HORIZON CAPITAL MANAGEMENT LLC
MS CHUNYAN NIU
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Holding
21,535,714
21,000,000
19,310,677
15,000,000
15,000,000
14,800,000
14,235,714
13,436,276
13,000,000
11,473,890
11,462,857
11,074,794
10,050,000
10,000,000
9,690,000
9,375,000
9,375,000
9,375,000
9,375,000
8,423,714
256,993,636
%
4.00%
3.90%
3.59%
2.79%
2.79%
2.75%
2.64%
2.49%
2.41%
2.13%
2.13%
2.06%
1.87%
1.86%
1.80%
1.74%
1.74%
1.74%
1.74%
1.56%
47.73%
Substantial Shareholders
There are no substantial holders as at 17 September 2020.
Distribution of shares
A distribution schedule of the number of holders of shares is set out below.
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and Over
Total
Restricted Securities
Fully Paid Ordinary Shares
Total Units
16,515
61,034
43,637
10,506,312
527,946,155
538,573,653
No. Holders
71
27
6
165
299
568
%
0.00
0.01
0.01
1.95
98.03
100.00
As at 17 September 2020 there were no securities subject to escrow.
ANNUAL REPORT 30 JUNE 2020
63
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Unquoted Securities
As at 17 September 2020, the Company has 50,000,000 unquoted securities on issue.
32,000,000 Unquoted options expiring 08/02/2021 at $0.02 – 25 holders
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
18,000,000 Unquoted options expiring 23/02/2021 at $0.02 – 12 holders
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
200,000,000 Performance Shares1 – 13 holders
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Unlisted Options exercisable at $0.02 each
on or before 8 February 2021
No. Holders
0
0
0
0
25
25
Total Units
0
0
0
0
32,000,000
32,000,000
%
0.00
0.00
0.00
0.00
100.00
100.00
Unlisted Options exercisable at $0.02 each
on or before 23 February 2021
No. Holders
0
0
0
0
10
10
Total Units
0
0
0
0
18,000,000
18,000,000
Class A Performance Shares
No. Holders
0
0
0
0
13
13
Total Units
0
0
0
0
62,500,0002
62,500,000
Class B Performance Shares
No. Holders
0
0
0
0
13
13
Total Units
0
0
0
0
62,500,0003
62,500,000
Class C Performance Shares
No. Holders
0
0
0
0
13
13
Total Units
0
0
0
0
75,000,0004
75,000,000
%
0.00
0.00
0.00
0.00
100.00
100.00
%
0.00
0.00
0.00
0.00
100.00
100.00
%
0.00
0.00
0.00
0.00
100.00
100.00
%
0.00
0.00
0.00
0.00
100.00
100.00
1 Details on the performance conditions surrounding the performance shares are contained within the Directors’ Report.
2 Discovery Services Pty Ltd holds 12,500,000 Class A performance shares comprising of 20% of this class.
3 Discovery Services Pty Ltd holds 12,500,000 Class B performance shares comprising of 20% of this class.
4 Discovery Services Pty Ltd holds 15,000,000 Class C performance shares comprising of 20% of this class.
ANNUAL REPORT 30 JUNE 2020
64
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Unquoted Securities (continued)
33,000,000 Performance Rights1– 12 holders
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and Over
Total
Class A Performance Rights
No. Holders
0
0
0
0
4
4
Total Units
0
0
0
0
10,000,000
10,000,000
Class B Performance Rights
No. Holders
0
0
0
0
4
4
Total Units
0
0
0
0
10,000,000
10,000,000
Class C Performance Rights
No. Holders
0
0
0
0
4
4
Total Units
0
0
0
0
13,000,000
13,000,000
%
0.00
0.00
0.00
0.00
100.00
100.00
%
0.00
0.00
0.00
0.00
100.00
100.00
%
0.00
0.00
0.00
0.00
100.00
100.00
Unmarketable Parcels
Holdings of less than a marketable parcel of ordinary shares:
Holders: 55
Units: 5,262
On-market Buy Back
There is currently no on-market buy-back program.
ASX Listing Rule 4.10.19
The Company has used cash and assets in a form readily convertible to cash that it had at the time of reinstatement of the
Company’s securities to quotation in a way consistent with its business objectives.
1 Details on the performance conditions surrounding the performance rights are contained within the Directors’ Report.
ANNUAL REPORT 30 JUNE 2020
65
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Schedule of Tenements
Tenement reference and location
Donje Nevlje – 310-02-1547/2015-02
Nature
Direct
Stara Planina* – 310-02-495/2015-02
Joint Venture
Velika Zupa – 310-02-1656/2016-02
Zapadni Majdanpek – 310-02-1096/2016-02
Majdanpek Pojas – 310-02-1510/2016-02
Direct
Direct
Direct
Status
Interest
Permit extension request
pending
Granted
Granted
Permit extension request
pending
Permit extension request
pending
100%
-
100%
100%
100%
-
-
-
Kalabak** – Licence No. 405
Joint Venture
Granted
Zlatusha** – Licence No. 486
Joint Venture
Vuzel***
Joint Venture
Permit awarded, in process
towards final granting
Permit awarded, in process
towards final granting
* The Company has an agreement to earn-in up to a 90% interest and an option to purchase up to a 100% interest. At the
end of the quarter the Company had earned the right to 25%, this has yet to be converted to a right in the Company.
** The Company has an agreement to earn-in up to a 75% position within the project.
*** The Company has an agreement to earn-in up to 90% position within the project and an option to purchase 100% of
the project.
ANNUAL REPORT 30 JUNE 2020
66