RAIDEN RESOURCES LIMITED
ABN 68 009 161 522
ANNUAL REPORT
30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Financial Report
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
CORPORATE DIRECTORY
Directors
Mr Dusko Ljubojevic – Managing Director
Mr Michael Davy – Non-Executive Chairman
Mr Martin Pawlitschek – Non-Executive Director
Mr Dale Ginn – Non-Executive Director
Company Secretary
Ms Kyla Garic
Registered Office & Principal Place of Business
Suite 7, 63 Shepparton Rd
Victoria Park WA 6100
Auditor
RSM Australia Partners
Level 32, Exchange Tower, 2 The Esplanade
Perth WA 6000
Bankers
NAB
197 St Georges Terrace
Perth WA 6000
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 2021
1
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ 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 2021.
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
Mr Dale Ginn (appointed on 12 May 2021)
Company Secretary
Ms Kyla Garic, held the position of Company Secretary at the end of the financial year.
Qualifications
B Com, MAcc, CA, FGIA, FGIS
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, Republic of Bulgaria
and Pilbara Region of Western Australia.
Operating and financial review
The consolidated loss for the year amounted to $1,977,513 (FY20: loss of $1,590,612).
Dividends paid or recommended
There were no dividends paid or recommended during the financial year ended 30 June 2021 (FY20: Nil).
Significant changes in state of affairs
During the year the Company completed the acquisition of Pilbara Gold Corporation Pty Ltd which included substantial gold
and nickel portfolio located in Pilbara Region of Western Australia.
Review of Operations
During the year ended 30 June 2021, the following activities occurred:
Kalabak (Bulgaria)
During the current financial year the Company completed the maiden drilling program on the Kalabak project which included
drill testing at the Sbor porphyry and Belopoltsi epithermal gold targets.
The drilling results confirmed the presence of a substantial alteration system at Sbor, which is indicative of a proximal
porphyritic intrusion. Follow up targeting work was planned to narrow into the target zone and guide future follow up drilling
campaigns. The Company is also looking to advance other prospects on the project, including the Chal anomaly.
The Kalabak licence was also extended by the Minister of Energy for a 2-year exclusive term. The Company planned follow up
work on the initial drilling results from the program carried out in 2020, as well as, to follow up on other prospects which
were defined in the earlier phases of work.
ANNUAL REPORT 30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Review of Operations (Continued)
Vuzel (Bulgaria)
During the current financial year, The Minister of Energy of Bulgaria executed the Exploration Agreement (“Agreement”) for
Ridge Consultants, the applicant and vendor of the Vuzel project, who has counter executed the Agreement, bringing the
project closer to exploration activity. The project is officially granted to Ridge Consultants, providing Raiden with a path to
100% ownership of the project.
On 3 February 2021, the Company received relevant statutory approvals to conduct field-based exploration for a three-year
period and commenced intensive field program in preparation of the maiden drilling program.
The work included definition of drill targets based on available historic exploration information on the lightly explored gold
target in the central part of the permit. Historical data also identified significant silver potential within the permit area which
will be explored in conjunction with the gold targets. Drill access permitting commenced for both gold and silver targets. The
initial drill program will consist of an initial 1,000 – 2,000 meters of diamond drilling to determine the nature and controls on
the mineralisation.
Based on the work carried out the Company reported significant gold and silver results from surface sampling at Vuzel project.
The Company continued with follow up field evaluation program to improve the definition of the main gold and silver targets
prior to commencing initial drill testing, which will be planned once the drill access permits are secured.
Donje Nevlje, Majdanpek West and Pirot Projects (Serbia)
On 24 December 2020 the Company received notification that the Donje Nevlje and Majdanpek West Projects have been
extended for a further 3-year exploration term. The Company was also awarded the Pirot Project located in Serbia. All three
projects have defined prospects and target zones, which will be subject to follow up work programs in 2021.
Tolisnica and Stanca Project (Serbia)
On 16 February 2021, the Company entered into an Option Agreement over the advanced Copper-Cobalt Tolisnica and Stanca
Project located in Serbia.
Under the terms of the Agreement executed with Majn DOO, the Company has the exclusive right, but not the obligation,
to purchase 100% of the projects from Majn under the following terms.
•
•
•
On final approval of both licences, the Company will pay Majn a A$25,000 option fee.
Up to 18-month anniversary of approval of both licenses, the Company may acquire 100% interest in projects by
paying Majn A$100,000 in cash or stock equivalent.
If Raiden publishes a Scoping Study on either of the projects within 5 years of anniversary of this agreement, Raiden
will pay Majn A$200,000 in cash or stock equivalent.
• Majn will retain a 0.5% net smelter royalty over the projects, which is purchasable by Raiden, at any time for
A$350,000 in cash or share equivalent.
Pilbara (Western Australia)
During the financial year, the Company entered into an exclusive option agreement to acquire Pilbara Gold Corporation Pty
Ltd (“PGC”). The transaction included the acquisition of a substantial portfolio of highly prospective gold and advanced nickel-
copper-palladium projects, which are located within the Pilbara region of Western Australia. The projects cover a land area
of 823km2, making Raiden one of the more significant project holders in the district. The portfolio includes the following
projects; Arrow Gold Project, Boodalyerrie Gold Project, Mt Sholl Nickle-Copper-PGE-Gold Project, Yandicoogina Gold Project,
Pyramid Project, Keep it Dark Project, North Shaw Project, Surprise Project, Myrnas Hil Project and Miralga Creek Project.
Following the acquisition, the Company appointed Terra Resources Pty Ltd to conduct a geophysical targeting program on
the Arrow Pilbara Project. The targeting program was based on publicly available data and as a result of the program several
intrusions were identified in the folded Malina Formation. This is considered to be significant as it is analogous to the setting
of De Grey Mining Ltds’ Hemi deposit (ASX: DEG).
ANNUAL REPORT 30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Review of Operations (Continued)
The field exploration also commenced across the Arrow and Mt Sholl Projects. The aim of the field exploration was to
complete confirmatory mapping and conduct sampling of prospective targets to assist in defining further exploration activity.
The reconnaissance geological mapping identified two extensive areas of hydrothermal alteration; a key observation
indicative of potential gold mineralisation and the soil sampling identified several multi-element anomalies.
Significant events after reporting date
Subsequent to balance date the following events occurred:
•
•
•
•
•
•
The Company reported that the high resolution magnetic survey defined 40 intrusions related targets at Arrow North
project with follow up work planned to include field evaluation of all defined targets and induced polarisation across
high priority areas. The drill permitting process is to commence immediately.
At Majdanpek West project in Serbia, 16 targets were defined on the basis of reinterpretation of detailed VTEM and
aeromagnetic survey carried out in 2019.The Company commenced field verification of targets.
The results of a soil and rock sampling program at the Boodalyerrie property in Pilbara region of Western Australia
identified high grade gold anomalies. The Company plans to conduct further detailed geological mapping with the
objective to define the geochemical anomalies in more detail.
On 2 August 2021, the Company announced that 13,000,000 Class C Performance Rights have lapsed due to 20-day
VWAP of $0.07 not being met within vesting period.
The Minister of Energy has signed the Exploration Agreement for the Zlatusha project in Serbia. The exploration licence
is valid for a 3-year period, with the ability to extend. The licence covers area of 195km2.
The Company has entered into a binding heads of agreement with Welcome Exploration Pty Ltd, to acquire 80% equity
interest in the tenure surrounding Mt Sholl Project. The Company will pay cash consideration of $100,000 and will be
issuing fully paid ordinary shares to the value of $500,000 based on the volume weighted average price for the 20 days
immediately following the execution of this Agreement.
There have been no other material matters or circumstances that have arisen since 30 June 2021.
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 and
27,430,494 Ordinary Shares
Performance Shares
7,812,500 A Class Performance Shares
7,812,500 B Class Performance Shares
9,375,000 C Class Performance Shares
ANNUAL REPORT 30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Information on Directors
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 one management. During the past five years Mr
Davy has held directorships in several ASX listed companies.
Interest in Shares
13,818,572 Ordinary Shares
Special Responsibilities
Nil
Directorships held in
Arcadia Minerals Limited (appointed 6 October 2020)
other listed entities
Vanadium Resources Limited (appointed 1 December 2019)
Riversgold Limited (resigned 24 June 2020)
Jadar Lithium Limited (resigned 15 April 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.
ANNUAL REPORT 30 JUNE 2021
5
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Information on Directors
Interest in Shares and
23,778.846 Ordinary Shares
Performance Shares
7,812,500 A Class Performance Shares
7,812,500 B Class Performance Shares
9,375,000 C Class Performance Shares
Special Responsibilities
Nil
Directorships held in
Jadar Lithium Limited (resigned 6 November 2018)
other listed entities
Dale Ginn
Non-Executive Director (Appointed 12-May-21)
Qualifications
PGeo
Experience
Mr Ginn is an experienced mining executive and geologist of over 30 years based in central
Canada. He is the founder of numerous exploration and mining companies and has led and
participated in a variety of gold and base metal discoveries, many of which have entered
production. Mr Ginn has led or was part of the discovery teams for the Gladiator, Hinge, 007,
777, Trout Lake, Photo, Edleston and Tartan Lake deposits and received the Quebec Discovery
of the Year Golden Hammer award in 2018 for the Gladiator high grade gold deposit. His
contributions have led to approximately 10 million ounces in resource generation as well as
over $500 million in capital raised for exploration and development projects. His experience
has included both senior and junior companies such as Goldcorp, Harmony Gold, Hudbay,
Westmin, San Gold, Bonterra, Gatling Exploration and others. While specialising in complex,
structurally controlled gold deposits, he also has extensive mine-operations, development and
start-up experience. In addition to operations experience, Mr. Ginn has most recently been
extremely active as a partner with RSD Capital of Vancouver in founding and creating start-up
exploration companies such as Pacton Gold, and successful spinoffs like Gatling Exploration.
Dale is a registered professional Geologist (P.Geo.) in the provinces of Ontario and Manitoba.
Interest in Shares
Nil
Special Responsibilities
Nil
Directorships held in
Aston Minerals Limited (appointed 1 April 2020)
other listed entities
Meetings of directors
During the financial year three meetings of Directors were held. Attendances by each Director during the year are stated
in the following table.
Number eligible to attend
Number attended
Director’s Meetings
Mr Dusko Ljubojevic
Mr Michael Davy
Mr Martin Pawlitschek
Mr Dale Ginn
3
3
3
-
3
3
3
-
ANNUAL REPORT 30 JUNE 2021
6
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Share options
At the date of this report, there are no share options on issue.
45,900,000 options were exercised during the year (2020: Nil).
Performance Rights
At the date of this report, there are nil performance rights in Raiden Resources Limited.
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
Number
62,500,000
62,500,000
75,000,000
200,000,000
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
from
issue
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 $10,830. 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 2021 can be found after the Directors’ report.
ANNUAL REPORT 30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Remuneration Report (Audited)
This remuneration report for the year ended 30 June 2021 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
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 original service agreement commenced on 20 February 2018 (which represented 50%
of Mr Ljubojevic’s time) and was renegotiated on 12 February 2021 to reflect an increase
in time required (representing 80% of Mr Ljubojevic’s time) for the ongoing management
of the Company’s asset portfolio.
Executive salary of $147,000 per annum (inclusive of superannuation) for period 1 July
2020 to 11 February 2021 and $208,000 per annum (inclusive of superannuation)
commencing on 12 February 2021
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 three months’ written
notice to the Company or the Company providing 6 months’ notice to Mr Ljubojevic.
ANNUAL REPORT 30 JUNE 2021
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RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Remuneration Report (Audited)
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.
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 $105,452 (2020: $72,000) 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
Mr Dale Ginn
•
•
•
•
•
•
•
•
•
•
•
•
The Company entered into an agreement with Mr Michael Davy as Non-Executive
Chairman on 29 June 2017.
Non-Executive fee of $36,000 per annum (inclusive of superannuation). The fee
increased to $60,000 per annum commencing on 1 October 2020.
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 fee of $36,000 per annum (inclusive of superannuation). The fee
increased to $48,000 per annum commencing on 1 October 2020.
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 Pawlitschek or the Company and there are no termination benefits payable under
the agreement.
The Company entered into an agreement with Mr Dale Ginn as Non-Executive Director
on 12 May 2021.
Non-Executive fee of $48,000 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 Ginn or the Company and there are no termination benefits payable under the
agreement.
ANNUAL REPORT 30 JUNE 2021
9
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Remuneration Report (Audited)
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 2021.
30-Jun-21
D Ljubojevic1
M Davy
M Pawlitschek
D Ginn2
Total
30-Jun-20
D Ljubojevic3
M Davy
M Pawlitschek
Total
Short Term
Salary, Fees &
Commissions
$
Post-
Employment
Superannuation
$
Other/
Bonus
$
200,772
54,000
45,000
6,452
306,224
-
-
-
-
-
-
-
-
-
-
Share-based
payments
Total
$
$
3,868
3,868
3,868
-
204,640
57,868
48,868
6,452
11,604
317,828
Performance
based
remuneration
%
1.89%
6.68%
7.91%
Nil
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%
6. Additional disclosures relating to equity instruments
Options and right issued as part of remuneration
No options (2020: Nil) or performance rights (2020: 30,000,000) were issued as part of remuneration.
1 The remuneration for Mr Ljubojevic includes $182,415 relating to his salary and $18,357 relating to geological consulting services.
2 Mr Ginn was appointed on 12 May 2021
3 The remuneration for Mr Ljubojevic includes $147,000 relating to his salary and $100,964 relating to geological consulting services which have been accrued
since August 2019.
ANNUAL REPORT 30 JUNE 2021
10
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Remuneration Report (Audited)
6. Additional disclosures relating to equity instruments
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-21
Balance at the
start of the year
Granted as
Remuneration
during the year
D Ljubojevic
M Davy
M Pawlitschek
D Ginn
Total
9,625,000
2,850,000
9,625,000
-
22,100,000
-
-
-
-
-
Issued on
exercise of equity
instruments
during the year
3,000,000
3,000,000
3,000,000
-
Other changes
during the year
Balance at
end of Year
14,805,494
7,968,572
11,153,846
-
27,430,494
13,818,572
23,778,846
-
9,000,000
33,927,912
65,027,912
KMP performance shareholding
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-21
D Ljubojevic
M Davy
Balance at
the start of
the year
25,000,000
-
M Pawlitschek
25,000,000
D Ginn
Total
-
50,000,000
Granted as
Remuneration
during the year
-
-
-
-
-
Issued on
exercise of equity
instruments
during the year
-
-
-
-
-
Other changes
during the year
Balance at
end of Year
-
-
-
-
-
25,000,000
-
25,000,000
-
50,000,000
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-21
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
D Ljubojevic
10,000,000
M Davy
10,000,000
M Pawlitschek
10,000,000
D Ginn
Total
-
30,000,000
-
-
-
-
-
(3,000,000)
(3,000,000)
4,000,000
(3,000,000)
(3,000,000)
4,000,000
(3,000,000)
(3,000,000)
4,000,000
-
-
-
(9,000,000)
(9,000,000) 12,000,000
-
-
-
-
-
4,000,000
4,000,000
4,000,000
-
12,000,000
No shares were issued to KMP during the year on exercise of performance rights.
ANNUAL REPORT 30 JUNE 2021
11
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Remuneration Report (Audited)
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 (2020: Nil).
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
Martin
Pawlitschek
Geological
Consulting
Martin Pawlitschek
Pacton Gold Inc
Acquisition of
assets (Pacton Gold
Tenements)
Dale Ginn
2021
$
2020
$
(10,426)
(4,854)
2021
$
-
-
-
(708,823)
2020
$
-
-
Mr Martin Pawlitschek provided geological consulting to the Group with transactions totalling to $10,426 (2020: $4,854).
The Company acquired assets from Pacton Gold Inc, of which Mr Dale Ginn is the Executive Chairman and Director. The initial
transaction relating to the acquisition of 75% interest in Pacton tenements was prior to his appointment as a director of the
Company. As at 30 June 2021 a total balance of $508,823 was payable relating to deferred consideration on the acquisition.
Subsequent to his appointment as a director, the Company completed the acquisition of remaining 25% interest in Pacton
tenements. This transaction included a cash consideration of $200,000 and the issue of 36,338,315 ordinary shares. As at 30
June 2021 a total balance of $200,000 was payable relating to the completion fee on the acquisition.
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 24 November 2020, 99.82% of votes received supported the adoption of the remuneration report for
the year ended 30 June 2020. The Company did not receive any specific feedback at the AGM regarding its remuneration
practices.
REMUNERATION REPORT (END)
ANNUAL REPORT 30 JUNE 2021
12
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
DIRECTORS’ REPORT (CONTINUED)
Proceedings on behalf of the 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.
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: 22 September 2021
ANNUAL REPORT 30 JUNE 2021
13
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
2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 22 September 2021
ALASDAIR WHYTE
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 2021
Interest income
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
30 June 2021
30 June 2020
$
$
461
15,211
(186,955)
(108,404)
(29,908)
(119,148)
(14,056)
(230,124)
(1,108,669)
(121,878)
(47,228)
(11,604)
(151,261)
(139,543)
(27,577)
(79,301)
(14,619)
(238,830)
(809,816)
(100,343)
(9,100)
(35,433)
(1,977,513)
(1,590,612)
-
-
(1,977,513)
(1,590,612)
8
15
2
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
7,174
9,660
Total comprehensive loss for the year
(1,970,339)
(1,580,952)
Basic and diluted loss per share (cents per share)
5
(0.24)
(0.37)
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2021
15
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
Note
30 June 2021
30 June 2020
$
$
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
Other liabilities
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
6a
7
8
9
11
12
13
14
2,696,735
87,265
39,950
2,823,950
74,842
10,603,091
10,677,933
13,501,883
406,185
708,823
1,115,008
1,115,008
314,275
83,817
18,408
416,500
92,246
67,686
159,932
576,432
266,295
-
266,295
266,295
12,386,875
310,137
20,436,221
6,400,748
250,486
231,708
(8,299,832)
(6,322,319)
12,386,875
310,137
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2021
16
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2021
Issued Capital
Share Based
Payment
Reserves
FX Reserve Accumulated Losses
Total
$
$
$
$
$
6,400,748
198,633
33,075
(6,322,319)
310,137
-
-
-
-
-
-
-
(1,977,513)
(1,977,513)
7,174
7,174
-
7,174
(1,977,513)
(1,970,339)
Balance at 1 July 2020
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
-
11,604
Issue of Shares
Issue of Shares on exercise of Options
13,117,473
918,000
-
-
-
-
-
-
-
-
11,604
13,117,473
918,000
Balance at 30 June 2021
20,436,221
210,237
40,249
(8,299,832)
12,386,875
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
The accompanying notes form part of these financial statements.
ANNUAL REPORT 30 JUNE 2021
17
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration and evaluation activity
Interest received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation acquisition
Purchase of plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from issue of shares on exercise of options
Net cash from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Foreign exchange
30 June 2021
30 June 2020
$
$
(858,039)
(563,993)
(1,021,775)
(801,959)
461
14,319
6b
(1,879,353)
(1,351,633)
(653,394)
-
(67,686)
(6,639)
(653,394)
(74,325)
4,000,000
918,000
4,918,000
-
-
-
2,385,253
(1,425,958)
314,275
1,744,775
(2,793)
(4,542)
Cash and cash equivalents at end of period
6a
2,696,735
314,275
The accompanying notes form part of these financial statements
ANNUAL REPORT 30 JUNE 2021
18
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 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 2021. The Group has not yet
assessed the impact of these new or amended Accounting Standards and Interpretations.
c) New or Amended Accounting Standards and Interpretations Adopted
The Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its
operations and effective for annual reporting periods beginning on or after 1 July 2020. It has been determined by the Group
that there is no impact, material or otherwise, of the new and revised standards and interpretations on its business and
therefore no change is necessary to Group accounting policies. No retrospective change in accounting policy of material
reclassification has occurred during the year.
d) Principles of Consolidation
The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2021.
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 2021
19
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 19.
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)
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.
ANNUAL REPORT 30 JUNE 2021
20
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
g)
Income Tax (Continued)
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.
h) 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.
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 2021
21
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 2021
22
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 2021
23
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
n) Exploration and Evaluation Expenditure
The Group accounts for exploration and evaluation activities by using successful efforts method of accounting. Under this
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 and other comprehensive income 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
It has been determined; or
• Work is under way to determine that the discovery is economically viable based on a range of technical consideration
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.
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.
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.
ANNUAL REPORT 30 JUNE 2021
24
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Share-based payments (Continued)
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.
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.
ANNUAL REPORT 30 JUNE 2021
25
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
r)
Employee Benefits (Continued)
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.
u) Earnings per share
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.
v) 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.
w) 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.
ANNUAL REPORT 30 JUNE 2021
26
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
ANNUAL REPORT 30 JUNE 2021
27
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 2: INCOME TAX
30 June 2021
$
30 June 2020
$
The financial statements for the year ended 30 June 2021 comprise the results of the Group. The legal parent is incorporated
and domiciled in Australia where the applicable tax rate is 30%. Two of the Group’s subsidiaries are incorporated in 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 30% (2020: 27.5%)
(593,254)
(437,418)
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
62,648
24,688
505,918
-
938,704
65,587
1,004,291
69,952
110,768
256,698
-
451,340
38,750
490,090
Unused tax losses and temporary differences for which no deferred tax asset
has been recognised
3,347,636
1,782,146
The Group has the following tax losses arising in entities in Australia and the Republic of Serbia that are available indefinitely
to be offset against the future taxable profits of the Group.
Tax loss carried forward
Australia
Republic of Serbia
Unrecognised deferred tax asset
Australia
Republic of Serbia
Carry forward losses
3,229,095
118,541
3,347,636
968,728
35,563
1,004,291
1,366,482
415,664
1,782,146
375,783
114,307
490,090
Potential future income tax benefits attributable to tax losses carried forward have not been brought to account at 30 June
2021, because the Directors do not believe it is appropriate to regard realisation of the future income tax benefits as probable.
ANNUAL REPORT 30 JUNE 2021
28
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 2021.
The totals of remuneration paid to KMP during the year are as follows:
Short-term employee benefits
Equity settled
30 June 2021
$
306,224
11,604
317,828
30 June 2020
$
319,964
11,265
331,229
Loans to Key Management Personnel
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
For other KMP transactions refer to Note 18.
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
Loss per share (in cents)
Loss used in calculation of basic loss per share
Weighted average number of ordinary shares outstanding during the year used in
calculation of basic loss per share
30 June 2021
$
30 June 2020
$
35,700
-
10,830
46,530
34,450
3,473
11,770
49,693
30 June 2021
$
(0.24)
30 June 2020
$
(0.37)
(1,977,513)
(1,590,612)
825,912,003
424,929,426
Anti-dilutive options have not been used in the loss per share calculation. As at 30 June 2021 there’s no options on issue
(2020: 50,000,000).
NOTE 6 a: CASH AND CASH EQUIVALENTS
Cash at bank
Total cash and cash equivalents
30 June 2021
$
30 June 2020
$
2,696,735
2,696,735
314,275
314,275
ANNUAL REPORT 30 JUNE 2021
29
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
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 2021
$
30 June 2020
$
(1,977,513)
(1,590,612)
11,604
2,639
14,056
(3,448)
(21,541)
94,850
35,433
14,202
14,619
(31,337)
(556)
206,618
(1,879,353)
(1,351,633)
The Group does not have any credit standby facilities.
Non-Cash investing and financing activities
The non-cash investing and financing activities included the issue of shares to acquire assets as disclosed in Note 10.
NOTE 7: TRADE AND OTHER RECEIVABLES
CURRENT
Other receivables (a)
Total other receivables
30 June 2021
$
30 June 2020
$
87,265
87,265
83,817
83,817
(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 2021 (2020: nil).
NOTE 8: PLANT AND EQUIPMENT
Plant and equipment at cost
Opening balance at 1 July
(Disposal)/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 2021
$
30 June 2020
$
119,314
(3,348)
115,966
112,675
6,639
119,314
27,068
14,056
41,124
74,842
12,449
14,619
27,068
92,246
ANNUAL REPORT 30 JUNE 2021
30
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 9: EXPLORATION AND EVALUATION EXPENDITURE
(a) Non-current
Exploration expenditure capitalised:
Exploration and evaluation at cost
Net carrying value
(b) Movement in carrying amounts
Carrying amount at the beginning of year
Addition: Exploration and evaluation acquisition cost*
Carrying amount at the end of year
30 June 2021
$
30 June 2020
$
10,603,091
10,603,091
67,686
67,686
67,686
10,535,405
10,603,091
-
67,686
67,686
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 additions to exploration and evaluation during the current financial year relates to Pilbara Gold Tenements acquired as
part of the Pilbara Gold Corporation Pty Ltd transaction, refer to Note 10.
The opening balance at 1 July 2020, relates to Kalabak where the Company has an Option Agreement with QX Metals
Corporation (“QX”) to earn into 75% position within the Kalabak Project.
NOTE 10: ASSET ACQUISITION
On 19 February 2021, the Company completed the acquisition of 100% of the issued share capital of Pilbara Gold Corporation
Pty Ltd (PGC) which holds tenements in Pilbara region of Western Australia by a way of a Share Sale Agreement. PGC
shareholders received a combined 207,778,750 ordinary fully paid shares in the Company. Each of the PGC shareholders
received the consideration pro-rata to their pre-existing shareholding.
Under the transaction the Company acquired 100% beneficial interest in each tenement held by PGC (PGC Tenements) and
assumed the obligation and rights held by PGC under the Pacton Gold Tenement Purchase Agreement with Pacton Gold Inc.
(TSX-V: PAC). Under the Pacton Gold Tenement Purchase, PGC has agreed to acquire a 75% interest in a number of tenements
held by Pacton Gold Inc. and located in Pilbara region of Western Australia. The consideration for Pacton Gold tenement
includes the issue of 129,721,250 ordinary fully paid shares, cash consideration of CAD$500,000 and deferred cash
consideration of CAD$500,000.
As the acquisition of PGC is not deemed a business acquisition, the transaction is accounted for as an asset acquisition for the
net assets acquired.
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned carrying amount
based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired
assets and assumed liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will
arise on the acquisition and transaction costs of the acquisition with be included in the capitalised cost of the asset.
ANNUAL REPORT 30 JUNE 2021
31
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 10: ASSET ACQUISITION (CONTINUED)
Acquisition of Pilbara Assets
Cash and cash equivalents
Exploration assets*
Net assets acquired
Consideration
Cash and deferred cash
Shares issued on completion 207,778,750 ordinary shares at $0.024 per share
Shares issued on completion 129,721,250 ordinary shares at $0.024 per share
$
5,209
9,112,437
9,117,646
1,017,646
4,986,690
3,113,310
9,117,646
On 18 June 2021, the Company completed the acquisition of the remaining 25% of interest in Pacton Tenements. The
consideration of the acquisition of the remaining 25% included the following:
Acquisition of remaining 25% in Pacton Tenements
Exploration assets*
Net assets acquired
Consideration
Cash
Shares issued on completion 36,338,315 ordinary shares at $0.028 per share
The transaction costs capitalised on the asset acquisition totalled to $205,495*.
* Total exploration and evaluation acquisition cost is $10,535,405.
NOTE 11: TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Other payables
(a) Fair value
$
1,217,473
1,217,473
200,000
1,017,473
1,217,473
30 June 2021
$
30 June 2020
$
261,311
144,874
406,185
92,722
173,573
266,295
Due to short term nature of these payables, their carrying value is assumed to approximate their fair value.
NOTE 12: OTHER LIABILITIES
CURRENT
Other liabilities (a)
30 June 2021
$
30 June 2020
$
708,823
708,823
-
-
(a) Other liabilities relate to deferred consideration of $508,823 payable to Pacton Gold Inc. in relation to the acquisition
of Pacton Tenements and completion fee of $200,000 for the acquisition of the remaining 25% interest. Refer to Note 10.
ANNUAL REPORT 30 JUNE 2021
32
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 13: ISSUED CAPITAL
(a) Issued Capital:
Ordinary shares fully paid
30 June 2021
$
30 June 2020
$
20,436,221
6,400,748
(b) Movement in ordinary share capital of the Company during the period was as follows:
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
21,000,000
-
431,430,796
6,400,748
Opening balance at 1 July 2020
431,430,796
6,400,748
Issue of shares under placement (Sept Tranche 1)
9/09/2020
107,142,857
Exercise of options
Exercise of options
Exercise of options
Vesting of Class A performance rights
21/10/2020
12,090,000
26/10/2020
10/12/2020
9,750,000
2,000,000
10/12/2020
10,000,000
750,001
241,800
195,000
40,000
-
Issue of shares under placement (Sept Tranche 2)
10/12/2020
35,714,143
249,999
Issue of shares under placement (Oct)
Issue of shares to lead manager (Oct)
10/12/2020
230,769,231
3,000,000
10/12/2020
13,846,154
180,000
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
5/01/2021
15/01/2021
25/01/2021
2/02/2021
5/02/2021
8/02/2021
1,250,000
3,590,000
1,000,000
5,372,000
8,058,000
2,790,000
25,000
71,800
20,000
107,440
161,160
55,800
Issue of shares on acquisition of PGC and Pacton tenements
19/02/2021
337,500,000
3,375,000
Fair value adjustment in accordance with AASB 2
19/02/2021
-
4,725,000
Issue of shares for acquisition of Pacton tenement 25%
18/06/2021
36,338,315
1,000,000
Fair value adjustment in accordance with AASB 2
18/06/2021
Less: capital raising costs
Closing balance at 30 June 2021
-
-
17,473
(180,000)
1,248,641,496
20,436,221
ANNUAL REPORT 30 JUNE 2021
33
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 13: ISSUED CAPITAL (CONTINUED)
(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
There are 200,000,000 performance shares on issue as at 30 June 2021. 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;
Class
Expiry
Milestones
Class A
Class B
Class C
07/02/2022
(48 months
from
issue
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
issue
from
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.
ANNUAL REPORT 30 JUNE 2021
34
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 14: 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 2019
Balance at 30 June 2020
(b) Option Reserve
Opening balance at 1 July 2020
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Exercise of options
Options lapsed
Balance at 30 June 2021
(c) Performance Rights Reserve
Opening balance at 1 July 2019
Issued to Corporate advisor
Issued to Company’s Board of Directors
Issued to Company Secretary
Balance at 30 June 2020
Opening balance at 1 July 2020
Expiry of performance rights
Conversion of Class A performance rights
Lapse of Class B performance rights
Amortised performance rights
Balance at 30 June 2021
30 June 2021
$
30 June 2020
$
163,200
47,036
40,250
250,486
163,200
35,433
33,075
231,708
30 June 2020
30 June 2019
No.
50,000,000
50,000,000
$
163,200
163,200
No.
$
50,000,000
163,200
21/10/2020
(12,090,000)
26/10/2020
10/12/2020
5/01/2021
15/01/2021
25/01/2021
2/02/2021
5/02/2021
8/02/2021
9/02/2021
(9,750,000)
(2,000,000)
(1,250,000)
(3,590,000)
(1,000,000)
(5,372,000)
(8,058,000)
(2,790,000)
(4,100,000)
-
-
-
-
-
-
-
-
-
-
-
163,200
No.
$
2/07/2019
29/11/2019
29/11/2019
10,000,000
30,000,000
3,000,000
43,000,000
23,000
11,265
1,168
35,433
43,000,000
35,433
2/07/2020
(10,000,000)
10/12/2020
(10,000,000)
10/12/2020
(10,000,000)
-
-
-
30/06/2021
-
13,000,000
11,603
47,036
ANNUAL REPORT 30 JUNE 2021
35
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 14: RESERVES (CONTINUED)
(d) Foreign currency reserve
Opening balance at 1 July 2019
Difference arising on translation
Balance at 30 June 2020
Opening balance at 1 July 2020
Difference arising on translation
Balance at 30 June 2021
$
23,415
9,660
33,075
33,075
7,175
40,250
The foreign currency translation reserve records exchange differences arising on translation of a foreign controlled
subsidiaries.
NOTE 15: SHARE BASED PAYMENTS
The following share-based payments existed at 30 June 2021:
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 2021 a total of $11,604 was recognised as
share-based payment expense (2020: $35,433).
NOTE 16: 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 17: 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.
ANNUAL REPORT 30 JUNE 2021
36
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (CONTINUED)
(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.
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
$
2021
Total
Floating
Interest
Rate
$
$
Non-
interest
bearing
$
2020
Total
$
Financial assets
- Within one year
Cash and cash equivalents
2,696,735
-
2,696,735
314,275
-
314,275
Other receivables
-
87,265
87,265
-
76,319
76,319
Total financial assets
2,696,735
87,265
2,784,000
314,275
76,319
390,594
Weighted average interest rate
1.49%
Financial Liabilities
- Within one year
Trade and other payables
Other liabilities
Total financial liabilities
Weighted average interest rate
-
-
-
406,185
708,823
406,185
708,823
1,115,008
1,115,008
266,295
266,295
-
-
266,295
266,295
-
-
-
-
Net financial assets
2,696,735
(1,027,743)
1,668,992
314,275
(189,976)
124,299
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 2021 +/-1% in interest rates
30 June 2020 +/-1% in interest rates
15,055
10,295
15,055
10,295
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.
ANNUAL REPORT 30 JUNE 2021
37
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (CONTINUED)
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
2021
2,696,735
2020
314,275
(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.
2021
Interest
rate
Less than 6
months
6-12
months
1-2 years
2-5 years
Over 5
years
Total
contractual
cash flows
$
$
$
$
$
$
Carrying
amount
assets/
(liabilities)
$
Financial
liabilities at
amortised cost
Trade and other
payables
Other liabilities
-
-
-
(406,185)
(200,000)
(606,185)
-
(508,823)
(508,823)
-
-
-
-
-
-
-
-
-
(406,185)
(708,823)
(1,115,008)
(406,185)
(708,823)
(1,115,008)
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)
ANNUAL REPORT 30 JUNE 2021
38
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 17: FINANCIAL INSTRUMENTS (CONTINUED)
(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 2021 (FY20: Nil) based on the information available to the
current board.
(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
2021
2020
Serbian Dinar (RDS)
2,794,560
37,669
178,670
2,482
NOTE 18: RELATED PARTY TRANSACTIONS
(a) Key management personnel compensation
For key management personnel compensation details refer to Note 3.
(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
Martin
Pawlitschek
Geological
Consulting
Martin Pawlitschek
Pacton Gold Inc
Acquisition of
assets (Pacton Gold
Tenements)
Dale Ginn
2021
$
2020
$
(10,426)
(4,854)
2021
$
-
-
-
(708,823)
ANNUAL REPORT 30 JUNE 2021
2020
$
-
-
39
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 18: RELATED PARTY TRANSACTIONS (CONTINUED)
Mr Martin Pawlitschek provided geological consulting to the Group with transactions totalling to $10,426 (2020: $4,854).
The Company acquired assets from Pacton Gold Inc, of which Mr Dale Ginn is the Executive Chairman and Director. The initial
transaction relating to the acquisition of 75% interest in Pacton tenements was prior to his appointment as a director of the
Company. As at 30 June 2021 a total balance of $508,823 was payable relating to deferred consideration on the acquisition.
Subsequent to his appointment as a director, the Company completed the acquisition of remaining 25% interest in Pacton
tenements. This transaction included a cash consideration of $200,000 and the issue of 36,338,315 ordinary shares. As at 30
June 2021 a total balance of $200,000 was payable relating to the completion fee on the acquisition.
NOTE 19: 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.
(a)
Financial Position of Raiden Resources Limited
Note
30 June 2021
$
30 June 2020
$
ASSETS
Current assets
Non-current assets
Total assets
LIABILITIES
Current liabilities
Total liabilities
NET ASSETS
SHAREHOLDERS EQUITY
Issued capital
Reserves
Accumulated Losses
SHAREHOLDERS EQUITY
2,733,876
394,668
10,608,300
67,686
13,342,176
462,354
1,086,017
246,971
1,086,017
246,971
12,256,159
215,383
38,605,455
24,569,982
210,236
198,633
(26,559,532)
(24,553,232)
12,256,159
215,383
ANNUAL REPORT 30 JUNE 2021
40
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 19: PARENT ENTITY DISCLOSURES (CONTINUED)
(b)
Financial Performance of Raiden Resources Limited
Loss for the year
Total comprehensive loss
Note
30 June 2021
$
30 June 2020
$
(2,006,300)
(1,405,331)
(2,006,300)
(1,405,331)
(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
2021 (2020: Nil).
(d) Contingent liabilities of Raiden Resources Limited
There were no known contingent liabilities as at 30 June 2021 (2020: Nil).
(e) Commitments by Raiden Resources Limited
There were no known commitments as at 30 June 2021 (2020: Nil).
(f)
Significant accounting policies
Raiden Resources Limited accounting policies do not differ from the Group as disclosed in Note 1.
NOTE 20: CONTROLLED ENTITIES CONSOLIDATED
Raiden Resources Limited (Parent)
Controlled entities
Timok Resources Pty Ltd
Pilbara Gold Corporation Pty Ltd (Note 10)
Skarnore Resources d.o.o., Belgrade
Kingstown Resources d.o.o, Belgrade
Western Tethyan Exploration Ltd
NOTE 21: COMMITMENTS
Exploration expenditure commitments:
No longer than 1 year
Longer than 1 year and not longer than 5 years
Longer than 5 years
Country of Incorporation
Australia
Australia
Republic of Serbia
Republic of Serbia
Republic of Bulgaria
Percentage Owned
2021
100%
100%
100%
100%
100%
2020
100%
-
100%
100%
100%
30 June 2021
$
30 June
2020
$
1,035,225
1,028,350
221,311
11,288
268,904
-
1,267,824
1,297,254
ANNUAL REPORT 30 JUNE 2021
41
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 22: CONTINGENT LIABILITIES
The Group has no known contingent liabilities as at 30 June 2021 (2020: Nil).
NOTE 23: EVENTS SUBSEQUENT TO REPORTING DATE
Subsequent to balance date the following events occurred:
•
•
•
•
•
•
The Company reported that the high resolution magnetic survey defined 40 intrusions related targets at Arrow North
project with follow up work planned to include field evaluation of all defined targets and induced polarisation across
high priority areas. The drill permitting process is to commence immediately.
At Majdanpek West project in Serbia, 16 targets were defined on the basis of reinterpretation of detailed VTEM and
aeromagnetic survey carried out in 2019.The Company commenced field verification of targets.
The results of a soil and rock sampling program at the Boodalyerrie property in Pilbara region of Western Australia
identified high grade gold anomalies. The Company plans to conduct further detailed geological mapping with the
objective to define the geochemical anomalies in more detail.
On 2 August 2021, the Company announced that 13,000,000 Class C Performance Rights have lapsed due to 20-day
VWAP of $0.07 not being met within vesting period.
The Minister of Energy has signed the Exploration Agreement for the Zlatusha project in Serbia. The exploration licence
is valid for a 3-year period, with the ability to extend. The licence covers area of 195km2.
The Company has entered into a binding heads of agreement with Welcome Exploration Pty Ltd, to acquire 80% equity
interest in the tenure surrounding Mt Sholl Project. The Company will pay cash consideration of $100,000 and will be
issuing fully paid ordinary shares to the value of $500,000 based on the volume weighted average price for the 20 days
immediately following the execution of this Agreement.
There have been no other material matters or circumstances that have arisen since 30 June 2021.
ANNUAL REPORT 30 JUNE 2021
42
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
In the Directors’ opinion:
DIRECTORS’ 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 2021 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 2021.
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: 22 September 2021
ANNUAL REPORT 30 JUNE 2021
43
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 2021, the consolidated statement
of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
Giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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
Exploration and Evaluation Expenditure
Refer to Note 9 in the financial statements
The Group has capitalised exploration and
evaluation expenditure with a carrying value of
$10,603,091 as at 30 June 2021.
How our audit addressed this matter
Our audit procedures included:
Ensuring that the right to tenure of each area of
interest is current;
We considered this to be a key audit matter due to
the significant management judgments involved in
assessing the carrying value of the asset including:
Agreeing a sample of additions to supporting
documentation and ensuring the amounts are
capital in nature and relate to the area of interest;
the basis on which
Determination of whether the expenditure can
be associated with finding specific mineral
that
resources, and
expenditure is allocated to an area of interest;
Determination of whether exploration activities
have progressed to the stage at which the
recoverable
existence of an economically
mineral reserve may be assessed; and
Assessing whether any indicators of impairment
are present, and if so, judgments applied to
determine and quantify any impairment loss.
Acquisition of Pilbara Gold Corporation Pty Ltd
Refer to Note 10 in the financial statements
On 19 February 2021, Raiden Resources Limited
the acquisition of Pilbara Gold
completed
for a consideration of
Corporation Pty Ltd
373,838,315
fully paid ordinary shares and
$1,217,646 cash.
it
involves management
Accounting for this acquisition is a key audit matter
as
in
determining the acquisition accounting treatment,
the acquisition date, the fair value of net assets
the purchase
acquired and
consideration.
fair value of
judgements
the
Assessing
and
evaluating management’s
assessment that no indicators of impairment existed
at the reporting date on the area of interest where
the rights to tenure are current;
Enquiring with management and reviewing budgets
and other supporting documentation as evidence
that active and significant operations in, or relation
to, the area of interest will be continued in the future;
and
Through discussions with the management and
relevant supporting documentation,
reviewing
that
assessing management’s
exploration and evaluation activities have not yet
reached a stage where the existence or otherwise of
economically
reserves may be
reasonably determined.
determination
recoverable
Our audit procedures included:
Reviewing the share sale agreement to obtain an
understanding of the transaction and the related
accounting considerations;
Critically evaluating management's determination
that the transaction did not meet the definition of a
business;
Evaluating the appropriateness of the acquisition
accounting treatment;
Assessing management’s determination of
the
purchase consideration; and
the disclosures
to ensure compliance with
Assessing
statements
requirements of Australian Accounting Standards.
financial
the
the
in
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
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/ar2.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 2021.
In our opinion, the Remuneration Report of Raiden Resources Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
Perth, WA
Dated: 22 September 2021
ALASDAIR WHYTE
Partner
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
ADDITIONAL SHAREHOLDER INFORMATION
The Additional information required by the ASX Listing Rules and not disclosed elsewhere in this report is set out below. The
information is effective as at 15 September 2021.
Corporate Governance
The Company’s Corporate Governance Statement has been released as a separate document and is also located on our
website at https://raidenresources.com.au/corporate-governance/
Ordinary Share Capital
1,248,641,496 fully paid ordinary shares are held by 1,280 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
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Kitara Investments Pty Ltd
Robert Jewson - Substantial Holder
BNP PARIBAS NOMINEES PTY LTD
Faldi Ismail
MR PETER ROMEO GIANNI
RSD CAPITAL CORP
DC & PC HOLDINGS PTY LTD
PACTON GOLD INC
SUNSET CAPITAL MANAGEMENT PTY LTD
1
2
3
4
5
6
7
8
9
10
11 MARTIN PAWLITSCHEK
12
ACUITY CAPITAL INVESTMENT MANAGEMENT PTY LTD
ALITIME NOMINEES PTY LTD
34 SOUTH ADVISORY LIMITED
DISCOVERY SERVICES PTY LTD
KOJIN PTY LTD
CITICORP NOMINEES PTY LIMITED
DAVY CORP PTY LTD
Sunset Tidal Pty Ltd
BUZZ CAPITAL PTY LTD
13
14
15
16
17
18
19
20
Total
Holding
130,481,067
94,009,078
61,155,232
50,184,174
49,500,000
40,309,078
40,309,077
40,309,077
36,338,315
32,165,677
23,528,846
21,000,000
18,000,000
17,805,494
15,000,000
14,745,000
14,445,919
13,818,572
12,812,000
12,390,000
%
10.45%
7.53%
4.90%
4.02%
3.96%
3.23%
3.23%
3.23%
2.91%
2.58%
1.88%
1.68%
1.44%
1.43%
1.20%
1.18%
1.16%
1.11%
1.03%
0.99%
750,466,146
60.10%
Substantial Shareholders
The names of the substantial shareholders as at 15 September are set out below.
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
Holding
130,481,067
%
9.01%
ANNUAL REPORT 30 JUNE 2021
48
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
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
16,934
67,669
83,414
26,989,999
1,221,483,480
1,248,641,496
No. Holders
77
29
10
574
590
1,280
%
0.00%
0.01%
0.01%
2.16%
97.83%
100.00%
As at 15 September 2021 the following securities were escrowed to 18 December 2021.
Name
PACTON GOLD INC
Unquoted Securities
As at 15 September 2021 there were 200,000 Performance Shares on issue.
200,000,000 Performance Shares1 – 13 holders
Holding
36,338,315
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 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
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 2021
49
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Unmarketable Parcels
Holdings of less than a marketable parcel of ordinary shares:
Holders: 189
On-market Buy Back
There is currently no on-market buy-back program.
Schedule of Tenements
Mining tenement interests held
Tenement reference and location
Donje Nevlje 310-02-1547/2015-02
Zapadni Majdanpek 310-02-1096/2016-02
Pirot 310-02-1696/2016-02
Pyramid (E47/4307)
Pyramid (E47/4300)
Location
Nature
Serbia
Serbia
Serbia
Western Australia
Western Australia
Soansville (E45/5903) (Formerly (E45/5713)
Western Australia
Eastern Creek (E46/1294)
Mt Sholl (E47/4309)
Mt Sholl (E47/3468
Myrnas Hill (E45/4907)
Miralga Creek (E/4920)
Surprise (E45/4803)
North Shaw (E45/4988)
Yandicoogina (E45/3571)
Yandicoogina (E45/3474)
Yandicoogina (M45/115)
Yandicoogina (45/987)
Boodalyerrie (E45/3586)
Arrow (E47/3476)
Arrow (E47/3478)
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Status
Granted
Granted
Granted
Application - pending
Application - pending
Application - pending
Application - pending
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%*
100%*
100%*
100%*
100%*
100%*
100%*
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
* Raiden through its wholly owned subsidiary Pilbara Gold Corporation, has acquired the additional 25% interest from Pacton Gold Inc., taking its interest in each
of these projects to 100% and as at 15 September 2021 the Company was awaiting on Office of State Revenue (OSR) stamp stamped transfer documentation to
complete the formal transfer of the remaining 25% interest.
ANNUAL REPORT 30 JUNE 2021
50
RAIDEN RESOURCES LIMITED ABN 68 009 161 522
Beneficial percentage interests held in farm-in or farm-out agreements
Tenement reference and location
Location
Nature
Stara Planina1 (Serbia) – 310-02-495/2015-02
Kalabak2 (Bulgaria) – Licence No. 405
Zlatusha2 (Bulgaria) – Licence No. 486
Serbia
Bulgaria
Bulgaria
Joint Venture
Joint Venture
Joint Venture
Status
Granted
Granted
Permit awarded – in process
towards final granting
Vuzel3 (Bulgaria)
Bulgaria
Joint Venture
Granted
Interest
-
-
-
-
Tolisnica and Stanca4 (Serbia) - Licence No.
2422
Serbia
Option
Agreement
1 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%, which has yet to be converted to a right in the Company.
2 The Company has an agreement to earn-in up to a 75% position within the project.
3 The Company has an agreement to earn-in up to 90% position within the project and an option to purchase 100% of the project.
4 The Company has an agreement option to purchase 100% of the project
ANNUAL REPORT 30 JUNE 2021
51