2020
ANNUAL REPORT
RAREX LIMITED
Contents
Corporate Directory .................................................................................... ii
Review of Operations ................................................................................. iii
Mineral Resources Statement ....................................................................... xix
Corporate Governance ............................................................................... xix
Directors’ Report ....................................................................................... 2
Auditor’s Independence Declaration ............................................................... 16
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................ 17
Consolidated Statement of Financial Position ..................................................... 18
Consolidated Statement of Changes in Equity .................................................... 19
Consolidated Statement of Cash Flows ............................................................. 20
Notes to the Financial Statements .................................................................. 21
Directors’ Declaration ................................................................................ 57
Independent Auditor’s Report ....................................................................... 58
ASX Additional Information .......................................................................... 62
i
Corporate Directory
Directors
Registered and business address
John Young (Non-Executive Chairman)
Suite 23, 513 Hay Street
Jeremy Robinson (Managing Director)
Subiaco WA 6008
Shaun Hardcastle (Non-Executive Director)
Australia
Cameron Henry (Non-Executive Director)
Telephone: +61 8 6143 6720
Company secretary
Oonagh Malone
Website: www.rarex.com.au
Auditors
Walker Wayland WA Audit Pty Ltd
Level 3, 1 Preston Street
Como WA 6152
Securities exchange
Share registry
Australian Securities Exchange (ASX)
Automic Registry Services
Code:
REE
Home office:
Perth
126 Phillip Street
Sydney, New South Wales 2000
Telephone: 1300 288 664
Country of incorporation and domicile
Australia
ii
Review of Operations
The Board is pleased to provide a review of operations across the Company’s asset portfolio
for the financial year 2020 and to date.
Figure 1: RareX Australian Assets
Cummins Range Rare Earths Project
Cummins Range is located 130km southwest of Halls Creek in the Kimberley Region of
Western Australia (Figure 1) and is one of two known rare earth bearing carbonatites in
Australia, with the other being Mt Weld owned by Lynas Corporation Ltd. Located in the
Tier 1 mining jurisdiction of Western Australia, Cummins Range has high Neodymium and
Praseodymium (NdPr) enrichment, both critical rare elements integral to the manufacture
of electric vehicles, wind turbines and military hardware.
With no active exploration since 2011, the Company commenced a significant exploration
drill program following completion of the acquisition of the Cummins Range Project in
September 2019.
Maiden JORC 2012 Resource
Following a review of historical data and geological modelling, RareX was pleased to release
its independently compiled, Maiden JORC 2012 Mineral Resource for Cummins Range on 14
October 2019.
The Maiden 2012 Inferred Mineral Resource for Cummins Range has been estimated at
13.0Mt at 1.13% Total Rare Earth Oxides (TREO) comprising 147,000,000 kg TREO using a
cut-off grade of 0.5% TREO.
In May 2020, RareX advised that a review of the historical drill database at the Cummins
Range Project had confirmed highly attractive enrichment characteristics, indicating high
levels of Neodymium-Praseodymium (NdPr) and ultra-low levels of Thorium.
iii
The database review determined an average NdPr content of 22.1%1. It has also highlighted
ultra-low Thorium content at 50ppm ThO2. By comparison, most monazite derived from
mineral sands averages in the range of 1-10% Thorium, giving Cummins Range a distinct
advantage.
Cummins Range - Rare Earth Deportment
4.2%
22.1%
73.5%
NdPr
Other LRE
HRE
The NdPr content of the TREO grade is consistent with other known carbonatite rare earth
deposits including Mt Weld (24.7% NdPr Enrichment; Lynas Corporation Limited ASX:LYC),
Ngualla (21.3% NdPr Enrichment; Peak Resources Limited ASX:PEK) and Mountain Pass (16.3%
NdPr Enrichment; MP Materials).
Table 1: Cummins Range Inferred Mineral Resource
5,000ppm TREOY cut-off grade
Rare Earth Element
Grade ppm
LREO, Light Rare Earth Oxides
HREO, Heavy Rare Earth Oxides
Yttrium Oxide
Thorium
La₂O₃
CeO₂
Pr₆O₁₁
Nd₂O₃
Sm₂O₃
Eu₂O₃
Gd₂O₃
Tb₄O₇
Dy₂O₃
Ho₂O₃
Er₂O₃
Tm₂O₃
Yb₂O₃
Lu₂O₃
Y₂O₃
ThO₂
Lanthanum
Cesium
Praseodymium
Neodymium
Samarium
Europium
Gadolinium
Terbium
Dysprosium
Holmium
Erbium
Thulium
Ytterbium
Lutetium
Yttrium
2,780
5,160
560
1,910
250
60
160
20
80
10
20
4
10
2
270
50
Total Rare Earth Oxides + Yttrium
TREOY
13,000,000 tonnes
11,300ppm OR
1.13%
Rounding errors may occur. Thorium is not a rare earth oxide but is included here to illustrate the low levels of this potential contaminant.
1 NdPr Enrichment is defined as the proportion of Nd2O3 and Pr6O11. The significant intersections are provided in Table 1 attached.
iv
Passive Seismic Survey
In December 2019, RareX undertook a passive seismic survey at its Cummins Range Project
to search for both extensions along strike and at depth of the known JORC Resource. Areas
of higher REE grades at Cummins Range are typically a result of upgrading due to
weathering. The mineral monazite contains the rare earth elements and is resistive to
weathering. As the surrounding mafics and carbonates are weathered over time the
monazite remains and is concentrated producing weathering profiles with high monazite
concentrations and REE intersections up to 41m @ 3.85% in hole KRC112. The passive seismic
survey was used to identify deeper weathering in the carbonatite complex which will help
to target future drilling. A total of 992 stations were surveyed in December 2019 on 100m
spaced north south lines at 25m intervals.
The survey identified deep weathering profiles continuing to the east, west and north of the
current defined resource area. These areas have been named Eastern, Western and Northern
Target areas. An area south of the current JORC Resource has also been identified, known
as the Southern Target. These areas are show in Figure 2.
Figure 2: Passive Seismic Survey depth to fresh rock contour map, Background image Airborne Magnetics TMI
1VD PSC, MGA Zone 52
v
The survey identified deep weathering profiles continuing to the east, west and north of the
current defined resource area. These areas have been named Eastern, Western and Northern
Target areas. An area south of the current resources has also be identified and is call the
Southern Target.
The Western and Eastern targets are considered to have the greatest chance of further
resource growth due to the presence of high-grade drill results at the edges of the adjoining
delineated resources.
Drill Campaign
In July 2020, RareX announced that its 6,143m reverse circulation (RC) drilling campaign
had commenced at Cummins Range, marking an important milestone for the Company and
the Project as this is the first time it has been drilled since 2011. This in-fill program was
designed both to increase the confidence of the Resource from Inferred to Indicated
category and to better define a higher-grade portion of the Resource.
RareX mobilised its own geological and field staff and contracted RC drilling company, KTE
Drilling, to complete the program.
As at the date of this report, assays have been received for 19 RC holes with significant
results being reported.
CRX0002 and CRX0003 respectively intersected significant shallow zones of mineralisation
including 41m at 4% TREO + 0.21% Nb2O5 from 29m and 36m at 4.6% TREO + 0.32% Nb2O5
from surface including an ultra-high-grade zone of 3m at 25.1% TREO + 0.45% Nb2O5.
As well as rare earths, assays are being reported for niobium and phosphate given the nature
of the carbonatite, being a Rare Earth Elements-Niobium-Phosphate deposit and both
niobium and phosphate presenting possible by-product streams for the Project.
Interestingly, appreciable silver was also detected in some of the assays and favorable
geology for other precious metals was encountered during the program. As a result,
additional assaying for gold and PGEs will also be undertaken.
Further assay results confirmed an outcropping, thick high-grade mineralised channel
trending north-west with further strongly mineralised drill holes at CRX0010 and CRX0011,
100m along strike from CRX0002 and CRX0003. These holes also demonstrate ultra-high-
grade seams within a broader high-grade intersection, with the internal zones including 3m
@ 11.3% TREO, 5m @ 9% TREO and 2m @ 10.4% TREO.
vi
Figure 6: Cummins Range Cross Section 307,265 mE
Figure 7: Cummins Range Cross Section 307,210 mE
vii
Results from RC holes, CRX0012 and CRX0013, include significant widths of high-grade rare
earths and niobium mineralisation with broad zones of bonanza grade mineralisation
encountered in CRX0013. The north-west trending channel of mineralisation encountered
in drill holes CRX0002, CRX0003, CRX0010 and CRX0011 has been confirmed in these holes,
further enhancing the potential size and grade of the Resource in this area.
Previous historical drilling on surrounding sections had confirmed the presence of high-grade
mineralisation down to 70m below surface. The current drill program has now extended the
zone of high-grade mineralisation to 130m below surface.
CRX0013 is especially significant in that it contains wide ultra-high grade zones including
13m at 10.7% TREO and 1.04% Nb2O5 from 76m and 8m at 9.1% TREO and 0.58% Nb2O5.
Full details of the drill results are available in the original announcements lodged with the
ASX.
Figure 8: Cummins Range Cross Section 307,155mE
viii
Figure 9: Cummins Range Drill Collar Plan
Weld North Project
The Weld North Project is located north of Laverton in Western Australia covering a large,
circular magnetic anomaly prospective for being caused by a carbonatite intrusive complex
similar to those that host the majority of the world's existing rare earth element production,
including the world class Mt Weld mine owned by Lynas Corporation Limited and RareX’s
Cummins Range Rare Earth Project, both of which are located in Western Australia.
Figure 10: Location of the Mt Weld North tenements
ix
The Weld North Project is defined by a circular magnetic anomaly target located entirely
within RareX’s Exploration Licence Application E38/3455. It is located 84km directly north
of the Mt Weld carbonatite-hosted rare earth element deposit held by Lynas Corporation
Limited (ASX: LYC, Mkt Cap A$1.5bn).
The Lynas Mt Weld carbonatite complex forms a strong circular magnetic anomaly with a
diameter of 4km and which hosts a TREO resource of 54.5 Mt at 5.4% TREO for 2.8Mt of
contained rare earth oxide (REO) (2.5% TREO cut-off) (source: Lynas Corporation Limited
2020 Annual Report announced to the ASX on 6 October 2020).
By comparison, the Weld North circular magnetic anomaly has a diameter of 5km with a
similar magnetic anomaly pattern to the Mt Weld carbonatite complex, where the magnetic
anomaly amplitude is less pronounced – indicating less magnetite content of the rocks.
Figure 11: Airborne magnetic anomaly image showing the Weld North circular anomaly which RareX consider to
be prospective for being caused by a REE-bearing circular carbonatite intrusive complex or a barren late stage
granite intrusive and sitting below regolith cover which masks the buried bedrock source for this magnetic
anomaly.
Figure 12: Comparison of airborne magnetic anomaly images of the Mt Weld REE mineralised carbonatite (left)
and RareX Weld North magnetic target (right), shown as black and white 1st derivative filtered images.
x
RareX has engaged drilling contractors to commence the maiden drilling program at the
Weld North Project in November 2020.
This characteristic may not have a bearing on the REE potential of the target, since many
REE-bearing carbonatite phases are non-magnetic. For example, the majority of the current
RareX Cummins Range REE resource is closely associated with non-magnetic carbonatite
intrusive rocks and shear zones within a circular diatreme structure.
It is possible that the Weld North magnetic anomaly is caused by an Archean granitic
intrusion. Surface inspection of the Weld North intrusion did not result in any positive
identification of a magnetic source, nor identification of any primary geology due to the
significant sandy cover sequence. RareX plans to undertake aircore drilling to test under the
cover sequence, to assess if the source of the magnetic anomaly is caused by a carbonatite
intrusion, similar to Mt Weld, or a granitic intrusion.
Byro East Project
RareX applied for tenements E09/2386 and E09/2387 in January 2020 at the Byro East
Project, located in the Western Gneiss Terrane, approximately 300km north-west of
Geraldton, Western Australia. RareX initially applied on the basis of the tenure containing
some of the highest and most consistent Rare Earth Element (REE) geochemical anomalies
in the state as part of the GSWA dataset.
RareX has identified numerous nickel-copper-PGE targets on the Byro East Project. The REE
anomalies are proximal to a circular feature in the state-wide magnetics interpreted to be
an intrusion, possibly a carbonatite.
Figure 13: Byro East Project, Western Australia
xi
Figure 14: Byro East project over magnetics
Further review of publicly available data undertaken by the Company has identified that
the tenure contains extensions of the enigmatic Milly Milly Intrusion and multiple other
ultramafic intrusions contained within the Byro East ultramafic corridor and the Brockman
ultramafic corridor.
At least one Ni-Cu-PGE gossan is noted as being present on the tenure that requires follow-
up, given that most of the exploration has been conducted on the Milly Milly intrusion
because of its size and affinities to the very large Jinchuan deposit in China, meaning that
much of the Eastern and Brockman corridor has been overlooked.
Following the Julimar discovery by Chalice Gold Mines (ASX: CHN) in March 2020, other
companies have applied for tenure in the region including Chalice, Buxton, and other private
companies.
Similarities have been drawn between the quartzites in the Narryer Terrane and the
quartzites in the York-Toodyay area near Perth, where the Julimar discovery has been made.
xii
Geochronology investigations have found similar aged rocks and the concept of the “Western
Gneiss Terrain” along the western edge of the Yilgarn Craton has led to renewed interest in
the Ni-Cu-PGE exploration potential of this terrain.
Figure 15: Byro East Project competitor map
RareX has now begun collating all previous exploration data and reprocessing historical
geophysical data ahead of the ground being granted in the coming months, with ground-
based exploration expected to follow on from Cummins Range and Weld North later this
year.
NSW Join-Venture Copper Gold Projects
In January 2020, RareX entered into a binding Memorandum of Understanding (MoU) with
Kincora Copper (Kincora) whereby Kincora paid a non-refundable option payment of
C$25,000 to RareX for a six week exclusive option period.
Following completion of its due diligence activities, Kincora subsequently exercised the
option and paid RareX an additional C$150,000 and issued RareX with 14.95 million shares
in Kincora (currently valued at A$2.0m).
As a result of the agreement, RareX transferred a 65% interest in its NSW tenements to
Kincora with RareX retaining a 35% free carried interest until such time as a positive scoping
study or preliminary economic assessment is delivered, following which industry standard
JV dilution mechanisms will apply.
Kincora is a well-funded TSXV listed copper gold explorer with projects in both Mongolia and
the NSW Lachlan Fold Belt having recently raised C$5.3. Kincora is led by a team with a
track record of world-class discoveries including the Cadia Au/Cu deposit in the Lachlan Fold
Belt of NSW and the Reko Diq Copper Gold deposit in Pakistan. It is well supported by global
funds LIM Advisors and New Prospect Capital.
xiii
Kincora’s technical team includes Mr John Holliday and Mr Peter Leaman. Mr Holliday has
over 30 years’ experience in metals exploration mostly with BHP Minerals and Newcrest
Mining, including the positions of Chief Geoscientist and General Manager, Property
Generation and more recently in the junior sector. Mr Holliday was a principal discoverer
and site manager of the undercover Cadia and Marsden porphyry Tier 1 gold-copper deposits
in NSW, and was a principal geological advisor on the acquisition of many significant
projects, including Namosi and Wafi-Golpu. Mr Leaman has over 40 years’ experience in
exploration mostly with BHP Minerals, with a particular focus on Base & Precious Metals,
and PanAust Limited, where he was Regional Exploration Manager SE Asia and remains an
Exploration Advisor.
The Trundle Project
The Trundle Project is located 30km west of the China Molybdenum Company Limited
operated Northparkes copper-gold project, which is Australia’s second largest porphyry
mine (behind Newcrest’s Cadia, also located in the Macquarie Arc).
A first phase drilling program comprising six holes for 3,800m was completed, testing three
known mineralized targets seeking to discover a new cluster of porphyry deposits. Extensive
porphyry and skarn-style copper-gold mineralisation and informal mining activities are
associated with several Ordovician intrusive centres across the full Trundle license, which
is located within a prolific mining and infrastructure district.
Following its recent capital raising Kincora began a substantial expansion of its drilling
program at Trundle, with a further 17 diamond drill holes targeting an economic porphyry
copper-gold deposit and/or skarn deposit.
Figure 16: Trundle is the only brownfield porphyry project held by a listed junior in the Macquarie Arc,
Australia’s foremost porphyry region
Trundle Park Drill Results
The Company’s first drill hole (TRDD001) intersected multiple significantly mineralized skarn
zones including 51m @ 1.17 g/t gold and 0.54% copper from 39m and 18m @ 0.53 g/t gold
and 0.05% copper from 284m. TRDD001 also intersected broad anomalous mineralization
xiv
(including 21.1m @ 0.25 g/t Au and 0.03% Cu from 664m to end of hole) in the outer zone
of the targeted adjacent porphyry intrusion system – see ASX announcement: 6 July 2020.
Kincora’s second follow-up drill hole (TRDD004) was drilled 269m to the west of TRDD001,
a considerable step-out, and was completed to 694m targeting a blind finger porphyry and
not targeting the previously intersected high-grade skarn mineralization in TRDD001.
TRDD004 did not intersect any skarn alteration and is interpreted to have intersected
volcanics intruded by monzodiorite and monzonite across a fault block with minor potassic
alteration at the bottom of the hole – anomalous results presented in Table 3. Such a fault
setting is not uncommon in other Ordovician age porphyry systems in the Macquarie Arc and
TRDD004 has assisted understanding of the fault blocks and potential preservation levels
within the Trundle Park target.
With unencumbered access, high-priority drilling at Trundle Park will initially test the
northern and southern strike of alteration and mineralization intersected in TRDD001 within
the same interpreted fault block – see Figure 1. These holes will seek to test both the
standalone near-surface gold-rich skarn and underlying finger porphyry potential at the
Trundle Park target.
Mordialloc Drill Results
Assay results of TRDD002 have returned metal grades comparable to the surrounding parts
of the Northparkes deposits and Cadia-Ridgeway within inner to outer propylitic style
hydrothermal alteration.
TRDD005, the second Kincora hole at the Mordialloc target and follow-up located 150m south
of TRDD002, demonstrate a volcanoclastic sandstone and agglomerate host rock sequence
at approximately 632m, and over 12m down hole with improved epidote-chlorite alteration
and visual quartz-calcite-pyrite-chalcopyrite mineralization materially more intense in
comparison to TRDD002.
Drill hole TRDD002 was completed to a depth of 790m, relative to an original target depth
of 700m. TRDD005 was drilled to 958m and returned multiple broad zones of anomalous
copper, gold and molybdenum, including localized moderate to higher grade intervals.
Significantly, a relatively shallow and previously unidentified skarn was also intersected in
TRDD005 (including 12m at 0.33g/t Au and 0.29% Cu from 138m, including 2m at 1.4g/t Au
and 1% Cu from 142m).
While returning anomalous and encouraging mineralization and alteration, the drill hole is
interpreted to have been drilled to the east away from the targeted mineralized quartz
monzonite porphyry complex.
The favorable higher-grade results from TRDD005, coupled with significant grades from prior
drill hole CTD006 (44m @ 0.15% Cu, 0.12g/t Au and 41ppm Mo) encouraged Kincora to drill
TRDD006 to the west.
Propylitic alteration and surface mineralization have also been identified at surface in this
area, and rock chip samples were collected and are currently being assayed. Together with
the results from TRDD005 and TRDD006, this supports the concept of multiple mineralizing
positions and phases of intrusions, with the potential for the discovery of a near-surface
finger porphyry deposit.
xv
The first drill hole at the Mordialloc target (TRDD002) is proposed to be reopened and
extended as interpretation of the alteration and assay results suggest these may represent
the halo of a mineralized porphyry intrusion system.
The Bayley’s Prospect
Drill-hole TRDD003 was completed to 721.5m at the Bayley’s target, confirming an
interpreted fertile porphyry setting with zones of anomalous mineralization within the
targeted quartz monzonite porphyry – see Table 2.
Further potential remains within the Bayley’s target zone, with drilling proposed in the
second stage of the ongoing drilling program seeking to test the standalone potential for a
finger porphyry within the larger northern Mordialloc intrusive complex. However, due to
encouraging results with TRDD002 and TRDD005, combined with access (lambing) and permit
constraints, a second hole was not completed during phase 1 of Kincora’s maiden drilling
program.
Orange East
The Company has retained 100% of the Orange East tenement (EL8442), located near the
advanced McPhillamys Gold Project in NSW, from Alkane Resources Limited (Alkane).
EL8442 is located just 15km along strike from McPhillamys (Probable Reserve of 60.1Mt at
1.05g/t Au for 2.03Moz2), which is owned by Regis Resources Limited and currently in the
final stages of permitting ahead of a potential final investment decision.
Figure 17: Regional Geology and Tenement Map
The project area has strong geological and geochemical similarities to the McPhillamys
Project, being located just 15km north-northwest along strike.
2 https://regisresources.com.au/McPhillamys-Gold-Project/mcphillamys-gold-project.html
xvi
The tenement is located on the eastern margin of the Molong Volcanic Belt with much of
the tenement hosting the Mullions Range Imbricate Thrust Zone (MRIZ). The regionally
significant Godolphin-Copperhannia Thrust Fault zone (GCFZ) traverses through the centre
of the tenement and host dozens of historical copper-gold workings.
An initial geological review of the Orange East Project has identified several advanced
prospects, with the Gunnarbee Prospect in particular showing particularly striking
similarities to the McPhillamys deposit, including:
• both are hosted in the Silurian volcaniclastic rocks of the Anson Formation adjacent
to the GCFZ (Figure 5);
• both have coincident Au-As-Ba-Bi--Pb-Cu-Mo-Te surface anomalies, with the
Gunnarbee geochemical anomaly extending over an area ~1,000m north-south by
200m east-west; and
• both have K radiometric high anomalies.
This prospect is entirely untested by modern exploration.
Figure 18: Historical Exploration on EL8442 with Gunnarbee Prospect untested
Many other prospects on the Orange East Project remain prospective for high-grade copper
gold mineralisation along the GCFZ, which runs south from the tenement past the
McPhillamys deposit and onto Sky Metals’ Cullarin Project (recent intercept of 93m at
4.24g/t Au3).
RareX is currently compiling all previous exploration data and looks forward to updating the
market on its proposed exploration plan for this project.
3 Sky Metals ASX Release 10th February 2020
xvii
Hong Kong Gold Project
On 7 December 2018, Clancy announced the completion of an agreement with Canadian
listed Pacton Gold Inc (TSXV: PAC) (Pacton) which provided for Pacton to acquire a 70%
equity interest in RareX’s Hong Kong Project in the Pilbara (Exploration Licence E47/3566
covering 40.15 km2).
Under the agreement, Pacton will act as operator of the Hong Kong Project and must spend
a minimum of CAD$500,000 on Hong Kong within two years of completion of the transaction.
RareX will be free carried with respect to joint venture expenditure until a decision to mine
is made unanimously by both parties.
Moroccan Cobalt Project
Following its strategic review of assets and with regard to the current cobalt price, the
Board has elected to cease work on the Moroccan Cobalt Project and no material work was
undertaken during the 2020 financial year.
Leogang Project, Austria
In mid-2017, the Company was granted exploration licences over the Leogang Cobalt-Nickel
Project covering in the Salzburg and Kitzbuhel regions in western Austria. Subsequently,
Cadence Minerals Plc acquired a 10% interest in the licences held by Clancy and both parties
entered into a joint venture.
No material work was undertaken on the Leogang Project during the 2020 financial year and
to date.
xviii
Mineral Resources Statement
The following information is provided in accordance with Listing Rule 5.21 and as at 30 June
2020.
Mineral Resource Estimation Governance Statement
RareX Limited ensures that the Mineral Resource estimates are subject to appropriate levels
of governance and internal controls. The Mineral Resources have been generated by
independent external consultants and internal employees who are experienced in best
practices in modelling and estimation methods. Where applicable, the consultants have
also undertaken review of the quality and suitability of the underlying information used to
generate the resource estimations. The Mineral Resource estimates follow standard industry
methodology using geological interpretation and assay results from samples won through
drilling.
RareX Limited reports its Mineral Resources in accordance with the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code)
(2004 Edition). Competent Persons named by the Company qualify as Competent Persons
as defined in the JORC Code.
Mineral Resource for Cummins Range Project, Western Australia
The table below sets out the Mineral Resources for 2020 for the Cummins Range Project,
Western Australia. This is the maiden Resource for the Project, estimated in October 2019,
and accordingly there is no comparative for 30 June 2019.
The Maiden 2012 Inferred Mineral Resource for Cummins Range has been estimated at 13.0Mt
at 1.13% Total Rare Earth Oxides (TREO) comprising 147,000,000 kg TREO using a cut-off
grade of 0.5% TREO.
Tonnes (Mt)
Grade (TREO)
TREO (kg)
13.0
1.13%
147,300,000
Competent Person’s Statement
The information in this document that relates to Exploration Results for the Company’s
assets and the Cummins Range Mineral Resource was first released to the ASX on 12
December 2019, 30 January 2020, 20 May 2020, 26 May 2020, 10 June 2020, 24 July 2020, 7
September 2020, 30 September 2020, 19 October 2020 and 27 October 2020. The Company
confirms that it is not aware of any new information or data that materially affects these
Exploration Results or the Mineral Resource.
Corporate Governance
RareX Limited’s Corporate Governance Statement for FY2020 is available on the Company’s
website www.rarex.com.au
xix
Financial Statements
FY2020
1
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
2020
The Board of Directors has pleasure in presenting its report on the consolidated entity consisting of RareX Limited (Company
or RareX) and the entities (Group or Consolidated Entity) it controlled at the end of, or during, the year ended 30 June 2020.
On 2 August 2019, the shareholders of the Company approved the consolidation of capital of the Company on the basis of 1
ordinary share for every 25 ordinary shares held. This consolidation of capital also applied to options and performance rights
on the same basis. Unless stated otherwise, references to shares, options and performance rights in this report are on a
post-consolidation basis.
1.
Directors
The names and details of the Company’s Directors in office at any time during the year to 30 June 2020 and until the date of
this report are as follows. Directors were in office for the entire period unless otherwise stated.
Mr John Young, B.AppSc(Geology), MAusIMM
Non-Executive Chairman – Appointed 18 February 2020
Mr Young has a Bachelor of Applied Science (Geology) and is a member of AusIMM. Mr Young is a highly experienced
geologist who has worked on exploration and production projects encompassing gold, uranium and specialty metals,
including tungsten, molybdenum, tantalum and lithium. Mr Young’s corporate experience includes appointments as Chief
Executive Officer of Marenica Energy Limited and CEO and Director of Thor Mining PLC. Mr Young was Exploration Manager
of Pilbara Minerals Ltd (ASX: PLS) from June 2014 until August 2015, appointed Technical Director in September 2015 and
transitioned to Non-Executive Director in July 2017 until his resignation on 20 April 2018. Mr Young was also the Managing
Director of Bardoc Gold Limited (ASX: BDC) from May 2017 to April 2019 and remains a Non-Executive Director. Mr Young is
also a Non-Executive Director of AIM listed Mosman Oil and Gas Ltd and Trek Metals Ltd (ASX: TKM).
Mr Jeremy Robinson, BComm
Managing Director – Appointed 27 September 2019
Mr Robinson is an experienced mining executive having held senior roles at Mungana Goldmines Limited and Apex Minerals
Limited. Mr Robinson holds a Bachelor of Commerce from the University of Western Australia majoring in Corporate Finance,
Investment Finance and Marketing.
Mr Shaun Hardcastle, LLB, BA
Non-Executive Director – Appointed 1 December 2017
Mr Hardcastle has over 10 years’ experience as a corporate and finance lawyer and extensive experience in corporate
governance, risk management and compliance. He has been involved in a broad range of cross-border and domestic
transactions including joint ventures, corporate restructuring, project finance, resources and asset/equity sales and
acquisitions. Mr Hardcastle has practiced law both in Australia and overseas and is a partner at HWL Ebsworth Lawyers. Mr
Hardcastle is currently a non-executive director of ASX listed Schrole Group Limited (ASX: SCL). Mr Hardcastle was also
previously non-executive director of Hawkstone Mining Limited (ASX: HWK) until 14 July 2020 and Bunji Corporation Limited
(ASX: BCL) until 28 April 2020.
Mr Cameron Henry,
Non-Executive Director - Appointed 2 June 2020
Mr Henry is the founding Managing Director of ASX-listed engineering firm, Primero Group Limited (ASX: PGX), where he has
led the Company’s strategic and operational direction resulting in its successful listing on the ASX in 2018 and rapid growth
globally. Mr Henry has over 20 years of industry experience in the development and delivery of minerals processing, energy
and infrastructure projects across Australia, Indonesia, North and South America. Mr Henry has been a member of the
Australian Institute of Company Directors since 2013 and was previously non-executive director of Titan Minerals Limited
(ASX: TTM) until 15 July 2019.
2
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
2020
Mr Scott Patrizi, BComm
Non-Executive Director - Appointed 7 July 2016; Resigned 18 February 2020
Mr Patrizi is a corporate finance professional having been previously employed with Deloitte Touche Tohmatsu in Perth. Mr
Patrizi holds a Bachelor of Commerce from the University of Western Australia. During his time at Deloitte, Mr Patrizi worked
across a range of industries including mining, oil and gas, healthcare, education and private equity providing merger and
acquisition, valuation and due diligence services. Prior to Deloitte, Mr Patrizi worked for Argonaut Limited, a full service
advisory, stockbroking & research and investment house focused on clients in the natural resources sector, where he gained
significant equity capital market experience. Mr Patrizi is currently executive director of Caprice Resources Ltd (ASX: CRS).
Mr Patrizi was also previously executive director of Matador Mining Ltd (ASX: MZZ) until 3 July 2018 and Elixir Energy Ltd
(formerly Elixir Petroleum Ltd) (ASX: EXR) until 6 May 2019.
Mr David Scoggin
Non-Executive Director - Appointed 31 March 2016; Resigned 27 September 2019
Mr Scoggin is a native of Santa Barbara, California and received his Bachelor of Arts from Princeton University, majoring in
international relations and finance. He started his career in Tokyo and Hong Kong working as a proprietary trader for both
Credit Agricole Indosuez and ING Barings. In 2000, he relocated to Australia where he started a 12-year period as a portfolio
manager/senior trader managing hedge funds for Susquehanna International Group and Evolution Financial Group. He
specializes in risk assessment, mergers and acquisition analysis, and has held several corporate advisory roles.
2.
Company Secretary
Ms Oonagh Malone – Appointed 1 February 2018
Ms Malone is a principal of a corporate advisory firm which provides company secretarial and administrative services. Ms
Malone has over 10 years’ experience in administrative and company secretarial roles for listed companies and is a member
of the Governance Institute of Australia. Ms Malone currently acts as company secretary for ASX-listed New Century
Resources Limited, Caprice Resources Limited, Carbine Resources Limited, European Cobalt Limited, Hawkstone Mining
Limited and African Gold Limited. Ms Malone is a non-executive director of Carbine Resources Limited.
3.
Principal Activities
The principal activities during the year of the entities within the consolidated entity were mineral exploration.
4.
Review of financial performance
The net consolidated loss from continuing operations for the year ended 30 June 2020, after income tax, amounted to
$6,687,791 (2019: $2,209,009).
During the year ended 30 June 2020, total expenses amounted to $8,037,635 (2019: $2,934,449). Unrestricted cash and cash
equivalents amounted to $3,425,058 as at 30 June 2020 (30 June 2019: $427,318).
5.
Dividends
No dividend has been declared or paid by the Company since the end of the previous financial year and the Directors do not
at present recommend a dividend.
6.
Review of Operations
During the year, the Company:
•
•
•
•
•
•
•
•
undertook a consolidation of capital on the basis of 1 share for every 25 shares held;
acquired 100% of the Cummins Range Rare Earths Project;
completed three capital raisings which raised a total of $4.52m before costs;
commenced exploration activities at Cummins Range Rare Earths Project which comprised of an extensive passive
seismic survey which highlighted multiple new exploration targets within highly prospective trends;
changed its name to RareX Limited and its ASX code to REE;
appointed Mr Gavin Beer as lead consultant metallurgist and Mr Guy Moulang as head of exploration;
acquired the Weld North Project; and
commenced drilling at the Trundle Copper-Gold Project, NSW under the joint venture with Kincora Copper Ltd.
3
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
7.
Likely Developments and Expected Results
2020
Other than as referred to in this report, further information as to likely developments in the operations of the Company and
likely results of those operations in future financial years would, in the opinion of the Directors, be speculative.
8.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs during the financial year ending 30 June 2020, other than as
follows:
•
•
•
•
consolidation of capital on the basis of 1 share for every 25 shares held;
acquisition of 100% of the Cummins Range Rare Earths Project;
change of name to RareX Limited and ASX code to REE;
completion of the following share placements:
-
-
-
$1,170,000 (before costs) via the issue of 68,823,540 ordinary shares at an issue price of $0.017 per share;
$1,250,000 (before costs) via the issue of 20,833,334 ordinary shares at an issue price of $0.06 per share;
$2,100,000 (before costs) via the issue of 42,000,000 ordinary shares at an issue price of $0.05 per share;
disposal of 65% interest in its New South Wales tenements (excluding EL8442) to Kincora Copper Ltd;
•
• Mr Jeremy Robinson was appointed as an executive director, Mr John Young was appointed as non-executive
chairman and Mr Cameron Henry was appointed as non-executive director of the Company;
• Mr Scott Patrizi and Mr David Scoggin resigned as non-executive directors of the Company; and
•
in March 2020, the World Health Organisation declared the outbreak of a novel coronavirus (COVID-19) as a
pandemic. The spread of COVID-19 has caused significant volatility in Australian and international markets. There is
significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its
impact on the Australian and international economies. The Company cannot reasonably estimate the length or
severity of this pandemic; it currently anticipates only minimal ongoing disruptions to exploration activities in
relation to its projects in Western Australia and New South Wales.
9.
Significant Events After Balance Date
Subsequent to 30 June 2020, the Company:
•
•
commenced drilling at its 100%-owned Cummins Range Rare Earths Project and successfully completed 58 holes for
6,146m of Reverse Circulation drilling; and
issued 7,462,687 ordinary shares to Element 25 Ltd as settlement of $500,000 of the deferred consideration in
relation to the acquisition of the Cummins Range Rare Earths Project.
10.
Indemnity and Insurance for Group Officers and Auditor
To the extent permitted by law, the Company indemnifies every person who is or has been:
•
•
an Officer against any liability to any person (other than the Company or a related entity) incurred while acting in
that capacity and in good faith; and
an Officer or auditor of the Company, against costs and expenses incurred by that person in that capacity in
successfully defending legal proceedings and ancillary matters.
The Company has in respect of any person who is or has been a director or officer of the Company paid a premium in respect
of a contract insuring all directors and officers against a liability. The Company maintains insurance policies for the benefit
of the relevant director or officer for the term of their appointment and for a period of seven years after retirement or
resignation.
The Company has entered into a Deed of Indemnity, Access and Insurance with each of its Directors and the Company
Secretary. Under the Deeds of Indemnity, Access and Insurance the Company will indemnify each officer to the extent
permitted by the Corporations Act against any liability arising as a result of the officer acting as an officer of the Company.
The Deeds of Indemnity, Access and Insurance also provide for the right to access Board papers and other Company records.
To the extent permitted by law, the Company has agreed to indemnify its auditor, Walker Wayland WA Audit Pty Ltd, 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 either Walker Wayland WA Audit Pty Ltd during, or since the end of, the
financial year.
4
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited
2020
This report details the nature and amount of remuneration for each Director of RareX Limited and the Group and for the
executives receiving the highest remuneration in accordance with the requirements of Section 300A of the Corporations Act
2001 and its Regulations. The information provided in this remuneration report has been audited as required by Section
308(3C) of the Act. This remuneration report forms a part of the Directors’ Report.
For the purposes of this report Key Management Personnel (KMP) of the Group are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or
indirectly, including any director (whether executive or otherwise) of the parent company.
Remuneration Policy
The remuneration policy of RareX Limited has been designed to align director and executive objectives with shareholder and
business objectives by providing a fixed remuneration component and offering specific long-term incentives. The Board of
RareX Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best
executives and directors to run and manage the consolidated entity, as well as align interests of directors, executives and
shareholders.
The Board believes that shares are an effective remuneration tool which preserves the cash reserves of the Company whilst
providing valuable remuneration. During the year ended 30 June 2020, a total of 33,000,000 (2019: nil) options were issued
to key management personnel of the Company.
The Board’s policy for determining the nature and amount of remuneration for board members and senior executives of the
consolidated entity is as follows:
•
The remuneration policy, setting the terms and conditions for the executive directors and other senior executives,
was developed and approved by the Board.
• All executives receive a base salary (which is based on factors such as length of service and experience).
•
The Board reviews executive packages annually by reference to the consolidated entity’s performance, executive
performance and comparable information from industry sectors.
All remuneration paid to directors and executives is valued at the cost to the Company and is expensed over the appropriate
vesting period. Shares issued under the Employee Share Plan are valued using the Binomial Tree methodology.
Non-Executive Directors
The Board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The
Board determines payments to the non-executive directors and reviews their remuneration annually, based on market
practice, duties and accountability. Independent external advice is sought when required.
The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders
at the Annual General Meeting. Currently there is a maximum aggregate sum of $200,000 per annum, which is to be divided
between the non-executive directors in the proportions agreed between them or, failing agreement, equally.
Company performance, shareholder wealth and director and executive remuneration
Shares have been issued to directors and executives to encourage the alignment of personal and shareholder interests in
prior years. Options have been issued to directors to encourage the alignment of personal and shareholder interests in the
current year.
Executive and non-executive directors, other key management personnel and other senior employees have been granted
ordinary shares and options. The recipients of shares and options are responsible for growing the Company and increasing
shareholder value. If they achieve this goal the value of the shares and options granted to them will also increase. Therefore,
the shares and options provide an incentive to the recipients to remain with the Company and to continue to work to enhance
the Company's value.
5
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
2020
There is no policy in place which limits exposure to risk in relation to those securities in the Company which constitute an
element of directors’ remuneration and which are linked to satisfaction of Company performance conditions.
The table below sets out summary information about the consolidated entity’s earnings and movements in shareholder
wealth for the five years to 30 June 2020:
Consolidated Entity:
Revenue
Net loss before tax
Net loss after tax
Share price at end of year
Basic loss per share
Diluted loss per share
30-Jun-20
30-Jun-19
30-Jun-18
30-Jun-17
30-Jun-16
$1,349,844
($6,687,791)
($6,687,791)
9.2 cents
(2.48 cents)
(2.48 cents)
$725,440
($2,209,009)
($2,209,009)
0.1 cents1
(0.06 cents)1
(0.06 cents)1
$495,640
($1,276,041)
($1,276,041)
0.4 cents1
(0.04 cents)1
(0.04 cents)1
$20,741
($998,614)
($998,614)
0.2 cents1
(0.04 cents)1
(0.04 cents)1
$48,527
($1,296,630)
($1,296,630)
0.2 cents1
(0.2 cents)1
(0.2 cents)1
Note: No dividends have been declared or paid since the Company was listed.
1 The share price at end of year and basic and diluted loss per share for the years ended 30 June 2019 and prior are disclosed in the above table on a pre-
consolidated basis. On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
Key Management Personnel Remuneration Policy
The remuneration structure for key management personnel, as determined by the Board, is based on a number of factors,
including length of service, particular experience of the individual concerned and their role within the organisation.
6
2020
Total
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
Key Management Personnel Remuneration:
Remuneration for the year ended 30 June 2020
Long Term
benefits
Long Service
Leave
Post-
employment
benefits
Superannuation
Long term
incentives
Share-based
payments
-
-
-
-
-
-
-
-
$
$
$
$
-
-
-
-
-
-
-
-
-
25,000
-
279
-
-
-
25,279
20,200
289,350
69,447
70,600
42,706
69,447
-
561,750
33,246
452,968
103,947
73,822
72,706
93,447
8,700
838,836
Key
Management
Person
J Young1
J Robinson2
S Hardcastle
C Henry3
O Malone
S Patrizi4
D Scoggin5
Short-term benefits
Salary or Fees
Paid or
Payable
$
Consulting
Fees
$
Non
Monetary
Benefits
$
13,046
138,618
34,500
2,943
30,000
24,000
8,700
251,807
-
-
-
-
-
-
-
-
1 J Young was appointed as a director on 18 February 2020.
2 J Robinson was appointed as a director on 27 September 2019.
3 C Henry was appointed as a director on 2 June 2020.
4 S Patrizi resigned as a director on 18 February 2020.
5 D Scoggin resigned as a director on 27 September 2019.
Remuneration for the year ended 30 June 2019
Key
Management
Person
S Hardcastle
S Patrizi
D Scoggin
O Malone
D Lenigas1
Salary or Fees
$
36,000
36,000
36,000
30,000
Short-term benefits
Long Term
benefits
Post-employment
benefits
Long term
incentives
Total
Consulting
Fees
$
Non Monetary
Benefits
$
Long Service
Leave
$
Superannuation
$
Share-based
payments
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
77,145
-
33,807
33,807
16,226
$
69,807
69,807
52,226
-
-
30,000
77,145
215,145
-
-
-
-
83,840
298,985
1 D Lenigas resigned as a director on 8 March 2019.
7
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
2020
Shares
During the year, 3,300,000 ordinary shares were issued in relation to the settlement of outstanding invoices for fees owed
to key management personnel (2019: nil). The deemed issue price of these shares was $0.017 per share, however, the last
sale price on the date of issue, being 27 September 2019, was $0.061 per share resulting in an adjustment to the fair value
of these shares of $0.044 per share. The ordinary shares were issued as follows:
Total amount
of outstanding
invoices
($)
Key
management
personnel
S Hardcastle
O Malone
S Patrizi1
No. of shares
issued
Fair value
per share
Fair value of
shares issued
Fair value
adjustment2
19,800
16,500
19,800
56,100
1,164,706
970,588
1,164,706
3,300,000
($)
0.061
0.061
0.061
($)
71,047
59,206
71,047
201,300
($)
51,247
42,706
51,247
145,200
1 S Patrizi resigned as a director on 18 February 2020.
2 The fair value adjustment has been included as a share-based payment in the remuneration table for the year ended 30 June 2020.
Options
Options issued to directors and key management personnel as part of their remuneration during the year ended 30 June
2020 (2019: Nil) as shown below. No options were exercised or forfeited during the year.
Total fair value
of options
issued
($)
No. of
options
vested
Director
Option
series
Grant date
No. of
options
J Young
J Young
J Young
Series 7
Series 8
Series 9
18/02/2020
18/02/2020
18/02/2020
J Robinson
J Robinson
J Robinson
Series 4
Series 5
Series 6
27/09/2019
27/09/2019
27/09/2019
S Hardcastle
S Hardcastle
S Hardcastle
Series 1
Series 2
Series 3
12/12/2019
12/12/2019
12/12/2019
C Henry
C Henry
C Henry
S Patrizi
S Patrizi
S Patrizi
Series 7
Series 8
Series 9
2/06/2020
2/06/2020
2/06/2020
Series 1
Series 2
Series 3
12/12/2019
12/12/2019
12/12/2019
2,000,000
2,000,000
2,000,000
6,000,000
5,000,000
5,000,000
5,000,000
15,000,000
1,000,000
1,000,000
1,000,000
3,000,000
2,000,000
2,000,000
2,000,000
6,000,000
1,000,000
1,000,000
1,000,000
3,000,000
33,000,000
Value
per
option
($)
0.0044
0.0032
0.0025
0.0256
0.0182
0.0141
0.0077
0.0058
0.0047
0.0141
0.0115
0.0097
0.0077
0.0058
0.0047
Total value of
options issued
Consideration
paid
($)
8,800
6,400
5,000
20,200
128,000
91,000
70,500
289,500
7,700
5,800
4,700
18,200
28,200
23,000
19,400
70,600
7,700
5,800
4,700
18,200
416,700
($)
-
-
-
-
50
50
50
150
-
-
-
-
-
-
-
-
-
-
-
-
150
8,800
6,400
5,000
20,200
127,950
90,950
70,450
289,350
7,700
5,800
4,700
18,200
28,200
23,000
19,400
70,600
7,700
5,800
4,700
18,200
416,550
Note:
Series 1: Director options exercisable at $0.0607 each expiring 12 December 2022 and vesting on 20 day VWAP exceeding $0.10.
Series 2: Director options exercisable at $0.0607 each expiring 12 December 2022 and vesting on 20 day VWAP exceeding $0.15.
Series 3: Director options exercisable at $0.0607 each expiring 12 December 2022 and vesting on 20 day VWAP exceeding $0.20.
Series 4: Options exercisable at $0.025 each expiring 27 September 2022 and vesting on 6 months employment and 20 day VWAP exceeding $0.05.
Series 5: Options exercisable at $0.025 each expiring 27 September 2022 and vesting on 6 months employment and 20 day VWAP exceeding $0.10.
Series 6: Options exercisable at $0.025 each expiring 27 September 2022 and vesting on 6 months employment and 20 day VWAP exceeding $0.15.
Series 7: Director options exercisable at $0.0607 each expiring 22 December 2022 and vesting on 20 day VWAP exceeding $0.10.
Series 8: Director options exercisable at $0.0607 each expiring 22 December 2022 and vesting on 20 day VWAP exceeding $0.15.
Series 9: Director options exercisable at $0.0607 each expiring 22 December 2022 and vesting on 20 day VWAP exceeding $0.20.
-
-
-
-
127,950
-
-
127,950
-
-
-
-
-
-
-
-
-
-
-
-
127,950
8
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
2020
Performance Rights
No performance rights were issued to directors and key management personnel as part of their remuneration during the
year ended 30 June 2020.
Performance rights were issued to directors and key management personnel as part of their remuneration during the year
ended 30 June 2019 as shown below on a pre-consolidated basis.
Director
Class
Grant date
No. of
performance
rights2 3
A
B
C
D
A
B
C
D
A
B
C
D
A
B
C
D
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2018
S Hardcastle
S Patrizi
D Scoggin
D Lenigas1
Total
Fair value per
performance
right3
($)
0.003000
0.000612
0.000526
0.000468
0.003000
0.000612
0.000526
0.000468
0.003000
0.000612
0.000526
0.000468
-
-
-
-
6,250,000
6,250,000
6,250,000
6,250,000
25,000,000
6,250,000
6,250,000
6,250,000
6,250,000
25,000,000
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000
100,000,000
100,000,000
100,000,000
100,000,000
400,000,000
462,000,000
Total fair value of
performance
rights issued
($)
18,750
5,738
4,931
4,388
33,807
18,750
5,738
4,931
4,388
33,807
9,000
2,754
2,367
2,105
16,226
-
-
-
-
-
83,840
1 D Lenigas resigned as a director on 8 March 2019 following which the Board determined that the milestones of the performance rights issued to Mr Lenigas
were incapable of satisfaction due to the Mr Lenigas no longer being engaged by the Company. The rights lapsed prior to 30 June 2019 and were valued at
a fair value of nil. Accordingly, no amount has been recognised for the performance rights issued to Mr Lenigas in the Statement of Profit or Loss and Other
Comprehensive Income for the year ended 30 June 2019.
2 On 3 August 2018, shareholders approved the issue of 462,000,000 performance rights to the Directors as shown in the above table. These performance
rights were issued on 20 August 2018 for nil consideration. Classes B, C and D of the performance rights expire 3 years from their issue date on 20 August
2021. On meeting vesting conditions, the performance rights will each convert into one ordinary share with no further consideration.
3 Pre-consolidated basis.
9
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
2020
The Board considers that the performance rights are a cost effective and efficient reward for the Company to make to
appropriately incentivise the continued performance of the management, and are consistent with the strategic goals and
targets of the Company.
During the year, 15,500,000 (pre-consolidation) Class A performance rights vested. The remaining performance rights (shown
below on a post-consolidated basis) held by a Director will vest on meeting the following performance conditions before the
expiry date:
Class
Vesting Condition - vesting will occur:
Number
B
C
D
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.25 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.375 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.50 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
250,000
250,000
250,000
The movement during the reporting period in the number of ordinary shares of RareX Limited held directly, indirectly or
beneficially, by each specified director and each specified executive, including their personally related entities is as follows:
(i)
SHARES – 30 June 2020
Held at 1 July
20197
Consolidation
adjustment1
Acquired
Disposed
Other
Director
J Young2
J Robinson3
S Hardcastle
C Henry4
S Patrizi5
D Scoggin6
Company
Secretary
O Malone
-
-
-
-
-
-
-
-
-
-
-
-
397,000
8,550,000
1,708,823
-
1,414,706
120,000
-
-
-
-
-
-
4,000,000
4,000,000
(3,840,000)
(3,840,000)
970,588
13,161,117
(550,000)
(550,000)
Held at 30 June
2020 or date of
resignation
397,000
8,550,000
1,708,823
-
1,414,706
120,000
580,588
12,771,117
-
-
-
-
-
-
-
1 On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
2 J Young was appointed as a director on 18 February 2020.
3 J Robinson was appointed as a director on 27 September 2019.
4 C Henry was appointed as a director on 2 June 2020.
5 S Patrizi resigned as a director on 18 February 2020.
6 D Scoggin resigned as a director on 27 September 2019.
7 Pre-consolidation basis.
10
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
(ii) SHARES – 30 June 2019
2020
Director
S Hardcastle
S Patrizi
D Scoggin
D Lenigas1
Company Secretary
O Malone
Held at 1 July
2018
Acquired2
Disposed
Other
Held at 30 June
2019 or date of
resignation2
-
-
-
-
-
-
`
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000,000
4,000,000
-
-
-
-
4,000,000
4,000,000
1 D Lenigas resigned as a director on 8 March 2019.
2.Pre-consolidation basis.
The movement during the reporting period in the number of options over ordinary shares of RareX Limited held directly,
indirectly or beneficially, by each specified director and each specified executive, including their personally related entities is
as follows:
(iii) OPTIONS – 30 June 2020
Director
J Young2
J Robinson3
S Hardcastle
C Henry4
S Patrizi5
D Scoggin6
Company Secretary
O Malone
Held at 1 July
20197
Consolidation
adjustment1
Granted
Exercised
Expired/
Forfeited/
Other
Held at 30 June
2020 or date of
resignation
-
-
20,000,000
-
30,000,000
-
-
-
(19,200,000)
-
(28,800,000)
-
6,000,000
17,750,0008
3,000,000
6,000,000
3,000,000
-
50,000,000
-
(48,000,000)
-
35,750,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,000,000
17,750,000
3,800,000
6,000,000
4,200,000
-
37,750,000
1 On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
2 J Young was appointed as a director on 18 February 2020.
3 J Robinson was appointed as a director on 27 September 2019.
4 C Henry was appointed as a director on 2 June 2020.
5 S Patrizi resigned as a director on 18 February 2020.
6 D Scoggin resigned as a director on 27 September 2019.
7 Pre-consolidation basis.
8 Options issued to J Robinson consisted of 15,000,000 in relation to remuneration and 2,750,000 issued as part consideration for the acquisition of the
Cummins Range Pty Ltd which holds the Cummins Range Rare Earths Project.
11
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
(iv) OPTIONS – 30 June 2019
2020
Director
S Hardcastle
S Patrizi
D Scoggin
D Lenigas1
Company Secretary
O Malone
Held at 1 July
20182
Granted
Exercised
Expired/
Forfeited/
Other
Held at 30 June
2019 or date of
resignation2
20,000,000
30,000,000
-
100,000,000
-
-
-
-
-
-
-
-
20,000,000
-
30,000,000
-
-
-
- 100,000,000
-
150,000,000
-
-
-
-
-
-
-
150,000,000
1 D Lenigas resigned as a director on 8 March 2019.
2 Pre-consolidation basis.
The movement during the reporting period in the number of performance rights of RareX Limited held directly, indirectly or
beneficially, by each specified director and each specified executive, including their personally related entities is as follows:
(v) PERFORMANCE RIGHTS – 30 June 2020
Director
S Hardcastle
S Patrizi2
D Scoggin3
Held at 1 July
20194
Consolidation
adjustment1
Granted
Converted
Expired/
Forfeited/
Other
Held at 30 June
2020
25,000,000
25,000,000
12,000,000
62,000,000
(18,000,000)
(18,000,000)
(8,640,000)
(44,640,000)
-
-
-
-
(6,250,000)
(6,250,000)
(3,000,000)
(15,500,000)
-
(750,000)
(360,000)
(1,110,000)
750,000
-
-
750,000
1 On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
2 S Patrizi resigned as a director on 18 February 2020.
3 D Scoggin resigned as a director on 27 September 2019.
4 Pre-consolidation basis.
Director
S Hardcastle
S Patrizi
D Scoggin
D Lenigas1
Held at 1 July
2018
Granted2
Converted
Expired/
Forfeited/
Other2
Held at 30 June
20192
-
-
-
-
-
25,000,000
25,000,000
12,000,000
400,000,000
462,000,000
-
-
-
-
-
-
-
-
(400,000,000)
(400,000,000)
25,000,000
25,000,000
12,000,000
-
62,000,000
1 D Lenigas resigned as a director on 8 March 2019.
2 Pre-consolidation basis.
Details of share-based payments in existence during the year ended 30 June 2020 are disclosed in this Directors’ Report and
Notes 18, 26 and 27 to the Annual Financial Statements.
12
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
Contracts with Directors and Key Management Personnel
A summary of contracts entered into with Executives is set out below:
2020
Executive
Term of Agreement
Base salary per annum including any
superannuation*
(Non-performance based)
Termination Conditions
Elements of
performance
remuneration
related
Mr Jeremy Robinson
Ongoing until terminated in accordance with the agreement
$197,100
to
3 months notice by either party
• 5,000,000 options exercisable at $0.025 each expiring 27 September 2022
and vesting on 6 months employment and 20 day VWAP exceeding $0.05.
• 5,000,000 options exercisable at $0.025 each expiring 27 September 2022
and vesting on 6 months employment and 20 day VWAP exceeding $0.10.
• 5,000,000 options exercisable at $0.025 each expiring 27 September 2022
and vesting on 6 months employment and 20 day VWAP exceeding $0.15.
* Base salary quoted is the position as at 30 June 2020; salaries are reviewed annually.
[END OF REMUNERATION REPORT]
12.
Auditor Independence and Non-Audit Services
The Group’s current auditor, Walker Wayland WA Audit Pty Ltd, did not perform any services in addition to its statutory audit
services (2019: nil).
13.
Auditor’s Independence Declaration
The auditor’s independence declaration for the reporting period ended 30 June 2020 has been received and can be found on
page 16.
13
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ REPORT
14.
Share Options
2020
At the date of this report 93,900,000 options (2019: 7,200,000) to acquire ordinary shares in RareX Limited were on issue.
Type of Options
Unquoted options
Unquoted options
Unquoted options
Unquoted options
Unquoted options vesting on 6 months employment and 20 day VWAP
exceeding $0.05
Unquoted options vesting on 6 months employment and 20 day VWAP
exceeding $0.10
Unquoted options vesting on 6 months employment and 20 day VWAP
exceeding $0.15
Unquoted options
Unquoted director options vesting on 20 day VWAP exceeding $0.10
Unquoted director options vesting on 20 day VWAP exceeding $0.15
Unquoted director options vesting on 20 day VWAP exceeding $0.20
Unquoted employee options vesting on 20 day VWAP exceeding $0.10
Unquoted employee options vesting on 20 day VWAP exceeding $0.15
Unquoted employee options vesting on 20 day VWAP exceeding $0.20
Unquoted director options vesting on 20 day VWAP exceeding $0.10
Unquoted director options vesting on 20 day VWAP exceeding $0.15
Unquoted director options vesting on 20 day VWAP exceeding $0.20
Expiry date
Exercise price
Number
24/10/20
30/11/20
30/12/20
27/9/21
$0.125
$0.175
$0.1625
$0.025
400,000
800,000
1,200,000
23,500,000
27/9/22
$0.025
5,000,000
27/9/22
$0.025
5,000,000
27/9/22
$0.025
5,000,000
11/10/22
12/12/22
12/12/22
12/12/22
12/12/22
12/12/22
12/12/22
22/12/22
22/12/22
22/12/22
$0.085
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
30,500,000
2,000,000
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
4,000,000
4,000,000
4,000,000
Share-based payments and options issued to directors, consultants and eligible employees, are disclosed in this Directors’
Report and Notes 18, 26 and 27 to the Annual Financial Statement.
Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related
body corporate.
15.
Directors’ Meetings
The number of meetings of Directors (including meetings of committees of directors) held during the year ended 30 June
2020 and the number of meetings attended by each director was as follows:
Director
Directors’ Meetings
Eligible to Attend
J Young
J Robinson
S Hardcastle
C Henry
S Patrizi
D Scoggin
5
7
8
-
3
1
16.
Risk Management
Directors’
Meetings
Attended
5
7
8
-
3
-
The Company takes a proactive approach to risk management including monitoring actual performance against budgets and
forecast and monitoring investment performance. The Board is responsible for ensuring that risks, and also opportunities,
are identified on a timely basis and that the consolidated entity’s objectives and activities are aligned with the risks and
opportunities identified by the Board.
14
RareX Limited ABN: 65 105 578 756 and controlled entities
17.
Environmental Regulations and Performance
DIRECTORS’ REPORT
2020
The Company is required to carry out the exploration and evaluation of its mining tenements in accordance with various
State Government Acts and Regulations.
In regard to environmental considerations, the Company is required to obtain approval from various State regulatory
authorities before any exploration requiring ground disturbance, is carried out. It is normally a condition of such regulatory
approval that any area of ground disturbed during the Company’s activities is rehabilitated in accordance with various
guidelines. There have been no significant breaches of these guidelines.
This report is made in accordance with a resolution of the Directors.
Jeremy Robinson
Managing Director
Dated this 30 September 2020
15
RareX Limited ABN: 65 105 578 756 and controlled entities
2020
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated
2020
2019
$
Notes
Income
Other income
Sale of tenements
Total income
Expenses
Administration expenses
Consultants and management expenses
Depreciation and amortisation
Legal expenses
Share-based payment expense
Exploration expenses
Acquisition of tenements
Gain/(loss) on sale of investments
Fair value increase/(decrease) in financial assets
Foreign exchange loss
Impairment
Total expenses
Loss before income tax
Income tax expense
Loss attributable to the owners of RareX Limited
Expense
Other comprehensive loss
4
5
7
27
6
14
48,378
1,301,466
133,961
591,479
1,349,844
725,440
(489,647)
(256,181)
-
(48,371)
(1,761,028)
(677,849)
(6,095,382)
6,900
1,285,809
(1,684)
(202)
(275,828)
(310,695)
(4,146)
(203,543)
(98,840)
(452,099)
-
(595,080)
(415,512)
(2,053)
(576,653)
(8,037,635)
(2,934,449)
(6,687,791)
(2,209,009)
-
-
(6,687,791)
(2,209,009)
Foreign currency translation reserve
(455)
(1,567)
Total comprehensive loss attributable to owners of the parent
(6,688,246)
(2,210,576)
Loss per share
- basic and diluted
1 Pre-consolidation basis.
The accompanying notes form part of these financial statements.
(2.48) cents
(0.06) cents1
17
RareX Limited ABN: 65 105 578 756 and controlled entity
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2020
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Total Current Assets
Non-current Assets
Exploration and evaluation costs
Financial assets at fair value
Plant and equipment
Total Non-current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
2020
Consolidated
Notes
2020
$
2019
$
10
11
14
12
14
15
16
17
18
3,425,058
152,116
-
427,318
283,140
307,737
3,577,174
1,018,195
1,656,046
2,388,942
66,800
505,032
-
-
4,111,788
505,032
7,688,962
1,523,227
1,318,230
20,550
1,388,780
1,388,780
6,350,182
165,869
-
165,869
165,869
1,357,358
29,605,193
4,857,730
(28,112,741)
6,350,182
20,405,948
2,376,360
(21,424,950)
1,357,358
18
RareX Limited ABN: 65 105 578 756 and controlled entity
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
2020
Notes
Contributed
equity
Options reserve
Share- based
payment
reserve
Foreign
currency
translation
reserve
Accumulated
losses
Total equity
At 1 July 2019
Currency translation differences
Total comprehensive income for the
year, net of tax
Issue of share capital - cash
Issue of share capital – equity settled
transactions
Transaction costs on share issues
Share-based payment expense
Fair value consideration for acquisition of
subsidiary
Fair value consideration for acquisition of
tenement
Consideration received from issue of
options
At 30 June 2020
At 1 July 2018
Currency translation differences
Total comprehensive income for the
year, net of tax
Issue of share capital
Transaction costs on share issues
Share-based payment expense
At 30 June 2019
17
17
17
27
13
12
18
17
17
27
$
20,405,948
-
-
4,520,000
519,313
(313,702)
-
-
-
-
-
1,383,965
3,660,000
1,097,250
813,634
-
-
610
$
2,294,087
-
$
$
$
83,840
-
(1,567)
(455)
(21,424,950)
-
$
1,357,358
(455)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,687,791)
(6,687,791)
-
-
-
-
-
-
-
4,520,000
519,313
(313,702)
1,383,965
4,757,250
813,634
610
29,605,193
4,775,912
83,840
(2,022)
(28,112,741)
6,350,182
19,455,681
-
2,279,087
-
-
-
1,010,006
(59,739)
-
20,405,948
-
-
15,000
2,294,087
-
-
-
-
-
83,840
83,840
-
(1,567)
(19,215,941)
-
2,518,827
(1,567)
-
(2,209,009)
(2,209,009)
-
-
-
(1,567)
-
-
-
(21,424,950)
1,010,006
(59,739)
98,840
1,357,358
The accompanying notes form part of these financial statements.
19
RareX Limited ABN: 65 105 578 756 and controlled entity
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
2020
Consolidated
Notes
2020
$
2019
$
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Other income
NET CASH FLOWS USED IN OPERATING ACTIVITIES
19
(1,395,829)
13,437
33,506
(1,348,886)
(1,179,479)
2,563
-
(1,176,916)
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES
Proceeds on sale of property, plant and equipment
Payments for property, plant and equipment
Payments for exploration expenditure
Payments for acquisition of tenements
Proceeds from disposal of tenements
Proceeds from sale of investments
Proceeds from disposal of royalty
Payment of security deposits
Proceeds from release of restricted cash
Cash acquired on acquisition of subsidiary
NET CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES
Proceeds from share issue
Proceeds from issue of options
Share issue transaction costs
NET CASH FLOWS FROM FINANCING ACTIVITIES
-
(33,400)
-
(525,000)
198,333
490,255
-
-
-
339
130,527
4,520,000
610
(304,534)
4,216,076
30,000
-
(49,886)
(247,084)
208,200
357,287
100,000
(90,000)
135,173
-
443,690
750,006
-
(59,739)
690,267
17
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
2,997,717
(42,959)
Cash and cash equivalents at beginning of year
Effect of movement in exchange rate
427,318
23
470,269
8
CASH AND CASH EQUIVALENTS AT END OF YEAR
10
3,425,058
427,318
The accompanying notes form part of these financial statements.
20
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
1.
CORPORATE INFORMATION
The financial statements of RareX Limited (the Company or the Group) for the year ended 30 June 2020 were
authorised for issue in accordance with a resolution of the directors on 30th September 2020. RareX Limited is a for
profit entity. RareX Limited (the parent) is a company limited by shares, incorporated in Australia, and whose
shares are publicly traded on the Australian Securities Exchange.
The nature of the operations and principal activities of the consolidated entity are described in the Directors'
Report.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated. The financial
statements include separate financial statements for RareX Limited as an individual entity and the consolidated
entity consisting of RareX Limited and its controlled entities.
(a)
Basis of preparation
These general purpose financial statements have been prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian
Accounting Standards Board. These financial statements have also been prepared on a historical cost basis, except
for available-for-sale investments, which have been measured at fair value. These financial statements are
presented in Australian dollars.
Going concern
As at 30 June 2020, the Group had working capital of $2,188,394 (2019: $852,326) and returned a loss attributable
to owners of $6,687,791 (2019: $2,209,009). The ability of the Group to continue as a going concern is dependent
upon the future successful raising of the necessary funding through equity and/or debt and the successful
exploitation of the Group’s tenements.
The Directors believe it is appropriate to prepare the financial statements on a going concern basis because the
Directors have appropriate plans to raise additional funds if required.
These financial statements have been prepared on the basis that the Group can meet its commitments as and
when they fall due and can therefore continue normal business activities and the realisation of its assets and
settlement of its liabilities can occur in the ordinary course of business.
In the event the Group is not able to achieve the above requirements, there is uncertainty whether the Group will
continue as a going concern and realise its assets and extinguish its liabilities in the normal course of business and
at the amounts stated in its financial report.
(b)
Statement of Compliance
These financial statements comply with Australian Accounting Standards and International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board.
These financial statements are general purpose financial statements which have been prepared in accordance with
the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements of the
law.
(c)
New accounting standards and interpretations
The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these
new and revised Accounting Standards and Interpretations has not resulted in a significant or material change to
the consolidated entity’s accounting policies.
21
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Conceptual Framework for Financial Reporting (Conceptual Framework)
The revised Conceptual Framework is applicable to annual reporting periods beginning on or after 1 January 2020
and early adoption is permitted. The Conceptual Framework contains new definition and recognition criteria as
well as new guidance on measurement that affects several Accounting Standards. Where the company has relied
on the existing framework in determining its accounting policies for transactions, events or conditions that are not
otherwise dealt with under the Australian Accounting Standards, the company may need to review such policies
under the revised framework. At this time, the application of the Conceptual Framework is not expected to have a
material impact on the company's financial statements.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces
AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject
to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured as the
present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to
short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office
furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease
payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be
recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate
of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be
replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on
the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated
with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA
(Earnings Before Interest, Tax, Depreciation and Amortisation) results will be improved as the operating expense
is replaced by interest expense and depreciation in profit or loss under AASB 16. For classification within the
statement of cash flows, the lease payments will be separated into both a principal (financing activities) and
interest (either operating or financing activities) component. For lessor accounting, the standard does not
substantially change how a lessor accounts for leases.
The adoption of AASB 16 Leases from 1 July 2019 has not led to the recognition of any right-of-use asset, or
associated lease liability, as the serviced office agreement does not specify or require fixed office locations, with
staff offices moved at the discretion of the lessor. Future effects of the implementation of this standard will depend
on details in future agreements.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted by the Group.
New accounting Standards issued but not yet effective
A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet
mandatorily applicable to the Company have not been applied in preparing these consolidated financial
statements. The Company has not elected to adopt any new Accounting Standards or Interpretations prior to their
applicable date of implementation.
There are no standards that are not yet effective and that would be expected to have a material impact on the
Company in the current or future reporting periods and on foreseeable future transactions.
(d)
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group and its subsidiary as at 30
June 2020. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
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 comprehensive income from the date the Group gains control
until the date the Group ceases to control the subsidiary.
22
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction.
(e)
Investment in joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement
have rights to the assets, and obligations for the liabilities, relating to the arrangement.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control. The considerations made in
determining significant influence or joint control are similar to those necessary to determine control over
subsidiaries. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint
operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses.
The Group can elect to contribute to ongoing exploration costs in proportion to its interests or dilute (a farm-out
arrangement). If contributions are made during the reporting period, they are accounted for as exploration
expenditure. Once the joint arrangement partner had earned its interest, the Company recovers expenditure
equivalent to the other joint arrangement partner’s interest.
The Group does not record any expenditure made by the farminee on its account. It also does not recognise any
gain or loss on its exploration and evaluation farm-out arrangements. Any cash consideration received directly
from the farminee is credited against costs previously incurred in relation to the whole interest.
When the Group, acting as an operator, receives reimbursement of direct costs recharged to the joint operation,
such recharges represent reimbursements of costs that the operator incurred as an agent for the joint operation
and therefore have no effect on profit or loss.
In many cases, the Group also incurs certain general overhead expenses in carrying out activities on behalf of the
joint operation. As these costs can often not be specifically identified, joint operation agreements allow the
operator to recover the general overhead expenses incurred by charging an overhead fee that is based on a fixed
percentage of the total costs incurred for the year, often in the form of a management fee. Although the purpose
of this recharge is very similar to the reimbursement of direct costs, the Group is not acting as an agent in this case.
Therefore, the general overhead expenses and the overhead fee are recognised in profit or loss as an expense and
income, respectively.
(f)
Business combinations
Business combinations are accounted for using the acquisition method. The consideration transferred in a business
combination shall be measured at fair value, which shall be calculated as the sum of the acquisition date fair value
of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree
and the equity issued by the acquirer, and the amount of any non-controlling interest in the acquiree. For each
business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at
the proportionate share of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the Group’s
operating or accounting policies and other pertinent conditions as at the acquisition date. This includes the
separation of embedded derivatives in host contracts by the acquiree.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held
equity interest in the acquiree is remeasured at fair value as at the acquisition date through profit or loss.
23
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or
liability will be recognised in accordance with AASB 139 either in profit or loss or in other comprehensive income.
If the contingent consideration is classified as equity, it shall not be remeasured.
(g)
Segment reporting
Management has assessed that the Group’s reportable business segments under the quantitative criteria set out
in AASB 8 Segment Reporting and has determined that no additional operating segments disclosures are required.
AASB 8 requires the ‘management approach’ to the identification, measurement and disclosure of operating
segments. The ‘management approach’ requires that operating segments be identified on the basis of internal
reports that are regularly reviewed by the entity’s chief operating decision maker, for the purpose of allocating
resources and assessing performance. This could also include the identification of operating segments which sell
primarily or exclusively to other internal operating segments.
In its adoption of the ‘management approach’ to segment reporting, the Group has identified that it continues to
operate as a gold, copper and base metals explorer and developer, in a single reportable business segment, under
one segment manager, in one geographical location being Australia, consistent with the prior year. The information
disclosed in the financial statements is the same information utilised internally by the chief operating decision
maker. Accordingly, no additional quantitative or qualitative disclosures are required.
(h)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and short-term deposits
with an original maturity of not more than 3 months that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash
equivalents as defined above. The consolidated entity does not have any bank overdraft facilities.
Where the Company calls cash in advance from its joint venture partners, the cash is recognised as an asset with
an offsetting liability for the amount of expenses not yet incurred on the relevant joint venture project at balance
date. The liability is then released to the profit and loss as the expenditure is incurred.
(i)
Trade and other receivables
Trade receivables are generally paid on 30-day settlement terms and are recognised and carried at original invoice
amount less an allowance for impairment. Trade receivables are non-interest bearing.
Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be
uncollectible are written off when identified. An impairment provision would be recognised when legal notice has
been sent and a reply not received within 30 days.
(j)
Investments and other financial assets
Investments and financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement
are categorised as either financial assets at fair value through profit and loss, loans and receivables, held-to-
maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which
the investments were acquired. Designation is re-evaluated at each financial year end, but there are restrictions
on reclassifying to other categories.
24
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
When financial assets are recognised initially, they are measured at fair value, plus, in the case of assets not at fair
value through profit and loss, directly attributable transaction costs.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified
as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for
trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit,
or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are
recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition.
Recognition and Derecognition
(i)
All regular way purchases and sales of financial assets are recognised on the trade date i.e. the date that the
consolidated entity commits to purchase the asset. Regular way purchases or sales are purchases or sales of
financial assets under contracts that require delivery of the assets within the period established generally by
regulation or convention in the market place. Financial assets are derecognised when the right to receive cash
flows from the financial assets has expired or when the entity transfers substantially all the risks and rewards of
the financial assets. If the entity neither retains nor transfers substantially all of the risks and rewards, it
derecognises the asset if it has transferred control of the assets.
Loans and receivables
(ii)
Loans and receivables including loan notes are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Such assets are carried at the transaction price minus principal repayments
and minus any allowance for impairment or uncollectability. Gains and losses are recognised in profit or loss when
the loans and receivables are derecognised or impaired. Loans and receivables are included with receivables in
current assets in the statement of financial position, except for those with maturities greater than 12 months after
balance date, which are classified as non-current. Loans and receivables with maturities greater than 12 months
are carried at amortised cost using the effective interest rate method.
Financial assets carried at cost
(iii)
Investments are initially measured at fair value, net of transaction costs. Subsequent to initial recognition,
investments in subsidiaries are measured at cost in the Group’s financial statements. If there is objective evidence
that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value
(because its fair value cannot be reliably measured), the amount of the loss is measured as the difference between
the asset’s carrying amount and the present value of estimated future cash flows, discounted at the current market
rate of return for a similar financial asset.
(k)
Plant and Equipment
Plant and equipment is stated at historical cost less depreciation and any accumulated impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of these 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 consolidated entity
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement
of comprehensive income during the financial period in which they are incurred.
Depreciation is calculated using the straight line and diminishing value methods to allocate the cost of the specific
assets over their estimated useful lives. The expected useful lives are detailed in Note 15.
25
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at
each financial year end.
Impairment
(i)
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with the
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired.
The directors have determined that items of plant and equipment do not generate independent cash inflows and
that the business of the consolidated entity is, in its entirety, a cash-generating unit. The recoverable amount of
plant and equipment is thus determined to be its fair value less costs to sell.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written down to its recoverable amount. For plant and
equipment, impairment losses are recognised in the statement of comprehensive income as an expense.
Derecognition and disposal
(ii)
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are
expected from its use.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included
in the statement of comprehensive income. When revalued assets are sold, it is consolidated entity policy to
transfer the amounts included in other reserves in respect of those assets to retained earnings.
(l)
Trade and other payables
Trade payables and other payables are carried at the transaction price minus principal repayments. They represent
liabilities for goods and services provided to the consolidated entity prior to the end of the financial year that are
unpaid and arise when the consolidated entity becomes obliged to make future payments in respect of the
purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of
recognition.
(m)
Provisions and employee benefits
Provisions are recognised when the consolidated entity has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation.
When the consolidated entity expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain.
The expense relating to any provision is presented in the statement of comprehensive income net of any
reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle
the present obligation at the reporting date using a discounted cash flow methodology. The risks specific to the
provision are factored into the cash flows and as such a risk-free corporate bond rate relative to the expected life
of the provision is used as a discount rate. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability.
The increase in the provision resulting from the passage of time is recognised in finance costs.
26
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Wages, salaries, annual leave and sick leave
Employee leave benefits
(i)
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled with 12
months of the reporting date are recognised in respect of employees’ services up to the reporting date. Liabilities
for annual leave expected to be settled within 12 months of the reporting date are recognised in the current
provision for the employee benefits. They are measured at the amounts expected to be paid when the liabilities
are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at
the rates paid or payable. For annual leave, expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows.
Long Service Leave
(ii)
The liability for long service leave is recognised and measured as the present value of expected future payments
to be made in respect of services provided by employees up to the reporting date. Consideration is given to
expected future wage and salary levels, experience of employee departures, and periods of service. Expected
future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currencies that match, as closely as possible, the estimated future cash outflows.
(n)
Share-based payment transactions
Equity settled transactions
(i)
The consolidated entity provides benefits to its directors, employees and consultants in the form of share-based
payments, whereby directors and employees render services in exchange for options to acquire shares, rights over
shares (equity-settled transactions) and shares issued pursuant to the Company’s Employee Share and Loan Plan
(“Plan”). The consolidated entity has also issued ordinary shares and unlisted options as consideration to vendors
for the acquisition of exploration licences and drilling services.
The cost of these equity-settled transactions is measured by reference to the fair value to the Company of the
equity instruments at the date at which they were granted in the case of options and shares issued under the Plan
for directors, employees and consultants; and the closing share price on, or just before, either the date of entering
into, or executing, an exploration licence purchase agreement in the case of options and shares issued to tenement
vendors as consideration for the settlement price. The fair value of the unlisted options and shares issued under
the Plan is determined using the Black-Scholes model, taking into account the terms and conditions upon which
the options were granted.
The cost of equity-settled transactions is recognised as an expense, together with a corresponding increase in
equity over the period in which the vesting and/or service conditions are fulfilled (the vesting period), ending on
the date on which the relevant directors and employees become fully entitled to the options (the vesting date) or
shares issued under the Plan.
At each subsequent reporting date until vesting, the cumulative charge to the statement of comprehensive income
reflects:
(i)
(ii)
the grant date fair value of the options and shares issued under the Plan;
the current best estimate of the number of options and shares issued under the Plan that will ultimately
vest, taking into account such factors as the likelihood of employee turnover during the vesting period
and the likelihood of vesting conditions being met, based on best available information at balance date;
and
the extent to which the vesting period has expired.
(iii)
The charge to the statement of comprehensive income for the period is the cumulative amount as calculated above
less the amounts already charged in previous periods. There is a corresponding entry to equity.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. An additional expense is recognised for any modification that increases the total fair value of
the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of
modification.
If an equity-settled award is cancelled, it is treated as if it has vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the
cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new
award are treated as if they were a modification of the original award, as described in the previous paragraph.
27
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The dilutive effect, if any, of outstanding options and shares issued under the Plan is reflected as additional share
dilution in the computation of diluted earnings per share.
(o)
Issued Capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
(p)
Revenue recognition
Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it
is probable that the economic benefits will flow to the consolidated entity and the revenue can be reliably
measured. The following specific recognition criteria must also be met before revenue is recognised:
Rendering of Services
(i)
Where the work performed in relation to a joint venture or other contract outcome can be reliably measured:
-
right to receive compensation for the services provided and the stage of completion can be reliably
measured. Stage of completion is measured by reference to the labour hours performed to date as a
percentage of total estimated labour hours in relation to a joint venture or for each contract. Where it is
probable that a loss will arise in relation to a joint venture or from a contract, the excess of total costs over
revenue is recognised as an expense immediately.
Where the contract outcome cannot be reliably measured:
-
revenue is recognised only to the extent that the costs that have been incurred are recoverable.
Unearned income is recognised in respect of progress billings and advances on exploration contracts in progress,
received in advance, or not represented by work done or reimbursable expenditure incurred, under joint venture
arrangements. Such income is recognised and brought to account over time as it is earned.
Interest revenue
(ii)
Revenue is recognised as interest accrued using the effective interest method. This is a method of calculating the
amortised costs of a financial asset and allocating the interest revenue over the relevant period using the effective
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to the net carrying amount of the financial asset.
All revenue is stated net of Goods and Services Tax (“GST”).
(q)
Income tax and other taxes
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets,
liabilities and their carrying amounts for financial statements purposes.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
28
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Tax consolidation legislation
RareX Limited and its wholly-owned Australian controlled entity formed a tax consolidated group on 1 July 2008.
However, they continue to account for their own current and deferred tax amounts. The consolidated entity has
applied the stand alone taxpayer approach in determining the appropriate amount of current taxes and deferred
taxes to allocate to members of the tax consolidated group. The current and deferred tax amounts are measured
in a systematic manner that is consistent with the broad principles in AASB 112 Income Taxes.
In addition to its own current and deferred tax amounts, RareX Limited also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from
controlled entities in the tax consolidated group.
Members of the tax consolidated group have not entered into a tax funding agreement and as no current tax assets
or liabilities or deferred tax assets are recognised in relation to tax losses or unused tax credits, no contributions
or distributions are required to be made under AASB Int 1052 Tax Consolidation Accounting.
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
· when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables, which are stated with the amount of GST included.
·
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is
classified as part of operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the
taxation authority.
(r)
Earnings per share
Basic earnings per share is calculated as profit attributable to members of the parent, adjusted to exclude any costs
of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number
of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as profit attributable to members of the parent, adjusted for:
-
-
-
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares, divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
(s)
Exploration Expenditure
Exploration and evaluation costs are accumulated and accounted for separately on an area of interest basis. An
area of interest is represented by an exploration project, which may include multiple tenements within a single
geographic region.
For each area of interest, the Company makes an election regarding its treatment of exploration and evaluation
expenditure (including the costs of tenement acquisitions) and whether it will be charged to the income statement
as incurred, under the expense category “exploration expenditure” (or other appropriate expense category), or
capitalised as an exploration and evaluation asset, or a combination thereof.
29
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
An exploration and evaluation asset can only be recognised in relation to an area of interest if the following
conditions are satisfied:
a)
b) at least one of the following conditions is also met:
the rights to tenure of the area of interest are current; and
(i)
(ii)
the exploration and evaluation expenditures are expected to be recouped through successful
development and exploitation of the area of interest, or alternatively, by its sale; and
exploration and evaluation activities in the area of interest have not at the end of the reporting
period reached a stage which permits a reasonable assessment of the existence or otherwise of
economically recoverable reserves, and active and significant operations in, or in relation to, the
area of interest are continuing.
Capitalised exploration and evaluation expenditures are recorded as an exploration asset at cost less impairment
charges. All capitalised exploration and evaluation expenditure are monitored for indicators of impairment. Where
an impairment indicator is identified, an assessment is performed for each area of interest to which the exploration
and evaluation expenditure is attributed. To the extent that capitalised expenditure is not expected to be recovered
it is charged to the income statement.
(t)
Financial Liabilities and Equity Instruments Issued by the Consolidated Entity
(i)
(ii)
Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the
substance of the contractual agreement.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received,
net of direct issue costs.
(iii) Financial liabilities
Financial liabilities are classified as either financial liabilities ‘at fair value through profit and loss’ or ‘other
financial liabilities’.
(iv) Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortised cost using the effective interest method,
with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financially liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.
30
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
NOTES TO ACCOUNTS
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 Company.
Key estimates and judgements
(i)
Impairment – general
The Company assesses impairment at the end of each reporting period by evaluation of conditions and events
specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant
assets are reassessed using value-in-use calculations, which incorporate various key assumptions. No
impairment is recognised for the Hong Kong Gold Project because the Company has an ongoing right to
explore over the project with substantive ongoing exploration planned, the Company has not decided to
discontinue exploration in the project area, and insufficient data exists that could indicate that the carrying
amount of the project is unlikely to be recovered in full from successful development or by sale.
(ii) Options and share-based payment transaction
The Consolidated Entity measures the cost of equity-settled transactions by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes
model, using the assumptions and inputs detailed in Note 27.
(iii) Tenement acquisition costs
The Directors have elected to expense certain tenement acquisition costs in relation to the Cummins Range
Rare Earths Project as disclosed in Note 6.
4.
OTHER INCOME
Interest received
Profit on sale of fixed assets
Gain on sale of royalty
Australian Government cash flow boost
Consolidated
2020
$
2019
$
14,872
-
-
33,506
48,378
3,961
30,000
100,000
-
133,961
31
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
5.
SALE OF TENEMENTS
Sale of 65% interest in NSW Tenements
Sale of 70% interest in Hong Kong Gold Project(ii)
Consolidated
2020
$
1,301,466
-
1,301,466
2019
$
-
591,479
591,479
(i) During the 2020 year, Kincora Copper Ltd (“Kincora”) acquired a 65% interest in RareX’s tenements in New
South Wales (except for EL8442).
Sale of 65% of New South Wales tenements (excluding EL8442)
Cash consideration (CAD175,000)
Fair value of Kincora shares received as consideration
Total Consideration
Less: Carrying value of 65% interest in tenements
Gain on sale of tenements
$
198,333
1,103,133
1,301,466
-
1,301,466
(ii) During the 2019 year, Pacton Gold Inc (“Pacton”) acquired a 70% equity interest in RareX’s Hong Kong Project
in the Pilbara (Exploration Licence E47/3566).
Sale of 70% of Hong Kong Project
Cash consideration
Fair value of Pacton shares received as consideration
Total Consideration
Less: carrying value of 70% interest in Hong Kong Project
Gain on sale of tenement
6.
ACQUISITION OF TENEMENTS
$
208,200
1,561,687
1,769,887
(1,178,408)
591,479
During the year, the Directors elected to expense the following costs in relation to the acquisition of the Cummins
Range Rare Earths Project to the Consolidated Statement of Profit or Loss and Other Comprehensive Income:
Option fee
Upfront consideration – cash
Upfront consideration – fair value of RareX Ltd shares issued
Exploration asset - Cummins Range Pty Ltd (Note 13)
2019
$
Consolidated
2020
$
50,000
500,000
813,634
4,731,748
6,095,382
-
-
-
-
-
32
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
7.
OTHER EXPENSES
(a) Consultants and management expense
Consultants
Directors' fees - executive
Directors' fees – non-executive
Salary and on costs
Company secretarial fees
Less: Expenditure allocated to exploration and evaluation
(b) Depreciation and amortisation included in income statement
Depreciation of plant & equipment
8.
INCOME TAX
(a)
Income tax expense
The major components of income tax expense are:
Statement of profit or loss and other comprehensive income
Current income tax
Current income tax charge/(benefit)
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax expense/(benefit) reported in statement of profit
or loss and other comprehensive income
(b) Amounts charged or credited directly to equity
Deferred income tax related to items charged or credited
directly to equity
Unrealised loss on available-for-sale financial assets
Income tax benefit reported in equity
(c) Numerical reconciliation of accounting profit to tax expense
A reconciliation between tax expense and the accounting
profit before income tax multiplied by the consolidated
entity's applicable income tax rate is as follows:
Accounting loss before income tax
At the consolidated entity's statutory income tax rate of 27.5%
(2019: 27.5%)
Non-deductible items
Non-assessable income
Share-based payments
Unrealised loss on investments
Impairment
Capital raising expenditure
Increase in unrecognised deferred tax assets
Consolidated
2020
$
2019
$
26,269
149,423
83,189
148,719
30,000
(181,419)
256,181
-
-
95,550
71,662
113,483
-
30,000
-
310,695
4,146
4,146
Consolidated
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,687,791)
(2,209,009)
(1,839,143)
(607,477)
3,334
(9,214)
484,283
(353,597)
1,871,751
(39,099)
(118,315)
-
114,516
-
27,181
114,266
158,580
(21,845)
214,779
-
33
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
8.
INCOME TAX (continued)
(d)
Current tax assets and liabilities
Current tax liability
(e)
Recognised deferred tax assets and liabilities
Consolidated
2020
$
2019
$
-
-
The Group has not recognised any deferred tax assets or liabilities during the year (2019: Nil).
(f)
Tax losses
The Group has Australian revenue tax losses for which no deferred tax asset is recognised on the statement of
financial position of $17,297,867 (2019: $17,722,319) which are available indefinitely for offset against future
taxable income subject to continuing to meet the relevant statutory tests.
The Group has no Australian capital tax losses available (2019: nil).
(g) Unrecognised temporary differences
As at 30 June 2020, the Group has other temporary differences (excluding tax differences relating to tax losses)
for which no deferred tax asset is recognised in the statement of financial position of $63,411 (2019: $69,196).
None of these unrecognised temporary differences relate to investments in subsidiaries, associates or joint
ventures.
(h)
Tax consolidation
Members of the tax consolidated group and the tax sharing agreement
RareX Limited and its 100% owned Australian resident subsidiary were both subsidiaries in a tax-consolidated
group with Geoinformatics Exploration Australia Pty Ltd as the head entity until 2 July 2007. A new tax-
consolidated group was formed on 1 July 2008 with RareX Limited as Head Entity. Members of the new tax-
consolidated group have not yet entered into a tax sharing agreement.
9.
EARNINGS PER SHARE
The following reflects the income used in the basic and diluted earnings per share computations.
(a)
Earnings used in calculating earnings per share
For basic and diluted earnings per share
Loss from continuing operations after tax for the year
(b) Weighted average number of shares
Weighted average number of shares used in calculation of
basic earnings per share
Weighted average number of shares used in calculation of
diluted earnings per share
(c)
Earnings per share
Basic loss per share
Diluted loss per share
1 Pre-consolidation basis.
Consolidated
2020
$
2019
$
(6,687,791)
(2,209,009)
270,070,160
3,429,181,7431
270,070,160
3,429,181,7431
(2.48 cents)
(2.48 cents)
(0.06 cents)1
(0.06 cents)1
34
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
10.
CASH AND CASH EQUIVALENTS
Cash at bank
11.
TRADE AND OTHER RECEIVABLES
Sundry debtors
Security and tenement deposits
Accrued income
GST input tax refundable
Prepayments
Consolidated
2020
$
3,425,058
3,425,058
2019
$
427,318
427,318
Consolidated
2020
$
2019
$
8,478
90,000
1,634
38,014
13,990
152,116
175,618
90,000
198
8,057
9,267
283,140
Fair value and credit risk
Due to the short term nature of the receivables, their carrying value is assumed to approximate their fair value.
GST input tax refundable is receivable from the Commonwealth of Australia and is therefore viewed as having
low credit risk. Accrued income is receivable from National Australia Bank and is therefore viewed as having low
credit risk.
35
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
12.
EXPLORATION AND EVALUATION ASSETS
NOTES TO ACCOUNTS
Cummins Range Rare Earths Project
Opening balance
Tenement acquisition costs
Acquisition of Cummins Range Pty Ltd (refer Note 13)
Estimated stamp duty on acquisition of tenement
Less: Acquisition of costs expensed
Notes
(i)
Consolidated
2020
$
2019
$
-
2,363,634
4,731,748
151,014
(6,095,382)
1,151,014
-
-
-
-
-
-
Hong Kong Gold Project
Opening balance
Less: Disposal of 70% interest (Note 5)
Moroccan Cobalt Project
Opening balance
Capitalised exploration costs
Less: Impairment
505,032
-
505,032
1,683,440
(1,178,408)
505,032
(ii)
-
-
-
1,656,046
-
50,251
(50,251)
-
505,032
(i) During the period, Cummins Range Pty Ltd acquired the Cummins Range Rare Earths Project from Element 25
Ltd. The consideration for the acquisition of the project in accordance with the agreement between Cummins
Range Pty Ltd and Element 25 Ltd is as follows:
• non-refundable option fee of $50,000;
• upfront consideration of $500,000 cash and $500,000 settled in shares in RareX Ltd being 13,338,261 shares at
a deemed price of $0.0375 per shares. As the share price at the date of issue of these shares was $0.061 per
share, for accounting purposes these 13,338,261 shares have a fair value of $813,634;
• deferred consideration to be settled on or before 27 September 2020 consisting of $500,000 in cash and a
further $500,000 to be settled in cash or shares in RareX Ltd at the election of Rarex Ltd; and
• subject to a positive bankable feasibility study (BFS) being achieved within 36 months from settlement, further
deferred consideration of $1,000,000 is payable to Element 25 Ltd and is to be settled in cash or shares in RareX
Ltd at the election of RareX Ltd. As this further deferred consideration is subject to a positive BFS, it has not been
included in the tenement acquisition costs, however, has been disclosed as a contingent liability in Note 23.
(ii) The balance carried forward represents the acquisition costs of the Hong Kong Gold Project which is in the
exploration and evaluation phase. Ultimate recoupment of exploration expenditure carried forward is dependent
on successful development and commercial exploitation, or alternatively, sale of respective areas.
36
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
13. ACQUISITION OF SUBSIDIARY
During September 2019, the Company completed the acquisition of 100% of the issued share capital of Cummins
Range Pty Ltd which holds the tenements for the Cummins Range Rare Earths Project.
The consideration for the acquisition of Cummins Range Pty Ltd was as follows:
• non-refundable deposit of $25,000;
• 60,000,000 shares in RareX Ltd issued to the shareholders of Cummins Range Pty Ltd or their nominees with a fair
value of $3,660,000; and
• 25,000,000 options in RareX Ltd with an exercise price of $0.025 and an expiry date of 27/9/21 with a fair value of
$1,097,250.
Cash deposit
Fair value of 60,000,000 shares in RareX Ltd
Fair value of 25,000,000 options in RareX Ltd
Total consideration paid
$
25,000
3,660,000
1,097,250
4,782,250
The assets and liabilities recognised as a result of the acquisition of Cummins Range Pty Ltd are as follows:
Cash
Other receivables
Exploration and evaluation assets
Trade and other payables
Net identifiable assets acquired
Add: Exploration asset
Net assets acquired
Total consideration paid
$
339
5,626
50,000
(5,463)
50,502
4,731,748
4,782,250
4,782,250
The acquisition of Cummins Range Pty Ltd has been accounted for as an acquisition of an asset on the basis that it
does not constitute a business as defined by AASB 3 Business Combinations.
37
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
14. FINANCIAL ASSETS AT FAIR VALUE
Consolidated
2020
$
2019
$
Financial assets at fair value through profit or loss
Current
Shares in listed corporations, at fair value4
- Cadence Minerals PLC (nil shares; 2019: 7,000,000 shares)2
- Pacton Gold Inc (nil shares; 2019: 1,687,113 shares)3
Non-Current
Shares in listed corporations, at fair value
- Kincora Copper Ltd (14,950,000 shares; 2019: nil shares)1
Investment in Atlas Managem Sarl (20% interest)
Less: Impairment
-
-
-
2,388,942
507,084
(507,084)
2,388,942
Impairment expense in Statement of Profit or Loss and Other Comprehensive Income
Impairment of Moroccan Cobalt licences capitalised exploration costs
Impairment of investment in Atlas Managem Sarl
Impairment of Moroccan VAT receivable
-
-
202
202
13,911
293,826
307,737
-
507,084
(507,084)
-
49,853
507,084
19,716
576,653
1 The shares in Kincora Copper Ltd were received as consideration for the disposal of 65% of the Company’s New South Wales
tenement (excluding EL8442) (refer Note 5). The market value of the shares as at 30 June 2020 is based on a closing price of
Kincora Copper Ltd shares of CAD0.15 and an exchange rate of 1AUD = 0.9387CAD.
2 The shares in Cadence Minerals PLC were received as consideration for the disposal of 10% of the Leogang Cobalt Nickel Project
in Austria. The market value of the shares as at 30 June 2019 is based on a closing price of Cadence shares of GBP0.00110 and
an exchange rate of 1AUD = 0.5535GBP.
3 The shares in Pacton Gold Inc were received as consideration for the disposal of 70% of the Hong Kong Gold Project in Western
Australia (refer Note 5). The market value of the shares as at 30 June 2019 is based on a closing price of Pacton shares of CAD0.16
and an exchange rate of 1AUD = 0.9187CAD.
4 During the 2019 year, the Company commenced the sale of the shares in Cadence Minerals PLC and Pacton Gold Inc. The sale
of the remaining shares in Cadence Minerals PLC and Pacton Gold Inc was completed during the year ended 30 June 2020.
Accordingly, as at 30 June 2019, these shares have been accounted for as a current financial asset at fair value through profit or
loss.
15.
PLANT AND EQUIPMENT
Original Cost
Computer Equipment
At 1 July
Additions
Disposals
At 30 June
Plant and Equipment
At 1 July
Additions
Disposals
At 30 June
Total Plant and Equipment
At 1 July
Additions
Disposals
At 30 June
Consolidated
2020
$
2019
$
16,628
-
-
16,628
-
66,800
-
66,800
16,628
66,800
-
83,428
16,628
-
-
16,628
43,718
-
(43,718)
-
60,346
-
(43,718)
16,628
38
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
15.
PLANT AND EQUIPMENT (continued)
NOTES TO ACCOUNTS
Accumulated Depreciation
Computer Equipment
At 1 July
Depreciation charge for year
Accumulated depreciation on disposals
At 30 June
Plant and Equipment
At 1 July
Depreciation charge for year
Accumulated depreciation on disposals
At 30 June
Total Accumulated Depreciation
At 1 July
Depreciation charge for year
Accumulated depreciation on disposals
At 30 June
Total Plant and Equipment
Original cost
Accumulated depreciation
Net carrying amount
Consolidated
2020
$
2019
$
16,628
-
-
16,628
-
(iii)-
-
-
16,628
-
-
16,628
83,428
(16,628)
66,800
12,482
4,146
-
16,628
43,718
-
(43,718)
-
56,200
4,146
(43,718)
16,628
16,628
(16,628)
-
(i) The useful life of the assets was estimated as follows:
Sundry equipment:
Computer equipment:
Motor vehicles:
Furniture and Fittings:
Library:
Leasehold improvements:
5 to 15 years
4 years
5 to 8 years
5 to 15 years
7 years
Over the remainder of the lease term up to 2 years
(ii) No assets have been pledged as security for borrowings.
(iii) The plant and equipment acquired during the year was not installed ready-for-use as at 30 June 2020.
Accordingly, the asset was not depreciated during the year ended 30 June 2020.
16.
TRADE AND OTHER PAYABLES
Trade payables
Accrued expenses
Deferred consideration for Cummins Range Project
Estimated stamp duty accrued on Cummins Range
acquisition
Notes
(i) – (ii)
Consolidated
2020
$
124,355
42,861
1,000,000
151,014
2019
$
96,673
69,196
-
-
1,318,230
165,869
Terms and conditions:
(i) Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
(ii) Trade payables are non-interest bearing and are normally settled on 30 day terms.
39
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
17.
ISSUED CAPITAL
Ordinary shares
Consolidated
2020
$
2019
$
29,605,193
20,405,948
Notes
(a)
(a) Ordinary shares
Issued and fully paid ordinary shares carry one vote per share and carry the right to dividends. On 2 August 2019,
the shareholders of the Company approved the consolidation of capital of the Company on the basis of 1 ordinary
share for every 25 ordinary shares held. This consolidation of capital also applied to options and performance
rights on the same basis. Unless stated otherwise, references to shares, options and performance rights in these
financial statements are on a post-consolidation basis.
Movement in ordinary shares on issue
As at 1 July
Add:
Conversion of performance rights
Consolidation of capital
Fair value of shares issued for part
consideration for acquisition of
Cummins Range Pty Ltd
Shares issued via placement
Fair value of shares issued for
settlement of unpaid director fees
Fair value of shares issued for
settlement of unpaid service
provider invoices
Fair value of shares issued for part
consideration for acquisition of
Cummins Range Rare Earths
Project
Shares issued via placement
Fair value of shares issued to
service provider
Fair value of shares issued to
service provider
Fair value of shares issued to
service provider
Shares issued via placement
Shares issued via placement
Shares
prospectus
Fair value of shares issued as part
staged
consideration
acquisition of Atlas Managem Sarl
Shares
issued under cleansing
prospectus
Transaction costs on share issues
issued under cleansing
for
Less:
As at 30 June
1 Pre-consolidation basis.
Consolidated
2020
2019
No. of shares
$
No. of shares
$
3,504,387,6751
15,500,0001
(3,379,092,015)
20,405,948 3,124,385,6751
-
-
-
-
19,455,681
-
-
60,000,000
3,660,000
-
-
68,823,540
1,170,000
2,329,412
142,094
5,629,412
343,394
13,338,261
813,634
20,833,334
1,250,000
312,500
277,949
9,688
6,949
312,500
17,188
-
-
42,000,000
-
2,100,000
-
-
250,000,0001
-
750,000
3
1,0001
-
-
-
-
-
-
130,000,0001
260,000
1,0001
3
-
354,652,568
(313,702)
-
29,605,193 3,504,387,6751
(59,739)
20,405,948
40
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
17.
ISSUED CAPITAL (CONTINUED)
(b) Capital Risk Management
When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to
maintain appropriate returns to shareholders and benefits for other stakeholders. Management also aims to
maintain a capital structure that ensures an appropriate cost of capital available for the entity.
In order to maintain or adjust the capital structure, the entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, enter into joint ventures or sell assets.
The entity does not have a defined share buy-back plan.
No dividends were paid in the year ended 30 June 2020 and no dividends are expected to be paid in the 2020/21
financial year.
The consolidated entity is not subject to any externally imposed capital requirements.
Management reviews management accounts on a monthly basis and actual expenditures against budget on a
monthly basis.
18.
RESERVES
Options reserve
Share-based payment reserve
Foreign currency translation reserve
(a) Movement in reserves
Options reserve
Balance at beginning of the financial year
Consideration received from issue of options
Fair value of options issued
Balance at end of financial year
Share-based payment reserve
Balance at beginning of the financial year
Fair value of performance rights issued
Balance at end of financial year
Foreign currency translation reserve
Balance at beginning of the financial year
Currency translation differences
Balance at end of financial year
(b) Nature and purpose of reserves
Consolidated
2020
$
4,775,912
83,840
(2,022)
4,857,730
2019
$
2,294,087
83,840
(1,567)
2,376,360
2,294,087
610
2,481,215
4,775,912
2,279,087
-
15,000
2,294,087
83,840
-
83,840
(1,567)
(455)
(2,022)
-
83,840
83,840
-
(1,567)
(1,567)
The options reserve records the value of share options issued to the Company's directors, employees, consultants
and brokers as well as the vendors of drilling services and tenements.
The share-based payments reserve records the value of performance rights issued to the Company's directors.
The foreign currency translation reserve is used to recognise exchange differences arising from the translation of
the financial statements of foreign operations to Australian dollars.
41
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
18.
RESERVES (CONTINUED)
(c) Movement in options
Expiry date of
options
Notes
Exercise
price
On issue at
1 July 2019(i)
Consolidation
adjustment(ii)
Granted
Exercised
31/5/20
30/11/20
31/12/20
31/12/20
27/09/21
27/09/22
27/09/22
27/09/22
11/10/22
12/12/22
12/12/22
12/12/22
12/12/22
12/12/22
11/10/22
11/10/22
22/12/22
22/12/22
22/12/22
11/10/22
11/10/22
22/12/22
22/12/22
22/12/22
11/10/22
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
(xix)
(xx)
(xxi)
(xxii)
(xxiii)
(xxiv)
(xxv)
(xxvi)
(xxvii)
$0.1000
$0.1750
$0.1625
$0.1250
$0.0250
$0.0250
$0.0250
$0.0250
$0.0850
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0850
$0.0607
$0.0607
$0.0607
$0.0850
$0.0850
$0.0607
$0.0607
$0.0607
$0.0850
120,000,000
20,000,000
30,000,000
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
180,000,000
(115,200,000)
(19,200,000)
(28,800,000)
(9,600,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(172,800,000)
-
-
-
-
25,000,000
5,000,000
5,000,000
5,000,000
18,000,000
2,000,000
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
3,000,000
2,000,000
2,000,000
2,000,000
1,250,000
1,250,000
2,000,000
2,000,000
2,000,000
7,000,000
93,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cancelled/
expired/
forfeited
(4,800,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,800,000)
On issue at
30 June
2020
-
800,000
1,200,000
400,000
25,000,000
5,000,000
5,000,000
5,000,000
18,000,000
2,000,000
2,000,000
2,000,000
1,500,000
1,500,000
1,500,000
3,000,000
2,000,000
2,000,000
2,000,000
1,250,000
1,250,000
2,000,000
2,000,000
2,000,000
7,000,000
95,400,000
All option granted have been valued according to the Binomial Tree model.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
(xix)
(xx)
(xxi)
(xxii)
(xxiii)
(xxiv)
(xxv)
(xxvi)
(xxvii)
Pre-consolidation basis.
On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
Issued to consultant and director in June 2017.
Issued to a director in December 2017.
Issued to a director in January 2018.
Issued to a consultant in October 2018.
Issued to the vendors of Cummins Range Pty Ltd in September 2019.
Issued to J Robinson (Executive Director) in September 2019; vesting on 6 months employment and 20 day VWAP exceeding $0.05.
Issued to J Robinson (Executive Director) in September 2019; vesting on 6 months employment and 20 day VWAP exceeding $0.10.
Issued to J Robinson (Executive Director) in September 2019; vesting on 6 months employment and 20 day VWAP exceeding $0.15.
Issued to a consultant in October 2019.
Issued to S Hardcastle and S Patrizi (Non-Executive Directors) in December 2019; vesting on 20 day VWAP exceeding $0.10.
Issued to S Hardcastle and S Patrizi (Non-Executive Directors) in December 2019; vesting on 20 day VWAP exceeding $0.15.
Issued to S Hardcastle and S Patrizi (Non-Executive Directors) in December 2019; vesting on 20 day VWAP exceeding $0.20.
Issued to an employee in December 2019; vesting on 20 day VWAP exceeding $0.10.
Issued to an employee in December 2019; vesting on 20 day VWAP exceeding $0.15.
Issued to an employee in December 2019; vesting on 20 day VWAP exceeding $0.20.
Issued to a consultant in December 2019.
Issued to J Young (Non-Executive Chairman) in February 2020; vesting on 20 day VWAP exceeding $0.10.
Issued to J Young (Non-Executive Chairman) in February 2020; vesting on 20 day VWAP exceeding $0.15.
Issued to J Young (Non-Executive Chairman) in February 2020; vesting on 20 day VWAP exceeding $0.20.
Issued to a consultant in March 2020.
Issued to a consultant in June 2020.
Issued to C Henry (Non-Executive Director) in June 2020; vesting on 20 day VWAP exceeding $0.10.
Issued to C Henry (Non-Executive Director) in June 2020; vesting on 20 day VWAP exceeding $0.15.
Issued to C Henry (Non-Executive Director) in June 2020; vesting on 20 day VWAP exceeding $0.20.
Issued to a consultant in June 2020.
42
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
18.
RESERVES (CONTINUED)
(d) Movement in performance rights
Note
Exercise
price
(i)
(i)
(i)
(i)
$0.000
$0.000
$0.000
$0.000
On issue at
1 July
2019(ii)
15,500,000
15,500,000
15,500,000
15,500,000
62,000,000
Consolidation
adjustment(iii)
-
(14,880,000)
(14,880,000)
(14,880,000)
(44,640,000)
Granted
during
the year
-
-
-
-
-
Vested during
the year(ii)(iv)
(15,500,000)
-
-
-
(15,500,000)
Cancelled/
expired/
forfeited (v)
-
(370,000)
(370,000)
(370,000)
(1,110,000)
On issue at
30 June
2020
-
250,000
250,000
250,000
750,000
Class A
Class B
Class C
Class D
(i)
(ii)
(iii)
(iv)
(v)
Performance rights issued to Directors.
Pre-consolidation basis.
On 2 August 2019 the shareholders of the Company approved the consolidation of the Company’s capital on a 1 for 25 basis.
Performance rights vested following satisfying the service condition.
Performance rights lapsed following resignation of D Scoggin and S Patrizi.
Class Vesting Condition - vesting will occur:
B
C
D
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.25 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.375 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
12 months after the date that the 10 day VWAP for the shares on the ASX is A$0.50 or higher
within 3 years from the date of issue, provided that the holder does not resign from the Board
before the vesting date
Number on
issue at 30
June 2020
250,000
250,000
250,000
43
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
19.
STATEMENT OF CASH FLOWS RECONCILIATION
NOTES TO ACCOUNTS
Reconciliation of the net loss after tax to net cash flows from operations
Loss from ordinary activities after income tax
(6,687,791)
(2,209,009)
Consolidated
2020
$
2019
$
Adjustments for:
Depreciation
Impairment
Profit on disposal of property, plant and equipment
(Gain)/loss on disposal of investments
Gain on sale of tenements
Equity settled share-based payments
Equity settled payments
Gain on sale of royalty
Unrealised (loss)/gain on investments
Costs associated with disposal of investments
Acquisition of tenements expense
Foreign exchange gain
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
Increase in other assets
(Decrease)/increase in trade and other payables
Increase in provisions
Net cash flow used in operating activities
-
202
-
(6,900)
(1,301,466)
1,761,028
142,249
-
(1,285,809)
-
6,095,382
(648)
(31,445)
(6,158)
(48,080)
20,550
(1,348,886)
4,146
576,652
(30,000)
595,080
(591,479)
98,840
-
(100,000)
415,512
(12,036)
-
(1,536)
9,294
(975)
68,595
-
(1,176,916)
20.
INTEREST IN JOINTLY CONTROLLED OPERATIONS
As at 30 June 2020, the Group had the following significant interests in joint ventures:
(i)
(ii)
(iii)
New South Wales tenements (excluding EL8442): On 12 March 2020, RareX announced Kincora Copper
Limited (Kincora) had exercised its option to acquire a 65% interest in its NSW tenements (excluding EL8442)
with RareX retaining a 35% free carried interest until such time as a positive scoping study or preliminary
economic assessment is delivered, following which industry standard joint venture dilution mechanisms will
apply.
Hong Kong Gold Project: On 7 December 2018, RareX announced the completion of an agreement with
Canadian listed Pacton Gold Inc (TSXV: PAC) (Pacton) which provided for Pacton to acquire a 70% equity
interest in RareX’s Hong Kong Project in the Pilbara (Exploration Licence E47/3566 covering 40.15 km2). Under
the agreement, Pacton will act as operator of the Hong Kong Project and must spend a minimum of
CAD$500,000 on Hong Kong within two years of completion of the transaction. RareX will be free carried with
respect to joint venture expenditure until a decision to mine is made unanimously by both parties.
Orange East Project: On 12 May 2020, the Company announced that the joint venture with Alkane Resources
Ltd in relation to the Orange East Project (EL8442) had ceased and accordingly, RareX retains 100% ownership
of this tenement. Under this joint venture, Alkane Resources Ltd had the right to earn up to a 60% interest in
the tenement.
44
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
21. SEGMENT INFORMATION
Operating segments are reported in a manner that is consistent with the internal reporting to the chief operating
decision maker (CODM), which has been identified by the Group as the Board of Directors.
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s
other components.
At 30 June 2020, the Group had the following segments:
Operating Profit/(Loss)
Total Assets
Total Liabilities
30/6/2020
$
30/6/2019
$
30/6/2020
$
30/6/2019
$
30/6/2020
$
30/6/2019
$
(7,925,260)
-
1,158,544
-
(1,161,303)
-
570,396
505,032
505,032
-
-
-
(3,133)
(2,769)
(29,266)
(960,746)
(41,247)
(35,960)
-
458
-
971
(1,092)
(472)
-
-
-
1,311,115
(1,779,930)
(6,687,791)
(2,209,009)
6,024,928
7,688,962
1,017,224
(176,385)
1,523,227
(1,338,780)
(165,397)
(165,869)
-
-
-
Rare Earths
(Western Australia)
Gold
(Western Australia)
Cobalt/Nickel
(Austria)
Cobalt
(Morocco)
Copper/Gold
(New South Wales)
Corporate
22. COMMITMENTS
Estimated commitments for which no provisions were included in
the financial statements are as follows:
(a) Exploration Expenditure Commitments:
Payable
- not later than one year
- later than one year and not later than five years
Consolidated
2020
$
2019
$
277,848
111,392
389,240
593,826
408,305
1,002,131
Included in overall commitments calculations are estimates of the Company’s expected commitments in respect
of its sole funded exploration licences.
in respect of outstanding expenditure
All the exploration expenditure commitments are non-binding,
commitments, in that the Company or its joint venture partners have the option to relinquish and lose these
licences or their contractual commitments at any stage, at the cost of its cumulative expenditures up to the point
of relinquishment.
Refer to Note 20 for details of Jointly Controlled Operations.
(b) Lease Commitments
The Company has no lease commitments which result in recognition of any right-of-use asset, or associated lease
liability.
45
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
22.
COMMITMENTS (continued)
(c)
Contractual Commitments
The Company entered an agreement to acquire up to 100% of three cobalt licences in Morocco.
As at the balance date, the Company had acquired a 20% interest in these cobalt licences via the completion of the
first stage of the acquisition by acquiring an initial 20% interest in Atlas Managem S.A.R.L, which holds three
Moroccan licences. The Board is currently reviewing its strategy and options for the Morocco Cobalt Project and at
this point, has elected not to progress with Stage 2 of the acquisition of Atlas Managem.
The remaining stages of the acquisition, which at this time the Directors have elected not to proceed with, are as
follows:
-
-
-
-
("Stage 2"): payment of US$200,000 and issue of 120 million fully paid ordinary shares in RareX within 6 months
and 5 days from the completion of Stage 1, in consideration for a further 20% interest;
("Stage 3"): payment of US$200,000 and issue of 120 million fully paid ordinary shares in RareX within 6 months
and 5 days from the completion of Stage 2, in consideration for a further 20% interest;
("Stage 4"): payment of US$200,000 and issue of 120 million fully paid ordinary shares in RareX within 6 months
and 5 days from the completion of Stage 3, in consideration for a further 20% interest; and
("Stage 5"): payment of US$200,000 and issue of 120 million fully paid ordinary shares in RareX within 6 months
and 5 days from the completion of Stage 4, in consideration for a further 20% interest, such that RareX (or a
subsidiary of RareX) will have acquired or been issued a 100% interest at the completion of Stage 5.
23.
CONTINGENT LIABILITIES
1. During the year ended 30 June 2017, the Company acquired the Leogang Cobalt-Nickel Sulphide Project in
Austria. In the event that RareX elects to mine the Leogang Project a further $300,000 “finder’s fee” will be
payable, in a mix of cash and shares.
2. Subject to a positive bankable feasibility study (BFS) being achieved within 36 months from settlement of the
acquisition of the Cummins Range Rare Earths Project by the Company, further deferred consideration of
$1,000,000 is payable to Element 25 Ltd which is to be settled in cash or shares in RareX Ltd at the election of
RareX Ltd. As this further deferred consideration is subject to a positive BFS, it is disclosed as a contingent
liability and has not been brought to account as a liability in the financial statements as at 30 June 2020.
46
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
24.
RELATED PARTY DISCLOSURES
Ultimate parent
(a)
The ultimate Australian parent entity and the ultimate parent of the consolidated entity is RareX Limited.
Subsidiaries
(b)
The subsidiaries of RareX Limited are listed in the following table:
Name
Cummins Range Pty Ltd
Geoinformatics Exploration
Tasmania Pty Ltd
Leogang Austria Pty Ltd
Ste Clancy Morocco Sarl
Nature of
investment
Country of
incorporation
% Equity interest
2019
2020
Investment $
2020
2019
Ordinary shares
Australia
Ordinary shares
Ordinary shares
Ordinary shares
Australia
Australia
Morocco
100
100
100
100
-
4,782,250
100
100
100
1
10
15
-
1
10
15
Transactions with related parties
(c)
The following table provides the total amount of transactions (GST exclusive where GST applies) entered into with
related parties for the relevant financial year. The transactions have all been undertaken on an arms’ length basis.
Purchase of goods and services
Legal fees billed by the Bellanhouse Legal, a related party of Shaun
Hardcastle
Fair value of 8,250,000 shares and 2,750,000 options in RareX issued
to Jeremy Robinson as one of the vendors of Cummins Range Pty Ltd
which holds the Cummins Range Rare Earths Project. These shares
and options were issued as part of the acquisition of the Cummins
Range Rare Earths Project and Mr Robinson was appointed as
Executive Director of RareX following completion of the acquisition.
Consolidated
2020
$
2019
$
31,288
71,004
623,948
-
Consolidated
2020
$
2019
$
Amounts owed in respect of related party transactions included in the trade creditors and accruals balance at
30 June 2020 and 30 June 2019 are as follows:
Director fees billed by John Young
Director fees billed by David Scoggin
Director fees billed by the Agneii Family Trust, a trust controlled by a
director, Scott Patrizi
Director fees billed by the Rod Dog Pty Ltd, a company controlled by
a director, Shaun Hardcastle
Legal fees billed by Bellanhouse Legal, a related party of Shaun
Hardcastle
Fees for company secretarial services billed by Malone Corporate
Services Pty Ltd, a company controlled by Company Secretary,
Oonagh Malone
3,667
-
825
-
-
-
-
21,000
12,000
12,000
10,000
4,140
47
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
25.
SUBSEQUENT EVENTS
Subsequent to 30 June 2020:
•
•
commenced drilling at its 100%-owned Cummins Range Rare Earths Project and successfully completed 58
holes for 6,146m of Reverse Circulation drilling; and
issued 7,462,687 ordinary shares to Element 25 Ltd as settlement of $500,000 of the deferred consideration in
relation to the acquisition of the Cummins Range Rare Earths Project.
26.
DIRECTORS AND KEY MANAGEMENT PERSONNEL
(a)
Details of Key Management Personnel
The names of the Company’s officeholders in office at any time during the financial year are as follows.
Officeholders were in office for the entire period unless otherwise stated.
J Young
J Robinson
S Hardcastle
C Henry
O Malone
S Patrizi
D Scoggin
Chairman (Non-Executive) – appointed 18 February 2020
Director (Executive) – appointed 27 September 2019
Director (Non-Executive)
Director (Non-Executive) – appointed 2 June 2020
Company Secretary)
Director (Non-Executive) – resigned 18 February 2020
Director (Non-Executive) – resigned 27 September 2019
(b)
Compensation for Key Management Personnel
Short-term employee benefits
Post-employment benefits
Share-based payments
Total Compensation
Consolidated
2020
$
2019
$
251,807
25,279
561,750
838,836
215,145
-
83,840
298,985
48
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
27.
SHARE-BASED PAYMENT EXPENSE
(a) Recognised share-based payments expenses
The expense recognised for the expensing of employee and consultant services received is shown in the
table below:
Recognised in the Statement of Profit or Loss and Other Comprehensive Income
Consolidated
2019
$
2020
$
Expense recognised for directors’ services received
Expense arising
transactions – directors
from equity-settled
share-based payment
Equity payment recognised for consulting fees
Equity-settled share-based payment transactions – options issued for
consideration for facilitation of acquisition and ongoing consultancy
services
Total recognised in the Statement of Profit or Loss and Other
Comprehensive Income
(b)
Weighted average remaining contractual life
561,750
561,750
1,199,278
1,199,278
1,761,028
83,840
83,840
15,000
15,000
98,840
The weighted average remaining contractual life of the options on issue is 2.0 years (2019: 1.11 years).
(c)
Range of exercise price
The range of the exercise prices of the options on issue is $0.025 - $0.175 (2019: $0.004 - $0.007 on a pre-
consolidation basis).
(d) Weighted average fair value
The fair value of the options issued as share-based payments during the year was $0.0267 per option (2019:
$0.0031 per option on a pre-consolidation basis).
(e) Weighted average share price
The weighted average price per share in relation to shares issued during the year was $0.0445 (2019: $0.00266 on
a pre-consolidation basis).
49
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
27.
SHARE-BASED PAYMENT EXPENSE (continued)
(f)
Option valuation
During the year ended 30 June 2020, the following share based payments were made. The options have been valued by the Directors using the Black-Scholes option
pricing model based on the following:
Underlying value of the security
Exercise price
Valuation date
Expiry date
Life of Options in years
Volatility
Risk free rate
Probability of vesting1
Number of Options
Valuation per Option
Valuation
Total consideration paid by option holders
Valuation less consideration paid
Cummins Range
Consideration
Options
$0.061
$0.025
27/09/2019
27/09/2021
2
100.00%
0.70%
N/a
Employee
Options #1
Employee
Options #2
Employee
Options #3
Consultant
Options #1
Director
Options #1
Director
Options #2
$0.061
$0.025
27/09/2019
27/09/2022
3
100.00%
0.70%
54.50%
$0.061
$0.025
27/09/2019
27/09/2022
3
100.00%
0.70%
38.70%
$0.061
$0.025
27/09/2019
27/09/2022
3
100.00%
0.70%
30.10%
$0.055
$0.085
11/10/2019
11/10/2022
3
100.00%
0.68%
N/a
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
31.70%
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
23.90%
25,000,000
5,000,000
5,000,000
5,000,000
18,000,000
2,000,000
2,000,000
0.0439
1,097,500
250
1,097,250
0.0256
128,000
50
127,950
0.0182
91,000
50
90,950
0.0141
70,500
50
70,450
0.0292
525,600
180
525,420
0.0077
15,400
-
15,400
0.0058
11,600
-
11,600
50
RareX Limited ABN: 65 105 578 756 and controlled entity
27. SHARE BASED PAYMENTS (continued)
2020
NOTES TO ACCOUNTS
Underlying value of the security
Exercise price
Valuation date
Expiry date
Life of Options in years
Volatility
Risk free rate
Probability of vesting1
Number of Options
Valuation per Option
Valuation
Total consideration paid by option holder
Valuation less consideration paid
Underlying value of the security
Exercise price
Valuation date
Expiry date
Life of Options in years
Volatility
Risk free rate
Probability of vesting1
Number of Options
Valuation per Option
Valuation
Total consideration paid by option holder
Valuation less consideration paid
Director
Options #3
Employee
Options #4
Employee
Options #5
Employee
Options #6
Consultant
Options #2
Director
Options #4
Director
Options #5
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
19.10%
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
31.70%
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
23.90%
$0.044
$0.0607
12/12/2019
12/12/2022
3
100.00%
0.70%
19.10%
$0.046
$0.085
20/12/2019
11/10/2022
2.8
$0.035
$0.0607
$0.035
$0.0607
18/2/2020
18/2/2020
22/12/2022
22/12/2022
2.8
2.8
100.00%
100.00%
100.00%
0.85%
N/a
0.72%
26.6%
0.72%
19.4%
2,000,000
1,500,000
1,500,000
1,500,000
3,000,000
2,000,000
2,000,000
0.0047
9,400
-
9,400
0.0077
11,550
-
11,550
0.0058
8,700
-
8,700
0.0047
7,050
-
7,050
0.0219
65,700
30
65,670
0.0044
8,800
-
8,800
0.0032
6,400
-
6,400
Director
Options #6
Consultant
Options #3
Consultant
Options #4
Director
Options #7
Director
Options #8
Director
Options #9
Consultant
Options #5
$0.035
$0.0607
18/2/2020
22/12/2022
2.8
100.00%
0.72%
15.0%
$0.033
$0.085
$0.055
$0.085
5/3/2020
2/6/2020
$0.055
$0.0607
2/6/2020
$0.055
$0.0607
2/6/2020
$0.055
$0.0607
2/6/2020
$0.065
$0.085
24/6/2020
11/10/2022
11/10/2022
22/12/2022
22/12/2022
22/12/2022
11/10/2022
2.6
2.4
2.6
2.6
2.6
2.3
100.00%
128.61%
128.61%
128.61%
128.61%
132.20%
0.41%
N/a
0.26%
N/a
0.26%
38.5%
0.26%
31.2%
0.26%
26.5%
0.27%
N/a
2,000,000
1,250,000
1,250,000
2,000,000
2,000,000
2,000,000
7,000,000
0.0025
5,000
-
5,000
0.0125
15,625
-
15,625
0.0332
41,500
-
41,500
0.0141
28,200
-
28,200
0.0115
23,000
-
23,000
0.0097
19,400
-
19,400
1 The probability of vesting in relation to share price vesting conditions is calculated using a probability calculation model and the volatility of the share price.
0.0417
291,900
-
291,900
51
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
27. SHARE BASED PAYMENTS (continued)
During the year ended 30 June 2019, the following share-based payments were made which have been accounted
for in the option reserve:
(1)
The following options, which were issued to a consultant and vested immediately, were recorded at their fair
value in the option reserve. The options have been valued by the Directors using the Black-Scholes option
pricing model based on the following:
Underlying value of the security
Exercise price
Valuation date
Expiry date
Life of Options in years
Volatility
Risk free rate
Number of Options
Valuation per Option
Valuation
Consultant Options
$0.002
$0.005
24 October 2018
24 October 2020
2 years
190.13%
2.06%
10,000,000
$0.0015
$15,000
52
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
27. SHARE BASED PAYMENTS (continued)
Share based payments expense in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2020 consists of the shares and options issued as follows:
Shares
Fair value adjustment for shares issued to directors and management personnel to
settle unpaid fees
Fair value adjustment for shares issued to service providers to settle unpaid invoices
Fair value of shares issued to supplier
Sub-Total Shares
Options
Employee Options #1
Employee Options #2
Employee Options #3
Consultant Options #1
Director Options #1
Director Options #2
Director Options #3
Employee Options #4
Employee Options #5
Employee Options #6
Consultant Options #2
Director Options #4
Director Options #5
Director Options #6
Consultant Options #3
Consultant Options #4
Director Options #7
Director Options #8
Director Options #9
Consultant Options #5
Sub-Total Options
Total Share Based Payments Expense
$
145,200
204,988
26,875
377,063
127,950
90,950
70,450
525,420
15,400
11,600
9,400
11,550
8,700
7,050
65,670
8,800
6,400
5,000
15,625
41,500
28,200
23,000
19,400
291,900
1,383,965
1,761,028
Share based payments expense in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2019 consists of options and performance rights as follows:
Options
Consultant Options
Sub-Total - Options
Director Performance Rights
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Sub-Total – Director Performance Rights
Total Share Based Payments Expense
$
$15,000
$15,000
$46,500
$14,230
$12,229
$10,881
$83,840
$98,840
53
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
27.
SHARE BASED PAYMENTS (continued)
(g)
Performance rights valuation
No performance rights were issued during the year ended 30 June 2020.
During the year ended 30 June 2019, the following share-based payments were made which have been accounted
for in the share-based payments reserve:
(1)
The following performance rights, which were issued to Directors, were recorded at their fair value in the
share-based payment reserve. The performance rights have been valued by the Directors at the closing share
price on the grant date, less discounts to reflect the effects of any market based vesting conditions as detailed
in the below table. The expected vesting period for each performance right for performance based vesting
conditions is the period until expiry of the performance right.
Recipient
Class
Grant
date
Expiry
date
S Hardcastle
S Patrizi
D Scoggin
A
B
C
D
A
B
C
D
A
B
C
D
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2019
20/8/2021
20/8/2021
20/8/2021
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2019
20/8/2021
20/8/2021
20/8/2021
20/8/2018
20/8/2018
20/8/2018
20/8/2018
20/8/2019
20/8/2021
20/8/2021
20/8/2021
Total
1 Pre-consolidation basis.
28.
AUDITOR’S REMUNERATION
Share
price
at
grant
date
($)
0.003
0.003
0.003
0.003
0.003
0.003
0.003
0.003
0.003
0.003
0.003
0.003
No. of
performance
rights
outstanding
at 30 June
20191
6,250,000
6,250,000
6,250,000
6,250,000
25,000,000
6,250,000
6,250,000
6,250,000
6,250,000
25,000,000
3,000,000
3,000,000
3,000,000
3,000,000
12,000,000
62,000,000
Discount applied
to share price at
grant date to
reflect market
based vesting
conditions
Fair value
per
performance
right
($)
Total fair
value of
performance
rights issued
($)
0.0%
69.4%
73.7%
76.6%
0.0%
69.4%
73.7%
76.6%
0.0%
69.4%
73.7%
76.6%
0.003000
0.000612
0.000526
0.000468
0.003000
0.000612
0.000526
0.000468
0.003000
0.000612
0.000526
0.000468
18,750
5,738
4,931
4,388
33,807
18,750
5,738
4,931
4,388
33,807
9,000
2,754
2,367
2,105
16,226
83,840
The auditor of RareX Limited was Walker Wayland WA Audit Pty Ltd.
Amounts received or due and receivable by Walker Wayland WA
Audit Pty Ltd (formerly Hall Chadwick WA Audit Pty Ltd) for:
- an audit or review of the financial statements of the entity and its
controlled entity
- other services in relation to the entity and its controlled entity
Consolidated
2020
$
2019
$
22,500
-
22,500
19,500
-
19,500
54
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
29.
INFORMATION RELATING TO RAREX LIMITED (‘the Parent Entity’)
ASSETS
Current Assets
Non-current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
2020
$
2019
$
3,569,083
2,953,113
6,522,196
172,014
-
172,014
6,350,182
1,017,122
505,033
1,522,155
165,552
-
165,552
1,356,603
30,065,194
4,859,752
(28,574,764)
6,350,182
20,865,949
2,377,927
(21,887,273)
1,356,603
Loss of the parent entity
(6,889,899)
(2,215,282)
Total comprehensive loss of the parent entity
(6,889,899)
(2,215,282)
Contingent liabilities of the parent entity: Nil.
Reserves included in the parent entity:
Options reserve
Share-based payment reserve
2020
$
2019
$
4,775,912
83,840
4,859,752
2,294,087
83,840
2,377,927
Commitments for the acquisition of property, plant and equipment by the parent entity: Nil.
30.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVES AND POLICIES
The consolidated entity’s principal financial instruments comprise cash and short-term deposits.
The main purpose of these financial instruments is to finance the consolidated entity’s operations. The
consolidated entity has various other financial assets and liabilities such as trade receivables and trade payables,
which arise directly from its operations. It is, and has been throughout the entire period under review, the
consolidated entity’s policy that no trading in financial instruments shall be undertaken.
For all financial instruments of the Company, the carrying value approximates the fair value.
The main risk arising from the consolidated entity’s financial instruments is cash flow interest rate risk. Other minor
risks are either summarised below or disclosed at Note 10 in the case of credit risk and Note 15 in the case of capital
risk management. The Board reviews and agrees policies for managing each of these risks.
55
RareX Limited ABN: 65 105 578 756 and controlled entity
2020
NOTES TO ACCOUNTS
30.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(a) Cash Flow Interest Rate Risk
The consolidated entity’s exposure to the risks of changes in market interest rates relates primarily to the
consolidated entity’s short-term deposits with a floating interest rate. These financial assets with variable rates
expose the consolidated entity to cash flow interest rate risk. All other financial assets and liabilities in the form of
receivables and payables are non-interest bearing. The consolidated entity does not engage in any hedging or
derivative transactions to manage interest rate risk. In regard to its interest rate risk, the consolidated entity
continuously analyses its exposure. Within this analysis consideration is given to potential renewals of existing
positions, alternative investments and the mix of fixed and variable interest rates. The sensitivity to the movement
in interest rates for the likely range of outcomes is immaterial.
Based on the sensitivity analysis only interest revenue from variable rate deposits and cash balances is impacted,
resulting in a decrease or increase in overall income.
(b)
Liquidity risk
The consolidated entity manages liquidity risk by maintaining sufficient cash reserves and through the continuous
monitoring of budgeted and actual cash flows. Further, the consolidated entity only invests surplus cash with major
financial institutions.
Contracted maturities of payables:
Payable
- less than 6 months
- 6 to 12 months
- 1 to 5 years
- later than 5 years
Total
(c) Commodity price risk
Consolidated
2020
$
2019
$
1,318,230
-
-
-
1,318,230
165,869
-
-
-
165,869
The consolidated entity has no direct commodity exposures.
(d)
Foreign currency risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using
sensitivity analysis and cash flow forecasting. Given the current level of transactions denominated in foreign
currency, the Directors consider foreign current risk not material.
(e) Carrying values of financial instruments not recognised at fair value
Due to their short term nature, the carrying value of financial assets and financial liabilities, not recognised at fair
value, recorded in the financial statements approximates their respective fair values, determined in accordance
with accounting policies disclosed in Note 2 of the financial statements.
56
RareX Limited ABN: 65 105 578 756 and controlled entities
DIRECTORS’ DECLARATION
The Directors of RareX Limited declare that:
1.
In the opinion of the Directors:
2020
(a)
the attached financial statements and the notes thereto of the Company and of the consolidated entity are
in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Company’s and consolidated entity’s financial position as at 30
June 2020 and of their performance for the year ended on that date; and
(ii)
complying with Accounting Standards;
(b)
(c)
the attached financial statements and the notes thereto of the Company and of the consolidated entity are
in accordance with International Financial Reporting Standards issued by the International Accounting
Standards Board; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ending 30 June 2020.
Signed in accordance with a resolution of the Directors made pursuant to Section 295(5) of the Corporations Act 2001.
On behalf of the Board
Jeremy Robinson
Managing Director
Dated this 30 September 2020
57
ASX Additional Information
Shareholder Information
The following information is based on share registry information processed up to 27 October 2020.
Distribution of Fully Paid Ordinary Shares
The number of holders, by size of holding, for fully paid ordinary shares in the Company is:
Spread of Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Holders
Number of Shares
247
535
728
1,823
512
3,845
81,999
1,849,529
5,663,643
69,924,676
300,745,408
378,265,255
There are 544 holders of unmarketable parcels comprising a total of 880,219 ordinary shares
amounting to 0.23% of issued capital.
Twenty Largest Holders of Shares
Shareholder
Mr Antonius Joseph Smit
Cale Consulting Pty Ltd
National Nominees Limited
Mr Jeremy Kim Robinson
Element 25 Limited
Citicorp Nominees Pty Limited
Evans Leap Holdings Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Maxwell Alfred Kippe
Mr Kim Robinson
Kyriaco Barber Pty Ltd
Mrs Jennifer Grace Robinson
Troca Enterprises Pty Ltd
Mr Shane Edward Szwedyc & Mrs Ma Ladonna Szwedyc
CS Fourth Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited
Dabbler Pty Ltd
Ocean View WA Pty Ltd
Kingslane Pty Ltd
Mr Brett John Holdsworth
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Number Held
14,314,939
12,417,400
8,601,800
8,250,000
7,462,687
7,370,764
7,077,509
5,756,042
5,200,000
4,314,706
4,000,000
3,750,000
3,501,517
3,255,253
3,109,460
3,023,629
3,000,000
3,000,000
2,972,290
2,397,000
112,774,996
% of Issued
Shares
3.78
3.28
2.27
2.18
1.97
1.95
1.87
1.52
1.37
1.14
1.06
0.99
0.93
0.86
0.82
0.80
0.79
0.79
0.79
0.63
29.81
There are 378,265,255 ordinary fully paid shares currently listed and trading on the Australian
Securities Exchange. There is no current on-market buy back taking place.
Voting Rights - Fully Paid Ordinary Shares
Every shareholder present in person or by proxy, attorney or representative has one vote on a show
of hands, and on a poll, one vote for each fully paid share.
62
Unquoted Equity Securities
Class
Quantity
Options exercisable at $0.175 each on or before 30 November 2020
800,000
1,200,000
Options exercisable at $0.1625 each on or before 30 December 2020
16,250,000 Options exercisable at $0.025 each on or before 27 September 2021
5,000,000
Options exercisable at $0.025 each on or before 27 September 2022 vesting on 6 months
employment and 20 day VWAP exceeding $0.05
Options exercisable at $0.025 each on or before 27 September 2022 vesting on 6 months
employment and 20 day VWAP exceeding $0.10
Options exercisable at $0.025 each on or before 27 September 2022 vesting on 6 months
employment and 20 day VWAP exceeding $0.15
28,500,000 Options exercisable at $0.085 each on or before 11 October 2022
2,500,000
Options exercisable at $0.0607 each on or before 12 December 2022 and vesting on 20 day VWAP
exceeding $0.10
Options exercisable at $0.0607 each on or before 12 December 2022 and vesting on 20 day VWAP
exceeding $0.15
Options exercisable at $0.0607 each on or before 12 December 2022 and vesting on 20 day VWAP
exceeding $0.20
Options exercisable at $0.0607 each on or before 22 December 2022 and vesting on 20 day VWAP
exceeding $0.10
Options exercisable at $0.0607 each on or before 12 December 2022 and vesting on 20 day VWAP
exceeding $0.15
Options exercisable at $0.0607 each on or before 12 December 2022 and vesting on 20 day VWAP
exceeding $0.20
Performance rights vesting 12 months after the date that the 10 day VWAP is $0.25 or higher
before 20 August 2021 provided the holder does not resign from the Board before the vesting
date
Performance rights vesting 12 months after the date that the 10 day VWAP is $0.375 or higher
before 20 August 2021 provided the holder does not resign from the Board before the vesting
date
Performance rights vesting 12 months after the date that the 10 day VWAP is $0.50 or higher
before 20 August 2021 provided the holder does not resign from the Board before the vesting
date
5,000,000
5,000,000
3,500,000
3,500,000
4,000,000
4,000,000
4,000,000
250,000
250,000
250,000
Holders of Unquoted Securities Holding More than 20% of Each Class
Class
Options exercisable at $0.175 each on or before 30
November 2020
Options exercisable at $0.1625 each on or before 30
December 2020
Options exercisable at $0.025 each on or before 27
September 2021
Options exercisable at $0.025 each on or before 27
September 2022 vesting on 6 months employment and
20 day VWAP exceeding $0.05
Options exercisable at $0.025 each on or before 27
September 2022 vesting on 6 months employment and
20 day VWAP exceeding $0.10
Options exercisable at $0.025 each on or before 27
September 2022 vesting on 6 months employment and
20 day VWAP exceeding $0.15
Options exercisable at $0.0607 each on or before 12
December 2022 and vesting on 20 day VWAP exceeding
$0.10
Options exercisable at $0.0607 each on or before 12
December 2022 and vesting on 20 day VWAP exceeding
$0.15
Options exercisable at $0.0607 each on or before 12
December 2022 and vesting on 20 day VWAP exceeding
$0.20
Holder
CYM Holdings Pty Ltd
Valtellin Pty Ltd
Cale Consulting Pty Ltd
Mr Jeremy Kim Robinson
Number
800,000
1,200,000
4,000,000
5,000,000
Mr Jeremy Kim Robinson
5,000,000
Mr Jeremy Kim Robinson
5,000,000
Guy William Moulang
Rod Dog Pty Ltd
Guy William Moulang
Rod Dog Pty Ltd
Valtellin Pty Ltd
Guy William Moulang
Rod Dog Pty Ltd
Valtellin Pty Ltd
1,500,000
1,000,000
1,500,000
1,000,000
1,000,000
1,500,000
1,000,000
1,000,000
63
Class
Options exercisable at $0.0607 each on or before 22
December 2022 and vesting on 20 day VWAP exceeding
$0.10
Options exercisable at $0.0607 each on or before 22
December 2022 and vesting on 20 day VWAP exceeding
$0.15
Options exercisable at $0.0607 each on or before 22
December 2022 and vesting on 20 day VWAP exceeding
$0.20
Options exercisable at $0.085 each on or before 11
October 2022
Performance rights vesting 12 months after the date
that the 10 day VWAP is $0.25 or higher before 20
August 2021 provided the holder does not resign from
the Board before the vesting date
Performance rights vesting 12 months after the date
that the 10 day VWAP is $0.375 or higher before 20
August 2021 provided the holder does not resign from
the Board before the vesting date
Performance rights vesting 12 months after the date
that the 10 day VWAP is $0.50 or higher before 20
August 2021 provided the holder does not resign from
the Board before the vesting date
Schedule of Mining Tenements
Australian Tenement Schedule
State
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
NSW
NSW
NSW
NSW
NSW
NSW
NSW
Project
Cummins Range
Cummins Range Extension
Byro
Byro
Byro
Byro
Byro
Weld North
Mt Mansbridge
Hong Kong
Condobolin
Cundumbul
Fairholme
Fairholme
Trundle
Jemalong
Orange East
Lease No
E80/5092
E80/5372
E09/2386
E09/2387
E09/2408
E09/2409
E09/2443
E38/3455
E80/5430
EL 47/3566
EL 7748
EL 6661
EL 6552
EL 6915
EL 8222
EL 8502
EL 8442
Holder
Meesha Investments
Mr John A Young & Mrs Cheryl K Young
Number
2,000,000
2,000,000
Meesha Investments
Mr John A Young & Mrs Cheryl K Young
2,000,000
2,000,000
Meesha Investments
Mr John A Young & Mrs Cheryl K Young
2,000,000
2,000,000
Malekula Projects Pty Ltd
CG Nominees (Australia) Pty Ltd
Rod Dog Pty Ltd
18,000,000
7,000,000
250,000
Rod Dog Pty Ltd
250,000
Rod Dog Pty Ltd
250,000
Note
Application
Application
Application
Application
Application
Application
Application
Application
RareX interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
30%
35%
35%
35%
35%
35%
35%
100%
Austrian Tenement Schedule – Leogang - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
51/17/S (CLY-LEOG-003)
56/17/S (CLY-LEOG-008)
57/17/S (CLY-LEOG-009)
58/17/S (CLY-LEOG-010)
64/17/S (CLY-LEOG-016)
68/17/S (CLY-LEOG-020)
71/17/S (CLY-LEOG-023)
74/17/S (CLY-LEOG-026)
78/17/S (CLY-LEOG-030)
79/17/S (CLY-LEOG-031)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Grießen
Grießen
Grießen
Schwarzleo
Schwarzleo
Sonnberg, Pirzbichl
Grießen
Grießen
Grießen
Hoch filzen
Saalbach
64
Austrian Tenement Schedule – Leogang - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
80/17/S (CLY-LEOG-032)
81/17/S (CLY-LEOG-033)
82/17/S (CLY-LEOG-034)
83/17/S (CLY-LEOG-035)
84/17/S (CLY-LEOG-036)
85/17/S (CLY-LEOG-037)
86/17/S (CLY-LEOG-038)
87/17/S (CLY-LEOG-039)
88/17/S (CLY-LEOG-040)
89/17/S (CLY-LEOG-041)
90/17/S (CLY-LEOG-042)
91/17/S (CLY-LEOG-043)
92/17/S (CLY-LEOG-044)
93/17/S (CLY-LEOG-045)
94/17/S (CLY-LEOG-046)
95/17/S (CLY-LEOG-047)
96/17/S (CLY-LEOG-048)
98/17/S (CLY-LEOG-050)
99/17/S (CLY-LEOG-051)
101/17/S (CLY-LEOG-053)
103/17/S (CLY-LEOG-055)
104/17/S (CLY-LEOG-056)
105/17/S (CLY-LEOG-057)
106/17/S (CLY-LEOG-058)
107/17/S (CLY-LEOG-059)
108/17/S (CLY-LEOG-060)
109/17/S (CLY-LEOG-061)
110/17/S (CLY-LEOG-062)
111/17/S (CLY-LEOG-063)
112/17/S (CLY-LEOG-064)
114/17/S (CLY-LEOG-066)
115/17/S (CLY-LEOG-067)
116/17/S (CLY-LEOG-068)
117/17/S (CLY-LEOG-069)
118/17/S (CLY-LEOG-070)
119/17/S (CLY-LEOG-071)
120/17/S (CLY-LEOG-072)
121/17/S (CLY-LEOG-073)
122/17/S (CLY-LEOG-074)
123/17/S (CLY-LEOG-075)
124/17/S (CLY-LEOG-076)
125/17/S (CLY-LEOG-077)
126/17/S (CLY-LEOG-078)
127/17/S (CLY-LEOG-079)
128/17/S (CLY-LEOG-080)
129/17/S (CLY-LEOG-081)
130/17/S (CLY-LEOG-082)
131/17/S (CLY-LEOG-083)
132/17/S (CLY-LEOG-084)
133/17/S (CLY-LEOG-085)
134/17/S (CLY-LEOG-086)
135/17/S (CLY-LEOG-087)
136/17/S (CLY-LEOG-088)
137/17/S (CLY-LEOG-089)
138/17/S (CLY-LEOG-090)
139/17/S (CLY-LEOG-091)
140/17/S (CLY-LEOG-092)
141/17/S (CLY-LEOG-093)
142/17/S (CLY-LEOG-094)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
65
Saalbach
Grießen, Hoch filzen, Fieberbrunn
Saalbach
Fieberbrunn
Fieberbrunn, Saalbach
Hoch filzen
Saalbach
Saalbach
Saalbach
Aurach
Aurach
Saalbach
Austrian Tenement Schedule – Leogang - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
143/17/S (CLY-LEOG-095)
144/17/S (CLY-LEOG-096)
145/17/S (CLY-LEOG-097)
146/17/S (CLY-LEOG-098)
147/17/S (CLY-LEOG-099)
148/17/S
(CLY-LEOG-
1OO)
M 31
M 31
M 31
M 31
M 31
M 31
Hochfilzen
Hochfilzen
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Grießen
Grießen
Saalbach
Austrian Tenement Schedule – Kitzbuhel - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
38/17/T (CLY- KITZ-001)
39/17/T (CLY- KITZ -002)
40/17/T (CLY- KITZ -003)
41/17/T (CLY- KITZ -004)
42/17/T (CLY- KITZ-005)
43/17/T (CLY- KITZ-006)
44/17/T (CLY- KITZ -007)
45/17/T (CLY- KITZ -008)
46/17/T (CLY- KITZ -009)
47/17/T (CLY- KITZ-010)
48/17/T (CLY- KITZ -011)
49/17/T (CLY- KITZ-012)
50/17/T (CLY- KITZ-013)
51/17/T (CLY- KITZ-014)
52/17/T (CLY- KITZ -015)
53/17/T (CLY- KITZ -016)
54/17/T (CLY- KITZ -017)
55/17/T (CLY- KITZ -018)
56/17/T (CLY- KITZ-019)
57/17/T (CLY- KITZ-020)
58/17/T (CLY- KITZ-021)
59/17/T (CLY- KITZ-022)
60/17/T (CLY- KZTZ-023)
61/17/T (CLY- KITZ-024)
62/17/T (CLY-KITZ-025)
63/17/T (CLY-KITZ-026)
64/17/T (CLY-KITZ-027)
65/17/T (CLY-KITZ-028)
66/17/T (CLY-KITZ-029)
67/17/T (CLY-KITZ-030)
68/17/T (CLY-KITZ-031)
69/17/T (CLY-KITZ-032)
70/17/T (CLY-KITZ-033)
71/17/T (CLY-KITZ-034)
72/17/T (CLY-KITZ-035)
73/17/T (CLY-KITZ-036)
74/17/T (CLY-KITZ-037)
75/17/T (CLY-KITZ-038)
76/17/T (CLY-KITZ-039)
77/17/T (CLY-KITZ-040)
78/17/T (CLY-KITZ-041)
79/17/T (CLY-KITZ-042)
80/17/T (CLY-KITZ-043)
81/17/T (CLY-KITZ-044)
82/17/T (CLY-KITZ-045)
83/17/T (CLY-KITZ-046)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Aurach
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Kitzbühel Land
Kitzbühel Land
Fieberbrunn
Fieberbrunn
Fieberbrunn
Kitzbühel Land
66
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Fieberbrunn
Fieberbrunn
Fieberbrunn
Austrian Tenement Schedule – Kitzbuhel - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
84/17/T (CLY-KITZ-047)
85/17/T (CLY-KITZ-048)
86/17/T (CLY-KITZ-049)
87/17/T (CLY-KITZ-050)
88/17/T (CLY-KITZ-051)
89/17/T (CLY-KITZ-052)
90/17/T (CLY-KITZ-053)
91/17/T (CLY-KITZ-054)
92/17/T (CLY-KITZ-055)
93/17/T (CLY-KITZ-056)
94/17/T (CLY-KITZ-057)
95/17/T (CLY-KITZ-058)
96/17/T (CLY-KITZ-059)
97/17/T (CLY-KITZ-060)
98/17/T (CLY-KITZ-061)
99/17/T (CLY-KITZ-062)
100/17/T (CLY-KITZ-063)
101/17/T (CLY-KITZ-064)
102/17/T (CLY-KITZ-065)
103/17/T (CLY-KITZ-066)
104/17/T (CLY-KITZ-067)
105/17/T (CLY-KITZ-068)
106/17/T (CLY-KITZ-069)
107/17/T (CLY-KITZ-070)
108/17/T (CLY-KITZ-071)
109/17/T (CLY-KITZ-072)
110/17/T (CLY-KITZ-073)
111/17/T (CLY-KITZ-074)
112/17/T (CLY-KITZ-075)
113/17/T (CLY-KITZ-076)
114/17/T (CLY-KITZ-077)
115/17/T (CLY-KITZ-078)
116/17/T (CLY-KITZ-079)
117/17/T (CLY-KITZ-080)
118/17/T (CLY-KITZ-081)
119/17/T (CLY-KITZ-082)
121/17/T (CLY-KITZ-084)
122/17/T (CLY-KITZ-085)
123/17/T (CLY-KITZ-086)
124/17/T (CLY-KITZ-087)
125/17/T (CLY-KITZ-088)
126/17/T (CLY-KITZ-089)
127/17/T (CLY-KITZ-090)
128/17/T (CLY-KITZ-091)
129/17/T (CLY-KITZ-092)
130/17/T (CLY-KITZ-093)
131/17/T (CLY-KITZ-094)
132/17/T (CLY-KITZ-095)
133/17/T (CLY-KITZ-096)
135/17/T (CLY-KITZ-098)
137/17/T (CLY-KITZ-100)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Fieberbrunn
Kitzbühel Land
Aurach
Aurach
Kitzbühel Land
Aurach
Aurach
Kitzbühel Land
Aurach
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Aurach
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land
St. Johann in Tirol
Kitzbühel Land
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
St. Johann in Tirol
Kitzbühel Land
Aurach
Fieberbrunn
Fieberbrunn
Fieberbrunn, Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Kitzbühel Land
Fieberbrunn
Kitzbühel Land
Kitzbühel Land
Kitzbühel Land, Fieberbrunn
Kitzbühel Land
Austrian Tenement Schedule – Leogang - RareX Second Priority in at least 50% of the licence area
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
49/17/S (CLY-LEOG-001)
50/17/S (CLY-LEOG-002)
M 31
M 31
Schwarzleo
Schwarzleo
Sonnberg
67
52/17/S (CLY-LEOG-004)
53/17/S (CLY-LEOG-005)
54/17/S (CLY-LEOG-006)
55/17/S (CLY-LEOG-007)
59/17/S (CLY-LEOG-011)
60/17/S (CLY-LEOG-012)
61/17/S (CLY-LEOG-013)
62/17/S (CLY-LEOG-014)
63/17/S (CLY-LEOG-015)
65/17/S (CLY-LEOG-017)
66/17/S (CLY-LEOG-018)
67/17/S (CLY-LEOG-019)
69/17/S (CLY-LEOG-021)
70/17/S (CLY-LEOG-022)
72/17/S (CLY-LEOG-024)
73/17/S (CLY-LEOG-025)
75/17/S (CLY-LEOG-027)
76/17/S (CLY-LEOG-028)
77/17/S (CLY-LEOG-029)
97/17/S (CLY-LEOG-049)
100/17/S (CLY-LEOG-052)
102/17/S (CLY-LEOG-054)
113/17/S (CLY-LEOG-065)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Grießen
Grießen
Grießen
Grießen
Austrian Tenement Schedule – Kitzbuhel - RareX Second Priority in at least 50% of licence area
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
120/17/T (CLY-KITZ-083)
134/17/T (CLY-KITZ-097)
136/17/T (CLY-KITZ-099)
M 31
M 31
M 31
Kitzbühel Land
St. Johann in Tirol
Kitzbühel Land
Kitzbühel Land
Moroccan Tenement Schedule
Licence Name
Tizi Belhaj
Bou Amzil
Imdere
Bou Amzil Extension
Licence No
234 08 79
233 88 04
233 94 05
PR 384 22 26
Clancy interest
20%
20%
20%
-
Note
Earning up to 100%
Earning up to 100%
Earning up to 100%
100% on completion
Company Secretary
Ms Oonagh Malone
Registered Office
Suite 23, 513 Hay Street
Subiaco WA 6008
Telephone: +61 8 6143 6720
Share Registry
Automic Registry Services
126 Phillip Street
Sydney NSW 2000
Telephone: 1300 992 916
68
EMAIL
info@rarex.com.au
TELEPHONE
+61 8 6143 6720
ADDRESS
Suite 23 513 Hay Street Subiaco WA 6008 Australia