Annual Report 2021
Contents
Corporate Directory ................................................................................................................................ ii
Review of Operations ............................................................................................................................. iii
Environmental, Social and Governance Framework ............................................................................ xxii
Mineral Resources Statement............................................................................................................. xxiii
Corporate Governance ........................................................................................................................ xxiii
ASX Additional Information .................................................................................................................. 68
i
Corporate Directory
Directors
John Young (Non-Executive Chairman)
Registered and business address
Unit 6, 94 Rokeby Road
Jeremy Robinson (Managing Director)
Subiaco WA 6008
Shaun Hardcastle (Non-Executive Director)
Australia
Cameron Henry (Non-Executive Director)
Telephone: +61 8 6383 6593
Website: www.rarex.com.au
Auditors
Walker Wayland WA Audit Pty Ltd
Level 3, 1 Preston Street
Como WA 6152
Share registry
Automic Registry Services
126 Phillip Street
Sydney, New South Wales 2000
Telephone: 1300 288 664
Company secretary
Oonagh Malone
Securities exchange
Australian Securities Exchange (ASX)
Code:
REE
Home office:
Perth
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 2021 and to date.
Cummins Range Rare Earths Project
Cummins Range is located in the mining-friendly state of Western Australia and now has the potential
to underpin a standalone rare earth oxide production scenario as well as becoming a supplier of
concentrate to third parties within Australia and overseas.
Figure 1 – Cummins Range Rare Earths Project, Kimberley Region, Western Australia with
potential refining locations
2020 Drill Program
In July 2020, RareX commenced a 6,000m Reverse Circulation in-fill and extensional drilling program
at its 100%-owned Cummins Range Rare Earths Project in the Kimberley Region of Western Australia.
The commencement of drilling marked an important milestone for the Company and the project,
being the first drilling to be undertaken there since 2011.
The drilling program was completed by late August 2020, with the program comprising a total of 58
holes for 6,146m of Reverse Circulation (RC) drilling. Drilling was successful in confirming the Resource
in the known areas and extending the mineralisation, primarily at depth, with the deepest hole
intersecting weathered carbonatite to a depth of 150m.
Logging of the drill chips also identified a NW-SE striking breccia fault zone for the first time, which
represents a likely control on both the higher grade mineralisation in the weathered material and a
target for primary mineralisation, as it is likely to be a conduit for mineralisation and has never been
tested at depth.
iii
Figure 1 – Recently completed RC drilling at Cummins Range
On the 30 September 2020, RareX reported the first batch of assays received from the program, with
assays from the first three RC holes returning results significantly above the resource grade, including
spectacular widths and grades in both CRX0002 and CRX0003.
Results for the full suite of elements were subsequently reported on 13 October 2020, confirming the
presence of the critical mineral, niobium, in significant concentrations.
These holes 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.
Results for drill-holes CRX0010 and CRX0011 (reported on 19 October 2020) confirmed an
outcropping, thick high-grade mineralised channel trending north-west with further strongly
mineralised assays. Drill holes CRX0010 and CRX0011 are located 100m along strike from the high-
grade results reported in drill holes CRX0002 and CRX0003.
These holes also have 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.
On 27 October 2020, the Company released results from RC holes, CRX0012 and CRX0013, which
included 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 holes CRX0012 and CRX0013, 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 2020 drill program extended the zone of high-grade
mineralisation to 130m below surface.
Hole 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.
iv
Results from the next 18 holes (CRX0020 to CRX0037) (reported on 17 November 2020) demonstrate
that the mineralisation is thickening towards the east, while maintaining excellent widths and grades
such as 62m at 2.62% TREO and 0.48% Nb2O5 including 25m at 4.36% TREO and an ultra-high grade
zone of 6m at 9.44% TREO and 1.46% Nb2O5 in CRX0035.
Sections 307,315 and 307,370 remain open along strike to the north and south, and section 307,315
is open at depth in the main mineralised channel, where hole CRX0025 was stopped due to ground
conditions in a strongly mineralised silicified breccia.
On 17 December 2020, the Company was pleased to release the results for the remaining 20 holes of
the program. Results from this final batch, particularly for holes CRX0053 (section 307,130mE) and
CRX0054 (section 307,180mE), have extended the mineralisation on those sections 40m and 65m
deeper respectively.
Geological modelling is ongoing and a mineralised fault breccia with associated quartz veining,
silicification and carbonate alteration has been intersected in some of the drill holes and highlighted
in section 307,420mE. Initial interpretation of the fault is a shallow south-dipping fault ranging from
10m to 40m wide that has not been tested in fresh rock.
A revised geological model has recently been established, based largely on the 58 RC drill holes
completed in the 2020 drill program, leading to the identification of significant new high-grade
exploration targets.
The new interpretation has established that, while there is general erosion of the entire carbonatite
pipe leading to an upgrade in the regolith profile, there are also pre-existing high-grade fault structures
that represent high-priority exploration targets with the potential to substantially change the scale of
the Cummins Range Project.
Deeper RC drilling completed as part of the 2020 drill program has identified for the first time the
presence of a strongly rare earth element (REE) mineralised fault that sits beneath the length of the
known mineralisation at the Cummins Range deposit.
The RareX geological team has identified a mineralised fault that has been intersected over 550m of
strike length and is open in all directions.
The Main Fault strikes in a north-westerly direction of 230 degrees and dips to the south-west at 50-
60 degrees as shown below. Identifying the fault in the upper 70m can very difficult due to the strong
weathering profile, which is most likely the reason for it not being recognised previously.
v
Figure 2 - Total Magnetic Image of Cummins Range Pipe with Main Fault position and planned 2021 diamond
drilling
At depth, where weathering has decreased, the fault is characterised by strong wall rock silicification
with quartz veining and the fault itself is a silicified sulphidic milled breccia and is 5-20m in true width.
High-grade REE mineralisation is consistently greater than 1% TREO.
In addition to the MF mineralisation, the 2020 drilling has shown that a significant proportion of the
grade is also related to dispersion in the regolith as shown in below.
Grade within the dispersion or enriched areas is often moderate to high grade: for example, in Figure
2, the upper 20m of the significant intercept in hole CRX0035 is an enriched zone that sits beneath a
40m deep REE and Nb2O5 depleted zone. This enriched zone contains 20m at 4.5% TREO and 0.6%
Nb2O5, including 6m @ 9.4% TREO and 1.5% Nb2O5 (see ASX: 17 November 2020).
Dispersion and enrichment are seen in the regolith profile along the entire strike of the known
mineralised system and will be an exploration target for this year’s RC drill program.
vi
Figure 3 - Cross-section 307365E showing geological interpretation, oblique view of Main Fault, true
thickness is approximately 40% of drilled metres.
The surface expression of the MF can be seen in Figure 2.
At 307300E, the MF has been displaced by an interpreted north-south trending fault. At this position,
the MF is displaced by 100m and is showing sinistral displacement.
Mineralised intervals associated with the MF are shown in the vertical longitudinal projection (VLP) in
Figure 4. The red dots are the MF on the western side of the displacement fault and the blue dots are
the MF on the eastern side of the displacement fault.
Also shown on the VLP are the 10 diamond drill holes that will be drilled in coming months. These
holes are designed to target the down-dip extension of the MF, which has proven to be fertile in all
MF intersections to date.
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Figure 4 - Vertical Longitudinal Projection showing centre points of Main Fault and associated TREO
mineralisation
The MF strike of 230 degrees is parallel to the north-eastern and south-western walls of the Cummins
Range carbonatite pipe, as seen in the magnetics in Figure 2. This structural orientation is likely to be
repeated throughout the pipe from a micro to a macro scale.
A parallel candidate to the south-west of the MF has been identified from the magnetics and is shown
in Figure 2. This location has not been tested from an appropriate angle and a historical drill hole
KRC167 finishing in REE and Nb2O5 mineralisation with assays up to 3.2% TREO and 0.67% Nb2O5 (ASX:
15 October 2019).
Resource Upgrade
On 19 July, the Company announced a substantial resource upgrade for Cummins Range, having
incorporated the results of the successful 2020 drill program. The Cummins Range Mineral Resource
has grown significantly both in size and quality, firmly establishing the deposit as a high-quality
development opportunity in a Tier-1 mining jurisdiction.
The resource has increased on the back of the quality work undertaken by the RareX technical team,
with the increase stemming both from drilling results from 2020 and correct specific gravity
measurements taken from the current expansionary drill program.
The overall 46% increase in the deposit is accompanied by a significant high-grade component and the
announcement of a maiden Indicated resource of 11.1 million tonnes at 1.34% TREO + 0.17% Nb2O5
(0.5% TREO cut-off) and 4.9 million tonnes at 2.11% + 0.23% Nb2O5 (1.0% TREO cut-off) marking a
significant increase in the quality of the resource as well.
viii
Table 1: Cummins Range JORC Resource at 0.5% TREO and 1.0% TREO Cut Off grade
0.5% Cut Off
Tonnes Mt
TREO %
NdPr %
Nb₂O5 %
HREO ppm
Indicated
Inferred
Total
11.1
7.7
18.8
1.34
0.88
1.15
0.27
0.18
0.23
0.17
0.11
0.14
830
540
711
1.0% Cut Off
Tonnes Mt
TREO %
NdPr %
Nb₂O5 %
HREO ppm
Indicated
Inferred
Total
4.9
1.6
6.5
2.11
1.60
1.98
0.41
0.31
0.38
0.23
0.16
0.21
1,150
800
1,060
Figure 5: Cummins Range JORC Resource at 0.5% TREO Block Model
2021 Drill Program
In July 2021, the Company announced the commencement of a significant diamond drilling program
at Cummins Range.
The drilling represents the first-ever test of the primary potential of the deposit and the opportunity
to significantly grow the scale of the Resource. The 2021 diamond drill program will comprise over
3,000m of diamond drilling, to be undertaken by ASX-listed DDH1 Drilling.
ix
Figure 6: Diamond drill rig on site at Cummins Range.
Figure 7: Vertical longitudinal projection showing centre pierce points of main fault and associated TREO
mineralisation and planned diamond drill holes.
To date, multiple diamond holes have been drilled along the main fault at Cummins Range, designed
for both exploration and study test work purposes. Visual inspection of the drill core has exceeded
RareX’s expectations, with the initial holes intersecting wide mineralised breccia/fault zones and,
more importantly, a significant zone of fresh mineralisation at the bottom of CDX0007. This represents
the first time significant primary REE-Nb mineralisation has been intersected at Cummins Range.
x
Three drill holes (CDX0001, CDX0003 and CDX0004) were completed for mining studies, with CDX0004
intersecting a 67m fault breccia that had been previously interpreted from RC drilling as a well-
mineralised saprolite zone that had rare earth elements upgraded via dispersion.
This fault breccia is located where a displacement fault is interpreted in the new geological model.
Surrounding drill holes to CDX0004 are well mineralised, indicating that the fault breccia is the source
of the REE mineralisation in this area. This presents strong exploration upside with a previously-
unrecognised wide mineralised structure to test at depth.
Figure 8: 2021 Drill Collar Location Plan, red boxes indicate the recent drill holes
xi
Figure 9: CDX0004 Example of oxidized polymictic breccia
Four of the planned exploration drill holes (CDX0002, CDX0005 CDX0006 and CDX0007) were drilled
(with CDX0002 being lost metres) before the expected Main Fault target. CDX0005 intersected
carbonatite in the target area with sparse patchy massive monazite over 5m.
Hole CDX0006 intersected a 10m mineralised fault breccia on a carbonatite contact. Drill hole CRX0007
was drilled 75m east of hole CDX0004 and intersected 77m of fault breccia. This zone is interpreted to
be part of the displacement fault intersected in hole CDX0004. The width and extent of the fault
breccia between these two holes indicates a significant brittle breccia system with extensive
alteration.
Figure 10: CDX0007 123.5m massive orange monazite forming on lower contact of a primary sulphidic
carbonatite breccia within a larger 75m fault breccia
xii
A further four diamond drill holes (CDX0008 to CDX0011) were then drilled to test for primary
mineralisation. The additional holes are shown on the collar location plan in Figure 8.
Importantly, all four holes intersected primary mineralisation in shear or breccia zones over various
widths as described below, providing further strong evidence of the potential to significantly expand
the potential scope and scale of the Project.
Of greatest significance, hole CDX0011 intersected a 24m-wide strongly rare earth mineralised fault
zone with common visible coarse-grained monazite, as shown in Figure 12.
CDX0011 was drilled to test down-dip of a high-grade intersection returned from Reverse Circulation
(RC) drill hole CRX0063 during the Quarter, which intersected 41m at 2.4% TREO and 0.51% Nb2O5
including 10m at 4.1% TREO and 0.75% Nb2O5.
CDX0011 is the westernmost diamond drill-hole completed to date and extends the primary Main
Fault mineralisation to 120 vertical metres, which is amenable for extraction via open pit. Further
drilling is planned both along strike and down-dip.
The continued success of the diamond drilling program further reinforces RareX’s view that there is
considerable potential to expand the Cummins Range deposit, with significant zones of high-grade
primary mineralisation present over mineable widths.
Figure 11: Schematic cross-section showing diamond drill-hole CDX0011
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Hole CDX0008, which was drilled to test an area 40m south-west of hole CDX0007 intersected a 20m
silicified fault breccia zone from 70m down-hole. Routine XRF analysis suggests that the breccia is
anomalous in rare earths. The zone is weathered and likely correlates with the 77m wide zone seen in
CDX0007.
Further down-hole common foliated and sheared areas were seen in carbonatite with localised visual
monazite. The geometry of the mineralised structures around the interpreted displacement fault is
currently unclear and requires further drilling.
Hole CDX0009 is the easternmost diamond drill-hole completed to date and was designed to test the
fresh rock Main Fault position. A 10m silicified sulphidic carbonatite breccia was encountered from
30m down-hole, with confirmed rare earths mineralisation observed from XRF analysis.
In the Main Fault position, broad breccia and fault zones were seen with patchy fresh monazite
mineralisation occurring at up to 15% monazite over 1m intervals.
CDX0010 was drilled to target the area down-dip of the 10m mineralised fault breccia intersected in
hole CDX0006. The hole drilled through two intervals of fresh rare earth mineralisation, as confirmed
by pXRF. The first is 4.9m of 10% coarse monazite from 115.1m. The second was a 20m mineralised
sulphidic fault zone from 139m.
Figure 12: Zones of massive coarse monazite at Cummins Range
CDX0010 encountered massive patches of coarse green-brown monazite.
CDX0011 was drilled to test down-dip of the high-grade intersection in hole CRX0063 of 41m at 2.4%
TREO and 0.51% Nb2O5 including 10m at 4.1% TREO and 0.75% Nb2O5. The 24m strongly-mineralised
fault breccia was intersected and has common disseminated to massive patches of monazite. The fault
breccia also contains a milled matrix component which has highly-anomalous rare earths from pXRF
analysis and fine monazite banding as shown in Figure 10. This position has not been tested along
strike to the north-west and drilling is planned in this area.
Note: RareX has a Niton XRF on site that has been calibrated to Cummins Range mineralisation. The XRF analyses for 43
elements including Cerium, Lanthanum, Praseodymium, Neodymium, Yttrium, Niobium and Phosphorus. The XRF is used as a
tool to indicate whether a zone is mineralised, however it is not an accurate indicator of grade. With the XRF results, rock
type and visual confirmation of mineralisation, the RareX geologist can assess whether an interval is mineralised.
xiv
Scoping Study Underway
Given the exciting results from Resource drilling to date, with deeper diamond drilling significantly
expanding the mineralisation at depth, RareX is now targeting to release the Scoping Study for the
Cummins Range Project in Q1 2022 to provide sufficient time to continue to develop the Resource and
integrate this with metallurgy and processing design.
Project strategy
The Scoping Study has been refined in scope to focus on the following key objectives in order to test
the financial sensitivity and scale of a proposed facility:
1. Resource optimisation and geo-metallurgical modelling
2. Balanced metallurgical understanding
3. Product definition
4. Environmental approvals and impacts
5. Stakeholder engagement and social impacts
To support the Scoping Study, RareX has assembled a team of appropriately experienced consultants
as shown in the table below. This team is capable of delivering the study, future and further defined
studies and supporting project execution.
Consultant
Gavin Beer
Primero
METS Group
Mining Plus
AMC
Scope
Rare Earth Element, metallurgical and general technical counsel
Lead consultant; process design and cost estimation
Metallurgical program lead
Pit design, pit optimisation mining method
Geo-metallurgical modelling
Animal Plant Resources
ESG integration, stakeholder engagement, approvals and permitting
Advisian
PWC
Hydrogeology
ESG integration
Resource optimisation and geo-metallurgical modelling
With the continuation of Resource drilling and the re-interpretation of the Resource, the scope of
chemical, mineral and metallurgical investigations has increased.
The Resource is being re-defined with additional domains and, in conjunction with geo-metallurgical
modelling, will allow for an improved understanding of metallurgical performance in each domain and
sub-domain.
The integration of geological, geotechnical, mining, metallurgical, environmental and economic
information will help maximize the Net Present Value (NPV) of the Project and can continually be
applied and advanced to minimise future technical and operational risk.
Metallurgical understanding
The metallurgical program – led by METS Group, with Gavin Beer as technical counsel and leading
laboratories in support – has worked methodically through early testing.
xv
The program for the Scoping Study must define likely metallurgical processing steps but is not
designed to optimise recovery. The team will work to an optimal program for the stage of study and
identify key development areas for subsequent phases.
Product definition
The Cummins Range Critical Metals Project has an array of strategic metals within the Resource which
are likely to add to the value-in-use of the product and may form discrete by-products in their own
right. The product suite is notionally:
• Rare Earths Elements – principally Neodymium and Praseodymium
• Niobium
• Scandium
RareX has set out to define the simplest product that will facilitate a commercially viable project as a
base case for project definition. To achieve this, the metallurgical and marketing teams are working
together with potential off-taker requirements.
Feedback on technical viability and pricing is iterated into the plant design to confirm the base case.
From this platform the team will be able to optimise the product specifications with additional plant
facilities, principally by way of upgrade modules, to produce the preferred product.
Environmental approvals and impacts
RareX is defining a clear pathway for approvals, permitting and stakeholder engagement which is of
particular importance in the Kimberley and with the Jaru as Traditional Owners. The Project is likely
to remain entirely within Western Australia and will be assessed within the framework of WA
legislation as well as being considered under the Commonwealth Environmental Protection and
Biodiversity Conservation Act 1999.
The Project area is on relatively flat, open shrubland and tussock grassland, within the Kimberley and
within a Native Title Determination Area. Hydrogeological investigations are underway and baseline
investigations across social and environmental aspects have been scoped and made ready for
investigation early in 2022.
Stakeholder engagement and social impacts
The regional stakeholders have been identified and a stakeholder engagement roadmap is being
developed. The nearest community is Billiluna (population c. 150) and, when possible, the project
team has been prioritising recruitment from this community, other local communities and the Halls
Creek township.
RareX continues to have positive engagement with the Kimberley Land Council (KLC), the Jaru and
with the station owners in the Project area as well as a number of key stakeholders including shire
councils and industry groups along the likely supply chain between the Project site and Wyndham
Port.
RareX is operating under a Native Title Heritage Protection and Mineral Exploration Agreement with
the KLC in relations to Jaru lands (Agreement).
The Agreement provides a cooperative framework under which the Company can conduct activities
on tenements granted on Jaru land and provides for community benefits to the Jaru people.
Additionally, and following on from the release of the RareX ESG Framework, activities on site are
monitored to develop a baseline from which the Company can establish improvement initiatives to
xvi
further integrate with local communities and to reduce adverse the environmental and social impact
of the Project at any given development stage.
NSW Joint-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.
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’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.
Trundle Park Prospect
Kincora’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 (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.
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.
On 2 December 2020, Kincora reported that drilling at Trundle Park has returned further
encouragement for the targeted at/near surface skarn system, with ongoing deeper drilling also
testing the potential for a larger causative porphyry intrusion system.
Assay results received for TRDD008 have returned two significant zones of mineralised skarn:
xvii
•
•
Surface zone: returned 87.7 metres @ 0.65g/t gold and 0.19% copper from surface, including
16.4 metres @ 1.51g/t gold and 0.19% copper from surface and 8 metres @ 1.63g/t gold and
0.57% copper from 66 metres.
Second zone: 27 metres @ 0.10g/t gold and 0.07% copper from 305 metres, 5 metres @ 0.18g/t
gold and 0.02% copper from 379 metres and 19 metres @ 0.43g/t gold and 0.21% copper from
388 metres, including 4 metres @ 0.94g/t gold and 0.57% copper.
As outlined in the 21 December 2020 release, hole TRDD011 intersected intense structurally
controlled mineralization hosted within near surface skarn alteration with further positive visual
indications reported from TRDD012, a step back to the south-east from TRDD011.
Assay results from nearer surface intervals for TRDD011 (to 102m of 332m) and TRDD012 (to 202m of
581m) have been received and were released on 21 January 2021. Highlights include:
•
•
TRDD011: 74m @ 0.40% copper and 0.37 g/t gold from surface including:
- 42m @ 0.64% copper and 0.58 g/t gold from 32m including:
- 14m @ 1.69% copper and 1.39 g/t gold from 58m including:
- 4m @ 4.98% copper and 3.36 g/t gold from 68m
TRDD012: 29m @ 0.10% copper and 0.18 g/t gold from 191m including:
- 2m @ 0.87% copper and 0.05 g/t gold from 195m; and,
- 1m @ 0.09% copper and 1.17 g/t gold from 204m.
TRDD011 extended the mineralised skarn horizon to the north-west of TRDD001 (previously reported
51m @ 0.54% copper and 1.17g/t gold from 39m) and TRDD012 was a 50m step out to the south from
TRDD001.
TRDD012 has provided encouragement and vectors for the targeted causative porphyry intrusion
system source with observations of:
•
Primary bornite and chalcopyrite within quartz veins occurring in an interval of volcaniclastic
rocks from 160m to 210m down-hole which are the best primary bornite and chalcopyrite veining
intersected to date at the Trundle project (Figure 3);
• Observations of discrete monzodiorite intrusions from 275m to 340m down-hole depth, and
coarse primary molybdenum within a quartz vein at 314m down-hole depth (assay results
pending); and,
•
Four well developed and broad skarn horizons identified commencing from the surface (noting
dilution in reported intervals from core loss) and extending deep down-hole (assay results
pending).
On 22 April 2021, Kincora reported that recent drilling has provided encouragement for the northern
and southern extensions to the skarn alteration, extending the strike of the mineralised skarn
footprint at Trundle Park to over 500 metres and still open in all directions.
Assay results from TRDD007 have expanded the mineralization to the north with intervals including:
39.3m @ 0.21g/t gold and 0.03% copper from 2.6m and 8m @ 0.96g/t gold (Table 1) and 0.34% copper
from 158m and also TRDD016 with 12m @ 0.46g/t gold and 0.02% copper from 58m and 66m @
0.21g/t gold and 0.03% copper from 130m (Table 9).
xviii
Assay results from TRDD0014 and visual indications of advanced skarn and epithermal alteration in
TRDD016 (assays pending) have extended the mineralisation to the south and west (Figure 3).
TRDD014 intersected multiple skarn horizons including 44m @ 0.20g/t gold and 0.12% copper from
358m, including 7m @ 0.64g/t gold and 0.53% copper (from 385m), and 1.3m @ 2.34g/t gold and
0.54% copper from 487m, and 10m @ 0.73g/t gold and 0.10% copper from 626m.
Further drilling is proposed at Trundle Park to expand the near skarn mineralised footprint in all
directions.
Assay results and relogging of TRDD010 and TRDD015 have provided encouragement and vectors for
the targeted causative porphyry intrusive and interpreted source of intersected gold and copper
mineralization in the skarn system. Increased quartz veining and multiple phases of monzodiorite,
felsic alteration and minor zones of chalcopyrite and molybdenite have been noted. Molybdenite in
TRDD015 was mostly observed in quartz veins cutting monzodiorite in an interval with 12m @ 0.13
g/t gold, 0.10% copper and 79ppm molybdenite from 426m, including 2m @ 0.33g/t gold, 0.23%
copper and 78ppm molybdenite from 426m.
A key advancement for the Trundle Park prospect from TRDD010 and TRDD015 has been confirmation
of multiple mineralising phases of the targeted intrusion. Given the mineral tenor intersected in the
nearer surface skarn, the intrusions intersected in TRDD010 and TRDD015 are not expected to be the
main causative source but provide support for the team’s exploration concepts and model, and
vectors for follow up drilling to the north, west and south.
Subsequent to the year end, Kincora reported significant gold-bearing intervals at Trundle Park
including assay results for hole TRDD022, which returned significant broad mineralised intervals,
strongly indicating proximity to the core of a large porphyry intrusive system and providing vectors for
recently commenced follow-up drilling. TRDD022 intersected 162m at 0.24g/t gold and 0.04% copper
from 670m, including 46m at 0.54g/t gold and 0.08% copper from 684m, and 18m at 0.75g/t gold and
0.09% copper from 712m.
TRDD026, the follow up scissor hole to TRDD022 was also drilled and intersected broad zones of
porphyry-style intrusions, with assay results currently pending.
The Mordialloc Prospect
Assay results reported on 2 December 2020 have reinforced prior observed potential for close
proximity to a potassic and higher-grade core of the targeted system, with multiple significant
intervals of anomalous copper, gold and molybdenum.
TRDD006 has returned the broadest anomalous zones to date at the Mordialloc target including:
•
•
•
•
42m @ 0.07% copper, 0.04g/t gold and 7.43ppm molybdenum from 62m, hosted by intermixed
volcanoclastic rocks comprising andesite lava and greywacke;
306m @ 0.10% copper, 0.06g/t gold and 19.4ppm molybdenum from 144m, associated with a
coarse plagioclase phyric diorite intrusion;
98m @ 0.11% copper, 0.07g/t gold and 17.6ppm molybdenum from 466m, occurring in
intermixed volcanoclastic rocks comprising andesite lava and greywacke; and,
2m @ 0.98g/t gold, 0.02% copper and 2ppm molybdenum from 880m, also hosted by intermixed
volcanoclastic rocks comprising andesite lava and greywacke.
xix
On 22 April 2021, Kincora advised that two rigs are now operational at the Mordialloc prospect,
specifically at the Mordialloc, Mordialloc North East and Mordialloc South West targets (the latter
previously known as Yarrabandi).
Results for TRDD019 and TRDD020 at the Mordialloc prospect as reported on 8 July 2021 include
TRDD019 with 20m @ 0.20 g/t gold and 0.07% copper from 88m, including 8m 0.32 and 0.07% copper
from 92m, hosted by quartz-monzonite and TRDD020 with 68m @ 0.11% copper, from 82m hosted
by volcanoclastic breccia.
Fairholme Project
On 8 July 2021, Kincora announced that permits and land access agreement are to hand with advanced
preparations in progress to commence drilling this month at the Fairholme project for a first phase
6,000m drilling program. Initial diamond drilling will focus on the Gateway prospect, following up
multiple shallow to moderate depth broad, with localized high grade gold and copper intervals, within
a north trending 2km long by 300m wide copper-gold-zinc anomaly (>500ppm, >0.1g/t Au & >900ppm
Zn).
Byro East & Orange East Projects
During the year, RareX made the strategic decision to spin-out and IPO its non-core Byro East Nickel-
Copper-PGE Project (Byro East) and Orange East Gold Project (Orange East) into a new ASX-listed
company, Cosmos Exploraton.
RareX and Cosmos signed a Demerger Implementation Deed (DID) on 23 August 2021 to give effect to
the proposed spin-out. Pursuant to the DID, RareX will transfer to Cosmos 100% of its legal and
beneficial interest in the Byro East tenements and 75% of its legal and beneficial interest in the Orange
East tenements (Sale Assets), with RareX retaining a 25% interest to be free-carried until completion
of a Bankable Feasibility Study.
Cosmos will issue 10 million fully-paid ordinary shares and pay $80,000 in cash to RareX (as
reimbursement of expenditure incurred by RareX) in consideration for the Sale Assets.
In conjunction with the spin-out, Cosmos will make an application for admission to the Official List of
the ASX and seek to raise no less than $5 million via an Initial Public Offering of 25 million shares at
an issue price of $0.20 (Cosmos IPO). Existing RareX shareholders were invited to participate in the
Cosmos IPO on a priority basis.
RareX will retain exposure to the upside potential of the Sale Assets through its direct equity holding,
allowing it to focus on the development and exploration of its flagship Cummins Range Project.
xx
Figure 6 – Project locations, Australia
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).
Subsequent to the year end, 100% ownership of the Hong Kong Gold Project returned to RareX.
Weld North Rare Earths Project
Drilling was completed before Christmas 2020 for a total of 23 air-core holes and assay results have
now been received. The results indicate that the circular magnetic anomaly is a late-stage granite.
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 2021 financial year. The Company is currently completing a divestment of this asset.
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 2021 financial year and to date.
xxi
Environmental, Social and Governance Framework
In September 2021, RareX announced the establishment of its Environmental, Social & Governance
(ESG) Framework as part of its sustainable ESG-integrated project development approach.
The Company’s ESG Framework adopts the World Economic Forum (WEF) Framework guidelines to
support its journey from exploration to operational mining activities to ensure that it has a leading
approach in place from inception as it advances its flagship Cummins Range Rare Earths Project in the
Kimberley region of WA towards the next stage of development.
RareX believes it has an important role to play in sustainably supplying critical and rare earth metals
that are crucial for the decarbonisation of the global economy, such as electric vehicles and wind
turbines, as well as advanced technical applications for telecommunications and military purposes as
part of sustainable supply chains.
The RareX ESG Framework will help to ensure that it can develop Cummins Range in a responsible and
balanced manner, with due regard for safety, corporate governance, the environment, Indigenous
relationships, community and stakeholder engagement and other critical elements of the ESG matrix.
xxii
Mineral Resources Statement
The following information is provided in accordance with Listing Rule 5.21 and as at 30 June 2021.
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 as at 30 June 2020 (estimated in October 2019) and
as at 30 June 2021 (no change) for the Cummins Range Project, Western Australia.
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 Statements
The exploration results for Cummins Range in this report were reported by the Company in accordance with
listing rule 5.7 on 15 September 2019, 30 September 2020, 17 November 2020, 18 October 2020, 27 October
2020, 17 December 2020, 22 April 2021 and 8 July 2021. The Company confirms it is not aware of any new
information or data that materially affects the information included in the previous announcements.
The mineral resource estimate in this report were reported by the Company in accordance with listing rule 5.8
on 15 October 2019 and updated on 26 May 2020 (resource at 30 June 2020 and 30 June 2021), and 19 July 2021
(current resource). The Company confirms it is not aware of any new information or data that materially affects
the information included in the previous announcements and that all material assumptions and technical
parameters underpinning the estimates in the previous announcement continue to apply and have not
materially changed.
The exploration results for NSW Gold-Copper Projects as set out in this report were reported by Kincora Copper
in accordance with listing rule 5.7 on 6 July 2020, 24 July 2020, 7 September 2020, 2 December 2020, 21
December 2020, 21 January 2021, 22 April 2021 and 8 July 2021. The Company confirms it is not aware of any
new information or data that materially affects the information included in the previous announcements.
Corporate Governance
RareX Limited’s Corporate Governance Statement for FY2021 is available on the Company’s
website www.rarex.com.au
xxiii
Financial Statements
FY2021
1
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ REPORT
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 2021.
1.
Directors
The names and details of the Company’s Directors in office at any time during the year to 30 June 2021 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 multiple junior and mid-tier mining and
exploration companies. Mr Robinson holds a Bachelor of Commerce from the University of Western Australia majoring in
Corporate Finance, Investment Finance and Marketing. He is also currently a director of Cosmos Exploration Limited and
Churchill Strategic Investments Group.
Mr Shaun Hardcastle, LLB, BA
Non-Executive Director – Appointed 1 December 2017
Mr Hardcastle has over 15 years’ experience as a corporate 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
IPOs, capital raisings, joint ventures, corporate restructuring, project finance 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 Cygnus Gold Limited (ASX: CY5). Mr Hardcastle was also previously non-
executive director of Schrole Group Ltd (ASX:SCL); 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.
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 Caprice Resources
Limited, Carbine Resources Limited, Aston Minerals Limited, Hawkstone Mining Limited, Riversgold Ltd and African Gold
Limited. Ms Malone is a non-executive director of Carbine Resources Limited and Peak Minerals Ltd.
3.
Principal Activities
The principal activities during the year of the entities within the consolidated entity were mineral exploration.
2
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
4.
Review of financial performance
DIRECTORS’ REPORT
The net consolidated loss from continuing operations for the year ended 30 June 2021, after income tax, amounted to
$6,261,175 (2020: $6,687,791).
During the year ended 30 June 2021, total expenses amounted to $6,920,377 (2020: $9,330,344). Unrestricted cash and cash
equivalents amounted to $4,477,985 as at 30 June 2021 (30 June 2020: $3,425,058).
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:
completed a 6,146m Reverse Circulation drilling program at the Cummins Range Rare Earths Project which returned
spectacular wide, high-grade intercepts;
completed a drilling program at Weld North Rare Earths Project;
completed a share placement which raised $3m before costs;
acquired 24,779,658 shares in Canada Rare Earth Corp from Talaxis Group Holding for CAD991,186;
subscribed for 3,500,000 shares at A$0.20 per share as part of Kincora Copper Ltd’s A$10 million capital raising and
Initial Public Offering of 50 million Chess Depository Units on the ASX;
commenced activities to spin-out of its non-core Byro East Nickel-Copper-PGE Project and Orange East Gold Project,
respectively located in Western Australia and New South Wales, subject to shareholder and other requisite
approvals. The assets will be spun out into RareX’s 100% owned subsidiary, Cosmos Exploration Ltd;
completed a $2.75 million (before costs) placement comprising 25 million new fully-paid ordinary shares at A$0.11
per share to prominent resource investor Mr Simon Lee AO via a share placement;
reported a substantial resource upgrade for its 100%-owned Cummins Range Rare Earths Project; and
completed over 3,000m of reverse circulation drilling at the Cummins Range Rare Earths Project.
7.
Likely Developments and Expected Results
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 2021, other than as
follows:
Completion of the following share placements:
-
-
$3,000,000 (before costs) via the issue of 30,000,000 ordinary shares at an issue price of $0.10 per share;
and
$2,750,000 (before costs) via the issue of 25,000,000 ordinary shares at an issue price of $0.11 per share.
9.
Significant Events After Balance Date
Subsequent to 30 June 2021, the Company:
On 28 September 2021, the Company released the prospectus for Cosmos Exploration Ltd in relation to the spin out
of its non-core Byro East Nickel-Copper-PGE Project and Orange East Gold Project, respectively located in Western
Australia and New South Wales, subject to shareholder and other requisite approvals. The prospectus is for the
offer of 25,000,000 shares in Cosmos Exploration Ltd at an issue price of $0.20 each to raise $5,000,000 (before
costs).
3
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
10.
Indemnity and Insurance for Group Officers and Auditor
DIRECTORS’ REPORT
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
2021
11.
Remuneration Report – Audited
DIRECTORS’ REPORT
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 2021, no options (2020: 33,000,000) and 30,000,000
performance rights (2020: nil) 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 Black Scholes 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
2021
11.
Remuneration Report – Audited (continued)
DIRECTORS’ REPORT
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 2021:
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-21
30-Jun-20
30-Jun-19
30-Jun-18
30-Jun-17
$709,202
($6,211,175)
($6,211,175)
7.2 cents
(1.53 cents)
(1.53 cents)
$2,642,553
($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
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
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
Key Management Personnel Remuneration:
Remuneration for the year ended 30 June 2021
Short-term benefits
Salary or Fees
Paid or
Payable
$
Consulting
Fees
$
Non
Monetary
Benefits
$
Long Term
benefits
Long Service
Leave
Post-
employment
benefits
Superannuation
Long term
incentives
Share-based
payments
Total
$
$
$
$
Key
Management
Person
J Young
J Robinson
S Hardcastle
C Henry
O Malone
50,417
225,833
43,915
42,237
40,500
402,902
-
-
-
-
-
-
-
580
-
-
-
580
Remuneration for the year ended 30 June 2020
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
$
Long Term
benefits
Long Service
Leave
$
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.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,030
-
4,013
-
24,043
10,649
35,494
10,649
10,649
21,160
88,601
Post-
employment
benefits
Superannuation
Long term
incentives
Share-based
payments
61,066
281,937
54,564
56,899
61,660
516,126
Total
$
$
$
-
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
7
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
11.
Remuneration Report – Audited (continued)
DIRECTORS’ REPORT
Shares
During the year, no ordinary shares were issued in relation to the settlement of outstanding invoices for fees owed to key
management personnel (2020: 3,300,000). The deemed issue price of the shares issued in 2020 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
($)
51,247
42,706
51,247
145,200
1 S Patrizi resigned as a director on 18 February 2020.
2 The fair value adjustment has been included as a share-based payment in the remuneration table for the year ended 30 June 2020.
Options
No options were issued to directors and key management personnel as part of their remuneration during the year ended 30
June 2021 (2020: 33,000,000). No options were exercised or forfeited during the year by current Directors or key
management personnel. The option issued in 2020 were as follows:
Total fair value
of options
issued
($)
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 $0.20.
-
-
-
-
127,950
-
-
127,950
-
-
-
-
-
-
-
-
-
-
-
-
127,950
8
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
11.
Remuneration Report – Audited (continued)
DIRECTORS’ REPORT
Performance Rights
The following performance rights were issued to directors and key management personnel as part of their remuneration
during the year ended 30 June 2021 (2020: nil).
Director
Class
Grant date
No. of
performance
rights
Fair value per
performance
right
Total fair value of
performance
rights issued
E
F
G
E
F
G
E
F
G
E
F
G
E
F
G
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
5/2/2021
5/2/2021
5/2/2021
J Young
J Robinson
S Hardcastle
C Henry
O Malone
Total
($)
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.112400
0.106100
0.101100
1,500,000
1,500,000
1,500,000
4,500,000
5,000,000
5,000,000
5,000,000
15,000,000
1,500,000
1,500,000
1,500,000
4,500,000
1,500,000
1,500,000
1,500,000
4,500,000
500,000
500,000
500,000
1,500,000
30,000,000
($)
117,300
110,700
105,450
333,450
391,000
369,000
351,500
1,111,500
117,300
110,700
105,450
333,450
117,300
110,700
105,450
333,450
56,200
53,050
50,550
159,800
2,271,650
1 Performance rights are expensed on a straight-line basis over the vesting period.
462,000,000
Expense to
Statement of
Profit or Loss for
the year1
($)
3,746
3,535
3,368
10,649
12,486
11,784
11,224
35,494
3,746
3,535
3,368
10,649
3,746
3,535
3,368
10,649
7,442
7,024
6,694
21,160
88,601
9
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
11.
Remuneration Report – Audited (continued)
DIRECTORS’ REPORT
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.
No performance rights vested during the year (2020: 15,500,000 pre-consolidation). The remaining performance rights
(shown below on a post-consolidated basis) held by Directors and key management personnel will vest on meeting the
following performance conditions before the expiry date:
Class
Vesting Condition - vesting will occur:
Number
B
C
D
E
F
G
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
20 Day VWAP of $0.20 and 12 months continuous service within 3 years from the date of issue
10,000,000
20 Day VWAP of $0.25 and 18 months continuous service within 3 years from the date of issue
10,000,000
20 Day VWAP of $0.30 and 24 months continuous service within 3 years from the date of issue
10,000,000
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 2021
Held at 1 July
2020
Acquired
Disposed
Other
Director
J Young
J Robinson
S Hardcastle
C Henry
Company
Secretary
O Malone
397,000
8,550,000
1,708,823
-
2,607,000
750,000
400,000
1,557,000
580,588
11,236,411
-
5,314,000
-
-
-
-
-
-
Held at 30 June
2021 or date of
resignation
3,004,000
9,300,000
2,108,823
1,557,000
580,588
16,550,411
-
-
-
-
-
-
10
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
11.
Remuneration Report – Audited (continued)
(ii) SHARES – 30 June 2020
DIRECTORS’ REPORT
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.
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 2021
Held at 1 July
2020
Granted
Exercised
Expired/
Forfeited/
Other
Held at 30 June
2021 or date of
resignation
Director
J Young
J Robinson
S Hardcastle
C Henry
Company Secretary
O Malone
6,000,000
17,750,000
3,800,000
6,000,000
-
33,550,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(800,000)
-
6,000,000
17,750,000
3,000,000
6,000,000
-
(800,000)
-
32,750,000
11
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
(iv) 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.
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 2021
Held at 1 July
2020
Granted
Converted
Expired/
Forfeited/
Other
Held at 30 June
2021
Vested
Director
J Young
J Robinson
S Hardcastle
C Henry
Company Secretary
O Malone
-
-
750,000
-
4,500,000
15,000,000
4,500,000
4,500,000
-
750,000
1,500,000
30,000,000
-
-
-
-
-
-
-
-
-
-
-
-
4,500,000
15,000,000
5,250,000
4,500,000
1,500,000
30,750,000
-
-
-
-
-
-
12
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ REPORT
11.
Remuneration Report – Audited (continued)
(vi) 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
Vested
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.
Details of share-based payments in existence during the year ended 30 June 2021 are disclosed in this Directors’ Report and
Notes 21, 29 and 30 to the Annual Financial Statements.
Contracts with Directors and Key Management Personnel
A summary of contracts entered into with Executives is set out below:
Executive
Term of Agreement
Base salary per annum including any
superannuation*
(Non-performance based)
Termination Conditions
Elements of
performance issued during the year
remuneration
related
Mr Jeremy Robinson
Ongoing until terminated in accordance with the agreement
$293,568 (ie: $270,000 plus statutory superannuation)
3 months notice by either party
5,000,000 performance rights expiring 26 May 2024 and 20 day VWAP of
to
$0.20 and 12 months continuous service.
5,000,000 performance rights expiring 26 May 2024 and 20 day VWAP of
$0.25 and 18 months continuous service.
5,000,000 performance rights expiring 26 May 2024 and 20 day VWAP of
$0.30 and 24 months continuous service.
* Base salary as reviewed during the year and is the position as at 30 June 2021; 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 (2020: nil).
13.
Auditor’s Independence Declaration
The auditor’s independence declaration for the reporting period ended 30 June 2021 has been received and can be found on
page 16.
13
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ REPORT
14.
Share Options
At the date of this report 97,250,000 options (2020: 93,900,000) to acquire ordinary shares in RareX Limited were on issue.
Type of 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
Unquoted options
Unquoted options
Unquoted options
Expiry date
Exercise price
Number
27/9/21
27/9/22
$0.025
$0.025
16,250,000
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
30/11/23
31/12/23
31/12/23
$0.085
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.0607
$0.15
$0.15
$0.15
28,500,000
1,000,000
1,000,000
2,000,000
1,500,000
1,500,000
1,500,000
4,000,000
4,000,000
4,000,000
10,000,000
5,000,000
2,000,000
Share-based payments and options issued to directors, consultants and eligible employees, are disclosed in this Directors’
Report and Notes 21, 29 and 30 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
2021 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
4
4
4
4
16.
Risk Management
Directors’
Meetings
Attended
4
4
4
4
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
2021
17.
Environmental Regulations and Performance
DIRECTORS’ REPORT
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 30th September 2021
15
RareX Limited ABN: 65 105 578 756 and controlled entities
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
2021
2021
2020
$
Notes
4(a)
5
4(b)
4(c)
8(a)
8(b)
30
7
6
15
Income
Other income
Sale of tenements
Gain on sale of investments
Fair value increase in financial assets
Total income
Expenses
Administration expenses
Consultants and management expenses
Depreciation and amortisation
Financial costs
Legal expenses
Share-based payment expense
Exploration expenses
Acquisition of tenements
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
56,726
-
382,976
219,500
48,378
1,301,466
6,900
1,285,809
659,202
2,642,553
(797,441)
(728,715)
(48,863)
(7,664)
(38,010)
(1,671,448)
(2,291,409)
(1,335,613)
(1,203)
(11)
(489,647)
(256,181)
-
-
(48,371)
(1,761,028)
(677,849)
(6,095,382)
(1,684)
(202)
(6,920,377)
(9,330,344)
(6,261,175)
(6,687,791)
-
-
(6,261,175)
(6,687,791)
Foreign currency translation reserve
1,059
(455)
Total comprehensive loss attributable to owners of the parent
(6,260,116)
(6,688,246)
Loss per share
- basic and diluted
10
(1.54) cents
(2.48) cents
The accompanying notes form part of these financial statements.
17
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 30 JUNE 2021
Consolidated
Notes
2021
$
2020
$
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-current Assets
Exploration and evaluation costs
Financial assets at fair value
Plant and equipment
Right of use asset
Total Non-current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Lease liability
Total Current Liabilities
Non-current Liabilities
Lease liability
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
The accompanying notes form part of these financial statements.
11
12
13
15
16
17
18
19
19
20
21
4,477,985
227,303
3,425,058
152,116
4,705,288
3,577,174
505,032
3,657,619
114,431
380,630
1,656,046
2,388,942
66,800
-
4,657,712
4,111,788
9,363,000
7,688,962
668,948
73,226
71,220
813,394
314,060
314,060
1,127,454
8,235,546
1,318,230
20,550
-
1,338,780
-
-
1,338,780
6,350,182
36,189,630
6,419,832
(34,373,916)
8,235,546
29,605,193
4,857,730
(28,112,741)
6,350,182
18
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
Notes
Contributed
equity
Options reserve
Share- based
payment
reserve
At 1 July 2020
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
At 30 June 2021
20
20
20
30
14
$
29,605,193
-
-
6,510,150
6,949
(543,067)
110,405
500,000
$
4,775,912
-
$
83,840
-
-
-
-
-
1,387,800
-
-
-
-
-
173,243
-
Foreign
currency
translation
reserve
$
Accumulated
losses
Total equity
$
(2,022)
1,059
(28,112,741)
-
$
6,350,182
1,059
-
-
-
-
-
-
(6,261,175)
(6,261,175)
-
-
-
-
-
6,510,150
6,949
(543,067)
1,671,448
500,000
36,189,630
6,163,712
257,083
(963)
(34,373,916)
8,235,546
20,405,948
-
20
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
The accompanying notes form part of these financial statements.
20
30
14
21
13
20
-
4,520,000
519,313
(313,702)
-
3,660,000
813,634
-
29,605,193
2,294,087
-
83,840
-
(1,567)
(455)
(21,424,950)
-
1,357,358
(455)
-
-
-
-
1,383,965
1,097,250
-
610
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,687,791)
(6,687,791)
-
-
-
-
-
-
-
4,520,000
519,313
(313,702)
1,383,965
4,757,250
813,634
610
4,775,912
83,840
(2,022)
(28,112,741)
6,350,182
19
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS USED IN OPERATING ACTIVITIES
Payments to suppliers and employees
Interest received
Interest paid
Other income
NET CASH FLOWS USED IN OPERATING ACTIVITIES
CASH FLOWS (USED IN)/FROM INVESTING ACTIVITIES
Payments for acquisition of investments
Payments for property, plant and equipment
Payments for acquisition of tenements
Proceeds from disposal of tenements
Proceeds from sale of investments
Payment of security deposits
Cash acquired on acquisition of subsidiary
NET CASH FLOWS (USED IN)/FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue
Proceeds from exercise of options
Proceeds from issue of options
Share issue transaction costs
Payment of finance lease liability
NET CASH FLOWS FROM FINANCING ACTIVITIES
Consolidated
Notes
2021
$
2020
$
22
15
15
20
20
(3,472,147)
9,841
(7,664)
48,305
(3,421,665)
(1,757,309)
(104,353)
(664,936)
-
1,091,107
(26,942)
-
(1,462,433)
5,950,000
560,150
-
(552,234)
(20,891)
5,937,025
(1,395,829)
13,437
-
33,506
(1,348,886)
-
(33,400)
(525,000)
198,333
490,255
-
339
130,527
4,520,000
-
610
(304,534)
-
4,216,076
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,052,927
2,997,717
Cash and cash equivalents at beginning of year
Effect of movement in exchange rate
3,425,058
-
427,318
23
CASH AND CASH EQUIVALENTS AT END OF YEAR
11
4,477,985
3,425,058
The accompanying notes form part of these financial statements.
20
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
1.
CORPORATE INFORMATION
NOTES TO ACCOUNTS
The financial statements of RareX Limited (the Company or the Group) for the year ended 30 June 2021 were
authorised for issue in accordance with a resolution of the directors on 30th September 2021. 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 2021, the Group had working capital of $3,891,894 (2020: $2,188,394) and returned a loss
attributable to owners of $6,261,175 (2020: $6,687,791). 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 material 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
2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTES TO ACCOUNTS
The adoption of the new Conceptual Framework for Financial Reporting from 1 July 2020 has not led to any changes
in accounting or disclosure for the Group, but the new Conceptual Framework may be referred to if accounting
matters arise that are not addressed by accounting standards.
The adoption of the new definition of Material included in AASB 2018-7 Amendments to Australian Accounting
Standards – Definition of Material from 1 July 2020 provides a new definition of material, which now extends
materiality consideration to obscuration and clarifies that materiality now depends on the nature or magnitude of
information.
Future effects of the implementation of these standards will depend on future details.
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 2021. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
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
2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTES TO ACCOUNTS
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
2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTES TO ACCOUNTS
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 9 Financial Instruments 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
2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTES TO ACCOUNTS
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 16.
25
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTES TO ACCOUNTS
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)
Right of use assets
A right of use asset is recognised at the commencement date of a lease. The right of use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right of use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right of use assets are
subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right of use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
Consolidated Statement of Profit or Loss and Other Comprehensive Income as incurred.
(m)
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.
(n)
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.
26
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
(o)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease
payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend
on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase
option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties.
The variable lease payments that do not depend on an index or a rate are expensed in the period in which they
are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
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.
(p)
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.
27
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
(q)
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.
(r)
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”).
28
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
2.
(s)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
29
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
2.
(t)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
(u)
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.
An exploration and evaluation asset can only be recognised in relation to an area of interest if the following
conditions are satisfied:
a)
b)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
(i)
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.
(ii)
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.
(v)
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’.
30
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
3.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the 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 30.
(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.
INCOME
(a) Other Income
Interest received
Australian Government cash flow boost
(b) Gain on sale of investments
Gain on sale of 3,500,000 Kincora Copper Ltd (ASX: KCC) shares
Gain on sale of 200,000 Canada Rare Earth Corp (TSXV: LL.V) shares
Gain on sale of nil (2020: 1,687,113) Pacton Gold Inc shares
Loss on sale of nil (2020: 7,000,000) Cadence Minerals PLC shares
(c) Fair value increase/(decrease) in financial assets
Shares in Kincora Copper Ltd (TSXV: KCC.V)
Shares in Canada Rare Earth Corp (TSXV: LL.V)
Consolidated
2021
$
2020
$
8,421
48,305
56,726
373,879
9,097
-
-
382,976
14,872
33,506
48,378
-
-
9,640
(2,740)
6,900
(1,105,405)
1,324,905
219,500
1,285,809
-
1,285,809
31
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
5.
SALE OF TENEMENTS
Sale of 65% interest in NSW Tenements
Consolidated
2021
$
-
-
2020
$
1,301,466
1,301,466
(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
6.
ACQUISITION OF TENEMENTS
$
198,333
1,103,133
1,301,466
-
1,301,466
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
Consideration – cash
Consideration – fair value of RareX Ltd shares issued
Exploration asset - Cummins Range Pty Ltd (Note 14)
Stamp duty
7.
EXPLORATION EXPENSES
Consolidated
2021
$
-
500,000
500,000
-
335,613
1,335,613
2020
$
50,000
500,000
813,634
4,731,748
-
6,095,382
During the year, the Directors elected to expense the following costs in relation to the exploration activities of the
Group to the Consolidated Statement of Profit or Loss and Other Comprehensive Income:
Balance at the beginning of the year
Exploration expenditure incurred
Exploration expenditure expensed
Balance at the end of the year
Consolidated
2021
$
-
2,291,409
(2,291,409)
-
2020
$
-
677,849
(677,849)
-
The Directors have elected to expense exploration expenditure for all areas of interest of the Group (Note 2(u)).
32
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
8.
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
Depreciation of motor vehicles
Depreciation of right of use assets
Consolidated
2021
$
2020
$
235,522
225,833
136,569
408,381
40,500
(318,090)
728,715
15,663
7,659
25,541
48,863
26,269
149,423
83,189
148,719
30,000
(181,419)
256,181
-
-
-
-
33
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
9.
INCOME TAX
Consolidated
2021
$
2020
$
(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%
(2020: 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
(d)
Current tax assets and liabilities
Current tax liability
(e)
Recognised deferred tax assets and liabilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,261,175)
(6,687,791)
(1,721,823)
(1,839,143)
1,312
(13,284)
459,648
(60,363)
367,294
(56,025)
1,023,241
-
3,334
(9,214)
484,283
(353,597)
1,871,751
(39,099)
(118,315)
-
Consolidated
2021
$
2020
$
-
-
The Group has not recognised any deferred tax assets or liabilities during the year (2020: Nil).
34
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
9.
INCOME TAX (continued)
(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 $22,408,167 (2020: $17,297,867) 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 (2020: nil).
(g) Unrecognised temporary differences
As at 30 June 2021, 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 $131,018 (2020: $63,411).
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.
10.
EARNINGS PER SHARE
The following reflects the income used in the basic and diluted earnings per share computations.
(a)
(b)
Earnings used in calculating earnings per share
For basic and diluted earnings per share
Loss from continuing operations after tax for the year
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
11.
CASH AND CASH EQUIVALENTS
Cash at bank
Consolidated
2021
$
2020
$
(6,261,175)
(6,687,791)
406,315,446
270,070,160
406,315,446
270,070,160
(1.54 cents)
(1.54 cents)
(2.48 cents)
(2.48 cents)
Consolidated
2021
$
4,477,985
4,477,985
2020
$
3,425,058
3,425,058
35
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
12.
TRADE AND OTHER RECEIVABLES
NOTES TO ACCOUNTS
Sundry debtors
Security and tenement deposits
Accrued income
GST input tax refundable
Prepayments
Consolidated
2021
$
2020
$
8,968
124,442
214
71,742
21,937
227,303
8,478
90,000
1,634
38,014
13,990
152,116
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.
13.
EXPLORATION AND EVALUATION ASSETS
Cummins Range Rare Earths Project
Opening balance
Tenement acquisition costs
Acquisition of Cummins Range Pty Ltd (refer Note 14)
Stamp duty on acquisition of tenement
Less: Acquisition of costs expensed
Hong Kong Gold Project
Opening balance
Movement for the year
Moroccan Cobalt Project
Opening balance
Capitalised exploration costs
Less: Impairment
Notes
(i)
(ii)
Consolidated
2021
$
2020
$
1,151,014
-
-
184,599
(1,335,613)
-
505,032
-
505,032
-
-
-
505,032
-
2,363,634
4,731,748
151,014
(6,095,382)
1,151,014
505,032
-
505,032
-
-
-
-
1,656,046
(i) During the period year ended 30 June 2020, 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 26.
(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
2021
NOTES TO ACCOUNTS
14. 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 pursuant to AASB
116 Property Plant and Equipment 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
2021
15. FINANCIAL ASSETS AT FAIR VALUE
NOTES TO ACCOUNTS
Financial assets at fair value through profit or loss
Non-Current
Shares in listed corporations, at fair value
- Kincora Copper Ltd (TSXV: KCC.V)(4,983,333 shares2; 2020: 14,950,000)1
- Canada Rare Earth Corp (TSXV: LL.V) (24,579,658 shares; 2020: nil shares)3
shares)1
Investment in Atlas Managem Sarl (20% interest)
Less: Impairment
Impairment expense in Statement of Profit or Loss and Other Comprehensive Income
Impairment of Moroccan VAT receivable
Consolidated
2021
$
2020
$
1,283,537
2,374,082
507,084
(507,084)
3,657,619
2,388,942
-
507,084
(507,084)
2,388,942
11
11
202
202
1 The market value of the shares in Kincora Copper Ltd as at 30 June 2021 is based on a closing price of Kincora Copper Ltd shares
of CAD0.24 (2020: CAD0.15 pre-consolidation) and an exchange rate of 1AUD = 0.9318CAD (2020: 0.9387CAD).
2 During the year, Kincora Copper Ltd consolidated its share capital on a 1 for 3 basis. Therefore, the 14,950,000 shares held at
30 June 2020 were consolidated into 4,983,333 post-consolidation shares).
3 The market value of the shares in Canada Rare Earth Corp as at 30 June 2021 is based on a closing price of Canada Rare Earth
Corp shares of CAD0.09 and an exchange rate of 1AUD = 0.9318CAD.
During the year, cash outflows in relation to financial assets acquired were:
3,500,000 shares in Kincora Copper Ltd (ASX: KCC) shares
24,779,658 shares in Canada Rare Earth Corp (TSXV: LL.V)
Payments for acquisition of investments
During the year, cash inflows in relation to financial assets disposed of were:
3,500,000 shares in Kincora Copper Ltd (ASX: KCC) shares
200,000 shares in Canada Rare Earth Corp (TSXV: LL.V)
Nil (2020: 1,687,113) shares in Pacton Gold Inc
Nil (2020: 7,000,000) shares in Cadence Minerals PLC
Receipt of settlement funds from Pacton Gold Inc shares sold in 2018/19 year
Proceeds from sale of investments
Consolidated
2021
$
2020
$
700,000
1,057,309
1,757,309
1,073,879
17,228
-
-
-
1,091,107
-
-
-
-
303,465
11,172
175,618
490,254
38
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
16.
PLANT AND EQUIPMENT
Consolidated
2021
$
2020
$
Original Cost
Computer Equipment
At 1 July
Additions
Disposals
At 30 June
Plant and Equipment
At 1 July
Additions
Disposals
At 30 June
Motor Vehicles
At 1 July
Additions
Disposals
At 30 June
Total Property, Plant and Equipment
At 1 July
Additions
Disposals
At 30 June
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
Motor Vehicles
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
16,628
10,964
-
27,592
66,800
-
-
66,800
-
59,989
-
66,800
83,428
70,953
-
154,381
16,628
2,303
-
18,931
-
13,360
-
13,360
-
7,659
-
7,659
16,628
23,322
-
39,950
154,381
(39,950)
114,431
16,628
-
-
16,628
-
66,800
-
66,800
-
-
-
-
16,628
66,800
-
83,428
16,628
-
-
16,628
-
(iii)-
-
-
-
-
-
-
16,628
-
-
16,628
83,428
(16,628)
66,800
39
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
PLANT AND EQUIPMENT (continued)
16.
(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.
17. RIGHT OF USE ASSET
Land and buildings - right-of-use
Opening balance
Additions
Depreciation
Consolidated
2021
$
2020
$
-
406,171
(25,541)
380,630
-
-
-
-
Additions to the right-of-use assets during the year were $406,171. The consolidated entity leases land and
buildings for its offices and warehouse under agreements of between four to five years with options to extend. The
leases have various escalation clauses. On renewal, the terms of the leases are renegotiated.
18.
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
2021
$
269,394
228,877
-
170,677
668,948
2020
$
124,355
42,861
1,000,000
151,014
1,318,230
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.
40
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
19.
LEASE LIABILITIES
Current liability
Non-current liability
Opening balance
Initial recognition of new leases
Interest
Principal
Consolidated
2020
$
2021
$
71,220
314,060
385,280
Consolidated
2021
$
2020
$
-
406,171
6,939
(27,830)
385,280
-
-
-
-
-
-
-
-
The consolidated entity leases land and buildings for its offices and warehouse under agreements of between four
to five years with options to extend. The leases have various escalation clauses. On renewal, the terms of the leases
are renegotiated.
41
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
20.
ISSUED CAPITAL
Ordinary shares
Consolidated
2021
$
2020
$
36,189,630
29,605,193
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:
-
to
issued
issued via placement
Shares issued on exercise of options
Fair value of shares issued for part
consideration
for acquisition of
Cummins Range Rare Earths Project
Issue of shares to Directors
Shares issued via placement
Shares
Directors
Fair value of equity settled transaction
Shares issued via placement
Fair value of shares
consultant
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
settlement of unpaid director fees
Fair value of shares
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
issued
issued
for
Consolidated
2021
2020
No. of shares
$
No. of shares
$
354,652,568
13,150,000
29,605,193 3,504,387,6751
20,405,948
560,150
7,462,687
500,000
4,000,000
29,100,000
200,000
2,910,000
900,000
90,000
277,949
25,000,000
33,354
2,750,000
800,000
84,000
15,500,0001
(3,379,092,015)
-
-
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
-
354,652,568
2,100,000
(313,702)
29,605,193
42
Less: Transactions costs on share issues
As at 30 June
-
435,343,204
(543,067)
36,189,630
1 Pre-consolidation basis.
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
20.
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 2021 and no dividends are expected to be paid in the 2021/22
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.
21.
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
2021
$
6,163,712
257,083
(963)
6,419,832
2020
$
4,775,912
83,840
(2,022)
4,857,730
4,775,912
-
1,387,800
6,163,712
83,840
173,243
257,083
(2,022)
1,059
(963)
2,294,087
610
2,481,215
4,775,912
83,840
-
83,840
(1,567)
(455)
(2,022)
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.
43
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
21.
RESERVES (CONTINUED)
(c) Movement in options
Expiry date of
options
Notes
Exercise
price
On issue at
1 July 2020
Granted
Exercised
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
30/11/23
31/12/23
31/12/23
(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)
$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
$0.1500
$0.1500
$0.1500
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
5,000,000
2,000,000
17,000,000
-
-
(400,000)
(8,750,000)
-
-
-
(2,000,000)
(1,000,000)
(1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(13,150,000)
Cancelled/
expired/
forfeited
(800,000)
(1,200,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,000,000)
On issue at
30 June
2021
-
-
-
16,250,000
5,000,000
5,000,000
5,000,000
16,000,000
1,000,000
1,000,000
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
10,000,000
5,000,000
2,000,000
97,250,000
44
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
21.
RESERVES (CONTINUED)
NOTES TO ACCOUNTS
All option granted have been valued according to the Black Scholes 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)
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.
Issued to a broker in November 2020.
Issued to a corporate advisor in February 2021.
Issued to a consultant in February 2021.
(d) Movement in performance rights
Note
Exercise
price
On issue at
1 July 2020
Class B
Class C
Class D
Class E
Class F
Class G
(i)
(i)
(i)
(ii)
(ii)
(ii)
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
250,000
250,000
250,000
-
-
-
750,000
Granted
during the
year
-
-
-
12,000,000
12,000,000
12,000,000
36,000,000
Vested during
the year
Cancelled/
expired/
forfeited
-
-
-
-
-
-
-
-
-
-
-
-
-
-
On issue at
30 June
2021
250,000
250,000
250,000
12,000,000
12,000,000
12,000,000
36,750,000
(i)
(ii)
Performance rights issued to Directors.
Performance rights issued to Directors, key management personnel and other employees.
Class Vesting Condition - vesting will occur:
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
20 Day VWAP of $0.20 and 12 months continuous service within 3 years from the date of issue
20 Day VWAP of $0.25 and 18 months continuous service within 3 years from the date of issue
20 Day VWAP of $0.30 and 24 months continuous service within 3 years from the date of issue
B
C
D
E
F
G
Number on
issue at 30
June 2021
250,000
250,000
250,000
12,000,000
12,000,000
12,000,000
45
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
22.
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
(6,261,175)
(6,687,791)
Consolidated
2021
$
2020
$
Adjustments for:
Depreciation
Impairment
Gain on disposal of investments
Gain on sale of tenements
Equity settled share-based payments
Equity settled payments
Unrealised gain on investments
Acquisition of tenements expense
Foreign exchange loss/(gain)
Changes in assets and liabilities
Movement in trade and other receivables
Movement in other assets
Movement in trade and other payables
Movement in provisions
Net cash flow used in operating activities
48,863
11
(382,976)
-
1,671,448
6,949
(219,500)
1,335,613
1,022
(25,458)
(22,799)
373,660
52,677
(3,421,665)
-
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)
23.
INTEREST IN JOINTLY CONTROLLED OPERATIONS
20.
As at 30 June 2021, the Group had the following significant interests in joint ventures:
(i)
(ii)
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. After 30
June 2021, Pacton returned its interest in E47/3566 to RareX and, accordingly, the joint venture has ceased
and RareX now owns 100% of this tenement.
46
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
24.
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 2021, the Group had the following segments:
Rare Earths
(Western Australia)
Gold/Nickel/Copper
(Western Australia)
Cobalt/Nickel
(Austria)
Cobalt
(Morocco)
Copper/Gold
(New South Wales)
Corporate
Operating Profit/(Loss)
Total Assets
Total Liabilities
30/6/2021
$
30/6/2020
$
30/6/2021
$
30/6/2020
$
30/6/2021
$
30/6/2020
$
(3,479,869)
(7,925,260)
28,652
1,158,544
(308,004)
(1,161,303)
(70,938)
-
505,032
505,032
(2,707)
(3,133)
(28,881)
(29,266)
(107,615)
(41,247)
-
890
-
-
458
-
-
-
-
-
-
-
(1,092)
-
(2,571,165)
1,311,115
(6,261,175)
(6,687,791)
8,828,426
9,363,000
6,024,928
(819,450)
(176,385)
7,688,962
(1,127,454)
(1,338,780)
25.
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
2021
$
2020
$
565,760
2,263,040
2,828,800
277,848
111,392
389,240
Included in overall commitments calculations are estimates of the Company’s expected commitments in respect
of its sole funded exploration licences. The above commitments for 2021 include a total of $1,870,000 of
commitments over the five year period which relate to the Byro East Nickel-Copper-PGE Project and Orange East
Gold Project which are proposed to be spun out into Cosmos Exploration Ltd. Following the spin out of these
projects, RareX’s expenditure commitments will reduce by $1,870,000 for the five year period.
All the exploration expenditure commitments are non-binding,
in respect of outstanding expenditure
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 23 for details of Jointly Controlled Operations.
47
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
25.
COMMITMENTS (continued)
(b) Lease Commitments
During the year, the Company entered into lease commitments which resulted in recognition of any right-of-use
asset, or associated lease liability. Please refer Note 17 and 19.
(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.
26.
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 2021.
48
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
27.
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:
Nature of
investment
Country of
incorporation
Australia
Australia
Ordinary shares
Ordinary shares
Name
Cosmos Exploration Ltd1
Cummins Range Pty Ltd
Geoinformatics
Exploration Tasmania Pty
Ltd
Great Northern Hydrogen
Pty Ltd1
Leogang Austria Pty Ltd
Ste Clancy Morocco Sarl
1 Incorporated as a 100% owned subsidiary of RareX on 22 March 2021
Ordinary shares
Ordinary shares
Australia
Morocco
Ordinary shares
Ordinary shares
Australia
Australia
% Equity interest
2020
2021
Investment $
2021
2020
100
100
-
100
1
4,782,250
-
4,782,250
100
100
100
100
100
-
100
100
1
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
2021
$
2020
$
-
-
31,288
623,948
Consolidated
2021
$
2020
$
Amounts owed in respect of related party transactions included in the trade creditors and accruals balance at
30 June 2021 and 30 June 2020 are as follows:
Director fees billed by John Young
Director fees billed by the Rod Dog Pty Ltd, a company controlled by
a director, Shaun Hardcastle
5,417
4,583
3,667
825
49
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
28.
SUBSEQUENT EVENTS
Subsequent to 30 June 2021:
On 28 September 2021, the Company released the prospectus for Cosmos Exploration Ltd in relation to the
spin out of its non-core Byro East Nickel-Copper-PGE Project and Orange East Gold Project, respectively
located in Western Australia and New South Wales, subject to shareholder and other requisite approvals.
The prospectus is for the offer of 25,000,000 shares in Cosmos Exploration Ltd at an issue price of $0.20 each
to raise $5,000,000 (before costs).
29.
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
Chairman (Non-Executive)
Director (Executive)
Director (Non-Executive)
Director (Non-Executive)
Company Secretary)
(b)
Compensation for Key Management Personnel
Short-term employee benefits
Non-monetary benefits
Post-employment benefits
Share-based payments
Total Compensation
Consolidated
2021
$
2020
$
402,902
580
24,043
88,601
516,126
251,807
-
25,279
561,750
838,836
50
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
30.
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
2020
$
2021
$
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
88,601
88,601
561,750
561,750
1,582,847
1,199,278
1,582,847
1,671,448
1,199,278
1,761,028
The weighted average remaining contractual life of the options on issue is 1.34 years (2020: 2.0 years).
(c)
Range of exercise price
The range of the exercise prices of the options on issue is $0.025 - $0.175 (2020: $0.025 - $0.175).
(d) Weighted average fair value
The fair value of the options issued as share-based payments during the year was $0.0816 per option (2020:
$0.0267 per option).
(e) Weighted average share price
The weighted average price per share in relation to shares issued during the year was $0.0883 (2020: $0.0445).
51
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
30.
SHARE-BASED PAYMENT EXPENSE (continued)
(f)
Option valuation
NOTES TO ACCOUNTS
During the year ended 30 June 2021, 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
Number of Options
Valuation per Option
Valuation
Total consideration paid by option holders
Broker Options
Corporate
Advisor Options
Consultant
Options
$0.12
$0.15
23/11/2020
30/112023
3
134.13%
0.11%
$0.125
$0.15
5/02/2021
21/12/2023
2.87
103.88%
0.11%
$0.125
$0.15
5/02/2021
21/12/2023
2.87
103.88%
0.11%
10,000,000
5,000,000
2,000,000
0.0874
874,000
-
0.0734
367,000
-
0.0734
146,800
-
Valuation less consideration paid
874,000
367,000
146,800
52
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
30.
SHARE-BASED PAYMENT EXPENSE (continued)
NOTES TO ACCOUNTS
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
53
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
30.
SHARE BASED PAYMENTS (continued)
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
100.00%
0.85%
N/a
$0.035
$0.0607
18/2/2020
22/12/2022
2.8
100.00%
0.72%
26.6%
$0.035
$0.0607
18/2/2020
22/12/2022
2.8
100.00%
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
5/3/2020
$0.055
$0.085
2/6/2020
$0.055
$0.0607
2/6/2020
$0.055
$0.0607
2/6/2020
$0.055
$0.0607
2/6/2020
11/10/2022
11/10/2022
22/12/2022
22/12/2022
22/12/2022
2.6
2.4
2.6
2.6
100.00%
128.61%
128.61%
128.61%
0.41%
N/a
0.26%
N/a
0.26%
38.5%
0.26%
31.2%
2.6
128.61%
0.26%
26.5%
$0.065
$0.085
24/6/2020
11/10/2022
2.3
132.20%
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
0.0417
291,900
-
291,900
54
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.
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
30.
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 2021 consists of the shares and options issued as follows:
Shares
Fair value adjustment for shares issued to supplier
Fair value of shares issued to supplier
Sub-Total Shares
Options
Broker Options
Corporate Advisor Options
Consultant Options
Sub-Total Options
Performance Rights (pro rata expense over vesting period)
Directors
Key Management Personnel
Employees
Sub-Total Performance Rights
Total Share Based Payments Expense
$
26,405
84,000
110,405
874,000
367,000
146,800
1,387,800
67,441
21,160
84,642
173,243
1,671,448
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:
55
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
30.
SHARE BASED PAYMENTS (continued)
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
56
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
30. SHARE BASED PAYMENTS (continued)
(g)
Performance rights valuation
During the year ended 30 June 2021, 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, key management personnel and
employees, 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.
Director
Class
Grant date
No. of
performance
rights
Fair value per
performance
right
Total fair value of
performance
rights issued
E
F
G
E
F
G
E
F
G
E
F
G
E
F
G
E
F
G
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
26/5/2021
5/2/2021
5/2/2021
5/2/2021
5/2/2021
5/2/2021
5/2/2021
J Young
J Robinson
S Hardcastle
C Henry
O Malone
Other
Employees
Total
1,500,000
1,500,000
1,500,000
4,500,000
5,000,000
5,000,000
5,000,000
15,000,000
1,500,000
1,500,000
1,500,000
4,500,000
1,500,000
1,500,000
1,500,000
4,500,000
500,000
500,000
500,000
1,500,000
2,000,000
2,000,000
2,000,000
6,000,000
36,000,000
($)
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.078200
0.073800
0.070300
0.112400
0.106100
0.101100
0.112400
0.106100
0.101100
($)
117,300
110,700
105,450
333,450
391,000
369,000
351,500
1,111,500
117,300
110,700
105,450
333,450
117,300
110,700
105,450
333,450
56,200
53,050
50,550
159,800
224,800
212,200
202,200
639,200
2,910,850
1 Performance rights are expensed on a straight-line basis over the vesting period.
No performance rights were issued during the year ended 30 June 2020.
Expense to
Statement of
Profit or Loss for
the year1
($)
3,746
3,535
3,368
10,649
12,486
11,784
11,224
35,494
3,746
3,535
3,368
10,649
3,746
3,535
3,368
10,649
7,442
7,024
6,694
21,160
29,768
28,099
26,775
84,642
173,243
57
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
30.
SHARE BASED PAYMENTS (continued)
The performance rights have been valued by the Directors using the Black-Scholes option pricing model based on the
following. The fair value for each class of performance right and the discount applied to share price at grant date to reflect
Expiry
date
Life of
Options in
Years
Number of
Rights
Valuation per
Right
Total Fair
Value
Discount
applied to
share price at
grant date to
reflect
market based
vesting
condition
$0.087
Nil
26/5/21
104%
0.08%
Directors
Underlying value
of the security
Exercise price
Grant date
Volatility
Risk free rate
Performance Right:
Class E
Class F
Class G
26/5/24
26/5/24
26/5/24
Key management personnel and other employees
$0.125
Underlying value
of the security
Exercise price
Grant date
Volatility
Risk free rate
Performance Right:
Class E
Class F
Class G
Nil
5/2/21
104%
0.08%
5/2/24
5/2/24
5/2/24
3
3
3
3
3
3
Total
market based vesting condition is shown in the table below:
9,500,000
9,500,000
9,500,000
28,500,000
$0.0088
$0.0132
$0.0167
$0.0782
$0.0738
$0.0703
$742,900
$701,100
$667,850
$2,111,850
2,500,000
2,500,000
2,500,000
7,500,000
36,000,000
$0.0126
$0.0189
$0.0239
$0.1124
$0.1061
$0.1011
$281,000
$265,250
$252,750
$799,000
$2,910,850
The performance rights will vest on meeting the following performance conditions before the expiry
date:
Class
Vesting Condition - vesting will occur:
Number
E
F
G
20 Day VWAP of $0.20 and 12 months continuous service within 3 years from the date of issue
10,000,000
20 Day VWAP of $0.25 and 18 months continuous service within 3 years from the date of issue
10,000,000
20 Day VWAP of $0.30 and 24 months continuous service within 3 years from the date of issue
10,000,000
On meeting vesting conditions, performance rights will each convert into one ordinary share with no
further consideration. Performance rights were valued at the closing share price on the grant date,
less discounts to reflect the effects of any market based vesting conditions as detailed the table above.
The expected vesting period for each performance right for performance-based vesting conditions is
the period until expiry of the performance right.
58
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
31.
AUDITOR’S REMUNERATION
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
2021
$
2020
$
22,000
-
22,000
22,500
-
22,500
32.
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
2021
$
2020
$
4,672,845
4,361,677
9,034,522
484,916
314,060
798,976
8,235,546
3,569,083
2,953,113
6,522,196
172,014
-
172,014
6,350,182
36,649,631
6,420,795
(34,834,880)
8,235,546
30,065,194
4,859,752
(28,574,764)
6,350,182
Loss of the parent entity
(6,267,777)
(6,889,899)
Total comprehensive loss of the parent entity
(6,267,777)
(6,889,899)
Contingent liabilities of the parent entity: Nil.
Reserves included in the parent entity:
Options reserve
Share-based payment reserve
2021
$
2020
$
6,163,712
257,083
6,420,795
4,775,912
83,840
4,859,752
Commitments for the acquisition of property, plant and equipment by the parent entity: Nil.
59
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
33.
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 summarised below or disclosed at Note 20 in the case of capital risk management. The Board reviews and
agrees policies for managing each of these risks.
(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
2021
$
2020
$
668,948
-
-
-
1,318,230
-
-
-
668,948
1,318,230
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.
60
RareX Limited ABN: 65 105 578 756 and controlled entity
2021
NOTES TO ACCOUNTS
33.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(e) Price risk
The Group is exposed to price risk on the value of its financial assets being listed investments.
If there was a 10% increase or decrease in market price of these listed investments, the net realisable value of
these listed investments would increase/(decrease) by $365,762 (2020: $238,894). Accordingly, an increase of 10%
in the value of the listed investments would decrease the net loss by $365,762 (2020: $238,894) and a decrease of
10% in the value of the listed investments would increase the net loss by $365,762 (2020: $238,894).
(f)
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.
(g)
Fair value hierarchy
The following table details the Groups assets and liabilities, measured or disclosed at fair value using a three level
hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy
consists of the following levels:
-
-
quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
-
2021
Financial assets:
Fair value through profit or loss:
Listed investments
2020
Financial assets:
Fair value through profit or loss
Listed investments
(h)
Fair Value Estimation
Level 1
$
Level 2
$
Level 3
$
Total
$
3,657,619
2,388,942
-
-
-
-
3,657,619
2,388,942
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. All financial assets and financial liabilities of the Group at the balance date are recorded at
amounts approximating their carrying amount. The fair value of financial instruments traded in active markets is
based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the
Group is the last trade price. The carrying value less impairment provision of trade receivables and payables are
assumed to approximate their fair values due to their short-term nature.
61
RareX Limited ABN: 65 105 578 756 and controlled entities
2021
DIRECTORS’ DECLARATION
The Directors of RareX Limited declare that:
1.
In the opinion of the Directors:
(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 2021 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 2021.
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 30th September 2021
62
ASX Additional Information
Shareholder Information
The following information is based on share registry information processed up to 27 October 2021.
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
268
687
1,058
2,685
661
5,359
81,664
2,647,183
8,642,027
107,687,545
332,534,785
451,593,204
There are 813 holders of unmarketable parcels comprising a total of 2,018,847 ordinary shares
amounting to 0.45% of issued capital.
Twenty Largest Holders of Shares
Shareholder
Mr Simon (Sui Hee) Lee
Mr Jeremy Kim Robinson
Evans Leap Holdings Pty Ltd
Chetcuti Holdings Pty Ltd
Citicorp Nominees Pty Limited
Cale Consulting Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Maxwell Alfred Kippe
Mr Kim Robinson
Mr Brett John Holdsworth
HSBC Custody Nominees (Australia) Limited
Mr Marx Lin
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd <
BNP Paribas Nominees Pty Ltd ACF Clearstream
Maverick Exploration Pty Ltd
Salona Nominees Pty Ltd
Mrs Jennifer Grace Robinson
Mr John Alexander Young & Mrs Cheryl Kaye Young
Swancave Pty Ltd
West Trade Enterprises Pty Ltd
CS Fourth Nominees Pty Limited
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19
20
Total
Number Held
28,000,000
11,000,000
8,827,509
8,055,789
7,787,312
6,495,400
5,381,643
5,200,000
4,614,706
4,541,892
3,524,517
3,000,000
2,900,000
2,595,939
2,550,000
2,500,000
2,150,000
2,147,000
2,000,000
2,000,000
1,982,618
117,254,325
% of Issued
Shares
6.20
2.44
1.95
1.78
1.72
1.44
1.19
1.15
1.02
1.01
0.78
0.66
0.64
0.57
0.56
0.55
0.48
0.48
0.44
0.44
0.44
25.96
There are 451,593,204 ordinary fully paid shares currently listed and trading on the Australian
Securities Exchange. There is no current on-market buy back taking place.
Substantial Holders
The Company notes the following substantial shareholder notices have been given to the Company
under the Corporations Act:
Substantial Shareholder
Mr Simon (Sui Hee) Lee
Number Held
25,000,000
68
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.
Unquoted Equity Securities
Quantity
5,000,000
5,000,000
5,000,000
Class
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
2,500,000
3,500,000
4,000,000
4,000,000
4,000,000
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 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
10,000,000 Options exercisable at $0.15 each on or before 30 November 2023
Options exercisable at $0.15 each on or before 31 December 2023
2,000,000
5,000,000
Options exercisable at $0.15 each on or before 31 December 2023 vesting 5 February 2022
12,000,000 Performance rights vesting on 20 day VWAP of $0.20 and 12 months service expiring 5 February
2024
12,000,000 Performance rights vesting on 20 day VWAP of $0.25 and 18 months service expiring 5 February
2024
12,000,000 Performance rights vesting on 20 day VWAP of $0.30 and 24 months service expiring 5 February
2024
Holders of Unquoted Securities Holding More than 20% of Each Class
Class
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 $0.085 each on or before 11
October 2022
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
Mr Jeremy Kim Robinson
Number
5,000,000
Mr Jeremy Kim Robinson
5,000,000
Mr Jeremy Kim Robinson
5,000,000
Malekula Projects Pty Ltd
CG Nominees (Australia) Pty Ltd
Guy William Moulang
Rod Dog Pty Ltd
Guy William Moulang
Rod Dog Pty Ltd
Guy William Moulang
Rod Dog Pty Ltd
Valtellin Pty Ltd
18,000,000
7,000,000
1,500,000
1,000,000
1,500,000
1,000,000
1,500,000
1,000,000
1,000,000
69
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 $0.15 each on or before 30
November 2023
Options exercisable at $0.15 each on or before 31
December 2023
Options exercisable at $0.15 each on or before 31
December 2023 vesting 5 February 2022
Performance rights vesting on 20 day VWAP of $0.20
and 12 months service expiring 5 February 2024
Performance rights vesting on 20 day VWAP of $0.25
and 18 months service expiring 5 February 2024
Performance rights vesting on 20 day VWAP of $0.30
and 24 months service expiring 5 February 2024
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
CG Nominees (Australia) Pty Ltd
10,000,000
A and R Assets Pty Ltd
Mr Leo Samson Horn
Dr Christopher Baker & Mrs Judith
Homewood
Mr Jeremy Kim Robinson
Mr Jeremy Kim Robinson
Mr Jeremy Kim Robinson
1,000,000
1,000,000
1,250,000
5,000,000
5,000,000
5,000,000
Schedule of Mining Tenements
Australian Tenement Schedule
Project
State
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
NSW
NSW
NSW
NSW
NSW
NSW
NSW
Cummins Range
Cummins Range Extension
Byro
Byro
Byro
Byro
Byro
Byro
Byro
Weld North
Weld North
Weld North
Mt Mansbridge
Hong Kong
Condobolin
Cundumbul
Fairholme
Fairholme
Trundle
Jemalong
Orange East
Note
Application
Application
Application
Application
Lease No
E80/5092
E80/5372
E09/2386
E09/2387
E09/2408
E09/2409
E09/2443
E09/2525
E09/2527
E38/3455
E38/3530
E38/3531
E80/5430
EL 47/3566
EL 7748
EL 6661
EL 6552
EL 6915
EL 8222
EL 8502
EL 8442
RareX interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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)
M 31
M 31
M 31
M 31
M 31
M 31
M 31
M 31
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Grießen
Grießen
Grießen
Sonnberg, Pirzbichl
Grießen
Grießen
Grießen
Hoch filzen
70
Austrian Tenement Schedule – Leogang - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
78/17/S (CLY-LEOG-030)
79/17/S (CLY-LEOG-031)
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)
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
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
71
Saalbach
Saalbach
Grießen, Hoch filzen, Fieberbrunn
Saalbach
Fieberbrunn
Fieberbrunn, Saalbach
Hoch filzen
Saalbach
Saalbach
Saalbach
Aurach
Aurach
Austrian Tenement Schedule – Leogang - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
141/17/S (CLY-LEOG-093)
142/17/S (CLY-LEOG-094)
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
M 31
M 31
Fieberbrunn
Fieberbrunn
Hochfilzen
Hochfilzen
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Saalbach
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)
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
72
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Aurach
Fieberbrunn
Fieberbrunn
Austrian Tenement Schedule – Kitzbuhel - RareX First Priority
Designation
Reference
Meridian
Cadastral Municipalities
Centre in the Cadastral
Municipality
Other Cadastral Municipality
Concerned
Fieberbrunn
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
82/17/T (CLY-KITZ-045)
83/17/T (CLY-KITZ-046)
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
M 31
M 31
Fieberbrunn
Kitzbühel Land
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
73
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)
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
M 31
M 31
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Schwarzleo
Fieberbrunn
Fieberbrunn
Fieberbrunn
Fieberbrunn
Sonnberg
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
Licence No
234 08 79
233 88 04
233 94 05
PR 384 22 26
RareX interest
20%
20%
20%
-
Licence Name
Tizi Belhaj
Bou Amzil
Imdere
Bou Amzil Extension
Company Secretary
Ms Oonagh Malone
Registered Office
Unit 6, 94 Rokeby Road, Subiaco WA 6008
Telephone: +61 8 6383 6593
Share Registry
Automic Registry Services
126 Phillip Street, Sydney NSW 2000
Telephone: 1300 992 916
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