A.C.N. 006 639 514
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2017
Reedy Lagoon Corporation Limited
Contents
30 June 2017
Chairman's letter
Review of operations
Corporate directory
Directors' report
Auditor's independence declaration
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Reedy Lagoon Corporation Limited Shareholder
information
Tenement schedule
2
3
8
9
17
18
19
20
21
22
41
42
46
48
Corporate Governance Statement is available from the MANAGEMENT page at :
http://www.reedylagoon.com.au
1
Reedy Lagoon Corporation Limited
Chairman's letter
30 June 2017
28th September 2017
Dear Shareholders,
In 2016 Reedy Lagoon identified lithium brines as presenting an opportunity not often available to resource
companies.
The extraordinary growth in demand for lithium created by an increasing number of very large lithium ion battery
factories and the likelihood that growth in demand was likely to continue for at least 5 years meant that there
was an opportunity for Reedy Lagoon to establish a lithium operation with sales contracts on favourable terms.
The Company acted to seize this opportunity by securing rights to acquire 3 lithium brine projects in Nevada,
USA. Lithium production from brines is potentially cheaper than production from hard rock and the technology
for direct extraction of lithium products from brines is developing rapidly. Nevada is also home to the Tesla
gigafactory.
Reedy Lagoon’s acquisition of the company which owns the 3 lithium brine projects (Nevada Lithium Pty Ltd)
was approved by shareholders in April 2017. That acquisition needs to be completed this calendar year by the
issue of $2 million worth of RLC Shares to the vendors of Nevada Lithium at the time when RLC raises at
least $2 million for drilling at the projects. A meeting is to be called for RLC shareholders to provide the
consents required by the ASX Listing Rules and the Corporations Act for the issue of shares to the vendors to
complete the acquisition.
Geophysical surveys undertaken at the projects have identified strong brine targets at each project. Funding is
now required for drilling.
Your Directors have been pursuing a number of strategies to obtain funding including seeking to engage with
companies active in or holding expertise in lithium brine processing. Directors expect that a significant amount
of funding will be required to be raised from external sources, but any capital raising will include an entitlement
offer to shareholders.
The Directors expect to be able to announce details of its capital raising before the annual general meeting.
Yours sincerely
Jonathan Hamer
Chairman
Reedy Lagoon Corporation Limited
2
Reedy Lagoon Corporation Limited
Review of operations
30 June 2017
Mineralisation styles targeted during the period
included lithium brines (Nevada, USA) and minor
work conducted on:
Iron-ore (Burracoppin Magnetite project)
•
• Uranium (Edward Creek project)
• Gold (Cassilis project)
Overview
Reedy Lagoon has projects prospective for lithium
brines in Nevada, USA.
The identification of increasing demand for lithium,
and
the prospect of emerging new processing
technologies for extracting lithium from brines, led to
Reedy Lagoon developing an interest in three project
areas in Nevada. The project areas are in closed
geological basins which share similar geology with,
but are separate from, Clayton Valley in which North
America's only lithium producing brine operation is
located.
The lithium brine projects are:
Big Smoky South
Columbus Salt Marsh
Alkali Lake North.
Reedy Lagoon intends drilling in the December
Quarter 2017 to establish whether brine targets
lithium)
(hyper-saline water potentially containing
identified by geophysical surveys at each of the
projects contain lithium in sufficient concentrations for
economic extraction.
Samples of brine fluids pumped from the drill holes will be analysed to establish their lithium content and if
containing lithium in sufficient quantities, testing will follow to assess potential process pathways for the
commercial extraction of lithium. Should potential for commercial extraction be proven by this work, then it is
possible that production could be achievable in 2020 (extensive environmental studies which would underpin any
feasibility study generally take at least 2 years and process plant construction could take about a year).
Acquisition of the Nevada Brine projects will be completed by the issue of $2m worth of RLC shares to the
vendors following a capital raise of at least $2m to fund drilling. The number of RLC shares that will be issued to
the vendors to meet the $2m payment amount will be determined using the offer price of RLC shares issued for
the capital raise.
Reedy Lagoon also has projects targeting iron-ore in Western Australia and uranium in South Australia. These
projects are secondary to the prime focus which is lithium. The Company cancelled its option to acquire the
Cassilis gold project.
3
Reedy Lagoon Corporation Limited
Review of operations
30 June 2017
Exploration
Lithium Exploration
Nevada Lithium Brine Projects LITHIUM BRINES Nevada, USA
Alkali Lake North:
Big Smokey South:
Columbus Salt Marsh:
128 claims – 2,554 acres (1,033 ha)
239 claims – 4,753 acres (1,924 ha)
167 claims – 3,291 acres (1,332 ha)
RLC 100%
The Nevada lithium brine projects comprise Placer Mining Claims over three prospects in large basins (ground
water catchment areas) located in Nevada, USA (refer to ASX release 30 January 2017).
The projects are within 10 to 50 kilometres of the Silver Peak lithium production operation of Albemarle Corp, in
Clayton Valley. Silver Peak is the only lithium brine operation, and one of only a handful of lithium producers, in
North America. The Tesla Gigafactory 1, a lithium-ion battery factory, is only 250 kilometres northwest of RLC's
lithium projects.
The three projects cover a combined area of 4,289 hectares (10,598 acres) under 534 placer claims. All the
placer claims are 100% owned and there are no royalty arrangements.
Geophysical surveys carried out by RLC during the period successfully demonstrate the presence of brine targets
(hyper-saline water potentially containing lithium) located within sub-basins in all three of the Company's projects
(refer to ASX releases 5 May 2017, 26 May 2017, 29 May 2017, 30 May 2017).
Brine targets comprising multiple aquifers with hyper-saline water potentially containing lithium have been
identified in each of the projects. The brine targets are very strong, with RLC planning to drill only targets showing
resistivities of one ohm-metre or less. Drilling is planned once funding has been arranged, with permits to drill
being secured following the end of the report period.
4
Reedy Lagoon Corporation Limited
Review of operations
30 June 2017
Iron Ore Exploration
Burracoppin Project
IRON ORE - MAGNETITE Western Australia
RLC 100%
In January 2017, Bullamine Magnetite Pty Ltd, a wholly owned subsidiary of Reedy Lagoon, lodged an application
for an exploration licence covering its previous Burracoppin Magnetite Prospect located near Merredin in Western
Australia.
Reedy Lagoon held the Burracoppin Magnetite deposit when it was discovered in 2012 with its then joint venture
farm-in partners: Cliffs Magnetite Holdings Pty Ltd (manager), NS Iron Ore Development Pty Ltd and Sojitz
Mineral Development Pty Ltd. The farm-in parties withdrew in 2014 and Reedy Lagoon relinquished the ground in
April 2016.
Magnetite mineralisation in multiple bands with variable continuity was intersected by drilling in 2012 by our
previous joint venture. Additional drilling is required to better understand the extent of the mineralisation.
However, the limited drilling completed indicates the mineralised bands have combined horizontal widths of
between 150 metres and 200 metres. Detailed magnetic data indicate a strike length of 3,000 metres and a
potential tonnage of magnetite bearing rock of between 140 and 220 million tonnes (refer to ASX release 31
January 2013). Note that the potential quantity and grade of the Burracoppin deposit is conceptual in nature.
There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will
result in the determination of a Mineral Resource.
Metallurgical studies on core samples have produced concentrate with high iron levels (67% to 70% Fe) and low
levels of impurities at a relatively coarse grind size (P80 -150 microns) (refer to ASX release 23 November 2012).
The project area is under application (E70/4941, lodged 9/01/2107, area 5,854 ha) and no field work was
conducted during the report period.
Uranium Exploration
Edward Creek Project
RLC 100%
All diamond interest farmed out to DiamondCo Limited which conducts diamond exploration independently from
RLC. RLC retains nil interest in diamond.
South Australia
URANIUM
Exploration for uranium remains postponed because of the low
uranium price. Exploration expenditure on the project area by
DiamondCo enables RLC to postpone its planned exploration for
uranium without penalty.
RLC’s past exploration at Edward Creek has identified uranium
on the north eastern margin of the Gawler Craton in South
Australia. The project area comprises EL 5580 (343 square
kilometres).
Victory prospect
Part of the Edward Creek Project
The Victory prospect was identified by greenfields exploration conducted in 2010. Ground spectrometer survey
investigating an airborne radiometric anomaly identified anomalous uranium in an area measuring about 6.5
hectares. Within this area a strongly anomalous linear zone measuring approximately 20 metres by 100 metres
has been identified.
5
Reedy Lagoon Corporation Limited
Review of operations
30 June 2017
Surface cover and deep weathering obscure most of the area. In the limited exposed areas elevated radiometric
responses and assay results are wide spread, as is evidence of hydrothermal veining.
An unconformity with younger rocks including conglomerates and volcanics, lies a few hundred metres east of the
anomalous area shown in the adjacent figure, but is obscured by transported cover. The surface mineralisation
identified at Victory may be marginal to prospective zones under cover at or near the unconformity.
No field work was conducted by RLC on the
Victory prospect during the report period.
Work planned, in the event the uranium market
improves, includes drilling to investigate the
surface uranium anomalism and along strike
where the concealed unconformity is interpreted.
Victory prospect showing planned future drill
sites at 1-A, 1-B, 1-C, 1-D and 1-E. (For sample
details
release 12/10/2010 and
September 201 Quarterly Report).
refer ASX
Gold Exploration
Cassilis Project
GOLD
Victoria
option
Evaluation work was hampered during the year by continued uncertainty resulting from protracted delays by the
Victorian Department of Economic Development, Jobs, Transport and Resources (“DEDJTR”) associated with the
processing of tenement applications and with the application for transfer of MIN 5335 to Cassilis Mining Pty Ltd
from the registered holder, Rocky Mining Pty Ltd.
During the report period the liquidator of Rocky Mining Pty Ltd (in liquidation) brought actions which led to the
expiry of MIN 5335. As a result of this action the parties to the Cassilis Agreement dated 4 June 2015 agreed to
terminate the agreement on 7 June 2017 thus cancelling the Company’s option to acquire the Cassilis gold
project.
No field work was conducted during the report period.
Geoffrey Fethers
Managing Director
6
Reedy Lagoon Corporation Limited
Review of operations
30 June 2017
Competent Person’s Statement:
The information in the section headed “Lithium Exploration” of this report as it relates to exploration results and geology was compiled by Mr
Geoff Balfe who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Balfe is a consultant to Reedy Lagoon Corporation
Limited and Mr Balfe is a vendor to Reedy Lagoon Corporation Limited of shares in Nevada Lithium Pty Ltd. (which owns the lithium brine
projects). Mr Balfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr Balfe consents to the inclusion in the report of the matters based on the
information in the form and context in which it appears.
The information in the sections headed: “Iron ore Exploration”, “Uranium Exploration” and “Gold Exploration” in this report that relates to
Exploration Results is based on information compiled by Geoffrey Fethers, who is a member of the Australian Institute of Mining and
Metallurgy (AusIMM). Mr Fethers is a director of the Company and has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Fethers consents to
the inclusion in the report of the matters based on his information in the form and context in which it appears.
Where Exploration Results have been reported in earlier RLC ASX Releases referenced in this report, those releases are available to view on
the NEWS page of reedylagoon.com.au. The Company confirms that it is not aware of any new information or data that materially affects the
information included in those earlier releases. The Company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
7
Reedy Lagoon Corporation Limited
Corporate directory
30 June 2017
Directors
Contact details
Jonathan M. Hamer
Chairman, Non Executive Director
Geoffrey H. Fethers
Managing Director and Company Secretary
Adrian C. Griffin
Non Executive Director
Phone : 03 8420 6280
Fax : 03 8420 6299
Email : info@reedylagoon.com.au
Company secretary
Geoffrey H. Fethers
Share register
Auditor
Solicitors
Link Market Services Limited (ABN 54 063 214 537)
Level 1, 333 Collins Street
Melbourne, Victoria 3000
Telephone : 1300 554 474
www.linkmarketservices.com.au
Moore Stephens
Level 18, 530 Collins Street
Melbourne
Victoria 3000
www.moorestephens.com.au
King & Wood Mallesons
Level 50, 600 Bourke Street
Melbourne
Victoria 3000
Stock exchange listing
Reedy Lagoon Corporation Limited shares are listed on the Australian Securities
Exchange (ASX code: RLC)
Website
www.reedylagoon.com.au
8
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter
as the 'consolidated entity') consisting of Reedy Lagoon Corporation Limited (referred to hereafter as the 'Company' or
'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2017.
Directors
The following persons were directors of Reedy Lagoon Corporation Limited during the whole of the financial year and
up to the date of this report, unless otherwise stated:
Jonathan M. Hamer
Geoffrey H. Fethers
Adrian C. Griffin
Principal activities
During the financial year the principal continuing activities of the consolidated entity consisted of:
●
exploration for minerals in Australia and the United States of America.
Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $808,688 (30 June 2016: $386,255).
Refer to the separate review of operations that comes directly before this directors' report.
Significant changes in the state of affairs
During the year, the Company issued 64,648,222 fully paid shares raising $835,947 before costs as well settling
liabilities totalling $69,376.
On 22 December 2016 Reedy Lagoon entered into an agreement (Share Purchase Agreement) under which Reedy
Lagoon acquired Nevada Lithium Pty Ltd. Nevada Lithium Pty Ltd owns 3 lithium brine projects in Nevada, USA through
its wholly-owned subsidiary, Sierra Lithium LLC.
There were no other significant changes in the state of affairs of the consolidated entity during the financial year.
Matters subsequent to the end of the financial year
On 30 August 2017, the Company announced that it had obtained permits to drill two holes at its lithium brine project in
Nevada USA. It has negotiated a contract with Boart Longyear to undertake the drilling which will be entered into once
the Company has raised funding for the drilling.
Since 30 June 2017, the Company has paid amounts totalling $131,153 as payment or reimbursement of exploration
costs incurred in relation the Nevada Lithium Pty Ltd brine projects in Nevada, USA.
No other matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations
have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice
to the consolidated entity.
At the date of this report, there are no future developments of the Company which warrant disclosure.
Environmental regulation
The Company's operations are subject to environmental regulations in relation to its exploration activities.
The directors are not aware of any breaches of environmental regulations during the period covered by this report.
9
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
Information on directors
Name:
Title:
Age:
Qualifications:
Experience and expertise:
Jonathan M. Hamer
Chairman – Non Executive
62
BA, LLB.
A former partner of King & Wood Mallesons where he practised in the areas of
corporate and finance law. Jonathan has been advising RLC since 1988 on a
range of legal and commercial issues, including in its various joint venture
agreements and capital raisings. Jonathan has served on the RLC board for 10
years.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Interests in shares:
Interests in options:
12,207,245 fully paid ordinary shares
900,000 options
Name:
Title:
Age:
Qualifications:
Experience and expertise:
Geoffrey H. Fethers
M AusIMM
60
B.Sc.(Hons), M AusIMM
Manages the operations of RLC. He is a geologist with over 25 years exploration
experience. He was employed by De Beers Australia Exploration Limited (formerly
Stockdale Prospecting Limited) from 1980 to 1985. He founded RLC in 1986. He
is a Member of the Geological Society of Australia and the Australian Institute of
Mining and Metallurgy. Geoffrey is a founding director.
Other current directorships:
Nil
Former directorships (last 3 years): Nil
Special responsibilities:
Interests in shares:
Interests in options:
Manages the operations of RLC.
26,869,492 fully paid ordinary shares
1,500,000 options
Name:
Title:
Age:
Qualifications:
Experience and expertise:
Other current directorships:
Adrian C. Griffin
Director
64
B.Sc.(Hons), M AusIMM
Adrian Griffin, aged 64, has accumulated extensive experience in the resource
sector over the past 35 years. During that time he has held directorships in a
number of private and listed resource companies and overseen the operation of
large, integrated mining and processing facilities, including the Bulong nickel-
cobalt operation in the late 1990s to his current position as Managing Director of
Lithium Australia NL, a company developing lithium extraction and recovery
technologies. Mr Griffin was a director of Reedy Lagoon from 9 May 2007 until
resigning on 27 November 2009 to act as technical director of Ferrum Crescent,
an iron-ore developer in South Africa. He re-joined RLC as a director on 30 June
2014.
Mr Griffin was also a founding director of Northern Uranium and Parkway
Minerals (developer of the KMax process to recover potassium and other metals
from glauconite). Recently, he was instrumental in identifying the global
opportunity to establish lithium micas as a source feed for the lithium chemical
industry.
Managing Director – Lithium Australia NL; Non-executive Director – Northern
Minerals Ltd; Chairman – Parkway Minerals NL
Former directorships (last 3 years): Nil
Nil
Special responsibilities:
7,100,671 fully paid ordinary shares
Interests in shares:
300,000 options
Interests in options:
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of
all other types of entities, unless otherwise stated.
10
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships of all other types of entities, unless otherwise stated.
‘Interests in shares and options’ quoted above are as at the date of this report.
Company secretary
Geoffrey H. Fethers is the Company's secretary. Details of his qualifications and experience are disclosed in the
information on directors section above.
Meetings of directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2017,
and the number of meetings attended by each director were:
Jonathan M. Hamer
Geoffrey H. Fethers
Adrian C. Griffin
Full Board
Attended
Held
11
11
11
11
11
11
Held: represents the number of meetings held during the time the director held office.
Remuneration report (audited)
This remuneration report outlines the Director and Executive remuneration arrangements of the Company in
accordance with the Corporations Act 2001 and its Regulations. It also provides the remuneration disclosures required
by paragraphs AUS25.4 and AUS 25.7.2 of AASB 124 Related Party Disclosures which have been transferred to the
Remuneration Report in accordance with the Corporations Regulation 2M 6.04
This report outlines the remuneration arrangements in place for the Directors (both Executive and Non Executive) and
Executives of the Company.
This report is audited as the entity has transferred the disclosures from the financial statements.
For the purposes of this report the term ‘Senior Executive‘ encompasses the Managing Director, Executive Directors
and Secretary of the Company.
The remuneration report is set out under the following main headings:
●
●
●
●
●
Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
Currently, the Company does not have a separate remuneration committee. Because of the size of the Board and the
operations of the Company, the Directors are of the view that there is no need for a separate remuneration committee.
The Board as a whole reviews the remuneration packages and policies applicable to the Chairman, Senior Executives
and Non-Executive Directors on an annual basis. Remuneration levels are set to attract or retain, as appropriate,
qualified and experienced Directors and Senior Executives. From time to time and as required, the Board will seek
independent professional advice on the appropriateness of remuneration packages.
The current nature and amount of remuneration payable to Chairman, Executives and Non-Executive Directors is not
dependent upon the satisfaction of a performance condition. Instead part of the remuneration takes the form of options
which will have value if the Company’s share price increases.
Use of remuneration consultants
The Company did not make use of remuneration consultants during the 2017 financial year.
11
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
Voting and comments made at the Company's 23 November 2016 Annual General Meeting ('AGM')
At the 23 November 2016 AGM, 98.54% of the votes received supported the adoption of the remuneration report for the
year ended 30 June 2016. The Company did not receive any specific feedback at the AGM regarding its remuneration
practices.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following directors of Reedy Lagoon
Corporation Limited:
J Hamer
●
G Fethers
●
A Griffin
●
Short-term benefits
Post-
employmen
t benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees1 Bonus
Non-
Super-
monetary annuation
$
$
$
$
Long
service
leave
$
Equity-
settled
$
Total
$
40,000
40,000
132,000
212,000
-
-
-
-
-
-
-
-
-
-
-
-
1,013
338
41,013
40,338
12,540
12,540
2,546
2,546
1,689
3,040
148,775
230,126
2017
Non-Executive Directors:
J Hamer
A Griffin
Executive Directors:
G Fethers *
*
Mr Fethers was the sole executive employee of the Company for the year ended 30 June 2017.
1
At the election of the individual directors the sum of $45,000 of entitlements to cash, salary and fees was settled in
the form of 5,189,114 shares in the Company.
As at 30 June 2017, $208,945 (2016: $159,000) of short term employee benefits remain unpaid, and prior period fees
totalling $94,624 were forgiven and $24,376 was taken in the form of 2,810,886 shares in the Company.
Short-term benefits
Post-
employmen
t benefits
Long-term
benefits
Share-
based
payments
Cash salary
and fees * Bonus
Non-
Super-
monetary annuation *
$
$
$
$
Long
service
leave *
$
Equity-
settled
$
Total
$
35,832
35,000
126,000
196,832
-
-
-
-
-
-
-
-
-
-
-
-
4,798
5,201
40,630
40,201
12,540
12,540
9,475
9,475
7,050
17,049
155,065
235,896
2016
Non-Executive Directors:
J Hamer
A Griffin
Executive Directors:
G Fethers *
*
Mr Fethers was the sole executive employee of the Company for the years ended 30 June 2016.
12
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Name
Non-Executive Directors:
J Hamer
A Griffin
Executive Directors:
G Fethers
Fixed remuneration
2016
2017
At risk - STI
At risk - LTI
2017
2016
2017
2016
98%
99%
87%
87%
99%
95%
-
-
-
-
-
-
2%
1%
13%
13%
1%
5%
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in service agreements.
Details of these agreements are as follows:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Details:
Name:
Title:
Agreement commenced:
Term of agreement:
Mr Geoffrey Fethers
Managing Director
1 May 2007
Mr G Fethers is the Company’s Executive Managing Director under a contract of
employment which commenced on 1 May 2007. Under the contract Mr Fethers is
entitled to $132,000 per annum plus statutory superannuation. The contract does
not have any fixed term and may be terminated by the Company or Mr Fethers on
reasonable notice. No payments or retirement benefits are payable on termination.
Mr Jonathan Hamer
Chairman - Non Executive
1 May 2007
Mr J Hamer is employed as the Company’s Non-executive Chairman. His
appointment as a Director commenced on 9 May 2007 with agreed director fees
payable at an annual rate of $40,000 plus options under the terms of the Directors
Options Scheme. There is no fixed term and no set retirement benefits are payable
on termination.
Mr Adrian Griffin
Director
30 June 2014
Mr A Griffin is employed as a Non-executive Director. His appointment as a
Director commenced on 30 June 2014 with agreed director fees payable at an
annual rate of $40,000 plus options under the terms of the Directors Options
Scheme. There is no fixed term and no set retirement benefits are payable on
termination.
Key management personnel have no entitlement to termination payments, other than accrued leave balances, in the
event of removal for misconduct.
Share-based compensation
Issue of shares
There were no shares issued to directors and other key management personnel as part of compensation during the
year ended 30 June 2017. Shares were issued to each director in lieu of cash payable for fees/salary/super.
13
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
Options
The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other
key management personnel in this financial year or future reporting years are as follows:
Grant date
Vesting date and
exercisable date
Expiry date
Exercise
price
Fair value
per option at
grant date
25 November 2016
31 December 2019
31 December 2019
$0.0133
$0.0033
Options granted carry no dividend or voting rights.
The number of options over ordinary shares granted to and vested by directors and other key management personnel
as part of compensation during the year ended 30 June 2017 are set out below:
Name
J Hamer
G Fethers
A Griffin
Number of Number of Number of Number of
options
granted
options
granted
options
vested
options
vested
during the
during the
during the
during the
year
2017
year
2016
year
2017
year
2016
300,000
500,000
100,000
300,000
500,000
100,000
300,000
500,000
100,000
300,000
500,000
100,000
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their personally related parties, is set out below:
Balance at Received
in lieu of
the start of
the year
remuneration Additions
Held on
appointment
Balance at
the end of
the year
Ordinary shares
G Fethers
J Hamer
A Griffin
14,335,058
6,871,819
2,769,388
23,976,265
5,693,727
6,840,707
-
5,335,426
2,025,010
2,306,273
8,000,000 14,201,143
- 26,869,492
- 12,207,245
7,100,671
-
- 46,177,408
Option holding
The number of options over ordinary shares in the Company held during the financial year by each director and other
members of key management personnel of the consolidated entity, including their personally related parties, is set out
below:
Options over ordinary shares
G Fethers
J Hamer
A Griffin
Balance at
the start of
the year
Granted
Exercised
Expired /
Forfeited
Balance at
the end of
the year
1,500,000
900,000
200,000
2,600,000
500,000
300,000
100,000
900,000
-
-
-
-
(500,000)
(300,000)
-
(800,000)
1,500,000
900,000
300,000
2,700,000
This concludes the remuneration report, which has been audited.
14
Reedy Lagoon Corporation Limited
Directors' report
30 June 2017
Shares under option
Unissued ordinary shares of Reedy Lagoon Corporation Limited under option at the date of this report are as follows:
Grant date
Expiry date
13 November 2014
30 December 2015
25 November 2016
31 December 2017
31 December 2018
31 December 2019
Exercise
price
Number
under option
$0.2000
$0.0110
$0.0133
900,000
900,000
900,000
2,700,000
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of
the Company or of any other body corporate.
Shares issued on the exercise of options
There were no ordinary shares of Reedy Lagoon Corporation Limited issued on the exercise of options during the year
ended 30 June 2017 and up to the date of this report.
Indemnity and insurance of officers
During the financial year, the Company paid a premium in respect of a contract insuring the directors of the Company
(as named above) and all executive officers of the Company and of any related body corporate against a liability
incurred in such capacity of director, secretary or executive officer to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not otherwise, during or since the financial year, except to the extent permitted by law, indemnified or
agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as
such an officer.
Indemnity and insurance of auditor
During the financial year, the Company paid a premium in respect of a contract insuring the directors of the Company
(as named above) and all executive officers of the Company and of any related body corporate against a liability
incurred in such capacity of director, secretary or executive officer to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not otherwise, during or since the financial year, except to the extent permitted by law, indemnified or
agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as
such an officer or auditor.
Proceedings on behalf of the company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or
any part of those proceedings.
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the
auditor are outlined in note 20 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 20 to the financial statements do not compromise
the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board,
including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the
Company, acting as advocate for the Company or jointly sharing economic risks and rewards.
●
15
Reedy Lagoon Corporation Limited
Directols'report
30 JLrne 2017
Officers of the company who are former partners of Moore Stephens Audit (Vic)
There are no officers of the Company who are formef padners of I\loore Stephens Audit (Vic).
Auditof's independence declaration
A copy of the auditofs independence declarction as fequifed under section 307C of the Corpofations Act 2001 is
out immediately aftef ihis directors report.
sei
Auditor
[,4oofe Stephens Audit (Vic) contin!es in office in accodance with section 327 of the Corpofations Act 2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2Xa) of the CofporaUons
2001.
On behalf of the difectors
G.H. Fethers
[4anaging Director
28 Septembef 2017
lvlelbourne
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF REEDY LAGOON CORPORATION LIMITED AND CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017, there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001
in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
MOORE STEPHENS AUDIT (VIC)
ABN 16 847 721 257
RYAN LEEMON
Partner
Audit & Assurance Services
Melbourne, Victoria
29 September 2017
17
Reedy Lagoon Corporation Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2017
Revenue
Expenses
Corporate and administration expenses
Employee and director benefits expense
Exploration expenditure
Depreciation and amortisation expense
Share based payments expense
Restructure costs
Other expenses
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year attributable to the owners of
Reedy Lagoon Corporation Limited
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year attributable to the owners of Reedy
Lagoon Corporation Limited
Note
Consolidated
2017
$
2016
$
6
7
7
8
26,675
27,903
(75,848)
(154,826)
(484,583)
(394)
(3,040)
(56,585)
(60,087)
(93,148)
(191,591)
(72,418)
(1,217)
(1,865)
-
(53,919)
(808,688)
(386,255)
-
-
(808,688)
(386,255)
-
-
(808,688)
(386,255)
Cents
Cents
Basic earnings per share
Diluted earnings per share
29
29
(0.565)
(0.565)
(0.358)
(0.358)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
18
Reedy Lagoon Corporation Limited
Statement of financial position
As at 30 June 2017
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other
Total current assets
Non-current assets
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Total current liabilities
Non-current liabilities
Employee benefits
Total non-current liabilities
Total liabilities
Net liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total deficiency in equity
Note
Consolidated
2017
$
2016
$
9
10
11
183,299
22,958
11,986
218,243
48,223
4,596
11,851
64,670
-
-
394
394
218,243
65,064
12
13
14
14,239
282,755
296,994
8,090
220,105
228,195
26,335
26,335
23,789
23,789
323,329
251,984
(105,086)
(186,920)
15
16
15,666,091 14,778,609
15,470
(15,777,052) (14,980,999)
5,875
(105,086)
(186,920)
The above statement of financial position should be read in conjunction with the accompanying notes
19
Reedy Lagoon Corporation Limited
Statement of changes in equity
For the year ended 30 June 2017
Consolidated
Issued
Accumulated Reserves
capital
$
Losses
$
$
Total
deficiency in
equity
$
Balance at 1 July 2015
14,489,839 (14,621,744)
40,605
(91,300)
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 15)
Share-based payments (note 30)
Lapse of options
-
-
-
(386,255)
-
(386,255)
-
-
-
(386,255)
-
(386,255)
288,770
-
-
-
-
27,000
-
1,865
(27,000)
288,770
1,865
-
Balance at 30 June 2016
14,778,609 (14,980,999)
15,470
(186,920)
Consolidated
Issued
Accumulated Reserves
capital
$
losses
$
$
Total
deficiency in
equity
$
Balance at 1 July 2016
14,778,609 (14,980,999)
15,470
(186,920)
Loss after income tax expense for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 15)
Share-based payments (note 30)
Lapse of options
-
-
-
(808,688)
-
(808,688)
-
-
-
(808,688)
-
(808,688)
887,482
-
-
-
-
12,635
-
3,040
(12,635)
887,482
3,040
-
Balance at 30 June 2017
15,666,091 (15,777,052)
5,875
(105,086)
The above statement of changes in equity should be read in conjunction with the accompanying notes
20
Reedy Lagoon Corporation Limited
Statement of cash flows
For the year ended 30 June 2017
Cash flows from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Payments for exploration activities
Note
Consolidated
2017
$
2016
$
20,234
(223,117)
936
(484,583)
24,398
(213,234)
1,298
(37,336)
Net cash used in operating activities
28
(686,530)
(224,874)
Cash flows from investing activities
Net cash from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Capital raising costs
Proceeds from borrowings
Repayment of borrowings
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
15
-
-
835,947
(17,841)
30,000
(26,500)
275,361
(9,116)
-
-
821,606
266,245
135,076
48,223
41,371
6,852
Cash and cash equivalents at the end of the financial year
9
183,299
48,223
The above statement of cash flows should be read in conjunction with the accompanying notes
21
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 1. General information
The financial statements cover Reedy Lagoon Corporation Limited as a consolidated entity consisting of Reedy Lagoon
Corporation Limited and the entities it controlled at the end of, or during, the year. The financial statements are
presented in Australian dollars, which is Reedy Lagoon Corporation Limited's functional and presentation currency.
Reedy Lagoon Corporation Limited is a listed public company limited by shares, incorporated and domiciled in Australia.
Its registered office and principal place of business is:
Level 18
530 Collins Street
Melbourne VIC 3121
A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 28 September 2017.
The directors have the power to amend and reissue the financial statements.
Note 2. 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.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Going concern
For the year ended 30 June 2017 the Group made a loss of $808,688 (2016: loss of $386,255), has a net asset
deficiency of $75,011 (2016: $163,525), and had operating cash outflows $686,530 (2016: $224,874).
Notwithstanding this the financial report has been prepared on a going concern basis. Subsequent to year end, the
directors have provided an undertaking to financially support the Company up to $150,000 for non-discretionary
expenditure for a period of not less than 12 months from the date of this report if capital cannot be raised. This support
Includes deferral or waiving of fees and entitlements if to the detriment of external creditors. The directors believe that
such support and potential deferral is sufficient to meet expenditure commitments and for a period of not less than
twelve months from the date of signing these financial statements. If the group is to continue to explore and develop its
prospects it will require further funds and will need to raise further capital. In the event that the group is not able to raise
additional funding it may not be able to continue its operations as a going concern and therefore may not be able to
realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the
financial report.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
22
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 24.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Reedy Lagoon
Corporation Limited ('Company' or 'parent entity') as at 30 June 2017 and the results of all subsidiaries for the year then
ended. Reedy Lagoon Corporation Limited and its subsidiaries together are referred to in these financial statements as
the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an
entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership
interest, without the loss of control, is accounted for as an equity transaction, where the difference between the
consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly
in equity attributable to the parent.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity.
The consolidated entity recognises the fair value of the consideration received and the fair value of any investment
retained together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the 'management approach', where the information presented is on the same
basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for
the allocation of resources to operating segments and assessing their performance.
Exploration, Evaluation and Development Expenditure
Expenditure incurred on the acquisition of exploration properties and exploration, evaluation and development costs,
including acquisition of Nevada Lithium Pty Ltd (refer to Notes 3-& 4) are written off as incurred where the activities in
the areas of interest have not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves. Once it is determined that the costs can be recouped through sale or successful development
and exploitation of the area of interest then the on-going costs are accumulated and carried forward for each area of
interest.
Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until
production commences. When production commences, carried forward exploration, evaluation and development costs
are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision
to abandon the area is made. Each area of interest is also reviewed annually and accumulated costs written off to the
extent that they will not be recoverable in the future.
23
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
Restoration costs are provided for at the time of the activities that give rise to the need for restoration. If this occurs prior
to commencement of production, the costs are included in deferred exploration and development expenditure. If it
occurs after commencement of production, restoration costs are provided for and charged to the statement of financial
performance as an expense.
Revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue
can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Rendering of services
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers or in
accordance with contractual rights.
Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour
hours for each contract. Where the contract outcome cannot be reliably estimated, revenue is only recognised to the
extent of the recoverable costs incurred to date.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income 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.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established, less allowance for
doubtful receivables.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable
to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when
the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted,
except for:
●
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination and that, at the time of the transaction, affects neither the
accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures,
and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in
the foreseeable future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred
tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available
for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that
it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
24
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as
non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or
there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All
other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are
written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there
is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original
terms of the receivables.
Other receivables are recognised at amortised cost, less any provision for impairment.
Property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:
Plant and equipment
5-10 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting
date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to
the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or
loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not
discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the
liabilities are settled.
25
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date
are measured at the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date using the projected unit credit method. 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 currency that match,
as closely as possible, the estimated future cash outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange
for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the
amount of cash is determined by reference to the share price.
The costs of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price,
the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying
share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the consolidated entity receives the services that entitle the employees to
receive payment. No account is taken of any other vesting conditions.
The costs of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the
best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount
recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts
already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either
the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the
award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●
During the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by
the expired portion of the vesting period.
From the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
●
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid
to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made.
An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair
value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition
is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not
satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting
period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled
and new award is treated as if they were a modification.
Issued capital
Ordinary shares are classified as equity.
26
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
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.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Reedy Lagoon Corporation
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial
year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
Goods and Services Tax ('GST')
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2017.
The consolidated entity's assessment of the impact of these new or amended Accounting Standards and
Interpretations, most relevant to the consolidated entity, are set out below.
AASB 9 Financial Instruments
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all
previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and
Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset
shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to
collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial
instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an
irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading)
in other comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the change in fair
value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch).
New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk
management activities of the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to
recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on a
financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is
adopted. The standard introduces additional new disclosures. The consolidated entity will adopt this standard from 1
January 2018 but the impact of its adoption is not expected to be material.
27
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 2. Significant accounting policies (continued)
AASB 15 Revenue from Contracts with Customers
This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard provides a
single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. The standard will require: contracts (either written,
verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the
transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the
separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or
estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation
is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the
performance obligation would be satisfied when the customer obtains control of the goods. For services, the
performance obligation is satisfied when the service has been provided, typically for promises to transfer services to
customers. For performance obligations satisfied over time, an entity would select an appropriate measure of progress
to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts with
customers will be presented in an entity's statement of financial position as a contract liability, a contract asset, or a
receivable, depending on the relationship between the entity's performance and the customer's payment. Sufficient
quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the
significant judgements made in applying the guidance to those contracts; and any assets recognised from the costs to
obtain or fulfil a contract with a customer. The consolidated entity will adopt this standard from 1 January 2018 but the
impact of its adoption is not expected to be material.
AASB 16 Leases
This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces
AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to
exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured at the present value
of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of
12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an
accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to
profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease
prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal
or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for
the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in
finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher
when compared to lease expenses under AASB 117. However EBITDA (Earnings Before Interest, Tax, Depreciation
and Amortisation) results will be improved as the operating expense is replaced by interest expense and depreciation in
profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be separated
into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor accounts for leases. The consolidated entity will
adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed.
Note 3. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations of
future events, which management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the
respective notes) within the next financial year are discussed below.
Share-based payment transactions
Equity-settled share-based payments are measured at fair value of the equity instrument at the grant date. Fair value is
measured by the use of either a Binomial or Black-Scholes model as described at Note 29 taking into account the terms
and conditions upon which the instruments were granted. The expected life used in the model has been adjusted,
based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations.
28
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its
property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of
technical innovations or some other event. The depreciation and amortisation charge will increase where the useful
lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned
or sold will be written off or written down.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses. Management
has determined not to recognise the deferred tax asset, given that the group has experienced losses, on a historical
basis.
Employee benefits provision
As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay
increases through promotion and inflation have been taken into account.
Acquisition of Nevada Lithium Pty Ltd
Under the agreement to purchase Nevada Lithium Pty Ltd, the Company has made an initial payment of $209,000 to
reimburse exploration costs. As at 30 June 2017, costs totalling $434,354 (including the initial payment reimbursing
$209,000) had been reimbursed. Under the contract, there is no obligation for these amounts to be repaid in the event
of the deal not proceeding, and for this reason all expenses incurred as at 30 June 2017 have been recognised in the
statement of comprehensive income. Refer to Note 7.
Exploration expenditures
The consolidated entity expenses expenditures relating to exploration as they are incurred as they are not considered
likely to be recoverable. The consolidated entity has not extracted any reserves and therefore all of the exploration
expenses should be expensed. Management assessed such judgement in light of no mineral reserves being founded as
of yet.
Note 4. Acquisition of Lithium Brine Projects in Nevada.
On 22 December 2016 Reedy Lagoon entered into an agreement (Share Purchase Agreement) under which Reedy
Lagoon acquired Nevada Lithium Pty Ltd. Nevada Lithium Pty Ltd owns 3 lithium brine projects in Nevada, USA through
its wholly-owned subsidiary, Sierra Lithium LLC.
The Share Purchase Agreement requires Reedy Lagoon to fund exploration costs on the projects to advance them to a
stage where drilling is warranted. During the report period $434,354 was spent by Reedy Lagoon on exploration costs
on the projects. In the period post balance date to the date of this report, Reedy Lagoon has spent $131,153 on
exploration costs on the projects.
To complete the acquisition Reedy Lagoon needs to issue $2m "worth" of RLC shares to the vendors of Nevada Lithium
on or before the end of calendar year 2017. The number of RLC Shares to be issued to the vendors is to be calculated
by reference to the offer price of RLC Shares under a capital raising of at least $2m to fund drilling on the projects.
The Listing Rules require Reedy Lagoon to obtain the consent of its shareholders to the issue of the $2M "worth" of
RLC Shares to the vendors.
Note 5. Operating segments
Identification of reportable operating segments
The Company is organised into one operating segments: mineral exploration in Australia. This operating segment is
based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief
Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.
29
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 6. Revenue
Interest
Labour and office cost recoveries
Revenue
Note 7. Expenses
Loss before income tax includes the following specific expenses:
Depreciation
Plant and equipment
Scientific equipment
Total depreciation
Exploration
Tenement applications fees and rents
Other exploration expenditure
Payments made in relation to Nevada Lithium Pty Ltd (refer to Notes 3 & 4)
Total exploration
Note 8. Income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Capital allowances share issue costs
Non-deductible equity settled benefits expense
Other non-deductible (deductible) expenses
Non-deductible overseas exploration expenditure
Deferred tax asset (on account of losses) not brought to account
Income tax expense
Consolidated
2017
$
2016
$
936
25,739
1,298
26,605
26,675
27,903
Consolidated
2017
$
2016
$
394
-
1,137
80
394
1,217
2,590
47,639
434,354
11,232
61,186
-
484,583
72,418
Consolidated
2017
$
2016
$
(808,688)
(386,255)
(242,606)
(115,877)
(67)
912
(378)
88,402
(1,257)
560
(1,110)
-
(153,737)
153,737
(117,684)
117,684
-
-
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been
recognised in the statement of financial position as the recovery of this benefit is uncertain.
30
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 8. Income tax expense (continued)
The potential future income tax benefit will only be obtained if:
a) The Company derives future assessable income of a nature and amount sufficient to enable the benefit to be
realised;
b) The Company continues to comply with the conditions for deductibility imposed by the law; and
c) No changes in tax legislation adversely affect the Company in realising the benefit.
Note 9. Current assets - cash and cash equivalents
Consolidated
2017
$
2016
$
183,299
48,223
Consolidated
2017
$
2016
$
8,024
423
14,511
2,518
-
2,078
22,958
4,596
Consolidated
2017
$
2016
$
11,986
11,851
Consolidated
2017
$
2016
$
3,500
10,739
-
8,090
14,239
8,090
Cash at bank
Note 10. Current assets - trade and other receivables
Trade receivables
Other receivables
GST receivable
Note 11. Current assets - other
Prepayments
Note 12. Current liabilities - trade and other payables
Amounts payable to directors
Other payables and accruals
Refer to note 18 for further information on financial instruments.
31
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 13. Current liabilities - employee benefits
Annual leave (a)
Accrued directors wages / fees (a)
Consolidated
2017
$
2016
$
73,810
208,945
61,105
159,000
282,755
220,105
(a) each of the directors have provided the Company an undertaking that they do not intend to call on payment of
accrued salaries or fees until the Company has adequate liquidity to be able to pay these amounts and remain solvent.
Note 14. Non-current liabilities - employee benefits
Long service leave
Note 15. Equity - issued capital
Consolidated
2017
$
2016
$
26,335
23,789
Consolidated
2017
Shares
2016
Shares
2017
$
2016
$
Ordinary shares - fully paid
175,675,168 111,026,946 15,666,091 14,778,609
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
Issue of shares
Shares issued as directors' fees
Issue of shares
Shares issued as directors' fees
Cost of capital raising
Balance
Shares issued as directors’ fees
Issue of shares
Issue of shares
Less share issue costs
1 July 2015
9 July 2015
13 July 2015
17 July 2015
5 October 2015
30 June 2016
27 October 2016
25 November 2016
20 April 2017
73,379,298
27,706,111
625,000
7,133,657
2,182,880
-
111,026,946
8,000,000
39,250,000
17,398,222
-
$0.0080
$0.0060
$0.0080
$0.0070
$0.0000
14,489,839
221,649
4,000
57,069
15,168
(9,116)
$0.0087
$0.0080
$0.0300
$0.0000
14,778,609
69,376
314,000
521,947
(17,841)
Balance
30 June 2017
175,675,168
15,666,091
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and
the Company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
32
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 15. Equity - issued capital (continued)
Capital risk management
RLC’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and
exploit the mineral assets under its control in order to provide future returns for shareholders and benefits for other
stakeholders.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
The Company continuously reviews the capital structure to ensure:-
• Sufficient funds are available to implement its exploration expenditure programs in accordance with forecasted needs;
and
• Sufficient funds for the other operational needs of the Company are maintained.
The capital risk management policy remains unchanged from the 30 June 2016 annual report.
Note 16. Equity - reserves
Share-based payments reserve
Consolidated
2017
$
2016
$
5,875
15,470
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their
remuneration, and other parties as part of their compensation for services.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Balance at 1 July 2015
Share based payments (refer to note 30)
Expiry of options
Balance at 30 June 2016
Share based payments (refer to note 30)
Expiry of options
Balance at 30 June 2017
Note 17. Equity - dividends
Share based
payments
$
Total
$
40,605
1,865
(27,000)
15,470
3,040
(12,635)
40,605
1,865
(27,000)
15,470
3,040
(12,635)
5,875
5,875
There were no dividends paid, recommended or declared during the current or previous financial year.
33
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 18. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk,
price risk and interest rate risk), credit risk and liquidity risk. The consolidated entity's overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The consolidated entity uses different methods to measure different types of
risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and
other price risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market
risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of
Directors ('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity
and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the
consolidated entity's operating units. Finance reports to the Board on a monthly basis.
Market risk
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.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
The consolidated entity is not exposed to significant interest rate risk.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
consolidated entity. The consolidated entity has a strict code of credit, including obtaining agency credit information,
confirming references and setting appropriate credit limits. The consolidated entity obtains guarantees where
appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial
assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of
financial position and notes to the financial statements. The consolidated entity does not hold any collateral.
The consolidated entity trade and other receivables consist of GST receivable and interest receivable. For this reason
the consolidated entity is not exposed to significant credit risk.
Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and
cash equivalents) to pay debts as and when they become due and payable.
The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities
by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
34
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 18. Financial instruments (continued)
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows
disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the
statement of financial position.
Consolidated - 2017
Non-derivatives
Non-interest bearing
Trade other payables
Amounts payable to directors
Total non-derivatives
Consolidated - 2016
Non-derivatives
Non-interest bearing
Trade payables
Total non-derivatives
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Remaining
contractual
maturities
$
Over 5 years
$
-
-
10,739
3,500
14,239
-
-
-
-
-
-
-
-
-
10,739
3,500
14,239
Weighted
average
interest rate
%
1 year or less
$
Between 1
and 2 years
$
Between 2
and 5 years
$
Remaining
contractual
maturities
$
Over 5 years
$
-
8,090
8,090
-
-
-
-
-
-
8,090
8,090
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed
above.
Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.
Note 19. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the consolidated
entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Consolidated
2017
$
2016
$
212,000
12,540
2,546
3,040
196,832
12,540
9,475
17,049
230,126
235,896
As at 30 June 2017, $208,945 (2016: $159,000) of short term employee benefits remain unpaid, and fees totalling
$94,624 relating to prior periods were forgiven.
35
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 20. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by Moore Stephens Audit (Vic),
the auditor of the Company:
Audit services - Moore Stephens Audit (Vic)
Audit or review of the financial statements
Other services - Moore Stephens Audit (Vic)
Tax and compliance services
Consolidated
2017
$
2016
$
15,900
15,423
8,225
12,839
24,125
28,262
It is the Company’s policy to engage the external auditor to provide services additional to their audit duties where the
external auditor’s experience and expertise with the Company’s are important and it is logical and efficient for them to
provide those services. The provision of non-audit services during the year by the external auditor is compatible with,
and did not compromise, the auditor independence requirements of the Corporations Act 2001.
Note 21. Contingent liabilities
The Company intends to purchase Nevada Lithium Pty Ltd as noted in Note 3. In order to complete the acquisition the
Company must issue $2,000,000 worth of fully paid ordinary shares in the Company to the vendors of Nevada Lithium
Pty Ltd. This issue of the Company’s shares is required to be made by no later than 31 December 2017. Under the
Share Purchase Agreement the “$2,000,000 worth” of shares in the Company is to be calculated using the offer price
per share at which shares are offered under a contemporaneous capital raising for not less than $2,000,000. A
contingent liability exists at 30 June 2017 for the issue of $2,000,000 worth of fully paid ordinary shares, the value of
which liability is contingent upon the offer price under the contemporaneous capital raising. The Company is not obliged
to complete the acquisition of Nevada Lithium, but if it does not issue $2,000,000 worth of shares in the Company to the
vendors of Nevada Lithium by 31 December 2017 the acquisition will terminate and the Company will have no right to
recover any amount paid as exploration costs on the lithium brine projects.
Note 22. Exploration expenditure commitments
The Company held one tenement, EL5580. Ongoing annual exploration expenditure is required to maintain title to the
consolidated entity’s mineral exploration tenements. No provision has been made in the accounts for these amounts as
the amounts are expected to be fulfilled in the normal course of the operations of the consolidated entity.
Tenement expenditure is dependent upon exploration results and available cash resources. Expenditure commitments
are also impacted upon and may be reduced where access to areas has been restricted by the existence of Aboriginal
freehold, Native Title and Native Title claims.
The minimum expenditure requirement is $170,000 for the 12 months ending 11 Nov 2017. Unless the Minister
determines otherwise, if the minimum expenditure ($170,000) is not satisfied then 50% of the licence area must be
reduced by the end of 1 Nov 2017. All diamond interests have been farmed out to DiamondCo Limited under the terms
of the Diamond Farm-out Agreement. Expenditure by DiamondCo Limited on EL5580 under the terms of the Diamond
Farm-out Agreement exceeded $100,000 at the date of this report.
The statutory expenditure requirement is subject to negotiation with the relevant state department, and expenditure
commitments may be varied between tenements, or reduced subject to reduction of exploration area and/or
relinquishment of non-prospective tenements.
Note 23. Related party transactions
Parent entity
Reedy Lagoon Corporation Limited is the parent entity.
36
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 23. Related party transactions (continued)
Subsidiaries
Interests in subsidiaries are set out in note 25.
Joint ventures
Interests in joint ventures are set out in note 26.
Key management personnel
Disclosures relating to key management personnel are set out in note 19 and the remuneration report included in the
directors' report.
Transactions with related parties
DiamondCo Limited, a company of which Mr Fethers and Mr Hamer are directors and shareholders, holds the rights to
diamonds located on EL 5580 through a joint venture agreement dated 26 March 2007. Opportunities to reduce
mobilisation costs and expand small scale programmes by combining field activities are exploited where possible.
Where services for combined RLC and DiamondCo programmes are contracted RLC normally acts as principal and
invoices DiamondCo on a cost recovery basis. RLC provides the services of Mr Fethers and office services to
DiamondCo at normal commercial rates. Total fees invoiced by RLC during the financial year to DiamondCo amounting
to $25,739 (201–6: $13,171).
Receivable from and payable to related parties
The amount of $8,024 (2016: $2,208) was payable by DiamondCo Limited at 30 June 2017 and no trade payables to
related parties at the current and previous reporting date.
An additional amount of $3,500 was payable to directors at 30 June 2017 (2016: $ nil).
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 24. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Loss after income tax
Total comprehensive loss
Parent
2017
$
2016
$
(808,688)
(386,255)
(808,688)
(386,255)
37
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 24. Parent entity information (continued)
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total deficiency in equity
Parent
2017
$
2016
$
218,243
64,670
218,243
65,064
296,994
228,195
323,329
251,984
15,666,091 14,778,609
15,470
(15,777,052) (14,980,999)
5,875
(105,086)
(186,920)
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2017 and 30 June 2016.
Contingent liabilities
The Company intends to purchase Nevada Lithium Pty Ltd as noted in Note 4. In order to complete the acquisition the
Company must issue $2,000,000 worth of fully paid ordinary shares in the Company to the vendors of Nevada Lithium
Pty Ltd. This issue of the Company’s shares is required to be made by no later than 31 December 2017. Under the
Share Purchase Agreement the “$2,000,000 worth” of shares in the Company is to be calculated using the offer price
per share at which shares are offered under a contemporaneous capital raising for not less than $2,000,000. A
contingent liability exists at 30 June 2017 for the issue of $2,000,000 worth of fully paid ordinary shares, the value of
which liability is contingent upon the offer price under the contemporaneous capital raising. The Company is not obliged
to complete the acquisition of Nevada Lithium, but if it does not issue $2,000,000 worth of shares in the Company to the
vendors of Nevada Lithium by 31 December 2017 the acquisition will terminate and the Company will have no right to
recover any amount paid as exploration costs on the lithium brine projects.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment at as 30 June 2017 and 30 June 2016.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 2,
except for the following:
●
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
Note 25. Interests in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in
accordance with the accounting policy described in note 2:
Name
Principal place of business /
Country of incorporation
Ownership interest
2016
2017
%
%
Bullamine Magnetite Pty Ltd
Australia
100.00%
100.00%
38
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 26. Interests in joint ventures
EL 5580 is subject to a joint venture agreement, the Diamond Farm Out Agreement, which transfers all RLC’s interest in
diamonds in this tenement to DiamondCo Limited.
Tenements which pre-date and carry through to EL 5580 were subject to a joint venture agreement, the Edward Creek
Base Metals Joint Venture (“ECBMJV”) which was terminated and all interests in the ECBMJV were forfeited to RLC on
9 June 2009. The termination of the joint venture was disputed by the other parties, but RLC considers the dispute to be
baseless. Prior to the termination of the joint venture RLC held a 62% interest in the tenements.
Note 27. Events after the reporting period
On 30 August 2017, the Company announced that it had obtained permits to drill two holes at its lithium brine project in
Nevada USA. It has negotiated a contract with Boart Longyear to undertake the drilling which will be entered into once
the company has raised funding for the drilling.
Since 30 June 2017, the Company has paid amounts totalling $131,153 as payment or reimbursement of exploration
costs incurred in relation the Nevada Lithium Pty Ltd brine projects in Nevada, USA.
No other matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Note 28. Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Shares issued in lieu of fees
Change in operating assets and liabilities:
Increase in trade and other receivables
Decrease/(increase) in prepayments
Increase/(decrease) in trade and other payables
Increase in employee benefits
Increase in accrued salaries and director's fees
Net cash used in operating activities
Note 29. Earnings per share
Consolidated
2017
$
2016
$
(808,688)
(386,255)
394
3,040
69,376
1,217
1,865
22,526
(17,938)
(136)
2,226
15,251
49,945
(2,881)
1,373
(7,442)
26,112
118,611
(686,530)
(224,874)
Consolidated
2017
$
2016
$
Loss after income tax attributable to the owners of Reedy Lagoon Corporation Limited
(808,688)
(386,255)
Weighted average number of ordinary shares used in calculating basic earnings per share 143,115,772 108,005,941
Weighted average number of ordinary shares used in calculating diluted earnings per
share
143,115,772
108,005,941
Number
Number
39
Reedy Lagoon Corporation Limited
Notes to the financial statements
30 June 2017
Note 29. Earnings per share (continued)
Basic earnings per share
Diluted earnings per share
Cents
Cents
(0.565)
(0.565)
(0.358)
(0.358)
The rights to options held by option holders have not been included in the weighted average number of ordinary shares
for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion in AASB 133 ‘Earnings
per Share’. The rights to options are non-dilutive as the Company has generated a loss for the financial year.
Note 30. Share-based payments
A share option plan has been established by the Company and approved by shareholders at a general meeting,
whereby the Company may, at the discretion of the board, grant options over ordinary shares in the company to certain
key management personnel.
Remuneration arrangements of key management personnel are disclosed in the annual financial report. In addition, on
25 November 2016, after approval at the Company's annual general meeting, a total of 900,000 were issued to
directors as part of their remuneration packages. Each director received the below options:-
• Geoffrey H. Fethers – 500,000 options, exercise price 1.3 cents, expiring on 31 December 2019 with a value $1,689;
• Adrian C. Griffin – 100,000 options, exercise price 1.3 cents, expiring on 31 December 2019 with a value $338; and
• Jonathan M. Hamer – 300,000 options, exercise price 1.3 cents, expiring on 31 December 2019 with a value $1,013.
Set out below are summaries of options granted under the plan:
2017
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Lapsed
Balance at
the end of
the year
29/11/2013
13/11/2014
30/12/2015
25/11/2016
31/12/2016
31/12/2017
31/12/2018
31/12/2019
$0.0200
$0.0200
$0.0110
$0.0133
900,000
900,000
900,000
-
2,700,000
-
-
-
900,000
900,000
-
-
-
-
-
(900,000)
-
-
-
(900,000)
-
900,000
900,000
900,000
2,700,000
2016
Grant date
Expiry date
price
Exercise
Balance at
the start of
the year
Granted
Exercised
Lapsed
Balance at
the end of
the year
15/11/2012
29/11/2013
13/11/2014
30/12/2015
31/12/2015
31/12/2016
31/12/2017
31/12/2018
$0.0200
$0.0200
$0.0200
$0.0110
900,000
900,000
900,000
-
2,700,000
-
-
-
900,000
900,000
-
-
-
-
-
(900,000)
-
-
-
(900,000)
-
900,000
900,000
900,000
2,700,000
For the options granted during the current financial half-year, the valuation model inputs used to determine the fair value
at the grant date, are as follows:
Grant date
Expiry date
Share price Exercise
at grant date
price
Expected
volatility
Dividend
yield
Risk-free
interest rate at grant date
Fair value
25/11/2016
31/12/2019
$0.0008
$0.0133
88.50%
-
2.21%
$0.0130
An expense of $3,040 (2016: $1,865) has been recognised in the statement of comprehensive income for the current
period in relation to the above options.
40
Reedy Lagoon Corporation Limited
Directors' declamtion
30 June 2017
In the dlrectors' opinionl
.
the attached financialstatements and notes cornp y wrth lhe Corporations Act 2001, the Accounting Standards the
Corpofations Regulations 2001 and other mandatory pfofessional fepoding requirements;
.
.
.
the attached fnancial statements and notes comply wiih Internationa Financial Reporting Standards as issued by
the International Accounting Standards Boafd as described in note 2 to ihe flnancial statements;
the attached financial statements and notes g ve a true and fair view of the consolidated entity's financial position
as ai 30 June 2017 and of its performance for the financial year ended on that date; and
there are rcasonable gfounds io believe ihai the Company will be able to pay its debts as and when they become
dLe and payable.
The difeciorc have been given the decJaratons required by seclion 2954 ofthe Corporations Act 2001.
Signed in accordance w th a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Arez---
G H. Feihers
IVlanaging Director
28 Septembef 2017
Ivlelboufne
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF REEDY LAGOON CORPORATION LIMITED AND
CONTROLLED ENTITIES
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Reedy Lagoon Corporation Limited and controlled entities (the Company),
which comprises the consolidated statement of financial position as at 30 June 2017, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies, and the directors’ declaration.
In our opinion:
a)
the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the Company’s financial position as at 30 June 2017 and of its financial
performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b)
the financial report also complies with International Financial Reporting Standards as disclosed in Note 2.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report. We are independent of the Company in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which give rise to
the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a
going concern and therefore the company may be unable to realise its assets and discharge its liabilities in the
normal course of business. Our opinion is not modified in respect of this matter.
42
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. Except for the matter described in the Material Uncertainty Related to
Going Concern section, we have determined that there are no other key audit matters to communicate in our
report.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Company’s annual report for the year ended 30 June 2017, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
43
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control;
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by directors;
conclude on the appropriateness of director’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company’s to cease to continue as a going concern; and
evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
44
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 11 to 14 of the directors’ report for the year ended 30
June 2017.
In our opinion, the Remuneration Report of Reedy Lagoon Corporation Limited, for the year ended 30 June 2017
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
MOORE STEPHENS AUDIT (VIC)
ABN 16 847 721 257
RYAN LEEMON
Partner
Audit & Assurance Services
Melbourne, Victoria
29 September 2017
45
Reedy Lagoon Corporation Limited
Shareholder information
30 June 2017
The shareholder information set out below was applicable as at 12 September 2017.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Number
of holders
of ordinary
shares
28
21
54
241
151
495
212
Ordinary shares
% of total
Number held
17,507,500
12,583,333
12,167,893
11,681,922
11,191,368
7,100,671
6,886,740
5,325,000
4,128,000
4,125,000
3,675,000
3,659,000
3,400,454
3,000,000
2,700,000
2,514,404
2,010,000
1,999,999
1,749,998
1,632,374
shares
issued
9.97
7.16
6.93
6.65
6.37
4.04
3.92
3.03
2.35
2.35
2.09
2.08
1.94
1.71
1.54
1.43
1.14
1.14
1.00
0.93
119,038,656
67.77
Pyrope Holdings Pty Ltd
Jagen Pty Ltd
Mr Jonathan Mark Hamer
Citycastle Pty Ltd
Sked Pty Ltd
Mr Adrian Christopher Griffin
Pyrope Holdings Pty Ltd (Chromite Staff S/Fund A/C)
Wifam Investments Pty Ltd (Wischer Family S/F A/C)
Park Road SF Pty Ltd (Park Road Super Fund A/C)
Dales Estates No 1 Pty Ltd
Tromso Pty Ltd
Mr Jaime Lai
Tardis Victoria Pty Ltd
M&K Korkidas Pty Ltd (M&K Korkidas P/L S/Fund A/C)
Toey Pty Ltd (Superannuation Fund A/C)
Sked Pty Ltd (Super Fund A/C)
Amax Pacific Pty Ltd
RFCJ Pty Ltd (RCJ Super Fund A/C)
Mr Clarke Barnett Dudley
Chromite Pty Ltd
Unquoted equity securities
There were 2,700,000 unquoted options.
46
Reedy Lagoon Corporation Limited
Shareholder information
30 June 2017
Substantial holders
Substantial holders in the Company are set out below:
Pyrope Holdings Pty Ltd
Sked Pty Ltd
Jagen PtyLtd
Jonathan M. Hamer
Voting rights
The voting rights attached to ordinary shares are set out below:
Ordinary shares
% of total
Number held
26,869,492
26,690,998
12,583,333
12,207,245
shares
issued
15.29
15.19
7.16
6.95
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
There are no other classes of equity securities.
47
Reedy Lagoon Corporation Limited
Tenement schedule
30 June 2017
Tenement Schedule
Tenements held at 20 September 2017:
Located in Australia
Tenement
EL 5580
Edward Creek project (SA)
E70/4941
Burracoppin (WA)
Area
(km2)
Status
Company Interest
(direct or indirect)
343
Current
100% 1, & 2
58
Application
100%
Located in USA
Tenements (all Placer Claims located in Nevada) 3 & 4
Claim Name
Claim Numbers
Corresponding
BLM NMC Number
Total Claims
Total Area
Columbus Salt Marsh Project
CB Claims
CB-1 to CB-12
CB-17 to CB-28
CB-33 to CB-44
CB-47 to CB-60
CB-63 to CB-76
CB-79 to CB-95
CB-101 to CB-186
Big Smoky South Project
MB Claims
MB-53 to MB-68 MB-
77 to MB-82
MB-89 to MB-96
MB-101 to MB-228
MB-301 to MB-318
MB-320
MB-322 to MB-340
MB-342
MB-344 to MB-368
MB-370 to MB-382
MB-384 to MB-390
MB-392 to MB-398
NMC 1138099
167
1,332 ha
239
1,924 ha
to
NMC 1138179
NMC 1146279
NMC 1146364
to
NMC 1138180
to
NMC 1138327
NMC 1146188
to
NMC 1146278
Alkali Lake North Project
WH Claims
WH-1 to WH-128
NMC 1138328
NMC 1138455
to
128
1,033 ha
Notes to the tenement schedule:
1. EL 5580 is subject to a joint venture agreement, the Diamond Farm Out Agreement, which transfers all RLC’s interest
in diamonds in the tenement to DiamondCo Limited. The minimum expenditure on EL 5580 for the 12 months ending 11
November 2017 is $170,000. At the date of this report more than $100,000 had been expended on exploration on EL
5580 during the current 12 month term.
2. The Statutory expenditure requirement is subject to negotiation with the relevant state department, and expenditure
commitments may be varied between tenements, or reduced subject to reduction of exploration area and/or
relinquishment of non-prospective tenements.
3. The Placer Claims in each of the 3 lithium brine projects in Nevada Columbus Salt Marsh, Big Smoky South and
Alkali Lake North) are 100% owned by and held in the name of Sierra Lithium LLC, a wholly- owned subsidiary of
Nevada Lithium Pty Ltd. RLC has acquired Nevada Lithium Pty Ltd under a Share Purchase Agreement. To complete the
acquisition RLC must issue $2m "worth" of RLC Shares to the vendors of Nevada Lithium before the end of calendar
year 2017: see Note 4 Acquisition of Lithium Brine Projects in Nevada
4. Annual Land Fees comprising US$155 and US$12 per Placer Claim are payable to the BLM and Esmeralda County
respectively. All Land Fees are paid up to 31 August 2018. There is no minimum exploration expenditure requirement
for Placer Claims located in Nevada, USA.
48
CORPORATE DIRECTORY
Reedy Lagoon Corporation Limited
ABN 41 006 639 514
ASX Code : RLC
Directors
Jonathan M. Hamer
Chairman, Non-Executive Director
Geoffrey H. Fethers
Managing Director
Adrian C. Griffin
Non-Executive Director
Company Secretary
Geoffrey H. Fethers
Registered and Head Office
Level 18, 530 Collins Street
Melbourne
Victoria 3000
www.reedylagoon.com.au
Ph:
Email:
03 8420 6280
info@reedylagoon.com.au
Legal Adviser
King & Wood Mallesons
Level 50, 600 Bourke Street
Melbourne
Victoria 3000
Accountants
Moore Stephens (Vic) Pty Ltd
Level 18, 530 Collins Street
Melbourne
Victoria 3000
PH: (03) 9608 0100
www.nexia.com.au
Auditor
Moore Stephens (Vic) Audit
Level 18, 530 Collins Street
Melbourne
Victoria 3000
Share Registry
Link Market Services Limited (ABN 54 083 214 537)
Tower 4, Collins Square
727 Collins Street
Melbourne VIC 3008
Telephone: 1300 554 474
www.linkmarketservices.com.au
Shareholders wishing to receive their Annual Reports
and/or other information from the Company in electronic
form can elect to do so by
visiting www.linkmarketservices.com.au
49