SCORPION MINERALS LIMITED
ABN 40 115 535 030
Financial Report
For the year ended 30 June 2021
SCORPION MINERALS LIMITED | www.scorpionminerals.com.au | ASX:SCN
24 MUMFORD PLACE BALCATTA WA 6021 | T: +61 8 6241 1877 | F: +61 8 6241 1811 | ABN: 40 115 535 030
CONTENTS
CORPORATE DIRECTORY ..............................................................................................................................................................1
DIRECTORS’ REPORT .....................................................................................................................................................................2
AUDITOR’S INDEPENDENCE DECLARATION .............................................................................................................................31
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ...........................................32
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 ......................................................................33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 .........................................34
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 ......................................................35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ....................................................................................................36
DIRECTORS’ DECLARATION ........................................................................................................................................................53
INDEPENDENT AUDITOR’S REPORT ...........................................................................................................................................54
ADDITIONAL INFORMATION .........................................................................................................................................................58
TENEMENT .....................................................................................................................................................................................60
Appendix 4G ....................................................................................................................................................................................61
i
CORPORATE DIRECTORY
Directors
Bronwyn Barnes
Craig Hall
Kate Stoney
Company Secretary
Kate Stoney
Non-Executive Director
Non-Executive Director
Non-Executive Director
Share Registry
Advanced Share Registry
Telephone
Facsimile
Email:
08 9389 8033
08 6370 4203
admin@advancedshare.com.au
Registered Office
Level 1, 24 Mumford Place
Balcatta WA 6021
Telephone
Facsimile
08 6241 1877
08 6241 1811
Solicitors
Mills Oakley
Level 24, 240 St George’s Terrace
Perth WA 6000
Telephone: 08 9197 9800
Auditors
Rothsay Auditing
Level 1, Lincoln House
4 Ventnor Avenue
West Perth WA 6005
Telephone
08 9486 7094
ASX Code
Website
SCN
www.scorpionminerals.com.au
1
DIRECTORS’ REPORT
Your Directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Scorpion
Minerals Limited and the entities it controlled at the end of or during the financial year ended 30 June 2021.
DIRECTORS
The names and details of the Group’s Directors in office during the financial year and until the date of this report are as
follows:
Bronwyn Barnes
Craig Hall
Kate Stoney
Carol New
Non-Executive Director – appointed 31 October 2018
Non-Executive Director – appointed 11 February 2019
Non-Executive Director – appointed 16 February 2021
Non-Executive Director – appointed 1 February 2019 (resigned 16 February 2021)
INFORMATION ON DIRECTORS
Bronwyn Barnes (appointed 31 October 2018)
Ms Barnes has had an extensive career in the resources sector, having worked with companies ranging from BHP Billiton to
emerging juniors in directorship, executive leadership, and operational roles in Australia and internationally. Ms Barnes has
extensive experience in ASX listed company boards focused on minerals exploration and development.
Ms Barnes is currently Executive Chairman of ASX listed Indiana Resources Limited and Non-Executive Chairman of Aerison
Group Limited. She is also a Non-Executive Director of Synergy (Electricity Generation and Retail Corporation). Ms Barnes
was previously a Non-executive director of MOD Resources Limited, Windward Resources Limited, Auris Minerals Ltd and JC
International Group Ltd.
Craig Hall (appointed 11 February 2019)
Mr Hall is an experienced geologist with over 30 years of mineral industry experience in exploration, development and
production roles in a range of commodities, principally precious and base metals. He has held a variety of senior positions
with mid-tier and junior sector resource companies within Australia and overseas.
Mr Hall is currently a Non-executive director of ASX listed Auris Minerals Limited and Horseshoe Metals Limited. Mr Hall was
previously a Non-executive Director of Redbank Copper Limited, Eclipse Metals Limited and Target Energy Limited.
Kate Stoney (appointed 16 February 2021)
Ms Stoney is a CPA qualified accountant with over 15 years’ experience working with public companies in administration,
finance and company secretarial positions.
Ms Stoney is currently a Non-executive director of ASX company Horseshoe Metals Limited.
COMPANY SECRETARY
Kate Stoney B Bus, CPA (appointed 02 December 2019)
2
PRINCIPAL ACTIVITIY
The principal activity of the Group is exploration for mineral resources.
INTERESTS IN SHARES AND OPTIONS
As at the date of this report, the interests of the Directors in the shares and options of Scorpion Minerals Limited were:
Bronwyn Barnes
Craig Hall
Kate Stoney
DIVIDENDS
There were no dividends declared or paid during the financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Ordinary shares
Options over Ordinary
Shares
17,868,250
-
-
11,486,845
1,750,000
-
Apart from the above or as noted elsewhere in this report no significant changes in the state of affairs of the Group occurred
during the financial year.
OPERATING AND FINANCIAL REVIEW
GOING CONCERN
The Group auditor has inserted an emphasis of matter in the audit report regarding going concern. The Directors believe it is
appropriate to prepare the financial statements on a going concern basis as there are no matters that exist at the date of the
report that indicate the Group will be unable to manage the matters referred to in the Note 1 for the next 12 months.
REVIEW OF OPERATIONS
Scorpion Minerals Limited (ASX: SCN) provides the following review of activities for year ending 30 June 2021.
PHAROS GOLD and BASE METALS PROJECT Murchison, WA
During the year, the Company purchased tenement E20/948 and is currently transferring E20/953 from Element 25
(ASX:E25); both of which form the basis for the Pharos Project (refer Figures 1 & 2), covering 384 km2 of prospective ground
contiguous with 58 km2 of granted SCN tenure (E20/931) containing the Mount Mulcahy copper-zinc volcanic-hosted massive
sulphide (VMS) deposit. The Company also has the granted E20/962 west of E20/953.
E20/948 Discussion
During the year the Company undertook two phases of RC drilling within areas of focus on the tenement. Subsequently the
Company announced significant high grade near-surface gold mineralisation at two prospects, specifically:
•
•
7m @ 8.33 g/t Au from 4m (including 3m @ 18.0 g/t Au) from 4m at Lantern Prospect
5m @ 8.28 g/t Au from 9m (including 1m @ 22.9 g/t Au) from 9m at Cap lamp Prospect
Additional drilling is required at both prospects, which are some 3km from each other (refer Figure 3). Mineralisation
intercepted at Cap Lamp is open north–south along strike and across strike and dip to the west.
Both results at Lantern and Cap Lamp confirm the presence of significantly mineralised shear zones and quartz veins are
likely hosted within the highly prospective mafic quartz dolerite unit that is interpreted to extend from Cap Lamp in the east to
the Atlanta Prospect in the west, a distance of about 9km (refer Figure 2).
3
Phase One drilling comprised 28 RC holes totalling 2,482m drilling to a maximum depth of 174m across seven separate
prospects within E20/948, completed in September 2020 (refer Figure 3). In October, to take advantage of drill rig availability,
the Company announced it had brought forward its planned second Phase RC drilling, which allowed for an additional 2,500m
of follow up exploration.
Phase Two drilling consisted of 21 holes completed for 2,008m of drilling and included additional drilling at Cap Lamp,
Lantern, Candle, Salt Flat and Oliver’s Patch; and initial drilling across workings at Terry’s South and north of Maguires
Reward (refer Figure 3).
Both Phases were a reconnaissance test of each target with at least one drill fence designed to confirm mineralisation,
structural setting and geometry. Apart from Cap Lamp, Oliver’s Flat, Maguires North and Terry’s South, all prospects were
blind targets beneath shallow cover in deeply weathered terrain.
Samples from Phase 2 were submitted to the laboratory requesting aqua regia digestion in an effort to expedite results and
geological understanding from an expanded assay suite (most notably arsenic content), with anomalous gold samples to be
re-analysed by fire assay.
The Company has reported sample results for Phase One and Phase Two drilling. Drilling results received are discussed
below. Full results are outlined in Table 2.
Cap Lamp Prospect Drilling Discussion
The Cap Lamp Prospect consists of a line of shallow workings (<5m depth) oriented NNE-SSW covering some 150m of strike
(refer Figure 4). A compilation of historical Rotary Air Blast (RAB) drilling results and soil geochemical sampling confirms the
mineralised trend. Channel sampling of west-dipping veining in the only easily accessible surface working returned multiple
high-grade values with an approximate average value of 2.1 g/t Au over approximately 5m length, with a maximum value of
7.5 g/t Au returned from the north face of the working in a one metre wide quartz vein.
Eight holes (CLRC001-008) for 532m were completed on four 40m spaced sections in Phase 1 drilling, along with a deeper
drill traverse 80m further south, east of the line of workings. A single hole for 30m (CLRC009) on the northern section was
completed in Phase 2.
A significant result of 5m @ 8.28 g/t Au from 9m was returned in CLRC009, which is open to the north and west (refer Figures
3, 4 & 5). The result is also down-dip of near-surface channel samples in workings that returned 5m @ 2.11 g/t Au (see ASX
release dated 9 July 2020). A down-dip result of 3m @ 2.72 g/t Au was returned from CLRC005, and near-surface
mineralisation was noted in CLRC006 further west (refer Figures 4 & 5).
Further drilling will be completed to define the extent of the mineralisation down-dip and along strike. Possible faulted
repetitions to the west will also be tested by extension of the existing drill fences. Some variability in lab duplicates from the
current programme was noted and is being assessed for “nugget effect” by umpire assaying, as well as field resampling.
Lantern Prospect Drilling Discussion
The Lantern Prospect includes significant intersects previously recorded by RAB drilling of 12m @ 7.4 g/t Au, including 2m
@ 42.4 g/t Au in RAB hole WLR033; and 16m @ 3.1 g/t Au, including 2m @16.8 g/t Au in RAB hole WOR006.
Drilling was targeting sub-vertical to west dipping structures, oriented NW-SE crosscutting an approximately E-W oriented
stratigraphic sequence of dolerite with thin (ca. 1-3m width at surface) intercalated Banded Iron Formation (BIF) horizons.
This structural orientation was based on the high-grade results in WLR033 and WOR006 interpreted as being hosted by the
same structure.
Six RC holes (LTRC001-006) for 696m were completed on two E-W sections 40m apart as part of Phase One drilling. Drilling
defined a significantly weathered profile oxidised to around 75m depth, with primary rock around 10m-15m further down.
Quartz veining was intersected throughout the weathering profile hosted by dolerite or its sheared/altered counterparts.
Significant mineralised sulphide and veining was developed on sheared contacts between dolerite and intercalated BIF
including a deep intersection in LTRC003.
4
A significant high grade result of 3m @ 18.0 g/t Au from 4m was returned from drill hole LTRC004, within a larger intercept of
7m @ 8.33 g/t Au from 4m (using a 0.5 g/t Au lower cut), in proximity to high-grade from the historic intersect of 2m @
16.8 g/t Au from 8m in Hole WOR006 (refer Figures 3 & 6).
Phase Two drilling ‘scissored’ the Phase One drilling to test a possible east-dipping mineralisation control. Seven holes
(LTRC007-013) on three 40m sections for 820m advance were completed to a maximum depth of 200m. Results for three of
these holes (LTRC007-009) allowed reinterpretation of this drilling, and resulted in the following observations:
1.
2.
3.
4.
5.
The target structure (T1) is now interpreted in an WNW-ESE orientation dipping north at about 70o (refer Figures 6 & 7)
and passes through the high-grade intercepts in WOR006 and LTRC004, and potentially passes through the high-
grade intercept in WLR033.
An additional parallel structure T2 is postulated adjacent to an untested 3,100ppb soil anomaly approximately 150m
north of T1 (refer Figure 6).
A broad low-grade intercept in historically drilled WLR024 (refer Table 3) was only 4m composite sampled and never
re-split at one metre intervals, and appears to support the T1 interpretation (refer Figures 6, 7 & 8).
The deep intercept in LTRC003 (6m @ 0.85 g/t AU from 148 to 154m) appears to have intersected T1 about 120m
below the surface (Figure 7). This interval was extremely sulphidic, and affected by high water flow and poor sample
recovery. Resampling of this interval is being undertaken to check grades.
The existing E-W drill fences inefficiently test T1, and follow-up shallow drilling on N-S oriented drill fences is planned,
along with proposed future diamond drilling after confirmation of mineralisation. This includes some possible shallow
RC drilling as a check on a south-dipping control (refer Figures 7 & 8).
A small RC drilling programme at Lantern targeting T1 was proposed to commence mid-December 2020, but availability of
drill rigs for such a small programme was dependent on local availability of rigs completing work for other companies prior to
Christmas and heritage monitor availability and could not be conducted. The work is now planned for inclusion as part of a
larger drilling programme after further heritage surveys are completed within E20/953 and E20/948 in 2021.
Candle, Beacon and Atlanta Prospect Drilling Discussion
The Beacon and Candle Prospects were highlighted from multiple anomalous rock chip samples to a maximum of 2.79 g/t Au
taken from historically unsampled dolerite hosted quartz outcrops-oriented NW-SE. The newly discovered zones at Candle
were some 375-475m south of a historical RAB drilling highlight of 4m @ 2.65 g/t Au from 28m to the bottom of hole in
WOR008.
The Company drilled six holes (CNRC001-006) for 594m on three sections in Phase 1 drilling, with two holes per section line
100m apart targeting the outcrop in the south, and two holes on a single section targeting mineralisation highlighted by the
historical result in WOR008. A further three holes for 370m (CNRC007-009) were completed in Phase 2, with a single hole
scissored back on each section against the Phase 1 drilling to better assess the dip of expected mineralisation. All results
have been received from Phase 1, and partial results from Phase 2.
At Candle, CNRC002 in the second section intersected 7m of mineralised dolerite from 101m to the end of hole at 108m,
including 2m @ 1.34 g/t Au from 106m (refer Table 2), and hole CNRC009 returning 1m @ 2.08 g/t Au from 55m in
prospective geology in the northernmost section, open to the north and east. The Company is considering the impact of the
postulated T1 structural orientation interpreted at Lantern at Candle and other prospects, and further work is planned.
The Beacon Prospect was defined on the back of two anomalous rock chip samples to a maximum value of 0.84 g/t Au earlier
this year, and surface nugget distribution in the proximal area. Two RC holes for 200m were drilled 40m apart as an initial test
of a larger planned E-W traverse to be extended further to the west. Drilling encountered a variably silicified and veined shear
within a strongly carbonate-altered dolerite. The intensity and style of alteration intersected is considered to be proximal to
mineralisation.
At Atlanta, 4km west of Beacon, historical reconnaissance drilling returned a composite value of 5m @ 0.69 g/t Au from 15m
in Hole RYA99-013 (close to the transported laterite interface). The zone was tested by two holes (ATRC001-002) totalling
212m which intersected dolerite hosted quartz veining below the transported (approximately 20m thick) cover; no gold
5
anomalism was intersected in ATRC001 whilst results for ATRC002 are awaited. Given the depth of cover, further work will
await the outcome of the structural interpretation gained from drilling other prospects in the dolerite unit.
Salt Flat Prospect Drilling Discussion
The Salt Flat Prospect was highlighted from high grade (10.5 g/t Au and 10.0 g/t Au) rock chip samples from undrilled
workings 200m apart, located approximately 200m west of Cap Lamp (refer Figure 4). The Company drilled three holes
(SFRC001-003) for 228m in Phase 1 drilling and a further three holes for 222m (SFRC004-006) in Phase 2. Hole SFRC003
returned 3m @ 0.15 g/t Au from 7m mostly associated with quartz veining below the 10.0 g/t result, with further anomalous
gold returned at depth in composites and single metre sampling in likely extensions to Cap Lamp mineralisation. An
additional hole (SFRC004) was drilled further west, along with single holes on section lines 40m north (SFRC005) and south
(SFRC006).
Field review of the drill hole samples and reconnaissance mapping has determined that the high-grade surface quartz vein is
significantly different in morphology and hosted by a sediment/black shale unit that separates the main Salt Flat workings from
Cap Lamp and is relatively steep-dipping (refer Figure 4). The sub-surface orientation of these sediment/contact-hosted veins
is unknown and further drilling is required to adequately test the prospective structure.
Further, significant graphitic material was logged in the sediment unit and some re-assaying is planned to eliminate possible
issues related to the sample content. It would appear the northern workings at Salt Flat are located away from the sediment
unit, and are similar in style and structural orientation (NNE strike and flat west dip) to the vein structures at Cap Lamp,
located to the east.
SFRC001 and SFRC002 were drilled on a section targeting these workings, with SFRC001 returning a low-grade intercept of
6m @ 0.22 g/t Au from 17m, thinning at depth in SFRC002.
Oliver’s Patch Prospect Drilling Discussion
The Oliver’s Patch Prospect was identified by pit and stopped workings on quartz vein outcrop, to a maximum depth of around
5m. Rock chip samples returned anomalous values to a maximum value of 3.05ppm in the main working. The Prospect was
undrilled. Subsequently the Company drilled two holes (OPRC001-002) for 140m in Phase 1 drilling and a further two holes
for 130m (OPRC003-004) in Phase 2 drilling on two section lines 40m apart targeting the vein outcrop.
Drilling intersected a 70° west-dipping quartz vein filled shear of approximately 10m true width. Results returned a maximum
assay of 0.16 g/t Au in OPRC001 in the centre of the shear. Field RC drill sample re-splitting and assaying is being
completed.
Maguires North Prospect Drilling Discussion
The Maguires North Prospect was identified by pit and shaft workings on quartz vein outcrop, to a maximum depth of around
10m. Rock chip samples returned anomalous values to a maximum value of 0.33ppm Au north of the main working, which is
located some 500m north along strike of the Maguires Reward Prospect (within P20/2318, not on SCN tenure- refer Figure 3),
and some 80m north of the E20/948 boundary with that tenement. The Maguires North Prospect was undrilled, and the
Company drilled two holes (MNRC001-002) for 124m in Phase 2 drilling, with no significant result. Further work is planned.
Terry’s South Prospect Drilling Discussion
The Terry’s South Prospect was identified by a shaft in the centre of P20/2253 developed to a maximum depth of around
10m-15m. A quartz sample from the working returned a maximum value of 1.18pm Au. The Company has initially drilled two
holes (TSRC001-002) for 192m in Phase 2 drilling to test this structure.
Drilling intersected a sub-vertical to east-dipping shear with quartz veining of around 5m true width, with a best intercept of 3m
@ 0.84 g/t Au recorded. Significant sulfide mineralisation with gold anomalism (to a maximum value of 0.15 g/t Au) was
encountered in the footwall of the second hole drilled. Field mapping along strike to the north of the drilling has confirmed
significant untested veining and a possible east dip to the mineralised zone. Further drilling is required to complete the initial
single fence test of the structure. This area is considered very prospective and further detailed evaluation is warranted.
6
2021 RC Drilling
Post-year end, on 12 August, the Company announced it had commenced RC drilling on E20/948 to follow up the successful
2020 RC drilling programme across multiple targets including Beacon, Candle, Candle North, Lantern and Cap Lamp
(Figure 3).
Photo 1: RC drill rig on site at Pharos , August 2021
The Company subsequently announced on 23 August 2021 it had completed its Phase 3 programme, which included 16 holes
drilled for a total of 1,134m to a maximum depth of 145m in North South drill sections. The holes were designed to scissor
historic intersections to determine strike and dip of the high-grade structures. A single section was drilled at each target, apart
from Lantern where two sections were completed. Several drill holes intersected significant dolerite
hosted structures with
chlorite-pyrite-arsenopyrite) and/or the weathered remnants. Regional
associated quartz veining, alteration (silica
alteration (carbonate-chlorite) of the dolerite host rocks was also noted.
carbonate
‐
Initial assays are expected to be received in September 2021, with follow-up RC drilling expected to commence shortly
thereafter.
‐
‐
E20/953 Discussion
The second Pharos Project tenement E20/953 was granted in September 2020, with the tenement considered very
prospective for gold and ultramafic-hosted PGE-Ni-Cu targets. The Company purchased the tenement from Element 25, and
is in the process of transferring ownership as the first year of grant has now passed.
The Company has undertaken a review of historic open file data and identified targets for gold exploration adjacent to the
historic Ryansville, Ulysses and Hercules Prospects (refer Figure 2). In addition, base metal exploration completed by CRA
Exploration Pty Ltd (CRA) targeting possible repetitions of the Mt Mulcahy-style VMS mineralisation culminated in the drilling
of two holes on E20/953. A single vertical 90m deep hole (83WRR3) targeting a magnetic anomaly at Poona North
intersected significant PGE-Ni mineralisation (refer Figures 2 & 9, and Tables 6 & 7).
Results included:
• 44 metres at 0.18% Ni, 0.39% Cr, 0.63% Ti from 46-90m
• elevated Cu (1500ppm) and Au (0.10ppm) at the water table
• highly anomalous Pd+Pt of 0.78ppm over 2metres 86-88m*
*bottom of hole (88-90m) not assayed for Pd/Pt.
7
This significant result has received no follow up since the drilling conducted by CRA some 37 years ago. The PGE-Ni-Cu
mineralisation is thought to be associated with either layered or chonolith-style mafic/ultramafic intrusives. These intrusives
are of particular significance given the recent Julimar discovery by Chalice Gold on the western edge of the Yilgarn Craton,
and Podium’s nearby (refer Figure 1) Parks Reef PGE-Au-Base Metals Project (inferred resource of 1,140,000 ounces
combined Pt-Pd and Au plus 37,300 tonnes Cu1). The Company applied for E20/962 (‘Choallie Creek’) west of E20/953 on
the strength of results outlined in its review.
Project Background
E20/953 covers over 180km2 of the total 640km2 of the Pharos Project. CRA completed an exploration programme in the area
from 1982 to 1984 following on from programmes completed by Kennecott (1974) and Western Mining Corporation (WMC)
prior (1969). Work completed by these groups included airborne magnetics, electromagnetic (EM) surveys followed up with
ground magnetics, and EM targeting VMS style polymetallic mineralisation. CRA collated the historic magnetic data and
identified several untested anomalies outlined primarily by ground magnetic surveys, and followed up with two single RC drill
holes (83WRRC3, 83WRRC4- refer Figure 2, and Tables 5, 6 & 7) testing two targets on now E20/953. There was no outcrop
noted with any of the anomalies.
Hole 83WRRC3 (refer Figure 9) intersected significant ultramafic intrusive hosted PGE-Ni-Cu mineralisation at a prospect
named Poona North, outlining 44m at 0.18% Ni, 0.39% Cr, 0.63% Ti from 46m-90m (open at end of hole); along with elevated
Cu (1500ppm) and Au (0.10ppm) adjacent to the water table (32m-34m); and highly anomalous Pd+Pt of 0.78ppm over 2m at
the bottom of the hole (86m-88m). The final interval (88m-90m) was not assayed for Pd or Pt for an unknown reason. The
Pd/Pt ratio noted is approximately 1:1, with the Pd value currently around 2.6 multiples of Pt.
Anomalous copper and gold analyses detected adjacent to the water table may indicate a nearby source for these elements to
leach and mobilise into the groundwater and weathering profile. Hole 83WRRC4 (refer Figure 2 and Table 5) drilled some
6km to the east also intersected anomalous Ni and Cr (refer Table 6), however at a lower level than 83WRRC3. As outlined
there has been no follow up of these isolated single RC drill hole tests of the magnetic anomalies, and the Company is
extremely encouraged by the opportunity that the outlined anomalism represents.
Next Steps- E20/953 targets
The Company intends to conduct field reconnaissance activities as soon as low impact exploration clearance is available.
Reprocessing of detailed open file and purchased air magnetic datasets will be completed and if warranted, followed up with
Airborne VTEM surveys over selected targets. These activities will support further geological understanding and assist in
planning for target drill testing of these and additional priority targets outlined to commence immediately after necessary
clearances are obtained.
Iron Ore – Binding Term Sheet with Fenix Resources Ltd
In February 2020 the Company announced that it had entered into a binding Term Sheet for a farm-in and joint venture
agreement with Fenix Resources Limited (ASX: FEX) for two tenements E20/953 (currently the subject of an option to acquire
between Scorpion and Element 25 Limited) and E20/948 (currently 100%-owned by Scorpion). The two tenements totalling
384 km2 are located adjacent and contiguous to Fenix’s Iron Ridge operation and have iron ore targets totalling 15 strike
kilometres.
The binding term sheet provides for Fenix to undertake exploration activities for iron ore, whilst leaving Scorpion to focus on
its gold and PGE Ni-Cu targets within the tenements.
The material terms of the Binding Term Sheet are as follows:
(a)
Scorpion grants to Fenix the right to earn a 70% interest in the Iron Ore Rights in the tenements during the Farm-in
Period of four years; and
1 POD:ASX announcement ‘Parks Reef Resources grows 54% to 1.14Moz at increased grade’ released on 3 February 2020
8
(b)
for the remainder of the Farm-in Period, Scorpion grants to Fenix the sole and exclusive right to carry out exploration
for iron ore on the tenements for the purpose of exercising the Iron Ore Rights as required to satisfy the Farm-in
Requirements.
Pharos Project Planned Exploration Activities
The following activities are planned to take place at Pharos for the remainder of the calendar year and have been amended to
bring forward follow up drilling of Pharos gold targets in September. The multi-commodity targets are 100% owned by
Scorpion and are in addition to the iron ore targets that are the subject of an option agreement with Fenix Resources Ltd
(ASX: FEX).
1. Airborne detailed photography
2. RC drill testing Pharos gold targets
3. Heritage Survey and Clearance
4. Airborne and/or ground EM surveys
5. RC drill follow up Pharos gold targets
6. RC drill testing (~1000m programme) of Iron targets identified
7. Diamond drilling Mt Mulcahy (~800m)
August - completed
August - completed
October
October
October
October-November
Q4 2021
The Company continues to assess the potential of additional targets within E20/948 and E20/953.
For additional background on Pharos Project information please refer to ASX releases:
25/06/2020
09/07/2020
13/08/2020
31/08/2020
28/09/2020
08/10/2020
02/11/2020
24/11/2020
08/02/2021
08/04 2021
28/04/2021
16/06/2021
23/06/2021
13/07/2021
21/07/2021
12/08/2021
23/08/2021
“Pharos Project Exploration Update”
“High Grade Gold Rock Chips - Pharos Project”
“Drilling to Commence – Pharos Project”
“Commencement of Drilling - Pharos Project”
“High Grade Gold Confirmed at Lantern - Pharos Project”
“Phase 2 RC Drilling Commenced- Pharos Project”
“Priority PGE Ni-Cu Targets – Pharos Tenement”
‘Further High-Grade Gold Results – Pharos Project”
“Term Sheet – Iron Ore Rights at Pharos”
“PGE-Ni-Cu Targets Identified at Pharos Project”
“Fenix Iron Ore JV Update – Pharos”
“Pallas PGE-Ni-Cu Target – Pharos”
“Multiple Commodity Targets Identified at Pharos”
“Fenix Iron Ore JV and Pallas PGE Target Exploration Update”
“Iron Ore Targets Advanced and Drilling Expedited – Fenix JV”
“RC Drilling Commences at Pharos Gold Targets”
“Completion of Drilling at Pharos Gold Targets”
MT MULCAHY COPPER PROJECT
Murchison, WA
Geology Discussion
The Mt Mulcahy Project in Western Australia (Refer Figures 1, 2) hosts the Mount Mulcahy copper-zinc deposit, a volcanic-
hosted massive sulphide (VMS) zone of mineralisation with a JORC 2012 Measured, Indicated and Inferred Resource of
647,000 tonnes @ 2.4% copper, 1.8% zinc, 0.1% cobalt and 20 g/t Ag (refer PUN:ASX release 25 September 2014 and
Table 1) at the ‘South Limb Pod’ (SLP). The tenement containing the SLP is now in its second year of grant (refer ASX:SCN
Mt Mulcahy Exploration Licence granted 16 September 2019). The Company noted the following highlights in that release:
Contained metal at the SLP resource of:
•
•
•
•
•
33.5M pounds (15,200 tonnes) of Cu
26.3M pounds (11,800 tonnes) of Zn,
1.35M pounds (600 tonnes) of Co,
415,000 ounces of Ag, and
5,000 ounces of Au
9
•
•
87% of tonnes & 91% of Cu, Zn and Ag metal content classified Measured + Indicated.
Significant intercepts from the historic drilling at SLP include:
o 6.8m @ 4.9% Cu, 3.7% Zn, 0.16% Co, 39 g/t Ag, and 0.19 g/t Au
o 10.2m @ 4.5% Cu, 4.0% Zn, 0.17% Co, 33 g/t Ag, and 0.18 g/t Au
o 12.4m @ 3.1% Cu, 2.3% Zn, 0.10% Co, 28 g/t Ag, and 0.21 g/t Au
o 11.3m @ 4.9% Cu, 4.2% Zn, 0.16% Co, 44 g/t Ag, and 0.57 g/t Au
The folded horizon hosting the SLP VMS mineralisation forms a regional keel, where the surface expression can be traced for
a distance of at least 12km along strike and excellent potential exists for additional mineralisation to be discovered along this
prospective horizon. Twenty untested targets have been identified along strike of this horizon using a combination of VTEM
and soil geochemistry. These targets have characteristics similar to the SLP and are considered prospective for VMS base
metal accumulations. The Company has plans for three extensional diamond tail holes targeting down dip of the current
resource.
Gold targets within E20/931 are currently being evaluated in conjunction with the base metal prospectivity. A north-south
trending Big Bell Shear splay is interpreted to pass through the western side of the licence area and auger soil geochemistry
is planned to test for targets to be followed by RC drill testing of any anomalies defined by the programme.
Table 1: Current Mineral Resource Estimate, Mt Mulcahy Project
(refer ASX release 25/9/2014 “Maiden Copper - Zinc Resource at Mt Mulcahy”, which also contains a list of significant drill intersections for the deposit, listed within that
report at Table 2)
Mt Mulcahy South Limb Pod Mineral Resource Estimate
Grade
Contained Metal
Tonnes
193,000
372,000
82,000
647,000
Cu (%)
Zn (%)
Co (%)
Ag (g/t)
Au (g/t)
3.0
2.2
1.5
2.4
2.3
1.7
1.3
1.8
0.1
0.1
0.1
0.1
25
19
13
20
0.3
0.2
0.2
0.2
Cu (t)
5,800
8,200
1,200
Zn (t)
4,400
6,300
1,100
15,200
11,800
Co (t)
220
330
60
610
Ag (oz)
157,000
223,000
35,000
415,000
Au (oz)
2,000
2,000
4,000
Resource
Category
Measured
Indicated
Inferred
TOTAL
CORPORATE
Early in the financial year the Company issued 2,000,000 fully paid shares priced at $0.07 as part of a drill-for-equity
arrangement with its drilling contractor, for work undertaken at its Pharos Project, and the Company also announced that
terms of unsecured loans provided to the Company had been varied by extending the repayment term to 31 December 2021,
and the date of the Annual General Meeting (AGM), to be held on Monday 30 November 2020, with the Notice of Meeting to
follow.
On the 20 October 2020 the Company announced that all $0.05 cent options expiring within October 2020 had been
exercised, with the Company issuing 13,357,500 fully paid shares, with funds received totalling $667,875.
On 2 November 2020, the Company proposed the issue of 15,000,000 shares to be issued as debt reduction of $1,200,000;
and 20,250,000 unlisted options with and exercise price of $0.12, with a proposed expiry of 29 November 2023, as outlined in
the Notice of Meeting and Explanatory Statement issued 30 October 2020.
On 30 November 2020, the Company held its Annual General Meeting (“AGM”), with all resolutions set out in the Notice of
Meeting and Explanatory Statement issued 30 October 2020 endorsed by shareholders. On 23 December 2020, the
Company issued 1,750,000 $0.12 options expiring 22 December 2023 to each director as approved by shareholders at the
AGM.
The Company continues to address opportunities within Australia that complement the focus of the Company’s current areas.
10
Figure 1 – Location of the Pharos/Mt Mulcahy Project and Regional Resources in Murchison area, WA
11
Figure 2 – Location of Pharos Project, highlighting targets and historic CRA Pty Ltd RC drilling overlain on regional magnetics on E20/953
12
Figure 3 – Location of RC Drilling of prospects, set against rock chip sampling highlights, Pharos Project. Blue notations highlight 2021 RC Drilling Locations
13
Figure 4 – Location of RC Drilling at Cap Lamp and Salt Flat prospects, Pharos Project
14
Figure 5 –RC Drilling Cap Lamp Prospect, Cross Section 7014120 mN showing mineralisation open to the West and North
15
Figure 6 –RC Drill Plan Lantern Prospect
16
Figure 7 –RC Drill Inset Plan Lantern Prospect
17
Figure 8–Lantern RC Drill section 574150 mE highlighting T1. Proposed drilling includes a possible shallow check of a south-dipping
mineralisation control (Prop 2)
18
Figure 9 – Cross Section of 83WRRC3 showing anomalous Pd/Pt, Ni, CU, Au, Cr and Ti
19
Table 2 -Rock chip sample location and assay
Results released 9/7/2020
Previously released 13/2/2020
Prospect
Sample ID
North MGA
East MGA
Au ppm
Prospect
Sample ID North MGA
East MGA
Au ppm
A127202
A127203
A127204
A127205
A127206
A127207
A127208
A127209
A127210
A127211
A127212
A127213
A127214
A127215
A127216
A127217
A127218
A127219
A127220
A127221
A127222
A127223
A127224
A127225
A127226
A127227
A127228
A127229
A127230
A127231
A127232
A127233
A127234
A127235
A127236
A127237
A127238
7015170
7015166
7015166
7015126
7015131
7015098
7015096
7015081
7015208
7015176
7015236
7015250
7015247
7015349
7015416
7015480
7015515
7015401
7015387
7015386
7015386
7015617
7015618
7015462
7015451
7015636
7015640
7015657
7015673
7015709
7015716
7015728
7015464
7015755
7015463
7014986
7014987
572182
572183
572183
572138
572134
572159
572153
572254
572046
572007
572076
572084
572086
572039
572633
572661
572680
572743
572767
572778
572794
573319
573331
573284
573292
573313
573312
573280
573277
573401
573401
573940
574530
573920
574528
575847
575846
0.841
0.382
0.068
0.003
0.002
0.001
0.001
0.003
0.002
<0.001
<0.001
0.001
0.001
0.003
0.001
<0.001
0.001
0.001
0.001
0.001
0.001
2.509
0.328
0.003
0.004
1.303
0.397
0.023
0.18
0.011
2.794
0.017
0.004
0.006
0.007
0.001
0.002
Beacon
East of Beacon
Candle
Regional
A127240
A127241
A127242
A127243
A127244
A127245
A127246
A127247
A127248
A127249
A127250
A127251
PP004
A127252
A127253
A127254
A127255
A127256
A127257
A127258
A127259
A127260
A127261
A127262
A127263
A127264
A127265
A127266
PP003
A127270
A127271
A127272
A127273
A127274
A127275
A127276
A127277
A127278
A127279
A127280
A127281
A127282
A127283
A127284
A127285
PP005
A127267
A127268
A127269
A127286
A127287
A127288
A127289
A127290
A127291
A127292
PP002
PP001
7014097
7014097
7014097
7014049
7014049
7014233
7014233
7014342
7014342
7014401
7014401
7014401
7014404
7013758
7013744
7013744
7013458
7013458
7014190
7014207
7014279
7014114
7014115
7014115
7014116
7014114
7014121
7014121
7013456
7013857
7013860
7014104
7014097
7013925
7013769
7013752
7013744
7013933
7013966
7014004
7014388
7013469
7013469
7013375
7013311
7014140
7013604
7013588
7013578
7012423
7012423
7012389
7012392
7012393
7012398
7012372
7012355
7011718
576872
576872
576873
576964
576965
576953
576954
576871
576870
576916
576917
576917
576915
577031
577022
577022
577425
577426
577212
577200
577143
577154
577155
577156
577157
577153
577157
577158
577465
573374
573371
573386
573303
573328
573431
573445
573457
573657
573639
573616
573310
573463
573464
573489
573515
572837
576220
576202
576232
573501
573502
573757
573839
573851
573876
573891
573744
574472
Salt Flat
Cap Lamp
Olivers Patch
North Of
Maguires
Tank Light
Terrys
0.170
0.551
0.005
0.186
0.004
0.005
9.947
0.013
0.014
0.057
10.501
0.184
0.002
0.005
0.006
0.006
0.005
0.003
0.002
0.018
0.002
0.910
5.136
1.898
0.751
1.856
7.472
0.334
0.003
0.114
3.046
0.159
0.008
0.005
0.002
0.002
0.005
0.002
0.001
<0.001
0.001
0.001
<0.001
0.001
0.001
0.001
0.045
0.334
0.006
0.004
0.005
0.003
0.018
0.009
0.010
0.012
0.005
1.182
Coordinate system MGA94 zone 50, sample sites located by GPS, accuracy +/- 3m: Assay method, 50g Fire assay, lower detection limit 0.001 ppm
20
Table 3: Material Historical Results (=/>4m @ >0.2 g/t Au)- Reported intervals are downhole lengths, true width not known
Prospect
Candle
Candle
Candle
Candle
Lantern
Hole ID
RYA99-035
RYA99-039
RYA99-047
WCR05
WLR001
MGA Northing
7015952
7015952
7016188
7016082
7015633
MGA Easting
573141
573541
573260
573277
574164
Assumed RL
0
0
0
0
0
MGA Azimuth
0
0
0
270
315
Lantern
WLR006
7015601
Lantern
WLR009
7015566
Lantern
WLR024
7015654
Lantern
WLR032
7015666
Lantern
WLR033
7015666
Lantern
Lantern
WOR005
WOR006
7015674
7015633
Candle
Candle
Mustang Sally
Mustang Sally
Mustang Sally
Laterite Hill
Laterite Hill
Laterite Hill
Cap Lamp
Cap Lamp
Cap Lamp
Cap Lamp
Cap Lamp
Cap Lamp
Cap Lamp
Cap Lamp
WOR008
WOR009
MS256-4
MS255-3
MS264-5
LWL100-4
LWN329-3
LWN330-4
OP 102-1
OP 102-2
OP 103-2
OP 103-3
OP 104-2
OP 1015-2
OP 1015-3
OP 1035-3
7016072
7016033
7016797
7016689
7016606
7022651
7022599
7022716
7013923
7013923
7014023
7014023
7014123
7013873
7013873
7014073
574159
574124
574143
574169
574149
574159
574158
573243
573243
579630
579607
579558
581237
582096
582134
577175
577140
577105
577075
577105
577200
577170
577135
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
315
315
135
270
270
0
0
0
0
117
117
117
156
117
117
90
90
90
90
90
90
90
90
Dip
-90
-90
-90
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
Max Depth (m)
95.00
50.00
55.00
58.00
59.00
53.00
40.00
56.00
Including
57.00
94.00
Including
44.00
27.00
Including
32.00
32.00
102.00
81.00
89.00
55.00
71.00
54.00
49.00
including
65.00
41.00
21.00
54.00
71.00
65.00
26.00
From (m)
62.00
20.00
0.00
40.00
36.00
51.00
4.00
24.00
0.00
8.00
16.00
28.00
32.00
0.00
52.00
44.00
46.00
68.00
40.00
0.00
8.00
20.00
28.00
0.00
89.00
49.00
53.00
28.00
43.00
29.00
16.00
18.00
46.00
9.00
16.00
20.00
16.00
48.00
8.00
To (m)
72.00
25.00
2.00
44.00
47.00
55.00
8.00
28.00
4.00
12.00
24.00
36.00
36.00
4.00
57.00
52.00
48.00
72.00
44.00
14.00
10.00
24.00
32.00
4.00
91.00
50.00
58.00
32.00
44.00
30.00
24.00
20.00
49.00
11.00
18.00
24.00
28.00
52.00
12.00
Interval (m)
10.00
5.00
2.00
4.00
11.00
8.00
4.00
4.00
4.00
4.00
8.00
8.00
4.00
4.00
5.00
8.00
2.00
4.00
4.00
14.00
2.00
4.00
4.00
4.00
2.00
1.00
5.00
4.00
1.00
1.00
8.00
2.00
3.00
2.00
2.00
4.00
12.00
4.00
4.00
Au (g/t)
0.24
0.51
0.41
0.21
0.69
0.80
0.74
0.23
0.28
0.36
0.57
0.83
1.16
0.94
0.64 EOH
11.00
42.41
0.23
0.51 EOH
3.51
16.80
0.37
2.65 EOH
0.37
2.46
3.50
1.38
1.36
1.18
1.35
1.65
5.45
0.64
0.40
1.43
0.45
0.27
0.20
0.20
Drill Type
Aircore
Aircore
Aircore
RAB
RAB
Company
Newcrest
Newcrest
Newcrest
Hampton
Guardian
RAB
Guardian
RAB
Guardian
RAB
Guardian
RAB
Hampton
RAB
Hampton
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
RAB
Guardian
Guardian
Guardian
Guardian
Equinox
Equinox
Equinox
Equinox
Equinox
Equinox
Newcrest
Newcrest
Newcrest
Newcrest
Newcrest
Newcrest
Newcrest
Newcrest
21
Table 4 – Pharos Project RC Drilling Significant Results: >1m>/= 0.5 g/t Au
Prospect
Hole ID
Dip
RL
MGA
Northing
MGA
Easting
MGA
Azimuth
Max Depth
(m)
From
(m)
To (m)
Interval
(m)
Au g/t
Notes
Atlanta
Beacon
Cap Lamp
Candle
Lantern
Maguires
North
Olivers
Patch
Salt Flat
Terrys
South
ATRC001
ATRC002
BCRC001
BCRC002
BCRC003
BCRC004
CLRC001
CLRC002
CLRC003
CLRC004
CLRC005
CLRC006
CLRC007
CLRC008
CLRC009
CLRC010
CLRC011
CLRC012
CLRC013
CNRC001
CNRC002
CNRC003
CNRC004
CNRC005
CNRC006
CNRC007
CNRC008
CNRC009
CNRC010
CNRC011
CNRC012
CNRC013
CNRC014
LTRC001
LTRC002
LTRC003
LTRC004
LTRC005
LTRC006
LTRC007
LTRC008
LTRC009
LTRC010
LTRC011
LTRC012
LTRC013
LTRC014
LTRC015
LTRC016
LTRC017
LTRC018
MNRC001
MNRC002
OPRC001
OPRC002
OPRC003
OPRC004
SFRC001
SFRC002
SFRC003
SFRC004
SFRC005
SFRC006
TSRC001
TSRC002
7014357
7014344
7015185
7015185
7015140
7015250
7013920
7013920
7013920
7014081
7014121
7014120
7014044
7014000
7014119
7014120
7014120
7014100
7014100
7015723
7015720
7015620
7015619
7016079
7016079
7015623
7015721
7016079
7015785
7015670
7016060
7016110
7015590
7015680
7015680
7015681
7015642
7015642
7015643
7015640
7015644
7015680
7015682
7015604
7015600
7015600
7015650
7015670
7015620
7015635
7015685
7013535
7013537
7013860
7013857
7013898
7013896
7014398
7014398
7014240
7014240
7014280
7014200
7011720
7011720
568689
568648
572160
572120
572150
572150
577180
577158
577118
577126
577122
577081
577105
577105
577139
577050
577020
577135
573120
573296
573284
573298
573263
573225
573204
573381
573440
573296
573320
573320
573240
573240
573320
574108
574084
574062
574147
574122
574096
574200
574250
574140
574180
574241
574275
574200
574160
574160
574160
574125
574125
576209
576191
573356
573323
573329
573301
576886
576850
576941
576903
576920
576920
574440
574434
500
500
500
500
500
500
500
500
500
500
498.5
496
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
90.0
90.0
90.0
90.0
360
180
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90
90
90
90
90.0
90.0
90.0
90.0
90.0
90.0
270.0
270.0
270.0
180
360
360
180
360
90.0
90.0
90.0
90.0
90.0
90.0
270.0
270.0
270.0
270.0
270.0
270.0
270.0
180
180
360
360
180
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
90.0
-60.0
-60.0
-50.0
-55.0
-55
-55
-60.0
-60.0
-60.0
-50.0
-60.0
-60.0
-50.0
-50.0
-50.0
-55
-55
-55
-55
-50.0
-70.0
-55.0
-55.0
-50.0
-55.0
-60.0
-60.0
-60.0
-55
-55
-55
-55
-55
-55.0
-55.0
-55.0
-55.0
-55.0
-60.0
-60.0
-60.0
-60.0
-60.0
-60.0
-60.0
-60.0
-55
-55
-55
-55
-55
-50.0
-60.0
-60.0
-60.0
-50.0
-60.0
-50.0
-60.0
-50.0
-60.0
-60.0
-60.0
-50.0
-60.0
92.0
120.0
80.0
120.0
103
100
36.0
60.0
150.0
40.0
66.0
80.0
40.0
60.0
30.0
Including
55
60
30
43
120.0
108.0
End of Hole
78.0
100.0
80.0
108.0
90.0
180.0
100.0
121
145
60
60
100
126.0
96.0
174.0
60.0
Including
108.0
132.0
80.0
110.0
80.0
110.0
120.0
200.0
120.0
37
55
55
55
55
40.0
84.0
40.0
100.0
40.0
90.0
48.0
80.0
100.0
96.0
60.0
66.0
78.0
114.0
NSI
NSI*
NSI
NSI
NSI
1.0
1.0
1.0
1.0
3.0
4.0
1.0
1.0
2.0
5.0
1.0
1.0
2.0
1.0
NSI
NSI
NSI
NSI
NSI
NSI
23.0
36.0
40.0
18.0
18.0
4.0
16.0
22.0
19.0
9.0
9.0
24.0
37.0
41.0
19.0
21.0
8.0
17.0
23.0
21.0
14.0
10.0
102.0
106.0
103.0
108.0
43.0
44.0
0.58
0.64
0.56
0.50
2.72
0.93
2.22
0.74
2.37
8.28
22.88
1.47
1.34
1.12
55.0
56.0
1.0
2.08
67.0
85.0
148.0
4.0
4.0
27.0
45.0
17.0
36.0
45.0
68.0
88.0
154.0
11.0
7.0
28.0
46.0
18.0
37.0
47.0
12.0
13.0
1.0
2.0
55.0
58.0
NSI
NSI*
NSI*
NSI*
NSI*
NSI*
NSI*
NSI*
NSI*
NSI*
NSI*
NSI
NSI
NSI
NSI*
NSI*
NSI*
NSI*
1.0
3.0
6.0
7.0
3.0
1.0
1.0
1.0
1.0
2.0
1.0
1.0
1.55
0.66
0.85
8.33
18.04
0.71
0.99
0.65
0.55
1.05
0.51
0.53
3.0
0.84
Notes
1 - 4m composite
2 - Au by 50gm Fire Assay, NAGROM method – FA50_OES
3 - Au by 40gm Aqua Regia Digest, NAGROM method – ICP008
4 – Incomplete sampling
Drilling phases, a = 1, b = 2; c=3
No upper cut applied, 0.5 g/t lower cut, allowing 2m internal waste
Coordinate system GDA94z50. Northing and Easting obtained by handheld GPS, accuracy +/
NSI = No Significant Intercept, NSI*= No Significant Intercept, but incomplete sampling
3m, nominal RL used
‐
2,a
b
2,a
2,a
3, 4, c
3, 4, c
2,a
2,a
2,a
2,a
2,a
2,a
1,2,a
2,a
2,a
2,a
3,b
3,b
3, 3, 4, c
3, 3, 4, c
3, 3, 4, c
2,a
3,a
3,a
2,a
2,a
2,a
2,a
3,b
3,b
3,b
3, 4, c
3, 4, c
3, 4, c
3, 4, c
3, 4, c
2,a
2,a
2,a
2,a
2,a
2,a
2,a
2,a
2,a
3,b
3,b
3,4,b
3,4,b
3,4,b
3,b
b
3,b
3, 4, c
3, 4, c
3, 4, c
3, 4, c
3, 4, c
3,4,b
3,4,b
2,4,a
2,4,a
3,4,b
3,4,b
2,a
2,a
2,a
3,4,b
3,4,b
3,4,b
3,4,b
3,4,b
22
Table 5: Collar Details Historical Drilling E20/953
North MGA
7003900
7005060
Hole ID
83WRRC3
83WRRC4
MGA coordinates generated from georeferenced map
East MGA
543840
549880
Drill Type
RC
RC
RL
500
500
Depth
90
86
Dip
-90
-70
Azimuth
0
325
Company
CRA
CRA
Year
1983
1983
Table 6: Significant Intercepts Historical Drilling E20/953
83WRRC3
Pt ppm
From
32.0
86.0
To
34.0
88.0
Length
2.0
2.0
Au ppm
0.10
32.0
46.0
38.0
90.0
6.0
44.0
Pd ppm Cu ppm
Ni %
Cr %
TiO %
0.40
0.38
Pt + Pd 0.78
1200
0.18
0.39
0.63
Table 7: Assay Table for Historical Drillholes 83WRRC3, 83WRRC4 (E20/953)
Length
83WRRC3
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
Au ppm
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.04
0.01
0.10
0.01
0.03
0.01
<0.01
0.02
0.01
0.03
<0.01
0.03
0.02
<0.01
<0.01
0.02
0.02
0.01
<0.01
<0.01
0.02
0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
Pd ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.15
<0.01
<0.01
0.025
0.105
0.38
*
Pt ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.15
<0.01
<0.01
0.023
0.10
0.40
*
From
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
40.0
42.0
44.0
46.0
48.0
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
76.0
78.0
80.0
82.0
84.0
86.0
88.0
To
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
40.0
42.0
44.0
46.0
48.0
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
76.0
78.0
80.0
82.0
84.0
86.0
88.0
90.0
Cu ppm
35
36
35
24
19
15
21
70
125
100
74
58
100
98
115
500
1500
1050
1050
520
360
520
770
190
84
64
34
20
26
18
23
19
20
34
18
19
13
16
11
14
14
13
11
11
10
Ni ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
1700
1750
1800
1900
1900
1850
1850
1800
1900
1850
1650
1900
1700
1700
1800
1600
1850
1800
1750
1750
1650
1500
Cr ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
3600
3800
3500
4000
4200
4200
3900
3800
3900
4100
3700
3900
3600
3700
3700
4000
4200
4200
3800
5400
3500
3600
TiO ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
8800
6000
10500
6200
5400
5200
5600
8000
6200
5400
4600
5600
5600
5600
5800
5400
6200
5800
5000
7600
7200
7000
23
83WRRC3
83WRRC4
From
From
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
40.0
42.0
44.0
46.0
48.0
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
76.0
78.0
80.0
82.0
84.0
To
To
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
40.0
42.0
44.0
46.0
48.0
50.0
52.0
54.0
56.0
58.0
60.0
62.0
64.0
66.0
68.0
70.0
72.0
74.0
76.0
78.0
80.0
82.0
84.0
86.0
Length
Length
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
2.0
Au ppm
Au ppm
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
<0.01
0.01
<0.01
<0.01
<0.01
<0.01
1000**
<0.01
<0.01
*
<0.01
<0.01
Pt ppm
Pt ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Pd ppm
Pd ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Cu ppm
Cu ppm
43
48
31
29
34
23
11
36
38
36
27
26
25
48
33
23
12
9
8
24
160
72
62
50
29
58
42
44
40
68
82
76
70
52
52
52
58
62
52
54
*
35
48
Ni ppm
Ni ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
1750
1350
1200
1500
1000
1350
1100
1100
76**
1000
960
*
1850
2000
Cr ppm
Cr ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
1820
2490
2340
2210
2200
1450
1930
1820
1610
1700
1820
*
*
*
TiO ppm
TiO ppm
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
* Not assayed
** Likely transcription error in original log
Competent Persons Statement 1
The information in this report that relates to the Exploration Results and Mineral Resources at the Mt Mulcahy and Pharos Projects is based on information reviewed by Mr
Craig Hall, whom is a member of the Australian Institute of Geoscientists. Mr Hall is a director and consultant to Scorpion Minerals Limited and has sufficient experience
which is relevant to the style of mineralisation and types of deposit under consideration and to the activity he is undertaking to qualify as Competent Persons as defined in
the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)’. Mr Hall consents to the
inclusion of the information in the form and context in which it appears.
Forward Looking Statements
Scorpion Minerals Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the
fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law,
none of Scorpion Minerals Limited, its Directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising
from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in
connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security,
and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking
statements that are subject to risk factors associated with exploration, mining and production businesses. It is believed that the expectations reflected in these statements
are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially,
including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry
competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions,
political risks, project delay or advancement, approvals and cost estimate.
24
FINANCIAL RESULTS FOR THE PERIOD
The operating loss after income tax of the Group for the year ended 30 June 2021 was $2,236,709 (2020: loss of
$818,449).
SHAREHOLDER RETURNS
Basic and diluted loss per share (cents)
2021
(0.98)
2020
(0.43)
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
COVID-19
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential future
impact after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
On 5 July 2021, the Company announced 2,250,000 fully paid ordinary shares were issued following the exercise of
2,250,000 unlisted options (expiry date 18 October 2021, exercise price $0.10 per share).
On 29 July 2021, the Company announced the completion of placement to accelerate exploration. Total financial
commitments were received for $1,284,750; placement of $902,250 to new and existing sophisticated investors; drill for
equity agreement secured for an additional $112,500 and debt to equity conversion of $270,000 to follow. The new funds
were to accelerate exploration at Pharos with additional work planned for the Mt Mulcahy Copper-zinc deposit.
On 26 August 2021, Bronwyn Barnes was appointed as Non-Executive Chair to lead the next phase of growth for SCN.
On 21 September 2021, the Company announced the issue of employee incentive options.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Directors are not aware of any likely developments in the operations of the Group and the expected results of those operations that
may have a material effect in subsequent years that are not already disclosed. Comments on certain operations of the
Group are included in this annual report under the operating and financial review on activities on page 3.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are subject to environmental regulation in respect to its mineral tenements relating to exploration
activities on those tenements. No breaches of any environmental restrictions were recorded during the financial year. The
Group has not yet fully reviewed the reporting requirements under the Energy Efficient Opportunities Act 2006 or the
National Greenhouse and Energy Reporting Act 2007, but believes it has adequate systems in place to ensure compliance
with these Acts having regard to the scale and nature of current operations.
CORPORATE GOVERNANCE
The Company has reviewed its corporate governance practices against the Corporate Governance Principles and
Recommendations (4th Edition) as published by the ASX Corporate Governance Council.
The 2021 Corporate Governance Statement is dated as at 30 June 2021 and reflects the corporate governance practices in
place throughout the 2021 financial year. A copy of the Company’s 2021 Corporate Governance Statement can be
accessed at the Company’s website.
25
REMUNERATION REPORT (AUDITED)
Directors and Key Management Personnel disclosed in this report (see page 2 for details about each Director). During the
financial year there were no Key Management Personnel other than the Directors.
Name
Bronwyn Barnes
Craig Hall
Kate Stoney
Carol New
Position
Non-Executive Director
Non-Executive Director
Non-Executive Director and Company Secretary appointed 16 February 2021
Non-Executive Director and Company Secretary resigned 16 February 2021
The information provided in this Remuneration Report has been audited as required under Section 308 (3C) of the
Corporations Act 2001.
Assessing performance and claw-back of remuneration
The Remuneration Committee of the Board of Directors of the Company is responsible for determining and reviewing
compensation arrangements for the Directors, the CEO and the executive team. The Board’s policy for determining the
nature and amount of remuneration for Board members and senior Executives of the Group (if any) is as follows:
Remuneration Policies for Non-Executive Directors
The Board will adopt remuneration policies for Non-Executive Directors (including fees, travel and other benefits). In
adopting such policies, the Board will take into account the following guidelines:
Non-Executive Directors should be remunerated by way of fees – in the form of cash, non-cash benefits or
superannuation contributions;
Non-Executive Directors should not participate in schemes designed for remuneration of executives;
Non-Executive Directors should not receive bonus payments;
Non-Executive Directors should not be provided with retirement benefits other than statutory superannuation.
The maximum aggregate annual remuneration is approved by shareholders.
The maximum aggregate amount of fees that can be paid to Non-Executive Directors is currently $200,000 which was
approved at a General Meeting held on 22 January 2008. Fees for Non-Executive Directors are not linked to the
performance of the Group. However, to align Directors’ interests with shareholder interests, the Directors are encouraged to
hold shares in the Group and are able to participate in employee option plans.
Remuneration Policies for Executive Directors and Executive Management
The Board will adopt remuneration policies for Executive Directors and Executive Management, including:
Fixed annual remuneration (including superannuation) and short term and long-term incentive awards (including
performance targets);
Any termination payments (which are to be agreed in advance and include provisions in case of early termination);
and
Offers of equity under Board approved employee equity plans. Any issue of Company shares or options (if any)
made to Executive Directors are to be placed before shareholders for approval.
The Board’s objectives are that the remuneration policies:
Motivate Executive Directors and Executive Management to pursue the long-term growth and success of the
Company;
Demonstrate a clear relationship between performance and remuneration; and
Involve an appropriate balance between fixed and incentive remuneration, to reflect the short and long-term
performance objectives appropriate to the Company’s circumstances and goals.
Performance based remuneration
There was no performance-based remuneration paid to Directors during the financial year. Based upon the present stage
of development of the Company, performance-based remuneration is not considered appropriate.
Group performance, shareholder wealth and Directors' and executives' remuneration
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment
objectives and Directors and Executives’ performance. Currently, this is facilitated through the issue of options to
Executives to encourage the alignment of personal and shareholder interests. No market-based performance remuneration
has been paid in the current year.
26
Voting and comments made at the Group’s 2020 Annual General Meeting
At the Group’s 2020 Annual General Meeting, the Company’s Remuneration Report was passed by way of a poll. The Board
remains confident that the Group’s remuneration policy and the level and structure of its executive remuneration are suitable
for the Company and its shareholders and hence it has not amended its overall remuneration policy.
Details of remuneration
The amount of remuneration of the Directors (as defined in AASB 124 Related Party Disclosures) is set out below. During
the financial year there were no Key Management Personnel other than the Directors.
Directors
Bronwyn Barnes
2021
2020
Craig Hall
2021
2020
Kate Stoney1
2021
2020
Carol New2
2021
2020
Short-Term
Salary & Fees
$
Post-Employment
Superannuation
$
Share-based
Payments
Options
$
30,000
30,000
30,000
30,000
29,250
10,500
30,000
48,000
-
-
-
-
-
-
-
31,850
31,850
-
-
-
31,850
-
Total
$
61,850
30,000
61,850
30,000
29,250
10,500
61,850
48,000
Total Key Management Personnel compensation
2021
2020
119,250
118,500
1 Kate Stoney was appointed a Company Secretary on 16 February 2021. 2 Carol New resigned as a Company Secretary on 16 February 2021.
95,550
-
214,800
118,500
-
-
As at 30 June 2021 the following amounts owed to the directors remain unpaid:
•
•
•
•
Craig Hall
Carol New
Bronwyn Barnes
Kate Stoney
$20,000
$14,200
$20,000
$23,250
There are no cash bonuses or non-monetary benefits relating to any of the Directors and Key Management Personnel
during the year.
Shareholdings of Key Management Personnel
Balance
1 July 20
Granted as
remuneration
On exercise of
options
Net change
Other
Balance
30 June 21
Bronwyn Barnes
8,561,405
8,561,405
-
-
9,306,845
9,306,845
-
-
17,868,250
17,868,250
27
Option holdings of Key Management Personnel
Balance
1 July 20
Granted as
remuneration
Other
On exercising of
options
Balance
30 June 21
Bronwyn Barnes
Craig Hall
Kate Stoney
19,473,690
-
-
19,473,690
1,750,000
1,750,000
-
3,500,000
(430,000)
-
-
(430,000)
(9,306,845)
-
-
(9,306,845)
11,486,845
1,750,000
-
13,236,845
Service agreements
As at the date of this report there are no executives or Key Management Personnel, other than the Directors, engaged by
the Company. Formal appointment letters are in place with Non-Executive Directors, each of which is entitled to a fee of
$30,000 per annum effective from 1 January 2017 ($36,000 per annum previous year). There are no termination payments
payable.
The Board has determined that should a Non-Executive Director incur or be asked to incur excessive time in assisting the
Company on specific matters, the Non-Executive Director is entitled to charge the Company for this additional time. The
Board has also agreed that payments to Non-Executive Directors for the provision of such services shall be on reasonable
commercial terms.
Share-based compensation
Options granted to Directors’ and Officers of the Company
The Company approved the issue of incentive options to Directors. On 23 December 2020 Scorpion Minerals Limited
issued Ms Barnes 1,750,000 and Mr Hall 1,750,000 unlisted incentive options with a strike price of 12 cents expiring on
22 December 2023 (3 years).
Additional information
The table below sets out information about the Group’s earnings and movements in shareholder wealth of the periods since
listing:
30 June 21
30 June 20
30 June 19
30 June 18
30 June 17
Revenue
-
-
-
Net (loss)/profit before tax
(2,236,709)
(818,849)
(2,644,232)
Share price at year-end
0.061
0.045
0.004
$
$
-
(294,916)
0.024
$
-
(452,190)
0.030
There were no remuneration consultants engaged by the Group during the financial year.
This is the end of the audited remuneration report.
DIRECTORS’ MEETINGS
Given the size and nature of the Company, the Non-Executive Directors meet frequently at a management level. These
meetings are not recorded as board meetings. During the year the Group held four Board meetings. Board decisions were
also undertaken via circular resolutions signed by all Directors entitled to vote.
Director
B Barnes
C Hall
C New
K Stoney
Eligible to Attend
4
4
2
2
Attended
4
4
2
2
28
SHARES UNDER OPTION
The table below represents the movement of options from 1st of July 2020 and to the date of this report:
Balance at the beginning of the year
Movements of share options during the year
Options exercised 16 September $0.05
Options exercised 15 October 2020 $0.05
Options exercised 20 October 2020 $0.05
Options issued on 23 December 2020 with an exercise price of $0.12 and expiring on 22 December
2023
Options issued on 25 February 2021 with an exercise price of $0.12 and expiring on 25 February
2024
Options exercised 20 May 2021 $0.10
Options exercised 5 July 2021 $0.10
Options issued under ESOP 16 September 2021
Total number of options outstanding as at the date of this report
Number of options
46,000,000
(2,500,000)
(7,142,500)
(13,357,500)
5,250,000
15,000,000
(500,000)
(2,250,000)
4,125,000
44,625,000
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to 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 part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
INSURANCE OF DIRECTORS AND OFFICERS
The Company entered into a Directors and Officer’s liability insurance policy for a 12-month period commencing 7 February
2021 for a total premium of $19,500 (30 June 2020: $15,000.00).
The Company has entered into Deeds of Access, Insurance and Indemnity with each of the Directors and Officers of the
Company. Under the Deeds of Access, Insurance and Indemnity, the Company will indemnify those Officers against any
claim or for any expenses or costs which may arise as a result of work performed in their respective capacities as Directors
and Officers of the Company or any related entities.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Group are important.
The Board of Directors would consider the position that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision
of non-audit services by the auditors, would not compromise the auditors’ independence requirements of the Corporations
Act 2001 for the following reasons:
all non-audit services would be reviewed to ensure they do not impact the impartiality and objectivity of the auditor;
and
none of the services undermine the general principles relating to auditor independence as set out in APES 11- Code
of Ethics for Professional Accountants.
No non-audit services were provided by Rothsay Auditing during the current financial year.
29
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on
page 31.
Signed in accordance with a resolution of the Directors, and on behalf of the Board by,
Craig Hall
Director
Perth, Western Australia
30 September 2021
30
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Scorpion Minerals Limited for the year ended 30 June
2021, I declare that, to the best of my knowledge and belief, there have been:
• no contraventions of the auditor independence requirements of the Corporations
Act 2001 in relation to the audit; and
• no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Scorpion Minerals Limited and the entities it controlled
during the year.
Rothsay Auditing
Daniel Dalla
Partner
30 September 2021
Liability limited by a scheme approved under Professional Standards Legislation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
REVENUE
Other income
Director fees
Exploration expenses
Occupancy expenses
Share Based Payment
Other expenses
Operating loss
Finance income
Finance costs
Finance costs - net
Loss before income tax
Income tax benefit/(expense)
Loss after income tax for the year
Notes
2021
$
2020
$
-
-
(91,250)
(75,000)
(1,138,462)
(373,833)
(36,000)
(36,000)
(416,516)
-
(464,937)
(281,511)
(2,147,165)
(766,344)
21
2
-
-
(89,544)
(52,105)
(89,544)
(52,105)
(2,236,709)
(818,449)
3
-
-
(2,236,709)
(818,449)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year
(2,236,709)
(818,449)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF
SCORPION MINERALS LIMITED
10
(2,236,709)
(818,449)
Loss per share for loss attributable to ordinary equity holders of the Group:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
12
12
(0.98)
N/A
(0.43)
N/A
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read
in conjunction with the Notes to the Consolidated Financial Statements.
32
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION AS AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Capitalised exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
Notes
2021
$
133,873
133,756
267,629
4
5
2020
$
167,205
188,176
355,381
6
2,060,027
2,060,027
2,060,027
2,060,027
2,327,656
2,415,408
7
8
(1,394,095)
(2,282,933)
(1,281,133)
(1,299,854)
(2,675,228)
(3,582,787)
(2,675,228)
(3,582,787)
NET ASSETS / (LIABILITY)
(347,572)
(1,167,379)
EQUITY
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY
9
10
11
22,874,964
20,234,964
(23,801,988)
(21,866,636)
579,452
464,293
(347,572)
(1,167,379)
The above Consolidated Statement of Financial Position should be read
in conjunction with the Notes to the Consolidated Financial Statements.
33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED
Balance 30 June 2020
Note
Contributed
Equity
Accumulated
Losses
Total
Equity
Share-
based
Payments
Reserve
20,234,964
(21,866,636)
464,293
(1,167,379)
Loss for the-year
10
Total comprehensive loss for the year
-
-
(2,236,709)
(2,236,709)
-
-
(2,236,709)
(2,236,709)
Transactions with owners in their capacity
as owners
Shares issued during the year
Options issued during the year
Transfer on exercise/lapse of options
9
2,640,000
-
-
-
-
-
2,640,000
416,516
416,516
301,357
(301,357)
-
Balance 30 June 2021
22,874,964
(23,801,988)
579,452
(347,572)
CONSOLIDATED
Balance 30 June 2019
Note
Contributed
Equity
Accumulated
Losses
Total
Equity
Share-
based
Payments
Reserve
19,822,564
(21,048,187)
464,293
(761,330)
Loss for the-year
10
Total comprehensive loss for the year
--
-
(818,449)
(818,449)
Transactions with owners in their capacity
as owners
Shares issued during the year
Options issued during the year
Balance 30 June 2020
9
412,400
-
-
-
20,234,964
(21,866,636)
464,293
(1,167,379)
-
-
-
-
(818,449)
(818,449)
412,400
-
The above Consolidated Statement of Changes in Equity should be read
in conjunction with the Notes to the Consolidated Financial Statements.
34
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration
Interest paid
Notes
2021
$
2020
$
(225,355)
(1,139,712)
(20,347)
(28,715)
(373,832)
34,113
Net cash outflow from operating activities
22
(1,385,414)
(368,434)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash inflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of shares
Proceeds (repayment) from borrowings
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
-
-
1,440,000
(87,918)
1,352,082
(33,332)
167,205
133,873
412,400
118,489
530,889
162,455
4,750
167,205
9
4
The above Consolidated Statement of Cash Flows should be read
in conjunction with the Notes to the Consolidated Financial Statements
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of the financial information included in this report have been
set out below.
Basis of preparation of historical financial information
a)
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Boards, Australian Accounting Interpretations
and the Corporations Act 2001. These financial statements have been prepared on a historical cost basis. Scorpion
Minerals Limited is a for-profit entity for the purpose of preparing financial statements.
The financial report complies with Australian Accounting Standards which include International Financial Reporting
Standards as adopted in Australia. Compliance with these standards ensure that the consolidated financial statements and
notes as presented comply with International Financial Reporting Standards (IFRS).
Going Concern
The Group incurred a loss before tax of $2,236,709 (2020: loss of $818,419) and incurred cash outflows from operating
activities of $2,585,414 (2020: $368,434) for the year ended 30 June 2021. At that date the Group had a working capital
deficiency of $2,407,599 (2020: $3,227,406) and net liabilities of $347,572 (2020: $1,167,379). This included current
liabilities of $1,394,095 (trade and other payables), and $1,281,133 (borrowings).
From the $1,394,095 in trade and other payables outstanding at year end $619,680 are owed to related parties, $406,445
relates to Companies in Liquidation, and $367,970 are owed to external creditors. With $395,575 being overdue or outside
agreed payment terms.
From the $1,281,133 in borrowings outstanding at year end, $946,147 are owed to related parties and $334,986 is owed to
Investmet Limited & Whitestone Mining Pty Ltd, who are currently in liquidation.
At 28 September 2021, the Group had a cash balance of $470,730.
These conditions indicate a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going
concern and therefore whether it will be able to pay its debts as and when they fall due, and realise its assets and
extinguish its liabilities in the normal course of business at amounts stated in the financial report.
The Directors believe that there are sufficient funds available to continue to meet the Group’s working capital requirements
as at the date of this report. The financial statements have been prepared on the basis that the Group is a going concern,
which contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the normal
course of business for the following reasons:
•
•
•
•
The Company has executed a loan facility agreement with associated entities. The loan facility with associated
entities is to be repaid in cash within 7 days of the successful completion of a capital raising. Prior to a capital
raising, any lender may convert all or some of the outstanding balance of the loan in ordinary shares at the price at
which the capital raising is to be completed. Conversion of the loan to ordinary shares is subject to compliance with
the applicable laws and regulations including the requirement to seek shareholder approval for a related party
transaction. The loan bears interest of 8% p.a. The undrawn loan balance available to the Company as at 30 June
2021 from related entities amounts to $904,000.
In addition, the current lenders (excluding Investmet Limited who are currently in Liquidation) have confirmed
unconditionally that they will not call on or demand any repayment of the advances made to the Company up to 31
December 2021 until such time as the Group’s financial position improves.
The Company expects to raise additional funds through the Equity market.
The Directors have also prepared a cash flow forecast that further indicates the Company’s ability to continue to
operate as a going concern. This assumes the ability to continue to defer payment of creditors and for the directors
to continue to defer payment of fees or accept part of their fees in shares.
In the Directors’ opinion, at the date of signing the financial report there are reasonable grounds to believe that the matters
set out above will be achieved and have therefore prepared the financial statements on a going concern basis.
36
Should the Directors not achieve the matters set out above, there is material uncertainty whether the Group will be able to
continue as a going concern. The financial report does not include any adjustments relating to the recoverability or
classification of recorded asset amounts, or to the amounts or classification of liabilities, which might be necessary should
the Group not be able to continue as a going concern.
Revenue Recognition
b)
Interest
Revenue is recognised as interest accrues using the effective interest method. This method uses the effective interest rate
which is the rate that exactly discounts the estimated future cash receipt over the expected life of the financial asset.
Income Tax
c)
The income tax expense for the period is the tax payable on the current period’s taxable income based on the notional
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences between the tax base of assets and liabilities and their carrying amounts in the financial statements, and to
unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets
are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or
taxable profit. Deferred tax assets are only recognised for deductible temporary differences and unused tax loses if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and
deferred tax balances relating to amounts recognised directly in equity are also recognised directly in equity.
Impairment of Assets
d)
At each reporting date, the Group assesses whether there is any indication that individual assets are impaired. Where
impairment indicators exist, the recoverable amount is determined and impairment losses are recognised in Profit or Loss
where the asset’s carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use.
For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for the
cash-generating unit to which the asset belongs.
Cash and Cash Equivalents
e)
“Cash and cash equivalents” includes cash on hand, deposits held at call with financial institutions, other short-term highly
liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement
of financial position.
Fair value estimation
f)
Fair values may be used for financial asset and liability measurement and well as for sundry disclosures.
The fair value of trade receivables and payables is their normal value less estimated credit adjustments due to their short-
term nature.
Borrowing costs
g)
Borrowing costs are capitalised that are directly attributable to the acquisition, construction or production of qualifying assets
where the borrowing cost is added to the cost of those assets until such time as the assets are substantially ready for their
intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.
37
Trade and other payables
h)
Trade and other payables represent liabilities for goods and services provided to the Group prior to the year end and which
are unpaid. These amounts are unsecured and have 30-60 days payment terms. They are recognised initially at fair value
and subsequently at amortised cost.
Employee Benefits
i)
Wages and Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to
be settled within 12 months of statement of financial position date are recognised in respect of employees’ services
rendered up to reporting date and measured at amounts expected to be paid when the liabilities are settled.
Liabilities for non-accumulating sick leave are recognised when leave is taken and measured at the actual rates paid or
payable. Liabilities for wages and salaries are included as part of Other Payables and liabilities for annual and sick leave
are included as part of Employee Benefits Provisions.
Long Service Leave
Liabilities for long service leave are recognised as part of the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees to the statement of financial
position date using the projected future projected unit credit method. Consideration is given to expected future salaries and
wages levels, experience of employee departures and periods of service. Expected future payments are discounted using
national government bond rates at reporting date with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Retirement Benefit Obligations
The Group does not have a defined contribution superannuation fund. All employees of the Group are entitled to receive a
superannuation guarantee contribution required by the government which is currently 10%.
Exploration and evaluation expenditure
j)
Exploration and evaluation expenditure encompass expenditures incurred by the Group in connection with the exploration
for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral
resource are demonstrable.
Exploration and evaluation expenditure incurred by the Group is accumulated for each area of interest and recorded as an
asset if:
1)
2)
the right to tenure of the area of interest are current; and
at least one of the following conditions is also met:
a)
the exploration and evaluation expenditures are expected to be recouped through successful development
and exploitation of the area of interest, or alternatively, by its sale; and
exploration and evaluation activities in the area of interest have not at the reporting date reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves,
and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and
evaluation incurred by the Group are expensed in the year they are incurred.
b)
For each area of interest, expenditure incurred in the acquisition of rights to explore is capitalised, classified as tangible or
intangible, and recognised as an exploration and evaluation asset. Exploration and evaluation assets are measured at cost
at recognition. Exploration and evaluation incurred by the Group subsequent to acquisition of the rights to explore is
expensed as incurred. During the financial year, no amounts have been capitalised, as the relevant tenement was in the
process of being renewed, and all expenditure was recorded in Profit and Loss.
The recoverable amount of each area of interest is determined on a bi-annual basis and the provision recorded in respect of
that area adjusted so that the net carrying amount does not exceed the recoverable amount. For areas of interest that are
not considered to have any commercial value, or where exploration rights are no longer current, the capitalised amounts are
written off against the provision and any remaining amounts are charged to profit or loss. Recoverability of the carrying
amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of interest.
38
Contributed Equity
k)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
Goods and Services Tax
l)
Revenues, expenses and assets are recognised net of GST except where GST incurred on a purchase of goods and
services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense item. Receivables and payables are stated with the amount of GST included. The net
amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financial activities, which are recoverable from, or payable to, the taxation authority, are classified as
operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
Leases
m)
All leases other than short term leases and low value leases will be recognised on the balance sheet. The standard will see
all leases, held by a lessee, record obligations as a liability and a corresponding right of use asset, both current and non-
current, for the term of the lease.
It has been determined that there is no material impact of the new and revised Standards and Interpretations on the
financial position or performance of the Group.
Provisions
n)
Provisions for legal claims are recognised when the Group has a legal or constructive obligation as a result of past events. It
is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of management best estimate of the expenditure required to settle the
present obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.
Share based payments
o)
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or options over shares (“equity-settled
transactions”).
The fair value of options is recognised as an expense with a corresponding increase in equity (share-based payments
reserve). The fair value is measured at grant date and recognised over the period during which the holder becomes
unconditionally entitled to the options. Fair value is determined using a Black-Scholes option pricing model. In determining
fair value, no account is taken of any performance conditions other than those related to the share price of Scorpion
Minerals Limited (“market conditions”).
The cumulative expense recognised between grant date and vesting date is adjusted to reflect the director’s best estimate
of the number of options that will ultimately vest because of internal conditions of the options, such as the employees having
to remain with the Group until vesting date, or such that employees are required to meet internal sales targets. No expense
is recognised for options that do not ultimately vest because a market condition was not met. Where the terms of options
are modified, the expense continues to be recognised from grant date to vesting date as if the terms had never been
changed. In addition, at the date of the modification, a further expense is recognised for any increase in fair value of the
transaction as a result of the change.
Where options are cancelled, they are treated as if vesting occurred on cancellation and any unrecognised expenses are
taken immediately to Profit or Loss. However, if new options are substituted for the cancelled options and designated as a
39
replacement on grant date, the combined impact of the cancellation and replacement options are treated as if they were a
modification.
p)
(i)
(ii)
Earnings per Share
Basic Earnings per Share
Basic earnings per share is determined by dividing the operating loss after income tax by the weighted average
number of ordinary shares outstanding during the financial year.
Diluted Earnings per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share by taking into
account amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the
exercise of partly paid shares or options outstanding during the financial year.
Segment Reporting
q)
Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief operating
decision maker, which has been identified by the Group as the Managing Director and other members of the Board of
Directors.
Interest-bearing loans and borrowings
r)
All loans and borrowings are initially recognised at the fair value of the consideration received net of issue costs associated
with the borrowing. Interest calculated using the effective interest rate method is accrued over the period it becomes due
and increases the carrying amount of the liability.
Principles of consolidation
s)
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Scorpion Minerals Limited.
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an
entity when the Company 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 Group. They are deconsolidated 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 are consistent 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. Non-controlling interests in the results and equity of subsidiaries are shown separately in the
Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position and Statement of Changes
in Equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in
full, even if that results in a deficit balance.
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.
Changes in Accounting Policies
t)
In the year ended 30 June 2021, the Company has reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July
2021.
It has been determined that there is no material impact of the new and revised Standards and Interpretations on the
financial position or performance of the Group.
New Accounting Standards and Interpretations not yet mandatory or early adopted
u)
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 2021.
40
The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year
ended 30 June 2021. As a result of this review the Directors have determined that there is no impact, material or otherwise,
of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group
accounting policies
Critical Accounting Estimates and Judgements
v)
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
Factors that could impact the future recoverability include abandonment of area of interest, the level of reserves and
resources, future technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Coronavirus (COVID-19)
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the Group based on known information. Currently there is no significant impact upon the financial statements or
any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
NOTE 2: EXPENSES
Other expenses
Accounting and secretarial fees
Audit fees
Consultants and advisors
Corporate costs
Fines & penalties
Legal fees
Insurance
Other expenses
2021
$
2020
$
122,355
31,060
65,507
96,904
-
123,523
22,967
2,621
464,937
104,239
34,086
49,955
37,084
694
37,219
16,780
1,454
281,511
41
NOTE 3: INCOME TAX
(a)
Reconciliation of income tax expense to prima facie tax
payable
Loss before income tax
Prima facie income tax at 26% (2020: 27.5%)
Non-deductible expenses
Movement in unrecognised temporary differences
Effect of tax loss not recognised as deferred assets
Income tax (expense)/benefit
(b)
Unrecognised deferred
differences and losses
tax assets arising on
timing
Unrecognised deferred tax asset – tax losses
Unrecognised deferred tax asset – timing
NOTE 4: CASH AT BANK
Cash at bank and on hand
Information about the Group’s exposure to interest rate risk is provided in Note 13.
NOTE 5: TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other receivables
2021
2020
(2,236,709)
(581,544)
(818,449)
(225,073)
19
40,443
541,082
-
(191)
(5,043)
230,307
-
3,783,652
21,645
3,805,297
3,827,153
65,670
3,892,823
2021
2020
133,873
133,873
167,205
167,205
2021
2020
117,364
16,392
133,756
174,205
13,971
188,176
As at 30 June 2021, trade receivables that were past due to impaired was nil (2020: nil). Information about the Group’s
exposure to credit risk is provided in Note 13.
NOTE 6: CAPITALISED EXPLORATION EXPENDITURE
Capitalised tenement acquisition costs
Opening net book amount
Closing net book amount
2021
2020
2,060,027
2,060,027
2,060,027
2,060,027
The ultimate recoverability of the Group’s areas of interest is dependent on the successful discovery and commercialisation
of the project. The Group follows the guidance of AASB 6 Exploration for and Evaluation of Mineral Resources to determine
when capitalised exploration and evaluation expenditure is impaired.
Refer to Note 1(j) for further details.
42
NOTE 7: TRADE AND OTHER PAYABLES
Trade payables
Director and former director related entities creditors
Accrued expenses
Accrued director fees and remuneration
Payroll liabilities – accrued superannuation
Other payable
2021
1,213,462
2020
1,882,182
97,383
20,000
63,250
-
-
123,013
10,500
255,500
11,400
338
1,394,095
2,282,933
Details about the Group’s exposure to risks arising from current and non-current liabilities are set out in Note 13.
NOTE 8: BORROWINGS
On 14 March 2014, the Group entered into a loan agreement with the lenders (entities associated with Mr Michael Fotios) to
the amount of $1,000,000 or such other greater sum as the parties may agree in writing. The loan is provided by a
syndicate of lender the details of which are provided in Note 19 The purpose of the loan facility is to provide working capital
to the Group to fund its immediate operational requirements is at an interest rate of 8% per annum. The loan facility limit
does not refresh if debt is converted to equity. This agreement was superseded by the variations and agreement described
below.
Reconciliation of carrying amount of loans from related parties
Opening amount
Reclassified as other borrowings
Drawdowns during the year
Interest accrued
Repayments in shares during the year
Closing drawdown balance
Loans from non-related parties
2021
2020
1,294,608
1,090,247
-
-
68,851
(87,918)
118,489
-
85,872
-
1,275,541
1,294,608
5,592
5,246
From the $1,275,541 draw down balance, $946,147 are owed to related parties and $329,394 relates to Investment Limited
who are currently in Liquidation. This latter balance has been called upon on behalf of the Liquidators and is not bound by
the most recent Loan Variation announced on 29 September 2020.
On 27 October 2017, the Company announced it had entered into an agreement with Investmet Limited and Delta Resource
Management Pty Ltd to provide funding of up to $1,000,000 to the Company.
As per the ASX Announcement dated 27 September 2018, a Letter of Variation was executed to increase the loan facility
limit from $1,000,000 to $2,000,000.
On 16 October 2018, a revised agreement incorporating all previous variations was signed.
As per the ASX Announcement dated 13 March 2020, a Letter of Variation was executed to increase the loan facility limit
from $2,000,000 to $2,500,000. As at 30 June 2021 the company had $904,000 available redraw on the loan facility (see
June Quarterly Activities and Cashflow announced on ASX 2 August 2021).
On 29 September 2020 the Company announced to the ASX a further letter of variation had been executed extending the
repayment date to 31 December 2021.
There are no covenants in connection to the Loan Facility.
Details about the Group’s exposure to risks arising from current and non-current borrowings are set out in Note 13.
43
NOTE 9: CONTRIBUTED EQUITY
Issued Capital
Fully paid ordinary shares (a)
Shares to be issued (b)(i)
Shares issued
Total Contributed Equity
Issued Capital
Fully paid ordinary shares (a)
Shares to be issued (b)(i)
Shares issued
Total Contributed Equity
2021
Number
204,517,859
11,000,000
41,500,000
257,017,859
2020
Number
177,024,525
11,000,000
27,493,334
215,517,859
$
18,034,964
2,200,000
2,640,000
22,874,964
$
17,622,564
2,200,000
412,400
20,234,964
(i)
The above shares to be issued represents the deferred consideration payable under the Mt Mulcahy Tenement Sale
Agreement
(a) Movements in fully paid ordinary shares
Details
Balance 30 June 2020
Issued during the year
Balance 30 June 2021
(b) Movements in shares to be issued
Details
Balance 30 June 2020
Issued Placement shares
Balance 30 June 2021
NOTE 10: ACCUMULATED LOSSES
Accumulated losses at beginning of year
Net loss for the year
Transfer on expiry of options
Accumulated losses at end of year
NOTE 11: SHARE BASED PAYMENT RESERVE
Balance at the beginning of the year
Transfer on expiry of options
Issue of unlisted options
Balance at end of year
Number
204,517,859
41,500,000
246,017,859
$
18,034,964
2,640,000
20,674,964
Number
$
11,000,000
2,200,000
-
-
11,000,000
2,200,000
2021
(21,866,636)
(2,236,709)
301,357
2020
(21,048,187)
(818,449)
-
(23,801,988)
(21,866,636)
2021
2020
464,293
(301,357)
416,516
579,452
464,293
-
-
464,293
44
Nature and purpose of reserves
The share-based payments reserve is used to recognise the fair value of shares issued to employees, to Directors and for
the acquisition of assets.
NOTE 12: LOSS PER SHARE
Loss attributable to the members of the Company used in calculating basic
and diluted loss per share
Basic loss per share (cents)
Diluted loss per share (cents)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic loss per share)
2021
2020
(2,236,709)
(818,449)
(0.98)
N/A
(0.43)
N/A
227,776,685
192,092,653
The loss for the year means that the potential ordinary shares on issue are anti-dilutive.
NOTE 13: FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks from their use of financial instruments:
Credit risk
Liquidity risk
Market risk
This Note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital. The Board of Directors has overall
responsibility for the establishment and oversight of the risk management framework. Management monitors and manages
the financial risks relating to the operations of the Group through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from cash and cash equivalents.
Trade and other receivables
As the Group operates in the mining explorer sector, it does not have trade receivables and therefore is not exposed to
credit risk in relation to trade receivables. Presently, the Group undertakes exploration and evaluation activities exclusively
in Australia. At the reporting date there were no significant concentrations of credit risk.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
Carrying Amount
2021
$
2020
$
133,873
133,756
267,629
167,205
188,176
355,381
45
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about counterparty default rates.
Financial assets – counterparties without external credit rating
Financial assets with no default in past
Cash at bank and short-term bank deposits
AA-S&P rating
2021
$
2020
$
133,756
188,176
133,873
267,629
167,205
355,381
Capital Risk Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so as to
maintain a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain
or adjust the capital structure, the Group may issue new shares or sell assets to reduce debt. The Group’s focus has been
to raise sufficient funds through equity and to sell surplus assets to fund exploration and evaluation activities. The Group
monitors the level of funding from related parties and the reliance of such funding on the basis of the gearing ratio.
There were no changes in the Group’s approach to capital management during the year. Risk management policies and
procedures are established with regular monitoring and reporting. Neither the Company nor its subsidiary is subject to
externally imposed capital requirements.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Group’s reputation. The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring
forecast and actual cash flows.
Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of
60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that
cannot reasonably be predicted, such as natural disasters.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:
30 June 2021
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
Trade and other payables
1,394,095
1,394,095
1,394,095
-
Borrowings
1,281,133
1,281,133
-
1,281,133
2,675,228
2,675,228
1,394,095
1,281,133
-
-
-
-
-
-
-
-
-
46
30 June 2020
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
Trade and other payables
2,282,933
2,282,933
2,282,933
-
Borrowings
1,299,854
1,299,5854
-
1,299,854
3,582,787
3,582,787
2,282,933
1,299,854
-
-
-
-
-
-
-
-
-
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Sensitivity analysis
If the interest rates had weakened/strengthen by 10% (based on forward treasury rates) at 30 June 2021, there would be no
material impact on the statement of profit or loss and other comprehensive income. There would be no effect on the equity
reserves other that those directly related to statement of profit or loss and other comprehensive income movements.
Interest rate risk
Exposure arises predominantly from assets and liabilities bearing variable interest rates as the Group intends to hold fixed
rate assets and liabilities to maturity. Interest rate risk is not considered to be material.
2021
Financial Assets
Cash and cash equivalents
Trade and other receivables
Weighted Average Interest Rate
Net Financial Assets
Financial Liabilities
Trade and other payables and borrowings
2020
Financial Assets
Cash and cash equivalents
Trade and other receivables
Weighted Average Interest Rate
Net Financial Assets
Financial Liabilities
Trade and other payables and borrowings
Fixed Interest
$
Floating
Interest
$
Non-Interest
Bearing
$
Total
$
-
-
-
-
133,873
-
-
-
133,756
-
133,873
133,756
-
133,873
133,756
267,629
1,281,133
1,281,133
-
-
1,394,095
1,394,095
2,675,228
2,675,228
Fixed Interest
$
Floating
Interest
$
Non-Interest
Bearing
$
Total
$
-
-
-
-
167,205
-
-
167,205
-
188,176
-
188,176
167,205
188,176
-
355,381
1,299,854
1,299,854
-
-
2,282,933
2,282,933
3,582,787
3,582,787
47
Fair values
The Group does not have any financial instruments that are subject to recurring fair value measurements. Due to their
short-term nature, the carrying amounts of the current receivables and current trade and other payables are assumed to
approximate their fair value.
NOTE 14: SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are
used to make strategic decisions. The Group does not have any operating segments with discrete financial information.
The Group does not have any customers, and all the Group’s assets and liabilities are located within Australia.
The Board of Directors review internal management reports on a monthly basis that is consistent with the information
provided in the statement of profit or loss and other comprehensive income, statement of financial position and statement of
cash flows. As a result, no reconciliation is required because the information as presented is what is used by the Board to
make strategic decisions.
NOTE 15: COMMITMENTS
Exploration commitments
The Group has certain obligations to perform minimum exploration work and to spend minimum amounts on exploration
tenements. The obligations may be varied from time to time subject to approval and are expected to be fulfilled in the
normal course of the operations of the Group.
Due to the nature of the Group’s operations in exploring and evaluating areas of interest, it is difficult to accurately forecast
the nature and amount of future expenditure beyond the next year. Expenditure may be reduced by seeking exemption
from individual commitments, by relinquishing of tenure or any new joint venture agreements. Expenditure may be
increased when new tenements are granted.
Commitment contracted for at balance date but not recognised as liabilities are as follows:
Within one year
2021
$
2020
$
232,440
232,440
234,000
234,000
NOTE 16: EVENTS OCCURRING AFTER THE REPORTING PERIOD
COVID-19
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential future
impact after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
On 5 July 2021, the Company announced 2,250,000 fully paid ordinary shares were issued following the exercise of
2,250,000 unlisted options (expiry date 18 October 2021, exercise price $0.10 per share).
On 29 July 2021, the Company announced the completion of placement to accelerate exploration. Total financial
commitments were received for $1,284,750; placement of $902,250 to new and existing sophisticated investors; drill for
equity agreement secured for an additional $112,500 and debt to equity conversion of $270,000 to follow. The new funds
were to accelerate exploration at Pharos with additional work planned for the Mt Mulcahy Copper-zinc deposit.
On 26 August 2021, Bronwyn Barnes was appointed as Non-Executive Chair to lead the next phase of growth for SCN.
On 21 September 2021, the Company announced the issue of employee incentive options.
48
NOTE 17: AUDITOR’S REMUNERATION
Amount paid or payable to Rothsay Auditing (2020 -BDO Audit (WA) Pty Ltd)
for assurance services
NOTE 18: DIVIDENDS
There were no dividends declared or paid during the current and prior years.
NOTE 19: RELATED PARTY TRANSACTIONS
Summarised Compensation of Key Management Personnel
(a)
Short-term employee benefits
Post-employment benefits
2021
$
2020
$
30,000
30,000
34,086
34,086
2021
$
2020
$
214,800
-
214,800
108,000
-
108,000
(b) Other Transactions with Key Management Personnel
The entities referred to below were related parties while Mr Michael Fotios was a director of the Company and also a
director of each of the entities. Mr Fotios ceased to be a director of the Company on 31 October 2018 and of each entity on
30 April 2019.
Related party creditors
The Group has entered into an administrative services management agreement with Delta Resource Management Pty Ltd
(Delta). $1,200,000 was settled through the issue of shares to Delta Resource Management Pty Ltd for the year ending 30
June 2021 (2020: Nil); As at 30 June 2020, there is a balance of $520,046 excl. of GST outstanding (2019: $1,037,524).
Delta Resource Management Pty Ltd
Investment Limited (in liquidation)
2021
$
520,046
93,018
613,064
2020
$
1,141,276
93,018
1,234,294
The above transactions are based on normal commercial terms and conditions and at arm’s length.
Loans from related parties
The purpose of the loans with related parties is to provide working capital to the Group to fund its immediate operational
requirements. The proceeds from the loans have been used to meet short-term expenditure needs. The following balance
is outstanding at the end of the reporting period. Further information relating to loan from Michael Fotios Family Trust is set
out in Note 8.
Interest-bearing loans
Azurite Corporation
Delta Resource Management Pty Ltd
Michael Fotios Family Trust
Investmet Limited (in liquidation)
2021
$
2020
$
351,570
175,436
419,141
329,394
347,348
163,288
474,784
309,188
1,275,541
1,294,608
49
The above loans (other than the portion relating to Investmet Limited, who are currently in Liquidation) are not expected to
be repaid until such a time that the Company has received the necessary funds for repayment and such a repayment would
not impair the ability for the Company to continue as a going concern.
NOTE 20: INVESTMENT IN CONTROLLED ENTITIES
Name of Entity
Equity Holding
Cost of Parent Entity’s Investment
Parent Entity
Scorpion Minerals Limited
Controlled Entity
Placer Resources Pty Ltd
LESS Impairment Costs
Scorpion Metals Limited
LESS Impairment Costs
2021
%
2020
%
2021
$
2020
$
100
100
100
100
700,000
(700,000)
168,000
(168,000)
-
700,000
(700,000)
168,000
(168,000)
-
Scorpion Metals Limited, Scorpion Minerals Limited and Placer Resources Pty Ltd are domiciled in and incorporated in
Australia.
50
NOTE 21: SHARE BASED PAYMENTS
During the financial year ended 30 June 2021 the company issued options to Directors and Debt Holders Share based
payments are recognised in the profit and loss statement. The following share-based payments were made; 30 June 2021
$416,516 (2020 Nil).
The fair value of the options has been calculated using the Black-Scholes option pricing model. The model inputs are shown
in the table below:
Option Pricing Model
Date of Grant
Date of Expiry
Exercise Price
Underlying share price (at issue date)
Risk free interest rate
Volatility
Years of expiry
Number of options granted
Fair value of Options
Total fair value of Options
Director Options1
Debt Holder Options2
23/12/2020
22/12/2023
12 cents
5.8 cents
1.75%
75.00%
3 Years
5,250,000
$95,551
26/2/2021
25/2/2024
12 cents
6.5 cents
0.09%
75.00%
3 Years
15,000,000
$320,965
$416,516
1. There are no performance conditions attached to director options and employee options
2. Debt Holder options are in consideration for loan repayment extension to 31 December 2022 (see Notice of Meeting
Resolution 8 announced on ASX 30 October 2020.
NOTE 22: STATEMENT OF CASH FLOWS
Reconciliation of cash and cash equivalents
Cash and cash equivalents as shown in the statement of financial position
and the statement of cash flows
2021
$
2020
$
Operating loss after tax
Interest
Share based payment expenses
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in borrowings
Increase/(decrease) in trade and other payables
Net cash (used in) operating activities
There were no non-cash financing and investing activities (2020: nil)
(2,236,709)
89,544
416,516
54,082
69,197
221,956
(1,385,414)
(818,449)
52,105
-
(54,811)
82,166
370,555
(368,434)
51
NOTE 23: SCORPION MINERALS LIMITED PARENT COMPANY INFORMATION
2021
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Borrowings
TOTAL LIABILITIES
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
(Loss) for the year
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
$
267,034
2,785,887
3,052,921
1,392,485
211,674
1,604,159
2020
$
354,593
2,060,027
2,414,620
2,173,145
297,756
2,470,901
22,874,964
576,452
(22,002,654)
1,448,762
20,234,964
464,293
(20,755,537)
(56,280)
(2,166,512)
(763,636)
As at 30 June 2021 and 2020, the Company has not provided any financial guarantees in relation to the debts of its
subsidiaries.
52
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of
changes in equity, accompanying consolidated notes, are in accordance with the Corporations Act 2001 and:
(a)
(b)
Comply with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
Give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year
ended on that date of the Group.
In the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable.
The Directors have been given the declarations by the Managing Director required by section 295A.
The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
2.
3.
4.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Craig Hall
Director
Perth, Western Australia
30 September 2021
53
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Scorpion Minerals Limited (“the Company”) and its controlled
entities (“the Group”) which comprises the consolidated statement of financial position as at 30 June 2021,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (Including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter – Material Uncertainty Related to Going Concern
Without modifying our audit opinion, we draw attention to Note 1 (a) of the annual financial report, which
indicates that the going concern basis is appropriate on the basis of the Group’s ability to raise additional
capital in the future. These conditions along with other matters that are set forth in Note 1 (a), indicate
the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue
as a going concern and therefore the Group maybe unable to realise its assets and discharge its liabilities in
the normal course of business.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key Audit Matter – Capitalised Exploration
Expenditure
The Group has recorded as an asset significant
capitalised exploration expenditure and it is the
most significant asset on the Group’s Statement of
Financial Position.
We do not consider exploration and evaluation
expenditure to be at a high risk of significant
misstatement, or to be subject to a significant level
of judgement. However due to the materiality in
the context of the financial statements as a whole,
this is considered to be an area which had an effect
on our overall strategy and allocation of resources
in planning and completing our audit.
How our Audit Addressed the Key Audit Matter
Our procedures in assessing capitalised exploration
expenditure included but were not limited to the
following:
• We assessed the reasonableness of capitalising
exploration expenditure in accordance with AASB
6 Exploration for and Evaluation of Mineral
Resources.
• We considered whether there were any indicators
of impairment; and
• We documented and assessed the processes and
controls in place to record expenditure.
We have also assessed the appropriateness of the
disclosures included in the financial report.
Other Matter
The financial report of the Group for the year ended 30 June 2020, was audited by another auditor who
expressed an unmodified opinion on that report on 30 September 2020.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, but does not include the financial
report and 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 there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Directors’ Responsibility 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 the 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 Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility 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 Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst 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 those 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 communications.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2021.
In our opinion the remuneration report of Scorpion Minerals Limited for the year ended 30 June 2021
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Auditing
Dated 30 September 2021
Daniel Dalla
Partner
ADDITIONAL INFORMATION
Additional Information for Listed Public Companies
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.
The information is current as at 29 September 2021.
Distribution of quoted security holders
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
Over 100,000
TOTAL
Holders
35
83
94
293
215
720
Voting rights
All ordinary shares carry one vote per share without restriction.
Unquoted securities
Nil.
On-market buy-back
There is no current on-market buy-back.
Units
Percentage
6,529
264,417
795,347
12,799,909
245,164,990
259,031,192
0.00%
0.10%
0.31%
4.94%
94.65%
100.00%
Securities Exchange listing
Quotation has been granted for the Company’s Ordinary Shares on ASX Limited (Code: SCN).
Substantial shareholders
Shareholder Name
Delta Resource Management Pty Ltd
Investmet Ltd
Investmet Limited
Delta Resource Management Pty Ltd
Moonbeam Holdings Pty Ltd
16 MR JOHN JANSEN + MRS DALE JANSEN
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