Quarterlytics / Basic Materials / Copper / Taruga Minerals Limited / FY2018 Annual Report

Taruga Minerals Limited
Annual Report 2018

TAR · ASX Basic Materials
Claim this profile
Ticker TAR
Exchange ASX
Sector Basic Materials
Industry Copper
Employees 1-10
← All annual reports
FY2018 Annual Report · Taruga Minerals Limited
Loading PDF…
ACN 153 868 789 

ANNUAL REPORT 2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONTENTS 

Company Information 

Review of Operations 

Directors’ Report 

Corporate Governance Statement 

Auditor’s Independence Declaration 

Statement of Comprehensive Income 

Statement of Financial Position 

Statement of Changes in Equity 

Statement of Cash Flows 

Notes to Financial Statements 

Directors’ Declaration 

Independent Auditor’s Report  

Shareholder Details 

Interests in Exploration Leases 

AND CONTROLLED ENTITIES 

3 

4 

19 

30 

31 

32 

33 

34 

35 

36 

57 

58 

62 

64 

Taruga Minerals Limited 

Page 2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPANY INFORMATION 

AND CONTROLLED ENTITIES 

Managing Director (appointed 28 February 2018) 
Non-Executive Director 
Non-Executive Director  
Non-Executive Director (appointed 6 September 2017) 
Non-Executive Director (resigned 6 September 2017) 

ACN 

Directors 

153 868 789 

Mark Gasson 
Bernard Aylward 
Gary Steinepreis 
Sheena Eckhof   
Daniel Smith  

Joint Company   
Secretaries 

Daniel Smith 
Sylvia Foong  

Registered Office 

Level 8,  
99 St Georges Terrace 
Perth WA 6000 

Telephone: 
Facsimile:   

+61 8 9486 4036 
+61 8 9486 4799 

Share Registry   

Security Transfer Registrars Pty Ltd 
770 Canning Highway 
Applecross WA 6153 

Auditor   

Bankers 

Telephone: 
Facsimile: 

1300 992 916  
+61 8 9315 2233 

HLB Mann Judd 
Level 4, 130 Stirling Street 
Perth, WA 6000 

Telephone: 
Facsimile: 

+61 8 9227 7500 
+61 8 9227 7533 

Westpac Banking Corporation 
116 James Street 
Northbridge 
Perth, WA 6000 

Securities Exchange Listing 

Taruga Minerals Limited Shares are listed on the Australian Securities Exchange. 
The home exchange is Perth, Western Australia. 
ASX Code: TAR 

Website 

www.tarugaminerals.com.au 

Taruga Minerals Limited 

Page 3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

REVIEW OF OPERATIONS 

Company Overview 

Taruga Minerals Limited (“Taruga” or “the Company”) is an exploration company that listed on the Australian 
Securities Exchange (ASX) on 7 February 2012.  Taruga is focused on the exploration of key commodities 
required  for  Electric  Vehicle  (EV)  Batteries,  including  Cobalt,  Copper  and  Lithium  exploration  in  the 
Democratic Republic of Congo (DRC) and Australia.  

Taruga recently completed technical due diligence drilling on two advanced Cobalt and Copper projects, 
Kamilombe and Mwilu, and is continuing to review and evaluate other opportunities prospective for Copper, 
Cobalt and Lithium within the DRC in conjunction with its DRC consultants. 

In addition to the African projects, Taruga has also pursued new opportunities in Australia and during the 
year announced the application of two licences regarded as prospective for Cobalt and Lithium in the mid-
west region of Western Australia.  The Company intends to explore these licences when they are granted. 

The  Company  successfully  concluded  two  capital  raisings  during  the  financial  year,  with  funds  raised 
through existing shareholders and new investors, together totalling approximately $2.85m.  

Projects Overview 

Taruga Minerals Limited (Taruga or the Company) is a mineral exploration company which has projects 
located in the mineral rich DRC and Western Australia.    

Democratic Republic of Congo 

Copper-Cobalt Projects 

Prior to the 2018 financial year on May 2017, Taruga announced that it had appointed Mr Mark Gasson and 
Mr Klaus Eckhof as strategic consultants for the Company to identify and review opportunities in the DRC 
that have potential to host high-grade Copper, Cobalt and Lithium mineralisation with a focus on the EV 
Battery sector. The DRC is the major supplier of  Cobalt to the  world market and project generation has 
identified key areas for project acquisition.  

On 1 March 2018, the Company announced that it had entered into various option agreements to acquire 
highly prospective Cobalt and Copper mineralised concessions within the Central African Copper Belt, in 
the south-east of the DRC. Taruga has undertaken a comprehensive review on a number of projects, and 
has focused on potential acquisition of Cobalt-Copper projects and Lithium projects, ranging from advanced 
exploration  with  high-grade  drill  intersections  through  to  early  stage  exploration  offering  additional 
opportunities.  All concessions are shown in Figure 1 highlighting their position within the Central African 
Copper Belt. 

Taruga Minerals Limited 

Page 4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Figure 1: Regional geology showing location of Taruga’s optioned tenements 

Taruga has entered into an agreement with a consortium including the Government of Lualaba Province 
and local construction and development company, Mint-Master, to earn a 60% interest in the high grade 
Mwilu (portion of Permis d’Exploitation – PE 4960) and Kamilombe (portions of PE 11599 and PE 2605) 
Cobalt-Copper projects. The Company has agreed to a 6 month due diligence period and concluded drilling 
programmes to better understand the true mineralised potential of both deposits, which are currently being 
mined from surface by artisanal miners. Taruga has already collected a series of channel samples through 
the artisanal workings and reports grades of up to 13% Co (range 0.2% Co to 13% Co) using a handheld 
XRF Niton. In addition, Taruga has also secured a first right of refusal to assess and develop additional 
Cobalt-Copper licences held by the Government of Lualaba Province and Mint-Master.  

The Company has also signed agreements with Madini for the acquisition of Madini’s 70% option on four 
highly prospective Cobalt-Copper licences as well as up to 100% interest of PR 12423, all of which cover a 
total  of  116km2  of  highly  prospective  ground  with  known  Cobalt  and  Copper  occurrences  within 
inferred/mapped  Roan  sediments.  The  two  main  projects  as  part  of  acquisition,  being  Mwilu  (portion  of 
Permis d’Exploitation – PE 4960) and Kamilombe (portions of PE 11599 and PE 2605), are outlined below. 

Kamilombe Project 

Kamilombe covers a surface area of 2.37km2 and has similar geology to bordering KCC Katanga’s deposit 
where a 275Mt @ 3.66% Cu and 0.55% Co Measured and Indicated Resource has been defined (Figure 
2).1  

No outcrop was observed during the field visit at Kamilombe; however, artisanal mining is occurring in the 
footwall zone in an overturned sequence over more than 1km strike length.  

1 Refer to Ni 43-101 Technical Report released by Katanga Mining Limited, dated 31 March 2017 
Taruga Minerals Limited 

Page 5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                      
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Eight samples were collected from the artisanal pits at depths ranging from 25m to 75m below surface as 
shown in Figure 2. Niton results shown in Figure 2 reported highly significant Cobalt grades of 0.8% Co to 
5.6% Co. Little Copper mineralisation was reported, with a maximum grade of 0.38% Cu encountered. 

Figure 2: Interpreted geology from Gecamines and portable XRF grades for grab samples 
at Kamilombe 

On 2 May 2018, Taruga announced that due diligence drilling had commenced at Kamilombe and the Mwilu. 
All holes at Kamilombe are vertical and will be surveyed every 30m with orientations measured with a Reflex 
tool throughout the hole. Due to expected bad ground conditions holes will be started with PQ down to a 
maximum  of  150m  after  which  they  will  be  drilled  with  HQ  size.  The  drilling  was  undertaken  to  confirm 
grade, widths and stratigraphy. 

On 22 May 2018, Taruga announced that drilling at one hole had been completed at Kamilombe. KMDD001 
was drilled down to 264m. An excellent correlation exists between stratigraphic sequences comprising the 
Mines R2 Series in both drill holes. KMDD002 located 400m east of KMDD001 has been  drilled down to 
74m. Two additional KCC/Gecamines diamond holes will be twinned during the due diligence programme. 
The drilling allowed the Company to create a 3D lithological model using historical drilling data which will 
assist in future planning and modelling.    

The Company announced the completion of drilling at Kamilombe post the financial year end, on 12 July 
2018. Taruga completed 5 diamond holes at Kamilombe for a total of 999.3m, twinning historical drill holes 
(refer Figure 3).  

Taruga Minerals Limited 

Page 6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Figure 3: Interpreted geology from Gecamines showing historic diamond holes and 5 twinned 
diamond holes completed by Taruga 

Post financial period 

Following the financial year-end, on 30 July 2018 Taruga announced high grade Cobalt and Copper results 
from assays of KMDD001 at Kamilombe.  

The Cobalt result of 31.21m at 0.52% Co from 33.1m including 3.04m at 1.45% Co from 36.4m and 5.18m at 
1.05%  Co  from  57.7m  confirms  that  Kamilombe  is  first  and  foremost  a  Cobalt  project  with  Copper  support. 
Significant intercepts are summarised in Table 1 and the locality of KMDD001 is shown in Figure 2.  

Table 1: Significant intercepts reported at Kamilombe 

Hole ID 

Easting 

Northing 

RL 

Azimuth  Dip 

EOH (m) 

From (m) 

To (m) 

KMDD001 

325565 

8812076 

1446.7 

0 

-90 

266.00 

incl. 
incl. 

incl. 

33.1 

36.4 
57.7 
72.3 
138.3 
144.08 
204.87 

64.31 

39.44 
62.88 
88.46 
162.8 
152.2 
214.5 

Interval 
(m) 

31.21 

3.04 
5.18 
16.16 
24.5 
8.12 
9.63 

Co 
(%) 

0.52 1 
1.45 1 
1.05 

0.10 

Cu 
(%) 

1.05 
1.22 

1.01 

1 – includes 39% recoveries for high grade Co intercept (1.64m at 2.02% Co) 
A cut-off grade of 0.1% Co and 0.5% Cu was used with a maximum dilution of 3m within each intercept 

Taruga Minerals Limited 

Page 7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Drilling recoveries averaged 38% for the deeper Mines R2 Series and results cannot be considered to be reliable 
below a depth of 217m. Future holes will be drilled with the larger diameter PQ and HQ bit sizes to ensure better 
recoveries at depth.  

Diamond drilling carried out by Taruga intersected an additional mineralised zone of 24.5m at 1.22% Cu from 
138.3m and 8.12m at 0.1% Co from 144.08m which was not reported in historical drilling data.   

Thicknesses  of  the  mineralised  intersections  are  close  to  true  thickness  as  bedding  in  the  highly  weathered 
stratigraphic units appears to be flat. 

The remaining 4 holes at Kamilombe demonstrate reasonable stratigraphic correlation with the existing drill holes, 
however slight variations were noted due to faulting and were easily identified in the core. The most significant 
variation was noted in KMDD005 where historical drilling intercepted mineralization from 70m, however Taruga 
observed  mineralisation  in  artisanal  workings  and  drill  core  which  starts  immediately  below  the  3-5m  thick 
overburden.  

On 31 August 2018, the Company announced that results for the final 4 diamond drill holes at Kamilombe and 
the initial 3 drill holes at Mwilu have been received. Drilling at Kamilombe included significant intercepts of 13.68m 
at 1.21% Co from 30.47m within a broader zone of 50.87m at 0.49% Co from 5.8m. This sits immediately below 
the quartz/dolomite mineralised overburden which reported 5.8m at 0.2% Co from surface. A second intercept of 
8.85m at 0.41% Co and 1.32% Cu was reported from 88.85m all in KMDD005.  

KMDD004 at the southern end of the area of drilling (refer Figure 1) reported 10.72m at 0.4% Co from 40m while 
KMDD002 reported a best result of 16.28m at 0.2% Co from 164.6m. The intercept in KMDD002 lies east of a 
thrust fault shown in Figure 3 on the same section where KMDD001 reported significant intercepts of 3.04m at 
1.45% Co from 36.4m and 5.18m at 1.05% Co from 57.7m within a broader zone of 31.21m at 0.52% Co from 
33.1m. The section shows that mineralisation in MWDD001 is flat lying and open to the west.  

Narrow zones of Copper mineralisation were intersected in most holes with a broad zone of approximately 120m 
of anomalous Copper (0.3% Cu) reported in KMDD004.  

Results  confirm  that  Kamilombe  is  a  Cobalt  project  with  Copper  mineralisation  reported  at  deeper 
intervals.  

Table 2: Significant intercepts reported at Kamilombe 

Hole ID 

Easting  Northing 

RL 

Azi-
muth 

Dip 

EOH 
(m) 

From 
(m) 

To (m) 

Interval 
(m) 

Co %  Cu % 

KMDD002 

325965 

8812078 

1439 

0 

-90 

230.00 

0.00 

0.70 

47.76 

49.58 

141.30 

142.38 

151.50 

155.82 

161.60 

171.22 

0.70 

1.82 

1.08 

4.32 

9.62 

164.60 

180.88 

16.28 

184.88 

185.66 

0.78 

201.40 

212.05 

10.65 

KMDD003 

325567 

8811676 

1452 

0 

-90 

82.70 

0.00 

1.35 

Taruga Minerals Limited 

211.05 

215.75 

incl. 

212.84 

213.90 

4.70 

1.06 

1.35 

0.25 

0.20 

0.10 

0.12 

0.19 

0.14 

0.11 

1.20 

2.06 

5.44 

0.26* 

Page 8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
REVIEW OF OPERATIONS 

Hole ID 

Easting  Northing 

RL 

Azi-
muth 

Dip 

EOH 
(m) 

From 
(m) 

To (m) 

Interval 
(m) 

Co %  Cu % 

AND CONTROLLED ENTITIES 

KMDD004 

325359 

8811473 

1450 

0 

-90 

293.00 

incl. 

incl. 

40 

41 

48.4 

55.45 

42 

49.4 

56.3 

42.60 

45.85 

57.16 

57.50 

61.65 

62.30 

3.25 

0.34 

0.65 

50.72 

10.72 

74.8 

75.78 

85.70 

86.70 

91.67 

97.70 

112.20 

113.03 

116.04 

117.00 

152.92 

154.26 

173.45 

180.64 

203.40 

208.00 

211.89 

214.00 

220.9 

221.6 

254.30 

255.12 

254.3 

255.1 

259.4 

260.8 

275.63 

276.13 

283.76 

287.60 

incl. 

283.76 

284.76 

1.00 

1.00 

0.85 

0.98 

1.00 

6.03 

0.83 

0.96 

1.34 

7.19 

4.60 

2.11 

0.69 

0.82 

0.82 

1.31 

0.50 

3.84 

1.00 

5.80 

incl. 

30.47 

44.15 

13.68 

68.16 

69.16 

78.61 

84.85 

incl. 

79.74 

80.07 

88.85 

97.70 

88.85 

90.5 

94.50 

96.50 

95 

97 

incl. 

incl. 

incl. 

1.00 

6.24 

0.33 

8.85 

1.65 

2.00 

2.00 

0.11 

0.13 

0.10 

0.38 

0.90 

0.74 

0.11 

0.10 

0.12 

0.14 

0.12 

0.2* 

0.49 

1.21 

0.68 

0.76 

1.58 

0.73 

0.62 

0.52 

0.54 

0.85 

0.57 

0.84 

1.96 

5.32 

0.50 

0.58 

0.20 

2.31 

0.41 

1.32 

0.94 

0.62 

3.11 

KMDD005 

325759 

8812471 

1455 

0 

-90 

100.50 

0 

5.8 

5.8 

56.67 

50.87 

A cut-off grade of 0.5 % Cu and 0.1 % Co was used with a maximum dilution of 3m within each intercept 

*  Overburden 

Taruga Minerals Limited 

Page 9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Figure 4: Interpreted section across KMDD005 highlighting the near surface and shallow dipping 
mineralized RSC unit and lower RAT unit 

Figure 5: Interpreted section across KMDD001 and KMDD002 

Taruga Minerals Limited 

Page 10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Mwilu Project 

Mwilu covers 3.36km2 within the Kolwezi “Klippe” (Figure 6) which hosts a number of the largest known 
Cobalt and Copper mines, and borders the city of Kolwezi to the north. The area is currently being mined 
at shallow levels by artisanal miners who are providing Cobalt ore to the consortium, the sale of which is 
used to fund ongoing development projects in the Lualaba Province. The Company is in discussions with 
the vendors of Mwilu for possible early stage production at shallow levels on the two projects.    

Figure 6: Geological map of the Kolwezi “Klippe” showing the Mwilu and Kamilombe project areas 
and known mines and deposits  

In March 2018, Taruga conducted a reconnaissance sampling and mapping programme at Mwilu to confirm 
historical mapping carried  out by  La Générale des Carrières et des Mines (Gécamines).  Samples were 
collected from a number of artisanal pits and a series of trenches in the NW corner of the project area. 
Significant results for grab and channel samples using a portable XRF are shown in Figure 7.  

At  shallow  levels,  no  significant  Copper  grades  were  reported,  confirming  a  dominance  of  Cobalt 
mineralisation at Mwilu. No historic drilling was available at Mwilu. A drilling programme was designed to 
test the near surface geology and mineralisation after which a fence of diamond holes at differing angles 
was planned to cover 1.4km of underlying Mines R2 Series lithologies. 

Post financial period 

On 12 July 2018, Taruga announced the completion of 6 drill holes at Mwilu for a total of 857m. Four inclined 
shallow holes were drilled at Mwilu to test near surface Cobalt grades of Mines R2 series lithologies exposed 

Taruga Minerals Limited 

Page 11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

in two ridges at Mwilu. The holes were planned to evaluate the potential for early stage, small scale, near 
surface production.   

Both  diamond  holes  which  targeted  the  northern  ridge  intersected  mineralised  lower  R2  Mines  series 
stratigraphy before intersecting a major thrust fault.  Two diamond holes drilled below the southern ridge 
showed that mineralised Mines R2 series were duplicated through thrusting and could potentially host a 
broad zone of mineralisation.  

All  holes  have  showed  varying  amounts  of  black  oxide  which  potentially  includes  heterogenite  (Cobalt 
mineral). Copper in the form of malachite was observed at depth in many of the holes, especially along fault 
zones. 

On  31  August  2018,  the  Company  announced  that  results  for  the  initial  3  drill  holes  at  Mwilu  had  been 
received, with the remaining results from drilling at the southern end of the project outstanding. Two inclined 
shallow holes drilled to test near surface Cobalt mineralisation under the northern ridge and the potential for early 
stage, small scale, near surface production at Mwilu reported best intercepts of 3.58m at 0.18% Co from 33.72m 
in MWDD001 and 11m at 0.14% Co from 22.2m in MWDD002. Both intersections were reported from the lower 
R2 mineralised unit before intersecting a major thrust fault.  

As shown in Figure 8, hole MWDD003 drilled further south reported best intercepts of 25.45m at 0.13% Co from 
14.25m, 3.73m at 0.34% Co from 45.37m including 0.5m at 1.41% Co from 45.37m. Both upper and  lower 
mineralised R2 units were intersected. Results for holes MWDD004 to MWD008 are outstanding. 

All results are shown in Table 3 and results and drill hole localities in Figures 7 

Table 3: Significant intercepts reported at Mwilu 

Hole ID 

Easting  Northing  RL 

Azi-
muth 

Dip 

EOH 
(m) 

MWDD001  325565 

8812076  1446 

0 

-90 

170.60 

MWDD002  335520 

8819941  1473 

345 

-55 

59.20 

MWDD003  335518 

8819777  1472 

0 

-90 

136.05 

From 
(m) 

18 

21.9 

33.72 

49.2 

8.22 

22.2 

37.2 

9.1 

14.25 

45.37 

To 
(m) 

18.8 

24.9 

37.3 

50.2 

10.22 

33.2 

41.2 

9.75 

39.7 

49.1 

incl. 

45.37 

45.87 

54.1 

63.6 

55.1 

64.6 

73.43 

74.76 

83.15 

86.15 

Interval 
(m) 

Cu %  Co % 

0.80 

3.00 

3.58 

1.00 

2.00 

11.00 

4.00 

0.65 

25.45 

3.73 

0.50 

1.00 

1.00 

1.33 

3.00 

0.10 

0.17 

0.18 

0.13 

0.18 

0.14 

0.11 

0.11 

0.13 

0.34 

1.41 

0.21 

0.11 

0.13 

0.14 

1.31 

A cut-off grade of 0.5 %Cu and 0.1 % Co was used with a maximum dilution of 3m within each intercept 

All  drilling  has  been  completed  at  Mwilu  and  all  samples  have  been  submitted  to  ALS  Global’s  accredited 
laboratory in Johannesburg for 4 acid digest and ICP-AES finish. Both ridges were tested as well as the area 
between the two ridges as shown in Figures 7 and 8.  

Taruga Minerals Limited 

Page 12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

On  14  September,  the  Company  announced  the  final  results  from  due  diligence  drilling  at  Mwilu,  with  best 
intercepts including 6.40m at 1.11% Co from 282.45m and 8.40m at 2.7% Cu from 269.15m. Taruga considers 
that  two  styles  of  mineralisation  occur  at  Mwilu,  each  with  potential  to  host  significant  Cobalt  mineralisation. 
Additionally,  Taruga  believes  that  simple  treatment,  such  as  HMS  (Heavy  Media  Separation)  and/  or  gravity 
separation, will concentrate the shallow Cobalt mineralised material within the northern area of Mwilu.   

Figure 7: Interpreted geology and portable XRF grades at Mwilu 

Taruga Minerals Limited 

Page 13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Figure 8: Interpreted geology and drilling results at Mwilu 

Table 4: Significant intercepts reported at Mwilu 

Hole ID 

Easting 

Northing 

RL 

Azimuth 

Dip 

EOH 
(m) 

MWDD004 

335826 

8819648 

1483 

0 

-90 

196.4 

From 
(m) 

31.9 

63.3 

To (m) 

Interval 
(m) 

% Co  % Cu 

48.2 

75.7 

16.30 

12.40 

81.55 

128.15 

46.60 

134.15 

136.8 

2.65 

147.33 

150.15 

2.82 

155.75 

159.15 

3.40 

164.85 

171.05 

6.20 

MWDD005 

335708 

8819838 

1479 

0 

-90 

110.15 

18.06 

33.38 

28.7 

38.2 

58.1 

59.95 

10.64 

4.82 

1.85 

64.62 

77.55 

12.93 

95.01 

105.5 

10.49 

MWDD006* 

335468 

8819427 

1467 

165 

-55 

121.15 

36.95 

40.45 

3.50 

50.45 

63.45 

13.00 

67.83 

69.35 

1.52 

0.16 

0.11 

0.12 

0.12 

0.22 

0.13 

0.32 

0.15 

0.21 

0.16 

0.15 

0.11 

0.15 

0.13 

0.41 

Taruga Minerals Limited 

Page 14 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

To (m) 

Interval 
(m) 

% Co  % Cu 

Hole ID 

Easting 

Northing 

RL 

Azimuth 

Dip 

EOH 
(m) 

From 
(m) 

79.45 

94.05 

MWDD007 

335887 

8819483 

1481 

165 

-55 

148.15 

42.6 

50.6 

57.6 

85.9 

97.8 

43.6 

51.6 

91.4 

6.45 

3.75 

1.00 

1.00 

33.80 

MWDD008 

335544 

8819138 

1480 

345 

-70 

305.6 

212.65 

213.65 

1.00 

117.95 

122.95 

5.00 

136.39 

140.35 

3.96 

0.24 

0.11 

0.10 

0.20 

0.14 

0.14 

0.12 

0.10 

0.16 

0.10 

0.39 

228.65 

233.65 

5.00 

251.15 

252.5 

1.35 

256.55 

299.4 

42.85 

264.5 

277.55 

13.05 

269.15 

270.25 

1.10 

1.00 

269.15 

277.55 

8.40 

282.45 

299.4 

16.95 

282.45 

288.85 

6.40 

0.61 

1.11 

2.02 

2.71 

295.88 

299.4 

3.52 

1.15 

incl. 

incl. 

incl. 

incl. 

incl. 

incl. 

A cut-off grade of 0.5 %Cu and 0.1 % Co was used with a maximum dilution of 3.3m within each intercept 

MWDD006*: Hole abandoned in lower mineralised zone due to broken ground conditions 

Due Diligence – Madini Licences and PR12423 

The  ongoing  due  diligence  on  the  Madini  licences  and  PR12423  is  progressing  with  a  decision  to  continue 
expected within the coming weeks. 

Central African Copperbelt 

All tenements are located within the Central African Copper Belt, which hosts many of the largest known 
Copper-Cobalt deposits both in the south-eastern DRC and Zambia.  

The geology of the Copper Belt sequence has been well studied, and a substantial history of mining and 
exploration  provides  a  strong  platform  for  future  development  work.    Cobalt-Copper  mineralisation  was 
traditionally expected within the lower sedimentary sequences of the Lower Roan sub-group of rocks known 
as the Mines Group (R-2), although recent exploration has led to the discovery of several deposits in the 
overlying  Mwashya  (R-4)  and  Nguba  Groups.  The  most  significant  example  being  Ivanhoe’s  Kamoa 
deposits (>25m tonnes of contained Copper) hosted in the “Grand Conglomerate Formation” at the base of 
the Lower Kundulungu. These new discoveries have highlighted the potential for additional units with the 
geological formation to host major Cobalt-Copper mineralisation and significantly highlight large areas of 
prospective ground that has had little to no previous exploration. 

Taruga Minerals Limited 

Page 15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Lithium 

During the 2018 financial year, Taruga advised that following technical and legal due diligence it did not 
intend to continue with the Option to acquire an interest in licence PEPM4019, in the Kolwezi Mining District 
in the south-east of the DRC. On 11 January 2018, the Company announced that it had entered a binding 
agreement to acquire, subject to due diligence, up to 65% interest in permit ZRG0705 in the Manono Tin 
Tantalum Mining District in the Tanganyika Province, east-central DRC. The project lies within the renowned 
“Katanga Tin Belt” where both primary and alluvial tin and tantalum have been mined since early 1900’s. 
On 1 March 2018, the Company announced that following technical and legal due diligence it decided not 
to pursue the project.    

Australia 

Lithium 

Three  exploration  tenement  applications  in  the  south-west  of Western  Australia  were  lodged  during  the 
period. The tenement application areas are in the Ballingup Greenstone belt, and are located to the south 
of the Greenbushes Tin-Tantalum-Lithium, the largest hard rock Lithium mine in the world (Figure 9). 

Taruga  identified  the  region  as  highly  prospective  for  the  discovery  of  additional  Lithium  mineralised 
pegmatite  bodies  through  review  of  historic  data  and  geological  mapping  completed  by  the  Geological 
Survey of Western Australia. The tenement areas contain identified Lithium exploration targets, including 
the historic Tin-Tantalum-Lithium Yeraminup prospect. The geological setting is interpreted to be analogous 
to the setting of the Greenbushes mine, and a detailed exploration programme of mapping and sampling is 
proposed for the tenements when granted.  

Figure 9: Taruga Minerals Limited – Tenement Application Location Plan 

Taruga Minerals Limited 

Page 16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Niger 

During  the  2018  financial  year  the  Kossa  licenses  reached  their  end  of  term  and  were  not  renewed. 
Subsequent to this the Company commenced a wind down of operations in Niger, including the closure of 
the field camp and associated mining operations. The Company retains its exploration geologist and country 
manager in Niger and will review opportunities if and when they arise.   

CORPORATE 

Capital Raisings and Security Issues 

On 1 March 2018, as part of the Company’s announcement regarding the acquisition of high-grade Cobalt 
and Copper projects in the DRC, Taruga foreshadowed a placement of up to 13,500,000 ordinary shares 
to  new  and  existing  shareholders  at  an  issue  price  of  $0.10  per  share,  to  raise  $1,350,000  (March 
Placement). On 6 March 2018, the Company announced the completion of the first tranche of the March 
Placement, being 10,900,000 ordinary shares at an issue price of $0.10 per share, to raise  $1,090,000. 
Shareholders at a general meeting held on 1 June 2018 approved the second tranche of the Placement, 
being the subscription of 2,600,000 ordinary shares at an issue price of $0.10 per share. 

Following the passing of all resolutions at the Company’s general meeting on 1 June 2018, the Company 
issued a total of 13,500,000 Performance Rights to Directors and key management personnel. Additionally, 
the Company issued 6,000,000 strategic adviser shares each to Mr Klaus Eckhof and Mr Mark Gasson. 

On 5 June 2018, the Company announced that it had received firm commitments to raise up to $2,835,000 
by way of a placement of 13,500,000 ordinary shares to strategic and sophisticated investors at $0.21 per 
share  (June  Placement).  The  funds  raised  from  the  June  Placement  were  earmarked  for  funding  due 
diligence exploration activities and project evaluation in the Democratic Republic of Congo. Under the terms 
of  the  June  Placement,  the  investors  will  also  be  issued  with  unlisted  options  on  a  1  for  1  basis  (up  to 
13,500,000 free attaching options) exercisable at $0.30 each within 24 months from the date of issue. 

On 19 June 2018, the Company announced that Tranche 1 of the June Placement had been completed, 
with the issue of 6,988,095 fully paid ordinary shares (and 6,988,095 free attaching options) to professional 
and sophisticated investors at $0.21 per share under the additional placement capacity from the Company’s 
June general meeting. 

Post the financial year, on 17 September 2018, the Company issued 2,380,952 ordinary shares at a price 
of $0.21 per share and 2,380,952 free attaching options, to sophisticated investors as part of the Tranche 
2 placement announced 19 June 2018. The shares and options were issued under the Company’s ASX 
Listing Rule 7.1 capacity. 

Name Change 

On 19 June 2018, the Company announced that the Australian Securities and Investments Commission 
had processed the Company’s name change (as approved by shareholders at the  1 June 2018 general 
meeting) from Taruga Gold Limited to Taruga  Minerals Limited, to better reflect the mineral focus of the 
Company. There was no change to the Company’s ASX ticker code.   

Board Appointments 

On 6 September 2017, the Company announced changes to the board with the resignation of Mr Daniel 
Smith, and the appointment of Miss Sheena Eckhof as Non-executive Director of the Company.   

Miss Eckhof holds a Bachelor of Commerce degree, majoring in Corporate and Investment Finance, from 
the  University  of  Western  Australia  and  has  previously  worked  with  two  globally  renowned  Investment 

Taruga Minerals Limited 

Page 17 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
REVIEW OF OPERATIONS 

AND CONTROLLED ENTITIES 

Banks,  with  a  specific  focus  on  the  resources  sector.  Miss  Eckhof  currently  works  within  a  Business 
Development and Investor Relations role with a West Australian mid-cap resources company. 

On  28  February  2018,  the  Company  announced  the  appointment  of  Mr  Mark  Gasson  as  an  Executive 
Director of the Company, and responsible for the management of Taruga’s exploration activities. Mr Gasson 
is a geologist with 33 years of experience and has been active in the DRC since 2004 in gold and base 
metals  exploration  and  resource  development.  Mr  Gasson  was  instrumental  in  the  discovery  of  Tiger 
Resources’ 1 million tonnes Kipoi Copper deposit. 

Competent person’s statement 

The information in this report that relates to exploration results is based on, and fairly represents information 
and supporting documentation prepared by Mr Mark Gasson, a Competent Person who is a Member of The 
Australasian  Institute  of  Mining  and  Metallurgy.  Mr  Gasson  is  an  Executive  Director  of  Taruga  Minerals 
Limited.  Mr  Gasson  has  sufficient  experience  that  is  relevant  to  the  style  of  mineralisation  and  type  of 
deposit  under  consideration  and  to  the  activity  being  undertaken  to  qualify  as  a  Competent  Person  as 
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource 
and  Ore  Reserves”.  Mr  Gasson  consents  to  the  inclusion  in  this  report  of  the  matters  based  on  his 
information in the form and context in which it appears. 

Taruga Minerals Limited 

Page 18 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

DIRECTORS’ REPORT 

Your Directors submit their report on the consolidated entity consisting of Taruga Minerals Limited (formerly 
Taruga Gold Limited) and its controlled entities (“Taruga”) for the period ended 30 June 2018. 

DIRECTORS 

The following persons were Directors of Taruga Minerals Limited during the period and up to the date of 
this report unless otherwise stated: 

Bernard Aylward 
Mark Gasson 
Gary Steinepreis 
Sheena Eckhof 
Daniel Smith 

Non-executive Director 
Executive Director 
Non-executive Director 
Non-executive Director 
Non-executive Director 

In office from 

In office to 

21 October 2011 
28 February 2018 
15 July 2016 
6 September 2017 
27 August 2014 

present 
present 
present 
present 
6 September 2017 

PARTICULARS OF DIRECTORS 

Mark Gasson 

Executive Director 

BSc (Hons.) 

Qualifications and experience 

Mr Gasson is a geologist with 33 years of experience and has been active in the DRC since 2004 in gold 
and base metals exploration and resource development. Mr Gasson was instrumental in the discovery of 
Tiger Resources 1 million tonnes Kipoi Copper deposit. 

Mr  Gasson  brings  considerable  relevant  skills  and  experience  to  the  Board.  He  is  a  member  of  the 
Australasian Institute of Mining and Metallurgy. 

Interest in Shares and Options 

Fully Paid Shares – 8,500,000 
Performance Rights – 4,500,000 
Options – Nil 

Special Responsibilities 

Executive Director, technical. 

Directorships held in listed entities 

None. 

Bernard Aylward 

Non-Executive Director 

BSc (Hons.), MAusIMM 

Qualifications and experience 

Mr Aylward is a geologist with over 20 years’ experience as a manager and exploration geologist in the 
mining and exploration industry in a variety of commodities. Mr Aylward’s experience includes serving as 

Taruga Minerals Limited 

Page 19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

the  Chief  Operating  Officer  of  International  Goldfields  Ltd,  General  Manager  of  Azumah  Resources  Ltd 
(Ghana), and Exploration Manager for Croesus Mining NL. 

Mr  Aylward  has  been  involved  in  the  discoveries  and  management  of  the  Bepkong,  Julie,  Collette  and 
Kunche deposits in Ghana, as well as the Deep South gold deposit, Gladstone North deposit, St Patrick’s, 
Norseman Reef, and the Safari Bore gold deposit.  

Mr  Aylward  brings  considerable  relevant  skills  and  experience  to  the  Board.  He  is  a  member  of  the 
Australasian Institute of Mining and Metallurgy. 

Interest in Shares and Options 

Fully Paid Shares –  5,324,386 
Performance Rights – 1,500,000 
Options – Nil 

Special Responsibilities 

None. 

Directorships held in listed entities 

Company Name 
Kodal Minerals Plc. 
Lachlan Star Limited 

Appointed 
20 May 2016 
18 January 2018 

Resigned 
- 
- 

Gary Steinepreis 

Non-Executive Director 

B.Com, CA   

Qualifications and experience 

Mr  Steinepreis  has  in  excess  of  20  years’  experience  with  ASX-listing  rules,  corporate  governance  and 
equity capital raisings. Mr Steinepreis is a Chartered Accountant and holds a Bachelor of Commerce from 
UWA. Mr Steinepreis is currently a Non-Executive Director of CFOAM Limited. 

Interest in Shares and Options 

Fully Paid Shares – 5,152,502 
Performance Rights – 1,500,000 
Options – Nil 

Special Responsibilities 

None. 

Directorships held in listed entities 

Company Name 
CFOAM Limited 
Lachlan Star Limited 
Helios Energy Ltd 
AVZ Minerals Ltd 
Monto Minerals Ltd 
Norseman Gold Plc 

Taruga Minerals Limited 

Appointed 
30 March 2016 
18 January 2018 
4 June 2010 
30 November 2012 
16 June 2009 
3 December 2007 

Resigned 
- 
- 
11 September 2018 
21 August 2017 
12 January 2016 
9 March 2016 

Page 20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

Sheena Eckhof  

Non-Executive Director B.Com 

Qualifications and experience 

Miss Eckhof holds a Bachelor of Commerce degree, majoring in Corporate and Investment Finance, from 
the  University  of  Western  Australia.  Miss  Eckhof  has  previously  worked  with  two  globally  renowned 
Investment Banks, with a specific focus on the resources sector and is currently Investor Relations Officer 
at Independence Group NL, a West Australian mid-cap resources company. 
Interest in Shares and Options 

Fully Paid Shares – Nil 
Performance Rights – 1,500,000 
Options – Nil 

Special Responsibilities 

None. 

Directorships held in listed entities 

None. 

Information on Company Secretaries 

Daniel Smith 
Mr Smith  is a member of the  Australian  Institute of Company Directors and the  Governance Institute of 
Australia, with a background in finance. He has primary and secondary capital markets expertise, having 
been involved in a number of IPOs and capital raisings. He is also a director of Minerva Corporate, a private 
corporate consulting firm. 

Sylvia Foong 
Miss Foong holds a Bachelor of Commerce degree, majoring in Accounting, from the University of Western 
Australia. Miss Foong is currently pursuing her Chartered Accountants qualification, and has a Certificate 
in Governance Practice. 

Information on Former Directors 

Daniel Smith 
Mr Smith  is a member of the  Australian  Institute of Company Directors and the  Governance Institute of 
Australia, with a background in finance. He has primary and secondary capital markets expertise, having 
been involved in a number of IPOs and capital raisings. He is also a director of Minerva Corporate, a private 
corporate consulting firm. 

OPERATING AND FINANCIAL REVIEW 

A review of the operations of the consolidated entity during the financial year is contained in the Review of 
Operations section of this Annual Report.  The Company’s strategy in West Africa is to continue with the 
targeted exploration programs.  The Company will also continue to review opportunities as they arise with 
a  focus  on  advanced  gold  projects  located  within  West  Africa,  as  well  as  gold  and  other  metals  within 
Central Africa and Western Australia. 

Taruga Minerals Limited 

Page 21 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

PRINCIPAL ACTIVITIES 

The  principal  activity  of  the  consolidated  entity  during  the  year  was  mineral  exploration  in  Africa  and 
Australia. 

Operating Results 

Consolidated comprehensive loss after income tax for the financial period is $10,947,081 (2017: $381,328). 

Financial Position 

At 30 June 2018 the Company had cash reserves of $2,487,993 (2017: $1,740,836). 

Dividends 

No dividends were paid during the year and no recommendation is made as to dividends. 

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS 

In the opinion of the Directors, there were no significant changes in the state of affairs of the consolidated 
entity that occurred during the financial year under review not otherwise disclosed in this report or in the 
consolidated accounts. 

MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR 

Corporate 

On  17  September  2018,  the  Company  issued  2,380,952  ordinary  shares  and  2,380,952  free  attaching 
options as part of the Tranche 2 placement announced 19 June 2018, raising $500,000. The shares (and 
free attaching options) were issued at a price of $0.21 per share, under the Company’s ASX Listing Rule 
7.1 capacity. 

Exploration 

On 30 July 2018, the Company announced that all due diligence drilling at Kamilombe and Mwilu had been 
completed. The samples from the due diligence drilling were sent to ALS Global’s laboratory in for analysis, 
with results confirming high-grade Cobalt potential for both projects. A decent Copper intersection was also 
reported at depth at Mwilu.  

On 31 August 2018, the Company announced that results for the final 4 diamond drill holes at Kamilombe and 
the initial 3 drill holes at Mwilu have been received. Drilling at Kamilombe included significant intercepts of 13.68m 
at 1.21% Co from 30.47m within a broader zone of 50.87m at 0.49% Co from 5.8m. This sits immediately below 
the quartz/dolomite mineralised overburden which reported 5.8m at 0.2% Co from surface. A second intercept of 
8.85m at 0.41% Co and 1.32% Cu was reported from 88.85m all in KMDD005. 

On  14  September  2018,  the  Company  announced  that  all  results  from  the  due  diligence  drilling  at 
Kamilombe  and  Mwilu  had  been  received,  and  that  the  results  supported  further  drilling.  The  Company 
announced that two styles of mineralisation occur at Mwilu, each with potential to host significant cobalt 
mineralisation. The northern flat lying zone is of lower grade, but mineralisation attains thicknesses of more 
than 30m, with a combined thickness of 90m in one hole, which makes it conducive to open pit mining. The 
southern zone is high grade and steeply dipping and is likely amendable to an underground operation.  

Taruga Minerals Limited 

Page 22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

LIKELY DEVELOPMENTS AND EXPECTED RESULTS 

The Company is close to finalising its due diligence review of the Kamilombe and Mwilu projects, both highly 
prospective  for  Cobalt  and  Copper,  within  the  DRC.  The  Company  will  also  review  and  evaluate  other 
opportunities  prospective  for  Copper,  Cobalt  and  Lithium  within  the  DRC  in  conjunction  with  its  DRC 
consultants. 

Taruga has also applied for exploration licenses which are prospective for Cobalt and Lithium mineralisation 
in Western Australia. The applications are in an early stage and the Company is proposing an exploration 
program of surface mapping and geochemical sampling. 

Further information on likely developments in the operations of the consolidated entity and the expected 
results of operations have not been included in this report because the Directors believe it would be likely 
to result in unreasonable prejudice to the Company. 

MEETINGS OF DIRECTORS 

The following table sets out the number of meetings of the Company’s Directors held during the year ended 
30 June 2018, and the number of meetings attended by each Director. 

Number eligible 
to attend 

Number 
attended 

2 
2 
2 
2 
- 

2 
1 
2 
2 
- 

Gary Steinepreis  
Bernard Aylward 
Sheena Eckhof1 
Mark Gasson 
Daniel Smith2 

1 Miss Eckhof was appointed 6 September 2017  
2 Mr Smith resigned 6 September 2017 

REMUNERATION REPORT 

This  report  details  the  nature  and  amount  of  remuneration  for  each  director  and  “Key  Management 
Personnel” of Taruga Minerals Limited.  

The report has been subject to audit.  Key Management Personnel are defined as those persons having 
authority and responsibility for planning, directing and controlling the major activities of the Group, including 
any director. 

Remuneration policy 

The Board policy is to remunerate Directors at market rates for time, commitment and responsibilities. The 
Board  determines  benefits  to  the  Directors  and  reviews  their  remuneration  annually,  based  on  market 
practice, duties and accountability. Independent external advice is sought when required. The maximum 
aggregate  amount  of  Directors’  fees  that  can  be  paid  is  subject  to  approval  by  shareholders  in  general 
meeting,  from  time  to  time.  Fees  for  Non-Executive  Directors  are  not  linked  to  the  performance  of  the 

Taruga Minerals Limited 

Page 23 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

consolidated  entity.  However,  to  align  Directors’  interests  with  shareholders’  interests,  the  Directors  are 
encouraged to hold securities in the Company.  

The  Company’s  aim  is  to  remunerate  at  a  level  that  will  attract  and  retain  high-calibre  Directors  and 
employees.  Company  officers  and  Directors  are  remunerated  to  a  level  consistent  with  the  size  of  the 
Company. 

Performance-based remuneration 

The Company does not pay any performance-based component of salaries. 

Details of remuneration for year ended 30 June 2018 

Directors’ Remuneration 

No salaries, commissions, bonuses or superannuation were paid or payable to Directors during the year. 
Remuneration  was  by  way  of  fees  paid  monthly  in  respect  of  invoices  issued  to  the  Company  by  the 
Directors or companies associated with the Directors in accordance with agreements between the Company 
and those entities. 

Details of the agreements are set out below. 

Agreements in respect of cash remuneration of Directors: 

Executive Directors 

Mr  Gasson  is  on  an  Executive  Employment  Agreement,  with  a  remuneration  package  of  $180,000  per 
annum (inclusive of Directors fees). Either party may terminate the agreement with 3 months’ notice period.   

Non-executive Directors 

The  Company’s  constitution  provides  that  the  Non-executive  Directors  may  collectively  be  paid  as 
remuneration  for  their  services  a  fixed  sum  not  exceeding  the  aggregate  sum  determined  by  a  general 
meeting.  The aggregate remuneration has been set at an amount of $300,000 per annum. 

Mr Gary Steinepreis is on a contract dated 15 July 2017, which provides for a fixed fee of $2,000 per month. 
Mr Bernard Aylward is on a contract dated 15 July 2016, which provides for a fixed fee of $2,000 per month. 
Miss Sheena Eckhof is on a contract dated 6 September 2017, which provides for a fixed fee of $2,000 per 
month. Mr Daniel Smith (through Minerva Corporate Pty Ltd) was on a contract dated 26 August 2016 which 
provided for a fixed fee of $2,000 per month. 

A Director may be paid fees or other amounts as the Directors determine where a Director performs special 
duties or otherwise performs services outside the scope of the ordinary duties of a Director. 

A Director may also be reimbursed for out of pocket expenses incurred as a result of their directorship or 
any special duties. Executive Directors may be paid on commercial terms as the Directors see fit. 

Taruga Minerals Limited 

Page 24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

The total remuneration paid to Key Management Personnel is summarised below: 

AND CONTROLLED ENTITIES 

Year ended 30 June 2018 

Director 

Associated Company 

Leisurewest Consulting Pty Ltd 

Gary Steinepreis 
Bernard Aylward  Matlock Geological Services Pty Ltd 
Sheena Eckhof 
Mark Gasson 

Daniel Smith 

Minerva Corporate Pty Ltd 

Year ended 30 June 2017 

Director 

Associated Company 

Gary Steinepreis 

Leisurewest Consulting Pty Ltd 

Bernard Aylward 

Matlock Geological Services Pty Ltd 

Daniel Smith 

Minerva Corporate Pty Ltd 

Myles Campion 

Frank Terranova 

Fees  Consultancy 

$ 
23,000 
24,000 
19,733 
- 

4,834 
71,567 

$ 

- 
- 

60,000 

- 
60,000 

Short-term Benefits 

Share Based 
Payments 

$ 

Performance  
Rights 
$ 

- 

- 
- 
990,000(1) 
- 
990,000 

7,792 
7,792 
7,791 
19,875 

- 
43,250 

Total 

$ 
30,792 
31,792 
27,524 
1,069,875 

4,834 
1,164,817 

Performance 
related 
% 

25% 
25% 
28% 
2% 

- 
- 

Fees 

Consultancy 

Options 

Total  Performance related 

Short-term Benefits 

$ 

23,000 

- 

24,500 

- 

- 
47,500 

$ 

$ 

$ 

% 

- 

24,000 

- 

- 

- 
24,000 

- 

- 

- 

- 

- 
- 

23,000 

24,000 

24,500 

- 

- 
71,500 

- 

- 

- 

- 

- 

The consolidated entity has one full time Executive officer, Mr Mark Gasson. 
(1)  During the year, Mark Gasson received 6,000,000 shares with a fair value of $990,000 for Strategic Consultant services provided pursuant to shareholder approval.

Taruga Minerals Limited 

Page 25 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

Shareholdings of Key Management Personnel: 

Bernard  
Aylward 
Daniel  
Smith1 
Mark  
Gasson 
Gary  
Steinepreis 
Sheena  
Eckhof2 

Balance 30 
June 2017 

Balance on 
Appointment 

Additions 

Balance on 
Resignation 

Balance 30 
June 2018 

5,324,386 

1,078,729 

- 

- 

- 

- 

- 

5,324,386 

1,078,729 

- 

- 

1,000,000 

7,500,000 

4,152,502 

1,000,000 

- 

- 

- 

- 

- 

- 

8,500,000 

5,152,502 

- 

10,555,617 

1,000,000 

8,500,000 

1,078,729 

18,976,888 

1Mr Smith resigned on 6 September 2017 with a shareholding balance of 1,078,729 shares. 
2Miss Eckhof was appointed on 6 September 2017 with a shareholding balance of NIL. 

Bernard  
Aylward 
Daniel  
Smith1 
Myles  
Campion2 
Frank  
Terranova3 
Gary  
Steinepreis4 
Sheena  
Eckhof5 

Balance 30 
June 2016 

Balance on 
Appointment 

Additions 

Balance on 
Resignation 

Balance 30 
June 2017 

5,324,386 

764,444 

588,889 

1,095,289 

- 

- 

- 

- 

- 

- 

- 

314,285 

- 

- 

5,324,386 

1,078,729 

- 

- 

588,889 

1,095,289 

- 

- 

3,210,002 

942,500 

- 

- 

- 

- 

4,152,502 

- 

7,773,008 

3,210,002 

1,256,785 

1,684,178 

10,555,617 

1Mr Smith resigned on 6 September 2017 with a shareholding balance of 1,078,729 shares 
2Mr Campion resigned on 15 July 2016 with a shareholding balance of 588,889 shares. 
3Mr Terranova resigned on 15 July 2016 with a shareholding balance of 1,095,289 shares. 
4Mr Steinepreis was appointed on 15 July 2016 with a shareholding balance of 3,210,002 shares. 
5Miss Eckhof was appointed on 6 September 2017 with a shareholding balance of NIL 

Taruga Minerals Limited 

Page 26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

Accounts payable 

AND CONTROLLED ENTITIES 

Consolidated 
Entity 
2018 
$ 

  Consolidated 
Entity 
2017 
$ 

206,122 

26,120 

Taruga Minerals Limited ex-Director Mr Daniel  Smith is a current director of Minerva  Corporate  Pty  Ltd. 
Minerva  Corporate  Pty  Ltd  provided  corporate  consultancy  services  to  Taruga  Minerals  Ltd  during  the 
period that Mr Daniel Smith was a director. Payments to Minerva Corporate Pty Ltd during the period that 
Mr Smith was a director total $13,500 (2017: $81,168). 

Performance Rights holdings of Key Management Personnel: 

Balance 30 
June 2017 

Additions 

Balance on 
Resignation 

Issues/ 
(Expiry) 

Balance 30 
June 2018 

Bernard 
Aylward 
Daniel  
Smith 
Mark  
Gasson 
Gary 
Steinepreis1 
Sheena 
Eckhof2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1,500,000 

1,500,000 

- 

- 

4,500,000 

4,500,000 

1,500,000 

1,500,000 

1,500,000 

9,000,000 

9,000,000 

1,500,000 

1Mr Steinepreis was appointed on 15 July 2016 with an option holding balance of NIL. 
2Miss Eckhof was appointed on 6 September 2017 with an option holding balance of NIL. 

Balance 30 
June 2016 

Additions 

Balance on 
Resignation 

Issues/ 
(Expiry) 

Balance 30 
June 2017 

Bernard 
Aylward 
Daniel  
Smith 
Myles 
Campion 
Frank 
Terranova 
Gary 
Steinepreis1 
Sheena 
Eckhof2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

3 Further details regarding the fair value and valuation assumptions of the performance rights are disclosed 
in Note 23.  

Taruga Minerals Limited 

Page 27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

Option holdings of Key Management Personnel: 

Balance 30 
June 2017 

Balance on 
Appointment 

Additions 

Balance on 
Resignation 

Issues/ 
(Expiry) 

Balance 30 
June 2018 

Bernard 
Aylward 
Daniel 
Smith 
Myles 
Campion 
Frank 
Terranova 
Gary 
Steinepreis1 
Sheena 
Eckhof2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1Mr Steinepreis was appointed on 15 July 2016 with an option holding balance of NIL. 
2Miss Eckhof was appointed on 6 September 2017 with an option holding balance of NIL. 

Balance 30 
June 2016 

Balance on 
Appointment 

Additions 

Balance on 
Resignation 

Issues/ 
(Expiry) 

Balance 30 
June 2017 

Bernard 
Aylward 
Daniel 
Smith 
Myles 
Campion 
Frank 
Terranova 
Gary 
Steinepreis1 
Sheena 
Eckhof2 

303,333 

60,000 

60,000 

121,600 

- 

- 

544,933 

 End of remuneration report 

ENVIRONMENTAL ISSUES 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

(303,333) 

(60,000) 

(60,000) 

(121,600) 

- 

- 

- 

- 

- 

- 

(181,600) 

(363,333) 

- 

- 

- 

- 

- 

- 

- 

The consolidated entity has conducted exploration activities on mineral tenements.  The right to conduct 
these activities is granted subject to environmental conditions and requirements.  The consolidated entity 
aims  to  ensure  a  high  standard  of  environmental  care  is  achieved  and,  as  a  minimum,  to  comply  with 
relevant  environmental  regulations.  There  have  been  no  known  breaches  of  any  of  the  environmental 
conditions. 

Taruga Minerals Limited 

Page 28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTOR’S REPORT 

AND CONTROLLED ENTITIES 

OPTIONS 
At the date of this report, there were 6,988,095 unlisted options on issue. 

The names of persons who currently hold options are entered in a register pursuant to Section 170 of the 
Corporations Act 2001. No person entitled to exercise any option has or had, by virtue of the option, a right 
to  participate  in  any  share  issue  of  the  Company  or  any  other  corporation.  Subsequent  to  year  end  no 
options have been issued or exercised. 

INDEMNIFICATION OF DIRECTORS 

During  the  financial  year,  the  Company  has  not  given  an  indemnity  or  entered  into  an  agreement  to 
indemnify any of the Directors. 

AUDITOR 

HLB Mann Judd continues in office in accordance with section 327 of the Corporations Act 2001. 

NON-AUDIT SERVICES 

There were no non-audit services provided during the current year by our auditors, HLB Mann Judd. 

PROCEEDINGS ON BEHALF OF COMPANY 

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in 
any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the 
Company for all or any part of those proceedings. 

The Company was not a party to any such proceedings during the year. 

AUDITORS’ INDEPENDENCE DECLARATION 

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors 
of the company with an Independence Declaration in relation to the review of the interim financial report.  
This Independence Declaration is set out on page 32 and forms part of this directors’ report for the  year 
ended 30 June 2018. 

This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 
306(3) of the Corporations Act 2001. 

Bernard Aylward  
Non-Executive Director 

Dated Perth 28 September 2018

Taruga Minerals Limited 

Page 29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE GOVERNANCE  
STATEMENT 

AND CONTROLLED ENTITIES 

The  Company  has  adopted  systems  of  control  and  accountability  as  the  basis  for  the  administration  of 
corporate governance.  The Board is committed to administering the policies and procedures with openness 
and integrity, pursuing the true spirit of corporate governance commensurate with the Company's needs.  
To the extent  they  are  applicable, the Company  has  adopted the Corporate Governance  Principles and 
Recommendations (3rd Edition) as published by ASX Corporate Governance Council. 

The following corporate governance charters, codes and policies have been implemented and are available 
on the Company’s website at www.tarugaminerals.com.au: 

• 
• 
• 
• 
• 
• 
• 

Board Charter 
Corporate Code of Conduct 
Diversity, Nomination and Remuneration Committee Charter 
Audit and Risk Committee Charter 
Shareholder Communication Guidelines and Policy 
Disclosure Policy 
Securities Trading Policy 

Taruga Minerals Limited 

Page 30 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUDITOR’S INDEPENDENCE 
DECLARATION 

AND CONTROLLED ENTITIES 

Taruga Minerals Limited 

Page 31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF 
COMPREHENSIVE INCOME 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Note 

CONSOLIDATED 

Year to  
30 June 2018 
$ 

Year to  
30 June 2017 
$ 

2 

3 

8 

3 

4 

(7,899) 

9,835 
17,173 
7,060,393 
96,237 
105,176 
43,698 
2,044,292 
1,568,358 
- 
265,361 

(4,666) 

12,254 
130,353 
10,127 
73,107 
2,784 
45,057 
- 
- 
75 
68,746 

11,202,623 

337,837 

- 

- 

11,202,623 

 337,837 

(53,669) 

 43,491 

Revenue 

Depreciation 
Consultants 
Impairment expense 
Professional fees 
Travel and accommodation 
Office and communication costs 
Share based payments 
Exploration 
Exchange loss 
Other expenses 

Loss from continuing operations before income 
tax  

Income tax expense 

Net loss for the period  

Other comprehensive income 
Items that may be reclassified to profit or loss 
Exchange (gain)/loss on translation of foreign 
subsidiaries 

Total comprehensive loss for the period 

11,148,954 

381,328 

Basic and diluted loss per share (cents per share) 
Basic  and  diluted  loss  per  share  from  continuing 
operations (cents per share) 

19 

19 

(10.37) 

(10.37) 

  (0.39) 

  (0.39) 

The accompanying notes form part of these financial statements. 

Taruga Minerals Limited 

Page 32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF FINANCIAL 
POSITION 

AS AT 30 JUNE 2018 

AND CONTROLLED ENTITIES 

CURRENT ASSETS 

Cash and cash equivalents 
Trade and other receivables 

Total Current Assets 

NON CURRENT ASSETS 

Plant and equipment 
Mineral exploration and evaluation 

Total Non-Current Assets 

TOTAL ASSETS 

CURRENT LIABILITIES 

Trade and other payables 

Total Current Liabilities 

TOTAL LIABILITIES 

NET ASSETS 

EQUITY 

Issued capital 
Reserves 
Accumulated losses 

TOTAL EQUITY 

Note 

CONSOLIDATED 

30 June 
2018 
$ 

30 June 
2017 
$ 

5 
6 

7 
8 

9 

2,487,993 
26,490 

1,740,836 
13,696 

2,514,483 

1,754,532 

61,027 
- 

37,916 
6,995,457 

61,027 

7,033,373 

2,575,510 

8,787,905 

206,122 

206,122 

206,122 

43,620 

43,620 

43,620 

2,369,388 

8,744,285 

11 
12 
12 

18,531,500 
6,065 

(16,168,177)    

13,821,735 
(111,896) 
(4,965,554) 

2,369,388 

8,744,285 

The accompanying notes form part of these financial statements. 

Taruga Minerals Limited 

Page 33 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
STATEMENT OF CHANGES 
IN EQUITY 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Consolidated 

Issued Capital 

Options 
Reserve 

Accumulated 
Losses 

Share Based 
Payments 
Reserve 

Foreign Currency 
Translation 
Reserve 

Total Equity 

$ 

$ 

$ 

$ 

$ 

$ 

Year to 30 June 2017 

As at 1 July 2016 
Issue of shares  
Transfer of reserve to accumulated losses on 
expiry of options 
Share issue expenses 
Loss for the period 
Exchange loss on translation of foreign 
subsidiaries 
As at 30 June 2017 

Year to 30 June 2018 

As at 1 July 2017 
Issue of shares  
Share Based payments – Performance Rights 

Share issue expenses 
Loss for the period 
Exchange loss on translation of foreign 
subsidiaries 
As at 30 June 2018 

- 
13,821,735 

13,821,735 
 4,797,500  

- 
(87,735) 
- 

- 
 18,531,500  

12,508,296 
1,400,907 

35,040 
- 

(4,662,757) 
- 

- 
(87,468) 
- 

(35,040) 
- 
- 

35,040 
- 
(337,837) 

- 
(4,965,554) 

(4,965,554) 
- 

- 
- 
(11,202,623) 

- 
- 

- 
- 

- 
- 
- 

- 
 -    

- 
(16,168,177)  

- 
- 

- 
- 
- 
- 

- 

- 
- 

 64,292  
- 
- 

- 
 64,292  

(68,405) 
- 

- 
- 
- 

(43,491) 
(111,896) 

7,812,174 
1,400,907 

- 
(87,468) 
(337,837) 

(43,491) 
8,744,285 

(111,896) 
- 

8,744,285 
 4,797,500  

- 
- 
- 

 64,292  
(87,735) 
(11,202,623)  

 53,669  
(58,227)  

53,669 
 2,369,388  

The accompanying notes form part of these financial statements. 

Taruga Minerals Limited 

Page 34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENT OF CASH 
FLOWS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

CONSOLIDATED 

Note 

Year to 
30 June 2018 
$ 

Year to 
30 June 2017 
$ 

CASH FLOWS FROM OPERATING ACTIVITIES 

Payments to suppliers 
Interest income received 

(401,109) 
7,899 

Net cash used in operating activities 

16 

(393,210) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Payments for exploration expenditure 
Payments for property, plant & equipment 

Net cash used in investing activities 

CASH FLOWS FROM FINANCING ACTIVITIES 

(1,571,566) 
(30,896) 

(1,602,462) 

(399,159) 
4,666 

(394,493) 

(10,332) 
- 

(10,332) 

Proceeds from issue of shares 
Share issue transaction costs 

2,817,487 
(74,658) 

1,400,907 
(104,397) 

Net cash provided by financing activities 

2,742,829 

1,296,510 

Net increase in cash held 

Cash and cash equivalents at the beginning of the 
period 

747,157 

1,740,836 

891,685 

848,735 

Effect of exchange rate fluctuations on cash held 

- 

416 

Cash and cash equivalents at the end of the year 

2,487,993 

1,740,836 

The accompanying notes form part of these financial statements. 

Taruga Minerals Limited 

Page 35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 

Basis of Preparation 

The financial report is a general purpose financial report, which has been prepared in accordance with the 
requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with 
other requirements of the law.  Cost is based on the fair values of the consideration given in exchange for 
assets. 

The financial report has also been prepared on a historical cost basis.  The financial report is presented in 
Australian dollars. 

The company is a listed public company, incorporated in Australia and operating in West Africa. The entity’s 
principal activity is mineral exploration. 

The accounting policies detailed below have been consistently applied to all of the periods presented unless 
otherwise stated.  The financial statements are for the consolidated entity consisting of Taruga Minerals 
and its subsidiaries. For the purposes of preparing the consolidated financial statements, the Group is a for 
profit entity. 

The financial report has also been prepared on an accruals basis and is based on historical costs modified 
by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the 
fair value basis of accounting has been applied. 

Statement of Compliance 

The financial report was authorised for issue on 28 September 2018. 

The financial report complies with Australian Accounting Standards, which include Australian equivalents 
to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial 
report,  comprising  the  financial  statements  and  notes  thereto,  complies  with  International  Financial 
Reporting Standards (IFRS). 

Adoption of new and revised standards 

Standards and Interpretations applicable to 30 June 2018 

In the year ended 30 June 2018, the Directors have reviewed all of the new and revised Standards and 
Interpretations issued by the AASB that are relevant to the Company’s operations and effective for annual 
reporting periods beginning on or after 1 July 2017. 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 material change is necessary to Company accounting policies. 

Standards and Interpretations in issue not yet adopted 

The Directors have also reviewed all Standards and Interpretations in issue but not yet adopted for the year 
ended 30 June 2018. As a result of this review the Directors have determined that there is unlikely to be 
any material impact on the Group of AASB15 Revenue and AASB9 Financial Instruments. The Directors 
are in the process of assessing the impact of AASB16 Leases. 

Taruga Minerals Limited 

Page 36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Accounting Policies 

(a)  Basis of Consolidation 

A controlled entity is any entity controlled by Taruga Minerals Limited. Control exists where Taruga Minerals 
Limited has the capacity to dominate the decision-making in relation to the financial and operating policies 
of another entity so that the other entity operates with Taruga Minerals Limited to achieve the objectives of 
Taruga Minerals Limited. All controlled entities have a 30 June financial year-end. 

All  inter-company  balances  and  transactions  between  entities  in  the  consolidated  entity,  including  any 
unrealised profit or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have 
been changed where necessary to ensure consistencies with those policies applied by the parent entity. 

Where controlled entities have entered or left the consolidated entity during the year, their operating results 
have been included from the date control was obtained or until the date control ceased.  

(b)  Going Concern 

The financial statements have been prepared on the going concern basis, which contemplates the continuity 
of normal business activity and the realisation of assets and the settlement of liabilities in the normal course 
of business.  

Notwithstanding the fact that the Group incurred an operating loss of $11,202,623 for the year ended 30 
June 2018, and a net cash outflow from operating activities amounting to $393,210, the Directors are of the 
opinion that the Company is a going concern for the following reasons: 

  Subsequent to the year end the Group raised $500,000 of equity capital via an issue of ordinary 
shares at $0.21. The funds raised will be used to meet the ongoing working capital requirements of 
the Group 

  The Directors are satisfied that the Group will have access to sufficient cash as and when required 
to enable it to fund administrative and other committed expenditure. The Directors are satisfied that 
they will be able to raise additional funds by debt and/or equity raisings. 

However, should the above equity raisings not be completed, there is a material uncertainty that may cast 
significant doubt as to whether the Company will continue as a going concern and realise its assets and 
extinguish its liabilities in the normal course of business. 

(c) 

Income Tax 

The  charge  for  current  income  tax  expenses  is  based  on  the  result  for  the  year  adjusted  for  any  non-
assessable  or  disallowable  items.    It  is  calculated  using  tax  rates  that  have  been  enacted  or  are 
substantively enacted by the balance date. 

Deferred tax is accounted for using the liability method in respect of temporary differences arising between 
the tax bases of assets and liabilities and their carrying amount in the financial statements. No deferred 
income  tax  will  be  recognised  from  the  initial  recognition  of  an  asset  or  liability,  excluding  a  business 
combination, where there is no effect on accounting or taxable profit or loss. 

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised 
or liability  is settled. Deferred tax is credited in  the statement of comprehensive income except where  it 
relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly 
against equity. 

Deferred income tax assets are recognised to the extent that it  is probable that future tax profits will be 
available against which deductible temporary difference can be utilised. 

Taruga Minerals Limited 

Page 37 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

The amount of benefits brought to account or which may be realised in the future is based on the assumption 
that no adverse change will occur in income taxation legislation and the anticipation that the consolidated 
entity will derive sufficient future assessable income to enable the benefit to be realised and comply with 
the conditions of deductibility imposed by the law. 

(d)  Plant and Equipment 

Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation. 

Plant and equipment are measured on the cost basis less depreciation and impairment losses. 

The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess 
of  the  recoverable  amount  from  these  assets.  The  recoverable  amount  is  assessed  on  the  basis  of  the 
expected net cash flows which will be received from the assets employment and subsequent disposal. The 
expected net cash flows have been discounted to their present values in determining recoverable amounts. 

Subsequent  costs  are  included  in  the  asset’s  carrying  amount  or  recognised  as  a  separate  asset,  as 
appropriate, only when it is probable that future consolidated benefits associated with the item will flow to 
the consolidated entity and the cost of the item can be measured reliably. All other repairs and maintenance 
are  charged  to  the  statement  of  comprehensive  income  during  the  financial  period  in  which  they  are 
incurred. 

Depreciation 

The depreciable amount of all fixed assets including capitalised lease assets, but excluding computers, is 
depreciated on a reducing balance commencing from the time the asset is held ready for use. Computers 
are depreciated on a straight line basis over their useful lives to the consolidated entity commencing from 
the time the asset is held ready for use. 

The depreciation rates used for each class of depreciable assets are:  

Class of Fixed Asset: 

Plant and Equipment 

Depreciation Rate: 

15 – 50% 

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. 

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying 
amount is greater than its estimated recoverable amount. 

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These 
gains and losses are included in the statement of comprehensive income. When revalued assets are sold, 
amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. 

(e)  Exploration and Evaluation Expenditure 

Exploration and evaluation expenditure incurred is either written off as incurred or accumulated in respect 
of  each  identifiable  area  of  interest.  Tenement  acquisition  costs  are  initially  capitalised.  Costs  are  only 
carried forward to the extent that they are expected to be recouped through the successful development of 
the areas, sale of the respective areas of interest or where activities in the area have not yet reached a 
stage which permits reasonable assessment of the existence of economically recoverable reserves. 

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which 
the decision to abandon the areas is made. 

When production commences, the accumulated costs for the relevant area of interest are amortised over 
the life of the area according to the rate of depletion of the economically recoverable reserves. 

Taruga Minerals Limited 

Page 38 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to 
carry forward costs in relation to that area of interest. 

Restoration,  rehabilitation  and  environmental  costs  necessitated  by  exploration  and  evaluation  activities 
are expensed as incurred and treated as exploration and evaluation expenditure. 

(f) 

Impairment of Assets 

At  each  reporting  date,  the  Directors  review  the  carrying  values  of  its  tangible  and  intangible  assets  to 
determine whether there is any indication that those assets have been impaired. If such an indication exists, 
the recoverable amount of the assets, being the higher of the asset’s fair value less costs to sell and value 
in  use,  is  compared  to  the  asset’s  carrying  value.  Any  excess  of  the  asset’s  carrying  value  over  its 
recoverable amount is expensed to the statement of comprehensive income. 

Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity 
estimates the recoverable amount of the cash-generating unit to which the asset belongs. 

(g)  Provisions 

Provisions are recognised where there is a legal or constructive obligation, as a result of past events, for 
which  it  is  probable  that  an  outflow  of  economic  benefits  will  result  and  that  outflow  can  be  reliably 
measured. 

(h)  Cash and Cash Equivalents 

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly 
liquid  investments  that  are  readily  convertible  to  known  amounts  of  cash  and  which  are  subject  to  an 
insignificant risk of change in value. 

(i) 

Revenue 

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to 
the financial assets. 

(j)  Goods and Services Tax (GST) 

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of 
GST  incurred  is  not  recoverable  from  the  Australian  Tax  Office.  In  these  circumstances  the  GST  is 
recognised as part of the cost of acquisition of the asset or as part of an item of the expenses. Receivables 
and payables in the statement of financial position are shown inclusive of GST. 

(k)  Contributed Equity 

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. 
Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction 
of the share proceeds received. 

(l) 

Segment Reporting 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief 
operating decision maker.  The chief operating decision maker, who is responsible for allocating resources 
and assessing performance of the operating segments, has been identified as the Board of Directors of 
Taruga Minerals Limited. 

Taruga Minerals Limited 

Page 39 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

(m)  Critical accounting estimates and judgements 

The application of accounting policies requires the use of judgements, estimates and assumptions about 
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and 
associated  assumptions  are  based  on  historical  experience  and  other  factors  that  are  considered  to  be 
relevant. Actual results may differ from these estimates.  

Key Estimates – Impairment 

The  Directors  assess  impairment  at  each  reporting  date  by  evaluating  conditions  specific  to  the 
consolidated  entity  that  may  lead  to  impairment  of  assets.  Where  an  impairment  trigger  exists,  the 
recoverable amount of the asset is determined.  

An impairment was recognised in the prior year in respect of costs carried forward as exploration assets in 
Note 8 due to the uncertainty surrounding the renewals of the existing West African licenses, as well as the 
uncertainty regarding the granting of new licenses. 

(n)  Share based payments – shares and options 

The  fair  value  of  shares  and  share  options  granted  is  recognised  as  an  expense  with  a  corresponding 
increase in equity. Fair value is measured at grant date and recognised over the period during which the 
grantees become unconditionally entitled to the shares or share options. 

The fair value of share grants at grant date is determined by the share price at that time. 

The fair value of share options at grant date is determined using a Black-Scholes option pricing model that 
takes into account the exercise price, the term of the option, any vesting and performance criteria, the share 
price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the 
risk free rate for the term of the option. 

Upon the exercise of the option, the balance of the share-based payments reserve relating to the option is 
transferred to share capital. 

(o)  Foreign currency translation 

Both the functional and presentation currency of Taruga Minerals Limited is Australian dollars. Each entity 
in the Group determines its own functional currency and items included in the financial statements of each 
entity are measured using that functional currency. 

Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange 
rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies 
are retranslated at the rate of exchange ruling at the balance date. 

All exchange differences in the consolidated financial report are taken to profit or loss with the exception of 
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. 
These are taken directly to equity until the disposal of the net investment, at which time they are recognised 
in profit or loss. 

Tax charges and credits attributable to exchange differences on those borrowings are also recognised in 
equity. 

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using 
the exchange rate as at the date of the initial transaction.   

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates 
at the date when the fair value was determined.  Translation differences on assets and liabilities carried at 
fair value are reported as part of the fair value gain or loss. 

Taruga Minerals Limited 

Page 40 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

The functional currency of the foreign operations during the period and up to the disposal of some of the 
subsidiaries being the entities - Gecko Gold Niger, Gecko Gold CI and MGS Ghana is CFA Francs. The 
functional currency of Taruga Congo SARLU was Congalese Franc. 

As at the balance date the assets and liabilities of these subsidiaries are translated into the presentation 
currency of Taruga Minerals Limited at the rate of exchange ruling at the balance date and income and 
expense items are translated at the average exchange rate for the period, unless exchange rates fluctuated 
significantly during that period, in which case the exchange rates at the dates of the transactions are used. 

The exchange differences arising on the translation are taken directly to a separate component of equity, 
being recognised in the foreign currency translation reserve. 

On  disposal  of  a  foreign  entity,  the  deferred  cumulative  amount  recognised  in  equity  relating  to  that 
particular foreign operation is recognised in profit or loss. 

In addition, in relation to the partial disposal of a subsidiary that does not result in the Group losing control 
over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-
controlling  interests  and  are  not  recognised  in  profit  or  loss.  For  all  other  partial  disposals  (i.e.  partial 
disposals of associates or jointly controlled entities that do not result in the Group losing significant influence 
or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or 
loss. 

(p)  Parent entity financial information 

The  financial  information  for  the  parent  entity,  Taruga  Minerals  Limited,  disclosed  in  Note  22  has  been 
prepared on the same basis as the consolidated financial statements, except for Investments in subsidiaries 
which  are  accounted  for  at  cost  in  the  parent  entity’s  financial  statements.    Dividends  received  from 
associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying 
amount of these investments. 

(q)  Trade and other payables 
These  amounts  represent  liabilities  for  goods  and  services  provided  to  the  company  prior  to  the  end  of 
financial  year  which  are  unpaid.  Trade  and  other  payables  are  presented  as  current  liabilities  unless 
payment is not due within 12 months.  

NOTE 2 – REVENUE 

Revenue 

Interest received 
Total Revenue 

Consolidated 
2018 
$ 

7,899 
7,899 

2017 
$ 

4,666 
4,666 

Taruga Minerals Limited 

Page 41 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 3 – LOSS FROM CONTINUING ACTIVITIES BEFORE INCOME TAX 

Expenses 
Depreciation of non-current assets 

Plant and Equipment 
Office furniture and equipment 
Motor vehicles 
Total depreciation of non-current assets 

Share based payments to Contractors (Note 11) 
Performance rights to Directors (Note 23) 

NOTE 4 – INCOME TAX 

2018 
$ 

2017 
$ 

1,290 
1,511 
7,034 
9,835 

1,980,000 
64,292 
2,044,292 

1,607 
1,883 
8,764 
12,254 

- 
- 
- 

The  prima  facie  tax  expense  at  30%  on  loss  from  continuing  activities  is  reconciled  to  the  income  tax 
expense in the financial statements as follows: 

2018 
$ 

2017 
$ 

Loss from continuing activities 

(11,202,263) 

337,837 

Prima facie income tax expense at 30% 

(3,080,721) 

101,351 

Tax effect of permanent differences 

Impairment 
Foreign projects 
Share based payments 
Share issue costs amortised 
Other non-deductible expenses 

1,941,608 
444,914 
562,180 
- 
41,909 

- 
- 
- 
40,894 
3,038 

Income tax expense adjusted for permanent differences 

(90,110) 

57,419 

Deferred tax asset not brought to account 
Income tax expense 

Income tax benefit                        

90,110 
- 

(57,419) 
- 

The directors estimate the cumulative unrecognised deferred tax asset attributable to the company and its 
controlled entity at 30% is as follows: 

Taruga Minerals Limited 

Page 42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 4 – INCOME TAX (continued) 

DEFERRED TAX ASSETS 

Revenue Losses after permanent differences 
Capital Raising Costs yet to be claimed 
Accruals 

Consolidated 
2018 

$ 

2017 

$ 

635,700 
3,812 
4,675 
644,187 

603,581 
49,074 
- 
652,655 

The potential deferred tax asset has not been brought to account in the financial report at 30 June 2018 as 
the Directors do not believe it is appropriate to regard the realisation of the asset as probable. This asset 
will only be obtained if: 

(a) 

(b) 

(c) 

The company and its controlled entity derive future assessable income of an amount and type 
sufficient  to  enable  the  benefit  from  the  deductions  for  the  tax  losses  and  the  unrecouped 
exploration expenditure to be realised; 
The company and its controlled entity continue to comply with the conditions for deductibility 
imposed by tax legislation; and  

No changes in tax legislation adversely affect the company and its controlled entity in realising 
the benefit from the deductions for the tax losses and unrecouped exploration expenditure.  

Franking Credits 

No franking credits are available at balance date for the subsequent financial year. 

NOTE 5 – CASH AND CASH EQUIVALENTS 

Cash at bank and on hand 

2,487,993 

1,740,836 

2018 
$ 

2017 
$ 

Cash at bank earns interest at floating rates based on daily deposit rates. 

NOTE 6 – TRADE AND OTHER RECEIVABLES 

Current 

GST receivable 
Other receivables 
Other current assets 

6,050 
12,781 
7,659 
26,490 

2,013 
11,683 
- 
13,696 

Taruga Minerals Limited 

Page 43 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 7 – PLANT AND EQUIPMENT 

Consolidated 

Cost 

2017 
Balance Brought Forward 
Foreign exchange movement 
Balance Carried Forward 

Accumulated Depreciation 

Balance Brought Forward 
Charge 
Foreign exchange movement 
Balance Carried Forward 

Motor 
Vehicles 

$ 

Plant 
& 
Equipment 
$ 

Fixtures 
& 
Fittings 
$ 

Total 

$ 

120,203 
748 
120,951 

22,398 
 139 
 22,537 

25,925 
 161 
26,086 

168,526 
 1,048 
169,574 

84,271 
8,764 
799  
93,834 

 15,808 
 1,608 
 146 
 17,562 

18,205 
 1,882 
 175  
20,262 

118,284 
12,254 
 1,120  
131,658 

Net Book Value 30 June 2017 

27,117 

 4,975 

 5,824 

37,916 

Taruga Minerals Limited 

Page 44 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 7 – PLANT AND EQUIPMENT (Continued) 

Cost 

2018 
Balance Brought Forward 
Additions 
Foreign exchange movement 
Balance Carried Forward 

Accumulated Depreciation 

Balance Brought Forward 
Charge 
Foreign exchange movement 
Balance Carried Forward 

Motor Vehicles 

Computer 
Equipment 

$ 

$ 

Consolidated 

Plant 
& 
Equipment 
$ 

22,537 
14,003 
  1,343 
  37,883 

 Fixtures 
& 
Fittings 
$ 

 26,086 
- 
 1,555 
 27,641 

- 
2,860 
- 
  2,860 

- 
- 
- 
- 

  17,562 
  1,290 
 1,075  
  19,927 

 20,262 
 1,511 
  1,238  
 23,011 

  Total 

$ 

 169,574 
 30,896 
 10,107 
 210,577 

 131,658 
 9,835 
 8,057 
 149,550 

120,951 
14,033 
7,209 
142,193 

93,834 
7,034 
 5,744  
106,612 

Net Book Value 30 June 2018 

35,581 

  2,860 

  17,956 

 4,630 

 61,027 

Taruga Minerals Limited 

Page 45 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 8 – MINERAL EXPLORATION AND EVALUATION 

Opening balance 
Expenditure during the year 
Impairment – refer Note 1(m) 
Foreign exchange movement 
Closing balance 

Consolidated 
2018 
$ 
6,995,457 
22,055 
(7,060,393) 

42,881        
- 

2017 
$ 
7,029,813 
10,804 
- 
(45,160) 
6,995,457 

The  ultimate  recoupment  of  exploration  expenditure  carried  forward  is  dependent  upon  successful 
development and commercial exploitation, or sale of the respective areas. 

NOTE 9 – TRADE AND OTHER PAYABLES 

Trade creditors 
Other payables  

2018 
$ 
206,122 
- 
206,122 

2017 
$ 
26,120 
17,500 
43,620 

Trade payables are non-interest bearing and are normally settled on 30 day terms. 

NOTE 10 – INTEREST BEARING LIABILITIES 

Financing Agreements 
No overdraft facilities have been formalised at 30 June 2018 (2017: Nil) and neither the company nor its 
controlled entity have lines of credit at 30 June 2018 (2017: Nil). 

NOTE 11 – ISSUED CAPITAL 

(a) 

Issued capital 
136,405,334 shares fully paid 

2018 
$ 

2017 
$ 

18,531,500 

13,821,735 

Movements in ordinary share capital of the Company were as follows: 

Opening balance at 30 June 2016 
Allotment of rights issue 
Shortfall Placement  of 6 June 2016 
Placement - Tranche 1 
Placement - Tranche 2 
Transaction costs 
Closing balance at 30 June 2017 

Number 
61,503,674 
 7,827,680  
8,885,885 
 19,500,000  
 6,200,000  
 - 
103,917,239 

$ 
12,508,296 
234,830 
266,577 
682,500 
217,000 
(87,468) 
13,821,735 

Taruga Minerals Limited 

Page 46 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 11 – ISSUED CAPITAL (continued) 

Opening balance at 30 June 2017 
Placement 
Placement March 2018 
Consultants shares 
Placement - Tranche 1 
Transaction costs 
Closing balance at 30 June 2018 

Movements in options were as follows: 

Number 
103,917,239 
 10,900,000  
 2,600,000  
 12,000,000  
 6,988,095  
 - 
136,405,334 

$ 
13,821,735 
1,090,000 
260,000 
1,980,000 
1,467,500 
(87,735) 
18,531,500 

Number 

$ 

Opening balance at 30 June 2016 
Lapse of $0.50 unlisted options 1/12/2016 
Lapse of $0.15 unlisted options 31/05/2017 
Closing balance at 30 June 2017 
Unlisted options exercisable at $0.30 each on or before 19 June 
2020 
Closing balance at 30 June 2018 

11,796,676 
(2,090,001) 
(9,706,675) 
- 

6,988,095 
6,988,095 

  35,040 
(32,400) 
(2,640) 
- 

- 
- 

(b) 

Voting and dividend rights 

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion 
to the number of shares held. 

At shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each 
shareholder has one vote on a show of hands. 

NOTE 12 – RESERVES AND ACCUMULATED LOSSES 
Share Based Payments Reserve 
Foreign Currency Translation Reserve 

Accumulated Losses 

Balance at beginning of the year 
Net loss from ordinary activities 
Transfer from options reserve on expiry of options 
Balance at end of the year 

Consolidated 
2018 
$ 

2017 
$ 

64,292 
(58,227) 
6,065 

- 
(111,896) 
(111,896) 

2018 
$ 
4,965,554 
11,202,623 
- 
16,168,177 

2017 
$ 
4,662,757 
337,837 
(35,040) 
4,965,554 

Taruga Minerals Limited 

Page 47 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 12 – RESERVES AND ACCUMULATED LOSSES (continued) 

Options Reserve 

Balance at beginning of the year 
Reserve arising on issue of options 
Transfer to accumulated losses on expiry of options 
Balance at end of the year 

Foreign Currency Translation Reserve 

Balance at beginning of the year 
Reserve arising on translation of foreign subsidiaries 
Balance at end of the year 

Nature and purpose of Reserves 

Consolidated 
2018 
$ 
- 
- 
- 
- 

2017 
$ 

35,040 
- 
(35,040) 
- 

2018 
$ 
(111,896) 
53,669 
(58,227) 

2017 
$ 
(68,405) 
(43,491) 
(111,896) 

The foreign currency translation reserve is used to record exchange differences arising from the translation 
of  the  financial  statements  of  foreign  subsidiaries.  It  is  also  used  to  record  the  effect  of  hedging  net 
investments in foreign operations. 

The share option reserve contains amounts received on the issue of options over unissued capital of the 
company. 

NOTE 13 – COMMITMENTS FOR EXPENDITURE 

(a) 

Mineral Tenement Leases 

In order to maintain current rights of tenure to mining tenements, the consolidated entity will be required 
to outlay amounts of $1,500,000 in respect of minimum tenement expenditure requirements and lease 
rentals (subject to the applications noted on page 17-18).  The obligations are not provided for in the 
financial report and are payable as follows : 

Not later than one year 
Later than 1 year but not later than 2 years 
Later than 2 years but not later than 5 years 

2018 
$ 

500,000 
500,000 
500,000 
1,500,000 

2017 
$ 

100,000 
200,000 
250,000 
550,000 

Taruga Minerals Limited 

Page 48 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 14 – INVESTMENT IN CONTROLLED ENTITIES 

Registered 
Number 

Country of 
Incorporation 

Interest Held 

Value of investment 

Parent 

2018 

2017 

2018 

2017 

$ 

$ 

Taruga Minerals Limited  153 868 789 

Australia 

Subsidiaries 

Taruga Congo SARLU 

Gecko Gold Niger SARL 

MGS Ghana Limited 

Gecko Gold CI SARL 

01-122-
N31711L 
RCCM-NI-NIA-
2010-B-2625 

CA-80, 601 
RCCM-CI-ABJ-
2010-B-1899 

NOTE 15 – SEGMENT INFORMATION 

DRC 

100% 

100% 

1,361 

- 

Niger 

100% 

100%  1,316,675 

1,316,675 

Ghana 

100% 

100% 

 - 

 - 

Cote d’Ivoire 

100% 

100%  1,350,367 

1,350,367 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief 
operating decision maker. The chief operating decision maker, who is responsible for allocating resources 
and assessing performance of the operating segments, has been identified as the Board of Directors of 
Taruga Minerals Limited. 

The  company  operates  in  one  operating  segment  therefore  disclosures  are  consistent  with  the  financial 
report. 

Non-current assets by country 

Consolidated 

Mineral exploration and evaluation 
DRC 
Niger 
Cote D’Ivoire 

2018 
$ 

- 
- 
- 
- 

2017 
$ 

- 
5,637,205 
1,358,252  
6,995,457 

Taruga Minerals Limited 

Page 49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 16 – NOTES TO THE STATEMENT OF CASH FLOWS 

Reconciliation of loss after income tax to net operating cash flows 

Loss from ordinary activities 

Depreciation 
Impairment 
Exploration 
Share Based payments 

Movement in assets and liabilities 

Receivables 
Payables 

Net cash used in operating activities 

NOTE 17 – RELATED PARTY INFORMATION 

a)  Transactions with Key Management Personnel 

Consolidated 
2018 
$ 

2017 
$ 

11,202,623 

337,837 

(9,835) 
(7,060,393) 
(1,673,534) 
(2,044,292) 

(12,254) 
(10,127) 
- 
- 

414,569 

315,456 

5,135 
(26,494) 
393,210 

4,817 
74,220 
394,493 

The transactions with key management personnel have been entered into under terms and conditions no 
more favourable than those the Company would have adopted if dealing at arm's length.  

The total remuneration paid to Directors and Executives is summarised below: 

Former Taruga Minerals Limited Director, Mr Daniel Smith, is a current director of Minerva Corporate Pty 
Ltd. Minerva Corporate Pty Ltd provided corporate consultancy services to Taruga Minerals Limited during 
the period that Mr Daniel Smith was a director. Payments to Minerva Corporate Pty Ltd during the period  
while Mr Smith’s held office as a director total $13,500 (2017: $81,168).  

b)  Directors and Executives Disclosures 

The aggregate compensation made to directors and other key management personnel of the Group is set 
out below: 

Short-term employee benefits 
Post-employment benefits 

2018 
$ 
1,164,817 
- 
1,164,817 

2017 
$ 
71,500 
- 
71,500 

Taruga Minerals Limited 

Page 50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 18 – REMUNERATION OF AUDITORS 

Auditing  and  reviewing  of  the  financial  statements  of Taruga  Minerals 
Limited and of its controlled entities. 

2018 
$ 

25,000 
25,000 

2017 
$ 

25,000 
25,000 

NOTE 19 – LOSS PER SHARE 

The loss and weighted average number of ordinary shares used in the calculation of basic loss per share 
is as follows: 

Loss for the year 
Loss for the year from continuing operations 

2018 
$ 
11,202,623 
11,202,623 

2017 
$ 
337,837 
337,837 

Number 

Number 

Weighted  average  number  of  ordinary  shares  outstanding  during  the 
year used in the calculation of basic loss per share 

108,061,812 

86,007,316 

There are no potential ordinary shares on issue at the date of this report. 

NOTE 20 – FINANCIAL INSTRUMENTS 

Financial Risk Management Policies 

The consolidated entity’s financial instruments consist mainly of deposits with banks, accounts receivable, 
accounts payable and hire purchase liabilities. 

The Board’s overall risk management strategy seeks to assist the Group in meeting its financial targets, 
whilst  maintaining  potential  adverse  effects  on  financial  performance.  The  Group  has  developed  a 
framework  for  a  risk  management  policy  and  internal  compliance  and  control  systems  that  covers  the 
organisational,  financial  and  operational  aspects  of  the  group’s  affairs.  The  Chairman  is  responsible  for 
ensuring the maintenance of, and compliance with, appropriate systems. 

Financial Risk Exposures and Management 

The  main  risks  the  group  is  exposed  to  through  its  financial  instruments  are  interest  rate  risk,  foreign 
currency risk and liquidity risk. 

Interest Rate Risk 

The consolidated entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value 
will fluctuate as a result of change in the market, interest rate and the effective weighted average interest 
rate on these financial assets, is as follows: 

Taruga Minerals Limited 

Page 51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 20 – FINANCIAL INSTRUMENTS (continued) 

Interest Rate Risk (continued) 

  Weighted Average Effective 

Floating Interest Rate 

Financial Assets 
Cash at Bank 
Total Financial Assets 

Interest Rate 

Consolidated 

2018 

2017 

0.60% 

0.60% 

2018 
$ 
2,256,619 
2,256,619 

2017 
$ 
1,738,638 
1,738,638 

There are no financial liabilities subject to interest rate fluctuations. 

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed 
in the statement of financial position and in the notes to and forming part of the financial statements. 

Interest Rate Sensitivity Analysis 

The Group has performed a sensitivity analysis relating to its exposure to interest rate risk. This sensitivity 
analysis demonstrates the effect on the current  year results and equity which could result in a change in 
these risks. 

At 30 June 2018 the effect on the loss and equity as a result of changes in the interest rate with all other 
variables remaining constant is as follows: 

Change in Loss 

 
Increase in interest by 2% 
  Decrease in interest by 2% 

Change in Equity 

 
Increase in interest by 2% 
  Decrease in interest by 2% 

Foreign Currency Risk 

Consolidated 
2018 
$ 

(47,772) 
47,772 

2017 
$ 

(45,119) 
45,119 

(47,772) 
47,772 

(45,119) 
45,119 

The  Group  undertakes  certain  transactions  denominated  in  foreign  currencies,  hence  exposures  to 
exchange rate fluctuations arise. 

The carrying amount of the Group’s foreign currency denominated monetary assets and monetary liabilities 
at the reporting date is as follows: 

Currency 

Liabilities 
2018 
$ 

Consolidated 

Assets 
2018 
$ 

Liabilities 
2017 
$ 

Congolese Dollars 

- 

226,330 

- 

Assets 
2017 
$ 

- 

Taruga Minerals Limited 

Page 52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 20 – FINANCIAL INSTRUMENTS (continued) 

Foreign currency 

Other than translational risk the Group has no significant exposure to foreign currency risk at the balance 
date.  

Liquidity Risk 

The group manages liquidity risk by monitoring forecast cash flows. 

Credit Risk 

The maximum exposure to credit risk, excluding the  value of any collateral or other security, at balance 
date,  is  the  carrying  amount  net  of  any  provisions  for  doubtful  debts,  as  disclosed  in  the  statement  of 
financial position and notes to the financial statement. 

In the case of cash deposited, credit risk is minimised by depositing with recognised financial intermediaries 
such as banks, subject to Australian Prudential Regulation Authority Supervision. 

The consolidated entity does not have any material risk exposure to any single debtor or group of debtors 
under financial instruments entered into by it. 

Capital Management Risk 

Management controls the capital of the Group in order to maximise the return to shareholders and ensure 
that the group can fund its operations and continue as a going concern. 

Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting 
its capital structure in response to changes in these risks and in the market. These responses include the 
management of expenditure and debt levels and share and option issues. 

There have been no changes in the strategy adopted by management to control capital of the Group since 
the prior year. 

Net Fair Values 

For financial assets and liabilities, the net fair value approximates their carrying value. The consolidated 
entity has no financial assets or liabilities that are readily traded on organised markets at balance date and 
has no financial assets where the carrying amount exceeds net fair values at balance date. 

NOTE 21 - MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR  

Corporate 

On  17  September  2018,  the  Company  issued  2,380,952  ordinary  shares  and  2,380,952  free  attaching 
options as part of the Tranche 2 placement announced 19 June 2018, raising $500,000. The shares (and 
free attaching options) were issued at a price of $0.21 per share, under the Company’s ASX Listing Rule 
7.1 capacity. 

Taruga Minerals Limited 

Page 53 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 21 - MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR (continued) 

Exploration 

On 30 July 2018, the Company announced that all due diligence drilling at Kamilombe and Mwilu had been 
completed. The samples from the due diligence drilling were sent to ALS Global’s laboratory in for analysis, 
with results confirming high-grade Cobalt potential for both projects. A decent Copper intersection was also 
reported at depth at Mwilu.  

On 31 August 2018, the Company announced that results for the final 4 diamond drill holes at Kamilombe and 
the initial 3 drill holes at Mwilu have been received. Drilling at Kamilombe included significant intercepts of 13.68m 
at 1.21% Co from 30.47m within a broader zone of 50.87m at 0.49% Co from 5.8m. This sits immediately below 
the quartz/dolomite mineralised overburden which reported 5.8m at 0.2% Co from surface. A second intercept of 
8.85m at 0.41% Co and 1.32% Cu was reported from 88.85m all in KMDD005. 

On  14  September  2018,  the  Company  announced  that  all  results  from  the  due  diligence  drilling  at 
Kamilombe  and  Mwilu  had  been  received,  and  that  the  results  supported  further  drilling.  The  Company 
announced that two styles of mineralisation occur at Mwilu, each with potential to host significant cobalt 
mineralisation. The northern flat lying zone is of lower grade, but mineralisation attains thicknesses of more 
than 30m, with a combined thickness of 90m in one hole, which makes it conducive to open pit mining. The 
southern zone is high grade and steeply dipping and is likely amendable to an underground operation.  

NOTE 22 - PARENT ENTITY DISCLOSURES 

Financial Position 

CURRENT ASSETS 

Cash and cash equivalents 
Trade and other receivables 
Other current assets 

Total Current Assets 

NON CURRENT ASSETS 
Plant and equipment 
Investment in subsidiaries 
Loans to subsidiaries less impairment 

Total Non Current assets 

TOTAL ASSETS 

CURRENT LIABILITIES 

Trade and other payables 

Total Current Liabilities 

2018 

$ 

2017 

$ 

2,256,511 
4,642 
7,659 

1,735,712 
13,695 
- 

2,268,812 

1,749,407 

30,896 
- 
275,802 

- 
4,050,393 
2,988,104 

306,698 

7,038,497 

2,575,510 

8,787,904 

206,122 

43,619 

206,122 

43,619 

Taruga Minerals Limited 

Page 54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 22 - PARENT ENTITY DISCLOSURES (continued) 

TOTAL LIABILITIES 

NET ASSETS 

EQUITY 

Issued capital 
Reserves 
Accumulated losses 

TOTAL EQUITY 

Financial Performance 

2018 
$ 

2017 
$ 

206,122 

43,619 

2,369,388 

8,744,285 

18,531,500 
64,292 
(16,226,404) 

13,821,735 
- 
(5,077,450) 

2,369,388 

8,744,285 

Loss for the year 
Impairment  
Transfer of reserves to accumulated losses on expiry of options 
Total comprehensive loss 

3,989,833 
7,159,120 
- 
11,148,953 

311,012 
2,336,965 
(35,040) 
2,612,937 

The  parent  entity  has  not  entered  into  any  guarantees  in  relation  to  debts  of  its  subsidiaries,  has  no 
contingent liabilities, and has no commitments for acquisition of plant and equipment. 

Taruga Minerals Limited 

Page 55 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE FINANCIAL 
STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

NOTE 23 – SHARE-BASED PAYMENTS 

Performance Rights Valuation 

Item 
Value of underlying security 
Exercise price 
Valuation date 
10-Day VWAP barrier 
Life of the Rights (years) 
Volatility 
Risk-free rate 
Dividend yield 
Vesting Conditions 
Number of Rights 
Value per Right 
Value per Tranche 

Tranche A 
$0.22 
nil 
1 June 2018 
$0.30 
3.00 
60% 
2.12% 
nil 
Note 1 
8,500,000 
$0.19 
$1,589,500 

Tranche B 
$0.22 
nil 
1 June 2018 
$0.40 
3.00 
60% 
2.12% 
nil 
Note 2 
2,500,000 
$0.16 
$392,500 

Tranche C 
$0.22 
nil 
1 June 2018 
$0.50 
3.00 
60% 
2.12% 
nil 
 Note 3 
2,500,000 
$0.13 
$332,500 

1 The Tranche A Rights will vest upon the 10-day volume weighted average price (‘10-Day VWAP’) of shares traded 

on the Australian Securities Exchange (‘ASX’) being at $0.30 or greater. 

2 The Tranche B Rights will vest upon the 10-Day VWAP of shares traded on the ASX being at $0.40 or greater. 
3 The Tranche C Rights will vest upon the 10-Day VWAP of shares traded on the ASX being at $0.50 or greater. 

The above tranches of performance rights are expensed over the life of the rights (3 years). The expense 
included in the reporting period to 30 June 2018 was $64,292.

Taruga Minerals Limited 

Page 56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DIRECTORS’ DECLARATION 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

In the opinion of the directors of Taruga Minerals Limited (“the company”): 

1) 

The attached financial statements and notes thereto are in accordance with the Corporations Act 
2001 including: 

(a) 

(b) 

complying  with  Australian  Accounting  Standards,  the  Corporations  Regulations  2001, 
professional reporting requirements and other mandatory requirements; and 

giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its 
performance for the period then ended; and 

2) 

3) 

4) 

There are reasonable grounds to believe that the company will be able to pay its debts as and when 
they become due and payable. 

The financial statements and notes thereto are in accordance with International Financial Reporting 
Standards issued by the International Accounting Standards Board. 

This  declaration  has  been  made  after  reviewing  the  declarations  required  to  be  made  to  the 
Directors  in  accordance  with  section  295A  of  the  Corporations  Act  2001  for  the  financial  period 
ended 30 June 2018. 

This  declaration  is  signed  in  accordance  with  a  resolution  of  the  Board  of  Directors  made  pursuant  to 
s.303(5) of the Corporations Act 2001. 

Bernard Aylward  

Non-Executive Director 

Dated Perth 28 September 2018

Taruga Minerals Limited 

Page 57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S 
REVIEW REPORT 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Taruga Minerals Limited 

Page 58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S 
REVIEW REPORT 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Taruga Minerals Limited 

Page 59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S 
REVIEW REPORT 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Taruga Minerals Limited 

Page 60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S 
REVIEW REPORT 

FOR THE YEAR ENDED 30 JUNE 2018 

AND CONTROLLED ENTITIES 

Taruga Minerals Limited 

Page 61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASX Additional Information 

ANALYSIS OF SHAREHOLDING as at 26 September 2018 

1 
1,001 
5,001 
  10,001 
  100,001 
Total on Issue 

1,000 
- 
5,000 
- 
- 
10,000 
-  100,000 
-  or more 

AND CONTROLLED ENTITIES 

  Shareholders 
203 
111 
76 
248 
108 
746 

The number of shareholdings held in less than marketable parcels is 351. 

Voting Rights 

Article 16 of the Constitution specifies that on a show of hands every member present in person, by 
attorney or by proxy shall have: 

a) 
b) 

for every fully paid share held by him one vote 
for every share which is not fully paid a fraction of the vote equal to the amount paid up on the 
share over the nominal value of the shares 

Substantial Shareholders 

The following substantial shareholders have notified the Company in accordance with Corporations Act 
2001. 

Mark Gasson 
Hongze Group Ltd 

Directors’ Shareholding 

Shares 
8,500,000 
7,142,857 

  % 
  6.12 
  5.15 

The interest of each director in the share capital of the Company is detailed in the director’s report. 

Securities Subject to Escrow 

Nil. 

Taruga Minerals Limited 

Page 62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASX Additional Information 

AND CONTROLLED ENTITIES 

TOP TWENTY SHAREHOLDERS 

Rank   Holder Name  
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 

MCNEIL NOM PL 
HSBC CUSTODY NOM AUST LTD 
J P MORGAN NOM AUST LTD 
GASSON MARK 
HONGZE GRP LTD 
RANCHLAND HLDGS PL 
AYLWARD BERNARD MICHAEL 
KHNAIZER WALID 
BNP PARIBAS NOM PL 
OAKHURST ENTPS PL 
CITICORP NOM PL 
TWO TOPS PL 
SAMLISA NOM PL 
HSBC CUSTODY NOM AUST LTD 
TALLTREE HLDGS PL 
BEBB TIFFANY 
VINALE PL 
HOLLYWOOD MARKETING WA PL 
ASCENT CAP HLDGS PL 
DING MARCUS STEVEN 

Totals: Top 20 holders of ORDINARY FULLY PAID SHARES 
(TOTAL) 

Securities  
18,090,494 
14,524,111 
10,384,373 
8,500,000 
7,142,857 
5,761,906 
4,698,586 
4,057,160 
3,710,677 
3,609,167 
3,308,437 
3,300,000 
2,000,000 
2,000,000 
2,000,000 
1,666,667 
1,666,666 
1,554,606 
1,543,335 
1,524,213 
101,043,255 

%  
13.03% 
10.47% 
7.48% 
6.12% 
5.15% 
4.15% 
3.39% 
2.92% 
2.67% 
2.60% 
2.38% 
2.38% 
1.44% 
1.44% 
1.44% 
1.20% 
1.20% 
1.12% 
1.11% 
1.10% 
72.79% 

Total Remaining Holders Balance  37,743,031 

27.21% 

The name of the joint Company Secretaries are Daniel Smith and Sylvia Foong. 

The address of the registered office is: Level 8, 99 St Georges Terrace, Perth WA 6000. 

Registers of securities are  held Security Transfer Registrars  Pty Ltd, 770 Canning Highway, Applecross 
WA 6153 

Quotation  has  been  granted  for  all  the  ordinary  shares  of  the  Company  on  the  Australian  Securities 
Exchange Ltd. 

There are nil securities currently subject to escrow. 

Unquoted Options over Un-issued Shares 

There are 9,369,047 unlisted options exercisable at $0.30 each on or before 19 June 2020. 

Taruga Minerals Limited 

Page 63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASX Additional Information 

AND CONTROLLED ENTITIES 

Granted tenements held directly by Taruga Minerals or subsidiary company  

Tenements 

Held  

Country 

E51/1832 
E53/1947 

100% (In application) 
100% (In application) 

Australia 
Australia 

Taruga Minerals Limited 

Page 64