Annual Report
30 June 2020
ABN 51 119 678 385
Corporate Directory
Non-Executive Chairman
Mel Ashton
Managing Director
Andrew Radonjic
Non-Executive Directors
Hamish Halliday
John Jetter
Company Secretary
Jamie Byrde
Principal & Registered Office
Level 3, 24 Outram Street
WEST PERTH WA 6005
Telephone: (08) 6279 9428
Facsimile: (08) 6500 9986
Share Registry
Automic Group
267 St Georges Terrace
PERTH WA 6000
Auditors
Stantons International
Level 2
1 Walker Avenue
WEST PERTH WA 6005
Bankers
National Australia Bank
50 St Georges Terrace
PERTH WA 6000
Stock Exchange Listing
Australian Securities Exchange
(Home Exchange: Perth, Western Australia)
Code: VMS
Website Address
www.ventureminerals.com.au
Contents
Chairman’s Letter to Shareholders
Directors’ Report
Auditor’s Independence Declaration
Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
Schedule of Mineral Tenements
2020 Annual Report
2
3
36
37
69
70
74
76
Venture Minerals Limited | 1
Chairman’s Letter to Shareholders
Chairman’s Letter to Shareholders
On behalf of the Directors of Venture Minerals Limited (“Venture”), I present to shareholders the
Company’s annual report for the year ended 30 June 2020.
It certainly has been an interesting year, with the impact of the Coronavirus on local and
international financial and commodity markets. I believe Venture is well positioned to take
advantage of the strength of the iron ore price, together with its portfolio of assets, with significant
exploration potential.
Since completing the Feasibility Study in August 2019 for the Riley Iron Ore Project in Tasmania, the
Board and Management have been working diligently to execute key agreements with stakeholders
to ensure the company and its shareholders get the best outcome for the project. The iron ore price
volatility and recent strengthening over the past few months has provided Venture with an
opportunity to restart the Riley Iron Ore Mine.
The Board would like to thank its shareholders for their continuing support following the recent $6.5
million capital raising including the heavily oversubscribed Share Purchase Plan. The Board has since
made a positive decision to recommence mining operations at the Riley Iron Ore Mine and we look
forward to delivering our first shipment of iron ore.
We would also like to thank the shareholders for their patience as we transition from an exploration
company to a producing mining company, however rest assured that the company still has a portfolio
of exploration assets that we believe will deliver further success for our shareholders.
The company’s flagship Mount Lindsay Tin-Tungsten project in Tasmania, together with the Golden
Grove North Project and Kulin Project in Western Australia, provide the company with exposure to
multiple commodities and potential for future success.
I would like to thank the Board and Management team for their support in what has been an
extremely busy year. I thank our staff who have continued to strive towards achieving our goal of
progressing towards becoming a mining company, and our shareholders for continued belief and
support in Venture Minerals through this growth phase of our company.
Mel Ashton
Chairman
Venture Minerals Limited | 2
Directors’ Report
For the year ended 30 June 2020
The Directors of Venture Minerals Limited submit herewith the consolidated financial statements of the
Company and its controlled entities (“Group” or “Consolidated Entity”) for the financial year ended 30 June 2020
in order to comply with the provisions of the Corporations Act 2001.
1.
Directors
The following persons were Directors of Venture Minerals Limited during the whole of the financial year and up
to the date of this report, unless otherwise stated:
Mr Mel Ashton
Mr Andrew Radonjic
Mr Hamish Halliday
Mr John Jetter
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
2.
Principal Activities
The principal activity of the consolidated entity during the financial year was mineral exploration. There were no
significant changes in the nature of the consolidated entity’s principal activities during the financial year.
Subsequent to year end, the Board delivered a positive Final Investment Decision (FID) for the Riley Iron Ore
Mine in Tasmania. The Riley Mining Team has commenced preparations for low cost mining and dry screening
activities given the zero strip ratio characteristics of the Riley DSO deposit.
3.
Group Financial Overview
Profit and Loss
The loss attributable to owners of the consolidated entity after providing for income tax amounted to $2,204,559
(2019: $2,983,022) which includes a loss from discontinued operation of nil (2019: $147,252 from continuing
operations).
Financial Position
The consolidated entity had $966,297 in cash and cash equivalents as at 30 June 2020 (2019: $4,688,027). The
consolidated entity had net assets of $3,057,736 (2019 $4,441,886) at 30 June 2020.
4. Dividends Paid or Recommended
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of
a dividend to the date of this report.
5.
Business Strategies & Prospects for the Forthcoming Year
Venture Minerals Limited is focused upon the exploration and development of mineral resources within its
current portfolio of projects in Tasmania and Western Australia.
The Company will continue to advance the Riley Iron Ore Project, with a focus on first shipment in the December
2020 Quarter. Board and management will continue to monitor Iron Ore commodity prices and foreign currency
markets as it continues dry screening operations. Board and management will work towards funding of the wet
screening plant and other capital expenditure over the coming months.
With the focus now on Riley, Venture has put on hold its underground scoping study on the high-grade portion of
the tin-tungsten resource at the Mount Lindsay Project. Venture hopes to recommence the study over the next 12
months which will determine Venture’s strategy on the asset going forward.
Venture Minerals Limited | 3
Directors’ Report
For the year ended 30 June 2020
Exploration will continue at the Company’s Kulin Gold Project and the Golden Grove North Zinc-Copper-Gold
project.
Material business risks that may impact the results of future operations include future commodity prices,
exchange rate fluctuations, further exploration results and funding.
6.
Significant Changes in the State of Affairs
On 12 August 2020, a positive final investment decision was made to commence dry screening operations at the
Riley Iron Ore Mine. The focus is now on finalising discussions on financing the wet screening plant whilst the
dry screening process enables Venture to potentially realise early cash-flow from Riley.
7.
Review of Operations
Riley Iron Ore Mine, North West Tasmania
The 100% owned Riley Iron Ore Mine (Riley DSO Hematite Project) is located 10 km from the Mount Lindsay Deposit
(Refer Figure One) and occurs as a hematite rich pisolitic and cemented laterite. The deposit is all at surface, located less
than 2 km from a sealed road that accesses existing port facilities.
Venture Minerals Limited | 4
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
A maiden resource statement of 2mt @ 57% Fe was defined in July 2012 under the JORC Code 2004, this upgraded in
August 2019 to meet the guidelines of the JORC Code 2012.
Table One | Resource Statement - Riley DSO Project
Fe (%)
Calcined
Resource
Tonnes
Fe (%)
SiO2 (%)
Al2O3 (%)
P (%)
S (%)
LOI (%)
Indicated
2.0mt
57
61
3.3
2.7
0.03
0.08
7.9
Note: Refer to ASX announcement on 19 June 2019.
Following completion of the resource, Venture engaged independent mining engineers, Rock Team, to complete mining
studies on the deposit and produce a reserve statement. With all the hematite resources at Riley located at or near
surface, the study delivered a 90% conversion rate of resource to reserve under the JORC Code 2004, this was later
upgraded to meet the guidelines of the JORC Code 2012 (Refer Table Two), resulting in an 80% conversion rate of resource
to reserve.
Table Two |Reserve Statement - Riley DSO Project
Reserve
Tonnes
Fe (%)
Fe (%)
Calcined
SiO2 (%)
Al2O3 (%)
P (%)
S (%)
LOI (%)
Probable
1.6mt
57
61
3.9
2.8
0.03
0.07
7.1
Note: Refer to ASX announcement on 22 August 2019
Activities during the Year
During the year, the Company completed the Riley Iron Ore Mining Study on the 22 August 2019 which returned a
post-tax cash of A$31M and a NPV of $27M. In addition to this key milestone, the company cleared a major hurdle in
its goal of producing Iron Ore from the Riley Mine by signing the Road Access Agreement with Hydro Tasmania. This
agreement has secured a transport route by bitumen (all weather) road from the mine gate to the Port of Burnie. In
addition, the Port Access Agreement was signed with TasPorts, which owns the wharf and infrastructure at the Port of
Burnie (Refer Figure Three). This agreement fully secures the pathway for Riley Iron Ore production from mine gate to
shipping. This effectively means that mining can commence immediately subject to completion of financing.
With on-site infrastructure already complete (Refer Figure Two) the Riley Mining Team can commence ore mining and dry
screening activities on short notice and at very low cost, given the zero strip ratio (iron ore at surface) characteristics of
the Riley DSO deposit.
Iron Ore prices remain at historically significant levels having recently hit 10-month highs. Further, the outlook for iron
ore prices for the rest of the year remains very positive due to strong demand supported by Chinese government backed
infrastructure spending and growing supply concerns from Brazil due to the COVID-19 outbreak.
Venture is now finalising financing option discussions, including a debt facility, to fund construction of the wet
screening plant at Riley.
The Company is also concluding the road haulage tender process and will continue to work on achieving more efficient
ore handling logistics, including finalising negotiations on gaining access to other on-wharf storage.
Venture Minerals Limited | 5
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Two: Riley Iron Ore Mine open for business
Venture Minerals Limited | 6
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Three: Ship-loader on Berth 5 at the Port of Burnie.
Highlights at the Riley DSO Hematite Project include:
•
•
•
•
•
•
•
Completion Riley Iron Ore Mining Study on the 22 August 2019 which returned a post-tax cash of A$31m and
a NPV of A$27m;
Full off-take agreement signed for the Riley iron ore with Prosperity Steel United Singapore Pte Ltd, one of
the largest iron ore traders in the world;
Riley Iron Ore Mine is situated on a granted mining lease and is positioned to recommence operations within a
very short period of time;
Approximately 90% of the Equipment that was previously purchased is still on hand;
Riley has Reserves of 1.6mt @ 57% Fe with low impurities (Refer Table Two);
The Riley DSO deposit is all at surface, located less than 2 km from a sealed road that accesses existing port
facilities (Refer Figure One);
Preferred tenderer status awarded to Shaw Contracting for mining and processing works at the Riley Iron Ore
Mine.
Venture Minerals Limited | 7
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Livingstone DSO Hematite Project, North West Tasmania
Located only 3.5 km from the Mount Lindsay Tin-Tungsten Deposit, is the 100% owned Livingstone DSO Hematite
Deposit (Refer Figure One). Livingstone consists of an outcropping hematite cap overlaying a magnetite rich skarn. The
hematite occurs from surface, is consistent in grade and located only 2 km from a sealed road, which accesses existing
port facilities.
A maiden resource statement of 2.2mt @ 58% Fe was defined at Livingstone in 2011, which was followed by a positive
and robust scoping study. Additional work later in 2011 included blending and sizing test work and preliminary mining
studies, all of which delivered positive results.
During the second half of 2012 the Company completed a resource upgrade, which resulted in 100% of the inferred
resources being converted to the indicated category (Refer Table Three).
Table Three | Resource Statement Livingstone DSO Project
Resource
Tonnes
Fe (%)
Indicated
2.4mt
57
Fe (%)
Calcined
61
SiO2 (%)
Al2O3 (%)
P (%)
S (%)
LOI (%)
5.4
1.9
0.07
0.05
7.0
Note: Refer to ASX announcement on 26 July 2012.
This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that
the information has not materially changed since it was last reported.
Activities during the Year
There was no field activity during the year.
Mount Lindsay Project, Tin-Tungsten, North West Tasmania
Introduction
The Mount Lindsay Project (148 km2) is located in north-western Tasmania (Refer Figure One) within the contact
metamorphic aureole of the highly perspective Meredith Granite. The project sits between the world class Renison Bell
Tin Mine (Metals X Ltd/Yunnan Tin Group >230kt of tin metal produced since 1968) and the Savage River Magnetite
Mine (operating for >50 years, currently producing approximately 2.5mtpa of iron pellets). Mount Lindsay has excellent
access to existing infrastructure including hydropower, water, sealed roads, rail and port facilities.
Venture owns 100% of the tenure that hosts both the Mount Lindsay Tin-Tungsten Deposit and all the surrounding
prospects.
Since commencing exploration on the project in 2007, Venture has completed approximately 83,000m of diamond core
drilling at Mount Lindsay and defined JORC compliant Measured, Indicated and Inferred Resources.
Venture Minerals Limited | 8
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Tin-Tungsten Resources
Table Four | Resource Statement – Mount Lindsay Tin-Tungsten Project (as previously announced 17 October 2012)
Lower
Cut
(Tin
equiv)
0.2%
0.45%
0.7%
1.0%
Category
Tonnes
Measured
8.1Mt
Indicated
Inferred
17Mt
20Mt
TOTAL
45Mt
Measured
4.3Mt
Indicated
5.2Mt
Inferred
3.9Mt
TOTAL
13Mt
Measured
2.2Mt
Indicated
1.9Mt
Inferred
0.6Mt
TOTAL
4.7Mt
Measured
1.0Mt
Indicated
0.7Mt
Inferred
0.2Mt
TOTAL
1.9Mt
Tin
Equiv.
Grade
0.6%
0.4%
0.4%
0.4%
0.8%
0.7%
0.6%
0.7%
1.1%
1.0%
1.0%
1.1%
1.5%
1.3%
1.4%
1.4%
Tin
Grade
Tungsten
Grade (WO3)
Mass Recovery of
Magnetic Iron
(Fe) Grade
Copper
Grade
Contained
Tin Metal
(tonnes)
Contained
WO3 (mtu)
0.2%
0.2%
0.2%
0.2%
0.3%
0.3%
0.3%
0.3%
0.3%
0.4%
0.5%
0.4%
0.5%
0.5%
0.7%
0.5%
0.1%
0.1%
0.1%
0.1%
0.2%
0.2%
0.1%
0.2%
0.3%
0.3%
0.3%
0.3%
0.5%
0.3%
0.3%
0.4%
17%
15%
17%
17%
18%
15%
9%
14%
18%
11%
3%
13%
19%
10%
<1%
14%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
<0.1%
0.1%
18,000
32,000
32,000
81,000
12,000
14,000
12,000
38,000
8,000
7,000
3,000
1,100,000
1,200,000
960,000
3,200,000
980,000
810,000
520,000
2,300,000
750,000
480,000
150,000
18,000
1,400,000
5,000
4,000
2,000
450,000
220,000
70,000
10,000
750,000
Note:
Reporting to two significant figures. Figures have been rounded and hence may not add up exactly to the given totals. Full details of the estimate are in
the ASX release for the Quarterly Report on 17 October 2012. This information was prepared and first disclosed under the JORC Code 2004. It has not
been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
Notes:
▪ The Sn equivalent formula used to calculate the Sn equivalent values for the Main and No.2 Skarns is as follows: Sn Equivalent (%) = Sn% +
(WO3% x 1.90459) + (mass recovery % of magnetic Fe x 0.006510) + (Cu% x 0.28019). Whereas for the Sn equivalent formula used to
calculate the Sn equivalent values for the Stanley River South and Reward Skarns is as follows: Sn Equivalent (%) = Sn% + (WO3% x
1.65217) + (Cu% x 0.34783);
▪ The mass recovery of the magnetic iron is determined mostly by Davis Tube Results (“DTR”);
▪ The Sn equivalent formula uses a tin metal price of US$23,000/t, an APT (Ammonium Para Tungstate) price of US$380/mtu (1mtu =10kgs of
WO3), a magnetite concentrate price of US$110/t and a copper metal price of US$8,000/t;
▪ Pilot scale metallurgical testwork has been completed on the Main and No.2 Skarns with results indicating the metallurgical recovery for tin is
72%, for WO3 is 83%, for iron in the form of magnetite is 98% and for copper is 58%. The results of this testwork are stated in the ASX
release dated 31 August 2012;
It is the Company’s opinion that the tin, WO3 and copper, as included in the metal equivalent calculations for the Stanley River South and
Reward Skarns, have reasonable potential to be recovered for when the Mount Lindsay Project goes into production.
▪
The resource base at Mount Lindsay is hosted within two magnetite rich skarns (Main Skarn and the No.2 Skarn) which
extend over a total strike of 2.8 km and remain open at depth. Additional indicated and inferred resources have been
defined at the Reward and Stanley River South Prospects, which extend over an additional 1.1 km of strike.
Venture has identified additional high-grade tin-tungsten targets in close proximity to the Mount Lindsay Deposit. The
low-cost exploration work is part of a broader strategy focused on identifying high grade mineralisation within trucking
distance of the existing deposit that has the potential to further strengthen the economics of the Mount Lindsay Project.
Venture Minerals Limited | 9
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Activities during the Year
Venture continued to work towards preparing for drilling of the three priority targets generated by the recently
completed Major Electromagnetic (EM) Survey over the Mount Lindsay Project for which, in December 2019, the
Company was successful in securing co-funding for up to $202,000 from the Tasmanian State Government. The EM
Survey identified several strong conductors coinciding with previously gathered exploration data to define priority drill
targets, which included Renison Bell (‘Renison’) Style High Grade Tin, Mount Lindsay Style Tin-Tungsten and Nickel
Sulfide targets.
The Mount Lindsay Project is already classified by the Australian Government as a Critical Minerals Project1 with an
advanced Tin-Tungsten asset and this will only be further enhanced by the delineation of several high priority drill
targets of the same style of mineralisation through the recently completed major EM Survey. Mount Lindsay is already
one of the largest undeveloped tin projects in the world, containing in excess of 80,000 tonnes of tin metal and within
the same mineralised body a globally significant tungsten resource containing 3,200,000 MTU (metric tonne units)2 of
WO3 (Refer Table Four).
Tin is now recognised as a fundamental metal to the battery revolution and new technology and the International Tin
Association is now predicting a surge in demand driven by the lithium-ion battery market of up to 60,000tpa by 2030
(world tin consumption was 363,500t in 2018*).
The Renison Style Target is a strong EM conductor supported at the surface by tin in soil anomalism and an alluvial Tin
Field mined over 100 years ago, a coincidental magnetic anomaly, and is sitting within the same carbonate units and
potentially the same fault zone (Federal-Basset Fault) that hosts the Renison Bell Tin Mine (one of the world’s largest
and highest grade tin mines) only 12 kms along strike to the southeast (Refer Figure Four).
1. Refer to ‘Critical Minerals Projects in Australia’ report prepared by the Commonwealth of Australia represented by the Australian Trade and
Investment Commission (Austrade) March 2019.
2. A Metric Tonne Unit (‘MTU’) is equal to ten kilograms per metric tonne and is the standard weight measure of tungsten. Tungsten prices are
generally quoted as US dollars per MTU of tungsten trioxide (WO3).
*DATA: International Tin Association, CRU, WBMS
Mount Lindsay Tin-Tungsten Project Highlights Include:
• Approximately 83,000m of diamond core drilling has been completed on the project by Venture most of which
has been used to define JORC compliant resources with +60% in the Measured & Indicated categories;
• Feasibility Study completed with comprehensive metallurgical test-work and post-feasibility delivered a very
high grade 75% tin concentrate result that is likely attract price premiums;
• Tin is at ~US$18,000/t and has increased by 35% since January 2016;
• Tungsten’s APT price is at ~US$215/mtu has increased by 25% since February 2016;
• Several High-Grade Targets with drill results to follow up including Big Wilson with 17.4m @ 2% tin (Refer
Figure Four).
Venture Minerals Limited | 10
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Four | Map showing High Grade Tin-Tungsten Targets generated by previous mapping and soil sampling.
Renison Style Drill Targets
Renison Bell Tin Mine (50% MLX)
Produced > 230,000t of Tin Combined
Resources of
Measured/Indicated/Inferred:
215,700t of Tin*
Venture Minerals Limited | 11
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
South West Project, Base & Precious Metals, Western Australia
The South West Project contains the Thor and Odin Prospects within the tenement package (256 km²) (Refer Figure Six)
and is located 240 km south of Perth (Refer Figure Five), hosted within the Balingup Gneiss Complex. A joint venture
between Teck Cominco and BHP Billiton first identified this area as being prospective for base and precious metals
hosted within the complex. The joint venture completed surface sampling and airborne EM surveys which culminated in
the discovery of a base and precious metals deposit (Kingsley Prospect) which Teck identified as a meta-Volcanic
Massive Sulfide (VMS) system in high grade metamorphic rocks. Venture’s nearby Thor prospect hosts a strong and
coherent arsenic in laterite anomaly, with locally elevated levels of copper, zinc, tin, bismuth, tungsten and antimony,
elements that are typically elevated in VMS systems.
Thor Prospect
Following the discovery of the main Thor target, as well as three additional anomalies to the east, the Company worked
on extending and refining the known exploration targets. This resulted in surface sampling extending the main Thor
targets, and also identifying additional targets to the north and south, pushing the total combined strike to over 10 km of
EM and geochemical targets.
The Company later acquired the northern extension, so that Thor encompassed some 24-strike km of prospective
geology which already hosts multiple VMS Style targets.
Venture then, through the initial drilling program, confirmed the presence of VMS style mineralisation and hence has a
20km VMS target zone at Thor. Following on a new high-resolution airborne EM survey delivered priority VMS drill
targets for testing within the original Thor area.
The second phase of drilling at the Thor Prospect intersected further massive sulfides with Copper and Zinc
mineralisation. The assay results received from the last two drill holes suggest that the Company is vectoring in towards
higher grade zones within the Thor VMS sequence.
Thor has seen only two single drill holes targeting two of the thirteen priority VMS drill targets delineated around the
initial discovery area. Further drilling will go towards unlocking the potential of Thor’s 20km VMS target zone,
believed to host Golden Grove type mineralisation.
Odin Prospect
Initially this was a newly discovered lithium target situated ~30 km south of Greenbushes, and the world’s largest hard
rock lithium mine (produces ≈40% of the world’s lithium and is owned 51% by Tianqi Lithium and 49% Albemarle).
Odin was discovered following a detailed geological mapping and surface geochemical program, which identified a
potential lithium bearing pegmatite system.
Following two phases of surface exploration a lithium target was identified, which extended over 1.9 km of strike and
was up to 150m wide. The geochemistry in the laterite is analogous to Greenbushes with significantly elevated levels of
tin, tantalum and niobium. In addition to the geochemistry, mapping confirmed the presence of coarse ‘books’ of
muscovite within the laterite which is considered indicative of pegmatites in a deeply weathered environment.
Venture received co-funding from Western Australian State Government to drill the first hole (ODD01) back in 2018 to
test the lithium target. A total of 20m of pegmatites, spread over several intervals, was intersected within a mafic-
ultramafic gneiss. The assay results received concluded that the pegmatites intersected in ODD01 did not contain
significant lithium.
Venture Minerals Limited | 12
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
ODD01 also intersected disseminated Nickel-Copper sulfides within a mafic-ultramafic host unit, therefore realising the
Company a new Nickel-Copper Target. The nickel-copper target was identified between two of the pegmatite zones
intersected in the hole, the drilling intersected a continuous 21m zone of minor disseminated Nickel-Copper sulfides
hosted within a mafic-ultramafic gneiss, which may represent part of a metamorphosed magmatic nickel-copper sulfide
system. Hand-held XRF analyses verified the presence of elevated nickel and copper within these sulfides.
Venture’s surface sampling shows significant nickel and copper geochemical anomalies within the mafic-ultramafic
target units a few kilometres to the south-west and south-east of the first hole.
Activities during the Year
Post year end, Chalice signed a Binding Terms Sheet with Venture to earn-in to the South West Project (“Project”).
Chalice, with its recent exciting Julimar Ni-Cu-PGE discovery in a new province near Perth (see Figure Five) is well
positioned to unlock the clear Ni-Cu-PGE potential of Venture’s South West Project.
The South West Project (256 km²) is located 240 km south of Perth hosted within the Balingup Gneiss Complex (see
Figures Five and Six). The two main prospects within the Project are Thor and Odin and both contain areas of potential Ni-
Cu-PGE prospectivity.
Thor is a 20 km long magnetic anomaly associated with chromium rich rocks indicative of mafic-ultramafic intrusions.
A recent airborne EM survey identified 13 highly conductive anomalies within the southern 6 km of the magnetic
anomaly, of which only two have been drill tested in the maiden drill program. The last hole drilled at Thor (TOR05)
intersected 2.4m of Massive Sulfide averaging 0.5% Copper with 0.05% Nickel, 0.04% Cobalt and anomalous gold &
palladium.
At Odin, in the only hole drilled, Nickel and Copper sulfides were intersected within a highly prospective mafic-
ultramafic unit that extends over 10 strike kilometres. This was further supported by surface sampling returning
significant nickel and copper geochemical anomalies.
Under the option and earn-in agreement, Chalice may earn:
• A 51% JV interest in the Project by spending $1.2 million on exploration within two years, including a minimum of
$300,000 in the first year.
• A 70% JV interest in the Project by spending a further $2.5 million on exploration over the following two years.
• Venture can then elect to either contribute 30% or dilute to a minimum of 10% JV interest, in which case the
interest automatically reverts to a 1.25% NSR royalty.
• Venture to have a historical expenditure of $1.6M applied against the earn-in.
• Chalice may withdraw at any time after meeting the minimum expenditure commitment. All other terms are
consistent with an industry standard joint venture arrangement. The transaction is conditional upon normal due
diligence in relation to legal and title.
Venture Minerals Limited | 13
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Five | Chalice’s Julimar and Venture’s South West JV Project locations over regional
geology
Venture Minerals Limited | 14
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Six | Thor & Odin Prospects Location with South West Project
Odin
Prospect
Li and Ni-Cu
targets
Venture Minerals Limited | 15
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Golden Grove North Project, Zinc-Copper-Gold, Western Australia
Introduction
Venture has acquired a highly prospective land package (288 km2) less than 10 kilometers north of the Golden Grove
Camp (Mine) (Refer Figure Seven). currently Western Australia’s premier location for VMS deposits. In 2002, Golden
Grove had an endowment (resources and production) of 40.2mt @ 1.8% Cu, 0.9% Pb, 7.6% Zn, 103 g/t Ag & 0.8 g/t
Au (Refer Figure Seven), and recently EMR Capital purchased the Mine for US$210m.
The Golden Grove North project (approximately 370 km north-northeast of Perth) has not been the focus of VMS
exploration for the last 25 years and it is the Company’s goal to use a systematic exploration approach, utilising the
latest techniques to explore for VMS style mineralisation.
There are already several compelling target areas throughout the project, including a number of historic shallow gold
drill intersections including 10m @ 1.4g/t gold from 16m; 8m @ 2.1g/t gold from 6m; 6m @ 2.3g/t gold from 6m; 3m
@ 3.6g/t gold from 95m; and several strong gold and copper surface rock chip sampling results, including 9.4g/t gold,
7.4g/t gold and 6.6% copper; 6.2g/t gold, 5.7g/t gold, 4.0 g/t gold, 3.8g/t gold and 0.1% lead; 7.6% copper and 27g/t
silver; 8.0% copper and 2.0% copper; and an extensive land position of interpreted lithologies prospective for VMS
style mineralisation for over 25 strike kilometres that remain, due to cover, largely untested (Refer Figure Seven).
Activities during the Year.
During the year, Venture commenced EM surveys over the recently discovered Vulcan and Neptune VMS targets
(Refer Figure Seven) located along strike from the world class Golden Grove Zinc-Copper-Gold Mine and the Nickel
Sulfide target area north of Neptune. Post the end of the year, results of the completed EM surveys are pending.
Vulcan is analogous to Gossan Hill, the largest deposit in the Golden Grove Camp (Mine), with the new discovery
hosting a similar sized geochemical copper anomalyand sits within Western Australia’s premier VMS district. In 2002,
Golden Grove had an endowment (resources and production) of 40.2mt @ 1.8% Cu, 0.9% Pb, 7.6% Zn, 103 g/t Ag &
0.8 g/t Au1 and was purchased by EMR Capital in 2017 for US$210m which, as of June 2019, still had >50mt of
resources and reserves for another 12 years of production2.
Vulcan is the first VMS target to yield from a work program based on the Company’s goal to use a systematic
exploration approach, utilising the latest techniques to explore for VMS style mineralisation. Soil sampling results
delineated a geochemical copper anomaly of similar size to that of Gossan Hill (15.9mt @ 2.6% Cu, 1.5% Zn, 0.2%
Pb, 21 g/t Ag & 0.6 g/t Au1), which was discovered nearly 50 years ago and in turn gave rise to the Golden Grove
Mine.
In addition to the soil results at Vulcan, Venture also received surface rock chip results of up 23.8% Cu, 7.8g/t gold, 35
g/t silver & 1.2% zinc, and identified copper sulfides at the surface.
The Company recently repeated this success with a second new VMS target (“Neptune”) which is also located along
strike from the world class Golden Grove Zinc-Copper-Gold Mine. Neptune is interpreted to sit within the Golden
Grove Mine Sequence which hosts all VMS deposits discovered in the Golden Grove Camp (Mine).
Neptune is now the second VMS target to yield from Venture’s work program, following a thorough examination of a
collated dataset from numerous phases of exploration activity by various companies over the last four decades.
Venture Minerals Limited | 16
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
This work has yielded a high priority target with highly anomalous copper and VMS pathfinder elements intersected in
historic RAB3 (shallow) drilling in an area under alluvial/colluvial cover which has not been targeted with modern day
EM technology to detect VMS style deposits. The second substantial find identified at Golden Grove being the
Scuddles deposit (10.5mt @ 1.2% Cu, 11.7% Zn, 0.8% Pb, 89 g/t Ag & 1.1 g/t Au1) (see Figure Four) was discovered by
using EM techniques under similar cover after initial RAB3 drilling was deemed too shallow, Neptune presents a very
similar opportunity.
In addition, the Company has delineated a Nickel Sulfide target area north of Neptune worthy of EM testing as part of
the up-coming survey. Recent mapping and surface rock chip sampling has located siliceous cap rock over ultramafic
basement with strongly elevated Nickel with Arsenic suggesting the presence of a buried sulfide zone.
1. Department of Mines and Petroleum Report 165, VMS Mineralization in the Yilgarn Craton, Western Australia: A review of known deposits and prospectivity
analysis of felsic volcanic rocks by SP Hollis, CJ Yeats, S Wyche, SJ Barnes and TJ Ivanic 2017.
2. www.emrgoldengrove.com
3. RAB = Rotary Air Blast
Figure Seven | Golden Grove North Project- Geological setting with historic drill hole intersections >1g/t gold and significant historic
rock chip surface sample results.
Venture Minerals Limited | 17
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Kulin Project, Gold & Nickel-Copper-PGE, Western Australia
Introduction
The Company has one granted exploration licence (312 km²) located ~230 km south-southeast of Perth in Western
Australia. Venture is focusing on the interpreted layered mafic-ultramafic intrusion near the town of Kulin. The
layered mafic-ultramafic intrusion target sits within the granted exploration licence (E70/5077) which has 60 strike
kms of interpreted ultramafic zones.
Activities during the Year.
During the year, the Company unearthed a gold discovery at its Kulin Project in an emerging Western Australian Gold
Province. Kulin is within the South West Terrane of the Yilgarn Archean Craton which already contains several major
gold deposits such as Boddington >30 Mozs1 (currently Australia’s 2nd largest gold producer2), Edna May 2.2 Mozs3,
Katanning 1.2Mozs4 and Tampia 0.7Mozs5 (Refer to Figure Eight).
At Kulin, the Company initially focused on surface sampling and mapping programs over the priority target for Nickel
and PGE mineralisation, which coincided with an area of historic gold prospectivity identified by BHP with a peak
rock chip result of 1.5 g/t gold. Further soil sampling resulted in Venture delineating a cluster of six high order
(peaking at 399ppb (0.4g/t)) gold in soil anomalies within a 2km x 1km area of gold anomalism, comparable in size to
the soil geochemical footprint of the nearby Tampia Gold Deposit (Refer to Figure Eight).
Recently Venture secured an experienced Drilling Contractor to test the Six New Priority Gold Targets at the Kulin
Project early next year. The Company has committed to an initial +1,000 metre reverse circulation drill program in
order to bring forward a potential new gold discovery.
Footnotes:
1. Figure 3 in Ausgold Limited ASX Announcement 1 November 2019 “Scoping Study shows potential for a new gold mine at Katanning”.
2. Aurum Analytics, Australian & New Zealand Gold Operations December Quarter 2019 - Final Report.
3. Endowment figure combining production up to 30th June 2019 sourced from www.rameliusresources.com.au, Catalpa Resources Annual Reports, Evolution
Mining Annual Reports, and Ramelius Resources Annual Reports and resources are as stated in the Ramelius Resources Annual Report 2019.
4. Ausgold Limited ASX Announcement 1 November 2019 “Scoping Study shows potential for a new gold mine at Katanning”.
5. Explaurum Limited ASX Announcement 30 May 2018 “Tampia Feasibility Confirms Robust High-Margin Gold Project”.
6. Maxlow, J., 1990, Griffin's Find Gold Deposit, Lake Grace in Geology of the Mineral Deposits of Australia and Papua New Guinea, Melbourne, Australia,
The Australasian Institute of Mining and Metallurgy, p. 171-175.
Venture Minerals Limited | 18
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Figure Eight | Kulin Project Location Map with surrounding Gold Deposits.
Venture Minerals Limited | 19
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Caesar Project, Gold & Nickel-Copper-Cobalt, Western Australia
Introduction
The Caesar Project is located approximately 200 km north northeast of Geraldton (Refer Figure Nine) and consists of a
granted exploration licence covering 49 km² (for which Venture Minerals is earning up to 90%) as well as an
additional 83 km² in another granted exploration licence that is held by Venture Minerals.
Figure Nine | Caesar Project - Location Map
Venture Minerals Limited | 20
Directors’ Report
For the year ended 30 June 2020
7.
Review of Operations (continued)
Late 2016, Venture Minerals entered into an earn-in agreement with Muggon Copper Pty Ltd, whereby Venture can
earn up to a 75% interest in the Caesar Project via exploration expenditure. Should exploration be successful, Venture
can increase its ownership to 90% by funding a bankable feasibility study.
Previous exploration work on the Caesar Project, including surface geochemistry (lag sampling) and petrology that
showed the presence of disseminated nickel and copper sulfides, and surface geochemical anomalism associated with a
number of gabbroic intrusives. Subsequent exploration programs completed by Venture have included infill and
extensional lag sampling, detailed geological mapping and petrology, and the completion of a high-powered EM
survey study which resulted in a priority drill target.
The Company’s first drill hole (“CSD01”) (co-funded by WA State Government’s Exploration Incentive Scheme) at
Caesar intersected minor disseminated sulfides throughout the zone of dolerite located in CSD01, with micro-probe
analysis verifying the presence of nickel, cobalt and copper within the intersected sulfides. This confirmed that the
mafic rocks (dolerite and gabbro) at Caesar host nickel-copper-cobalt sulfide mineralisation. CSD01 did not test the
strongest surface geochemical response within the project area, therefore follow-up drilling will need to be designed to
re-test the target.
In addition, CSD01 intersected an 18m zone of sericite altered meta-sediments with quartz-carbonate-arsenopyrite
veining with one metre returning 1.8 g/t gold, 4.6 g/t silver, 806 ppm copper, 655 ppm zinc & 578 ppm lead. The
potential for gold mineralisation at the Caesar Project is being evaluated.
Venture also successfully negotiated a two-year extension to the 51% earn-in clause of the agreement with Muggon
Copper Pty Ltd.
Activities during the Year
The Company continues working on a program to fully evaluate the potential for gold mineralisation occurring within
the project, since the interpretation of the arsenic results from previous surface sampling highlighted several possible
gold target areas. The work program consists of re-analysing previously collected surface lag samples and completing
further surface geochemical sampling. Results will be announced upon completing the interpretation of the new data
once all has been received.
Corporate Governance and Internal Controls
Venture ensures that the Mineral Resource estimates are subject to appropriate levels of governance and internal
controls. The Company periodically reviews the governance framework in line with the expansion and development
of the business.
The Mineral Resource estimates are prepared internally by highly competent and qualified professionals. The
Competent Person named by the Company is a Member of The Australasian Institute of Mining and Metallurgy.
Internal reviews are carried out on the quality of the database and geological models prior to estimation.
Venture Minerals Limited | 21
Directors’ Report
For the year ended 30 June 2020
8.
Matters Subsequent to the End of the Financial Year
On 3 July 2020 and 10 July 2020, the Company issued 1,250,000 and 1,500,000 shares upon the exercise of 1,250,000
and 1,500,000 unlisted Director options, exercise price of $0.001 respectively.
On 21 July 2020, the company signed a Binding Term Sheet to with Chalice Gold Mines Ltd to earn in to the South
West Project. Under the option and earn-in agreement, Chalice may earn:
• A 51% JV interest in the Project by spending $1.2 million on exploration within two years, including a minimum
of $300,000 in the first year.
• A 70% JV interest in the Project by spending a further $2.5 million on exploration over the following two years.
• Venture can then elect to either contribute 30% or dilute to a minimum of 10% JV interest, in which case the
interest automatically reverts to a 1.25% NSR royalty.
• Venture to have a historical expenditure of $1.6M applied against the earn-in.
• Chalice may withdraw at any time after meeting the minimum expenditure commitment. All other terms are
consistent with an industry standard joint venture arrangement. The transaction is conditional upon normal due
diligence in relation to legal and title.
On 7 August 2020, the Company announced it has successfully completed a placement to sophisticated, professional
and institutional investors through a placement of 129,032,258 fully paid ordinary shares at an issue price of $0.031
per share to raise up to a total of $4,000,000 (before costs). Additionally, in recognition of the Company’s existing
retail shareholders, eligible shareholders were given the opportunity to participate in a Share Purchase Plan (“SPP”) at
the same issue price per Share of $0.031. The Company intended to raise $1,500,000 under the SPP (which amount is
fully underwritten) through the issue of 48,387,097 shares. The Company reserved the right to accept
oversubscriptions under the SPP to raise up to an additional $1,000,000 which additional amount is not underwritten.
On 27 August 2020, the Company announced dry screening operations has commenced at the Riley Ore Mine. The
Company continues to work towards finalising discussions on financing of the wet screening plant whilst the dry
screening process enables the Company to potentially realise early cash-flow from Riley.
On 28 August 2020, the Company issued 5,477,000 shares upon the exercise of 5,470,000 unlisted options, exercise
price of $0.001 respectively.
On 8 September 2020, the Company announced that $2,500,000 has been raised from SPP which closed on 2
September 2020. A total of 80,645,161 ordinary shares at an issue price of $0.031 per share and allotted on 9
September 2020.
On 15 September 2020, Venture signed an earn-in agreement with Bright Point Gold Pty Ltd to acquire up to 100% of
tenement E59/1989 (“the project”) on the following terms:
• A 51% JV interest by paying $200,000 cash and spending $1 million on exploration within two years, including a
minimum of $300,000 in the first year which must include a minimum of 1,500m of reverse circulation or diamond
core drilling.
• An 80% JV interest by spending a further $3 million on exploration over the following two years.
• Bright Point has the right to clawback to a 49% interest or dilute to a 10% interest upon the completion of a
Bankable Feasibility Study or Definitive Feasibility Study (whichever comes first) on the project.
• Once Venture has earned 90% interest, Bright Point must elect to either contribute or dilute to a royalty of 1% of
the net smelter return.
9.
Likely Developments and Expected Results of Operations
The Company will continue to advance the Riley Iron Ore Project, with a focus of first shipment in the December
2020 Quarter. Board and management will continue to monitor Iron Ore commodity prices and foreign currency
markets as it continues dry screening operations.
Board and management to work towards funding of the wet screening plant and other capital expenditure over the
coming months.
Venture Minerals Limited | 22
Directors’ Report
For the year ended 30 June 2020
9.
Likely Developments and Expected Results of Operations (continued)
Continue to explore on the Company’s Kulin Gold Project and the Golden Grove North Zinc-Copper-Gold project.
Further information on likely developments in the operations of the Group and the expected results of operations have
not been included in the Annual Report because the Directors believe it would be likely to result in unreasonable
prejudice to the group.
10.
Information on Directors and Company Secretaries
Mr Mel Ashton
Qualifications
Experience
Independent Non-Executive Chairman
B.Com, FCA,
Mr Ashton holds a Bachelor of Commerce degree from the University of Western
Australia, is a fellow of the Chartered Accountants Australia. Mr Ashton also
holds a position on the Board of Directors of Quintis Limited.
Interest in Securities Fully Paid Ordinary Shares
6,480,741
0.1 cent options expiring 12 April 2023 1,250,000
subject to vesting conditions:
• 50% of options vest upon share trading at $0.10 or more
based on a 10-day volume weighted average price
Other
Directorships
Aurora Labs Ltd (since 22 January 2018)
Donaco International Limited (since 9 December 2019 to 3 September 2020)
Credit Intelligence Limited (17 May 2018 to 25 February 2020)
Mr Andrew Radonjic Managing Director - Appointed 15 December 2017
Qualifications
Experience
BAppSc (Mining Geology), MSc (Mineral Economics), MAusIMM
Mr Radonjic is a geologist and mineral economist with over 30 years of
experience in mining and exploration, with a specific focus on gold and nickel in
the Eastern Goldfields of Western Australia. Mr Radonjic began his career at the
Agnew Nickel Mine before spending over 15 years in the Paddington, Mount
Pleasant and Lady Bountiful Extended gold operations north of Kalgoorlie,
where he has fulfilled a variety of senior roles which gave rise to three gold
discoveries, totalling in excess of 3 million ounces in resources and in the
development of over 1 million ounces.
Interest in Securities Fully Paid Ordinary Shares
11,775,741
0.1 cent options expiring 12 April 2023 1,750,000
subject to vesting conditions:
• 50% of options vest upon share trading at $0.10 or more
based on a 10-day volume weighted average price
Other
Directorships
Blackstone Minerals Limited (since 30 August 2016)
Fin Resources Limited (since 14 May 2018)
Venture Minerals Limited | 23
Directors’ Report
For the year ended 30 June 2020
10.
Information on Directors and Company Secretaries (continued)
Mr Hamish Halliday
Qualifications
Experience
Non-Executive Director – Appointed 15 December 2017 – Previously Managing
Director 1 April 2009 to 15 December 2017
BSc (Geology), MAusIMM
Mr Halliday is a Geologist with a Bachelor of Science from the University of
Canterbury and has over 20 years of corporate and technical experience in the
industry. Mr Halliday co-founded Venture Minerals and was
mining
instrumental in the acquisition of its Company’s current tenement portfolio.
Mr Halliday has been involved in the discovery and acquisition of numerous
projects over a range of commodities throughout four continents. Mr Halliday
has founded and held executive and non-executive directorships with a
number of successful
including Adamus
Resources Ltd (‘Adamus’). He was CEO of Adamus from its inception through
to successful completion of a feasibility study on its gold project in Ghana
which is now in production.
listed exploration companies
Interest in Securities
Fully Paid Ordinary Shares
0.1 cent options expiring 12 April 2023 1,500,000
subject to vesting conditions:
• 50% of options vest upon share trading at $0.10 or more
based on a 10-day volume weighted average price
18,205,241
Other Directorships
Blackstone Minerals Limited (since 30 August 2016)
Comet Resources Limited (since 16 December 2014)
Alicanto Minerals Limited (17 March 2016 to 12 August 2020)
Venture Minerals Limited | 24
Directors’ Report
For the year ended 30 June 2020
10.
Information on Directors and Company Secretaries (continued)
Mr John Jetter
Qualifications
Experience
Interest in Securities
Independent Non-Executive Director - appointed 8 June 2010
B.Law, B.Econ, INSEAD
Mr Jetter has extensive international finance and M&A experience being the
former Managing Director, CEO and head of investment banking of JPMorgan
in Germany and Austria, and a member of the European Advisory Council,
JPMorgan London. He has held various senior positions with JPMorgan
during which time he focused his attention on major corporate clients and
advised on some of Europe’s largest corporate transactions.
Mr Jetter currently holds a number of other board positions including
Chairman of Otto Energy Limited.
Mr Jetter previously held positions as Chief Executive Officer of JPMorgan for
Germany, Austria and Switzerland, Member of the Board of Conergy AG,
Chairman of the Board of Rodenstock GMBH (Germany), Deputy Chairman of
the Board of European Business School, and Chairman of the Finance Faculty
Oestrich-Winkel, Germany.
Fully Paid Ordinary Shares
45 cent Options expiring 18 months after 1,000,000
vesting date. Vesting date being successful
financing for the Mt Lindsay Project.
0.1 cent options expiring 12 April 2023 2,500,000
subject to vesting conditions:
• 50% of options vest upon share trading at $0.10 or more
based on a 10-day volume weighted average price
Other Directorships
Otto Energy Limited (since 12 December 2007)
Peak Resources Limited (1 April 2015 to 15 January 2020)
Company Secretary
Jamie Byrde - BCom, CA.
Appointed - 16 March 2017
Mr Byrde is a Chartered Accountant with over 16 years’ experience in corporate, audit and company
secretarial matters. Previously Mr Byrde has held positions providing corporate advisory services,
financial accounting/reporting and ASX/ASIC compliance management. Mr Byrde is also currently
Company Secretary for Blackstone Minerals Limited.
Venture Minerals Limited | 25
5,376,470
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (audited)
The Directors of Venture Minerals Limited are pleased to present your Company’s 2020 remuneration report
which sets out remuneration information for the Non-Executive Directors, Executive Directors and other key
management personnel (“KMP”).
The following sections are included with this report:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
Directors and key management personnel disclosed in this report
Remuneration governance
Use of remuneration consultants
Group Performance, Shareholder Wealth and Executive Remuneration
Non-Executive Director remuneration policy
Voting and comments made at the company’s 2019 Annual General Meeting
Details of remuneration
Details of share-based payments and bonuses
Service Agreements
Equity instruments held by key management personnel
Loans to key management personnel
Other transactions with key management personnel
A.
Directors and key management personnel disclosed in this report
Non-Executive Directors
Mr M Ashton
Mr J Jetter
Mr H Halliday
Executive Directors
Mr A Radonjic
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Managing Director
Other key management personnel
Mr J Byrde
Company Secretary and Chief Financial Officer
All of the key management personnel held their positions for the entire financial year and up to the date of this
report unless otherwise disclosed.
B. Remuneration governance
The Company has established a Remuneration Committee under a formal charter. The Remuneration
Committee comprises of four Directors, the majority of which are independent.
The Remuneration Committee is responsible for reviewing and recommending the remuneration arrangements
for the Executive and Non-Executive Directors and KMP each year in accordance with the Company’s
remuneration policy approved by the Board. This includes an annual remuneration review and performance
appraisal for the Executive Directors and other executives, including their base salary, short-term incentives
and long-term incentives, bonuses, superannuation, termination payments and service contracts.
Further information relating to the role of the Remuneration Committee can be found within the Corporate
Governance Report on the Company’s website at www.ventureminerals.com.au.
Venture Minerals Limited | 26
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
C. Use of remuneration consultants
The Company has not engaged or contracted remuneration consultants during the financial year.
D. Group Performance, Shareholder Wealth and Executive Remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. This has been achieved by the issue of performance options to directors, executives and other key
management personnel, at the discretion of the Board of Directors. The performance options are issued under
the Employee Incentive Scheme and based on a mixture of short, medium and long-term incentive options. This
structure rewards executives for both short-term and long-term shareholder wealth development.
E. Non-executive director remuneration policy
The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time,
commitment and responsibilities. Fees for Non-Executive Directors are not linked to the performance of the
Group.
In determining competitive remuneration rates, the Board review local and international trends among
comparative companies and industry generally.
Typically, Venture Minerals Limited will compare Non-Executive Remuneration to companies with similar
market capitalisations in the exploration and resource development business group. These ongoing reviews are
performed to confirm that non-executive remuneration is in line with market practice and is reasonable in the
context of Australian executive reward practices.
In prior years, the Company engaged remuneration consultants to review the remuneration and incentives
offered to the Company’s Board to benchmark against its peers to determine competitiveness of the Company’s
current pay arrangements. Following this review and keeping in line with its remuneration policy the Board
agreed to keeping the Chair and Non-Executive Director’s fees within the P50th quartile of the market peer
analysis performed.
Further to ongoing reviews, the maximum aggregate amount of fees that can be paid to non-executive directors
is $500,000 as per the Company’s constitution. No change is being requested for approval by shareholders at
the Annual General Meeting.
F.
Voting and comments made at the company’s 2019 Annual General Meeting
The Group received more than 96.53% (2019: 99.05%) of “Yes” votes on its remuneration report for the 2019
financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its
remuneration practices.
Venture Minerals Limited | 27
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
G. Details of Remuneration
Details of the remuneration of the Directors and key management personnel of the group of Venture Minerals
Limited are set out in the following table. There have been no changes to the below named key management
personnel since the end of the reporting period unless otherwise noted.
Short Term
Benefits
Cash Salary
& Fees
Incentives
Consulting
Fees
Other
Amounts
C
Post
employment
benefits
Long Term
Benefits
Super-
annuation
Long Service
Leave
Non-Cash
Long
Term
Incentives
B
Total
$
2020
Non-Executive
Directors
Mr M Ashton
Mr H Halliday
Mr J Jetter
Executive
Directors
Mr A Radonjic
Group Executives
Mr J Byrde
Total
Remuneration
2019
Non-Executive
Directors
Mr M Ashton
Mr H Halliday
Mr J Jetter
Executive
Directors
Mr A RadonjicA
Group Executives
Mr J Byrde
Total
Remuneration
70,000
20,000
50,000
214,809
60,385
-
-
-
-
-
-
75,192
-
6,851
6,851
6,851
-
-
-
-
-
-
16,119
19,343
16,119
92,970
121,386
72,970
-
6,851
20,407
5,839
22,567 270,473
-
6,851
5,737
-
1,594
74,567
415,194
-
75,192
34,255
26,144
5,839
75,742 632,366
70,000
20,000
50,000
210,000
52,177
402,177
-
-
-
-
-
-
-
-
-
-
80,000
-
6,974
1,974
36,974
-
-
-
-
-
-
33,474
22,942
1,974
4,957
80,000
81,370
27,899
-
-
-
-
-
-
-
-
-
92,139
15,165
18,198 120,172
15,165 102,139
21,231 287,647
-
14,270
73,378
84,029 675,475
A: Mr Halliday, was formerly Managing Director until 15 December 2017, at which time he stepped down to Non-Executive Director and Mr Radonjic
(formerly Technical Director) was appointed as Managing Director.
B: The fair value of the options is calculated at the date of grant using a Black-Scholes model. For 2020 financial year, the share-based payments relate to
options issued in June 2019 and 2018 financial year and represents the vested portion of the options during the year. Refer to Section 11(H) for
further details of options issued.
C: Other amounts includes the Directors and Officers insurance of $34,255 in total.
Venture Minerals Limited | 28
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
Details of Share Based Payments and Bonuses
H
There were no bonuses issued or paid during the year.
Details of options over ordinary shares in the Company provided as remuneration to each Director of Venture
Minerals Limited and each of the key management personnel of the parent entity and the Group are set out
below. When exercisable, each option is convertible into one ordinary share. The tables show the percentages of
the options granted that vested and forfeited during the year. Further information on the options is set out in
the note 24 to the financial statements.
No additional options were issued to Directors and Other Key Management Personnel. Details of the options
issued and exercised during the financial are as follows:
Granted
No.
Value of
options
granted during
the year
$
Total
Remuneration
Represented by
Options
Exercised
Other
changes
Lapsed
No.
No
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30 June 2020
Non-Executive Directors
Mr M Ashton
Mr H Halliday
Mr J Jetter
Executive
Directors
Mr A Radonjic
-
-
-
-
Other key management personnel
-
Mr J ByrdeA
30 June 2019
Non-Executive Directors
Mr M Ashton
Mr H Halliday
Mr J Jetter
2,500,000
3,000,000
2,500,000
-
-
-
-
-
17.3%
15.9%
22.1%
8.3%
-
-
-
-
2.1%
(750,000)
31,284
37,541
31,284
16.5%
15.1%
14.9%
Executive
Directors
Mr A Radonjic
3,500,000
43,798
7.4%
Other key management personnel
-
Mr J ByrdeA
-
19.5%
-
-
-
-
-
A
Share based payments to Mr Byrde relate to options issued in the June 2018 financial year and represents the vested portion of the
options during the June 2019 and 2020 financial year. The options exercised on 21 February 2020 had market values of $11,250 for Mr
Byrde. The exercise price of the options granted was $0.001 or $750.
Venture Minerals Limited | 29
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
H
Details of Share Based Payments and Bonuses (continued)
Director/Executive
Issue Date
Expiry Date
% Vested in
Year
Exercise Price
Number of
Options
30 June 2020
Mr M Ashton
Mr H Halliday
Mr A Radonjic
Mr J Jetter
Mr J Byrde
30 June 2019
Mr M Ashton
Mr H Halliday
Mr A Radonjic
Mr J Jetter
Mr J Byrde
-
-
-
-
-
-
-
-
-
-
5-Dec-18
5-Dec-18
5-Dec-18
5-Dec-18
-
12-Apr-23
12-Apr-23
12-Apr-23
12-Apr-23
-
50%
50%
50%
50%
50%
0%
0%
0%
0%
-
-
-
-
-
-
$0.001
$0.001
$0.001
$0.001
-
-
-
-
-
-
2,500,000
3,000,000
3,500,000
2,500,000
-
The assessed fair value at grant date of options granted is allocated equally over the period from grant date to
estimated vesting date, and the amount is included in the remuneration tables above. Fair values at grant date
are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term
of the option, the share price at grant date and expected share price volatility, the expected dividend yield and
the risk-free rate for the term of the option.
I. Service Agreements
Remuneration and other key terms of employment for the Executives, Non-Executives and Other Group
Executives of Venture Minerals Limited are formalised in executive service agreements. Termination benefits
are within the limits set by the Corporations Act 2001. Major provisions of the agreements relating to
remuneration are set out below:
Name
Term of
agreement
Base salaryA (per
Agreement)
OtherB
Termination
benefit
Mr M Ashton
Non-Executive
Chairman
Mr A Radonjic
Managing DirectorD
Mr H Halliday
Non-Executive
DirectorD
Mr J Jetter
Non-Executive Director
Mr J ByrdeC
CFO/Company
Secretary
A
B
C
No fixed term
$70,000
No fixed term
$257,325
-
-
termination
No
benefits
6 months
No fixed term
$20,000
$55,000
3 months
No fixed term
$50,000
-
No fixed term
$64,700
from
period ending 29
May 2019
termination
No
benefits
3 months
Includes 9.5% superannuation.
Management Consulting Agreement.
Mr Byrde’s agreement for $197,100 including superannuation of 9.5% split a third to Venture Minerals Limited and two-thirds to
another entity
D
On 16 April 2020, Mr Halliday’s consulting fee reduced by $25,000 and Mr Radonjic’s base salary increased by $25,000 following an
internal review of remuneration.
Venture Minerals Limited | 30
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
J.
Equity instruments held by key management personnel
The tables below show the number of:
(I) options over ordinary shares in the Company, and
(II) shares held in the Company
that were held during the financial year by key management personnel of the Group, including their close family
members and entities related to them.
(I) Option holdings
Balance
at start of
the year
Granted as
remuneration
Exercised
Other
changes
Balance at
end of the
year
Vested and
exercisable
30 June 2020
Directors of Venture Minerals Limited
Mr M Ashton
Mr A Radonjic
Mr H Halliday
Mr J Jetter
2,500,000
3,500,000
3,000,000
4,530,000
-
-
-
-
-
-
-
-
Other key management personnel
1,500,000
Mr J ByrdeA
-
(750,000)
30 June 2019
Directors of Venture Minerals Limited
Mr M Ashton
Mr A Radonjic
Mr H Halliday
Mr J Jetter
-
-
-
2,030,000
2,500,000
3,500,000
3,000,000
2,500,000
Other key management personnel
1,500,000
Mr J Byrde
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
3,500,000
3,000,000
4,530,000
1,250,000
1,750,000
1,500,000
2,280,000
750,000
-
2,500,000
3,500,000
3,000,000
4,530,000
-
-
-
1,030,000
1,500,000
-
A:
The options exercised on 21 February 2020 had market values of $11,250 for Mr Byrde. The exercise price of the options granted
was $0.001 or $750.
Venture Minerals Limited | 31
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
J.
Equity instruments held by key management personnel (continued)
(II) Share holdings
The number of shares in the Company held during the financial year by each Director of Venture Minerals
Limited and other key management personnel of the Group, including their personally related parties, are
set out below. There were no shares granted during the year as compensation.
2020
Balance
at the start of
the year
Received on
exercise of
options
Other changes
Balance at the
end of the year
Directors of Venture Minerals Limited
Mr M Ashton
Mr A Radonjic
Mr H Halliday
Mr J Jetter
4,263,000
9,058,000
15,737,500
3,862,600
-
-
-
-
Other key management
Mr J Byrde
personnel
-
750,000
-
-
-
-
-
4,263,000
9,058,000
15,737,500
3,862,600
750,000
2019
Balance
at the start of
the year
Received on
exercise of
options
Other changes
Balance at the
end of the year
Directors of Venture Minerals Limited
Mr M Ashton
Mr A Radonjic
Mr H Halliday
Mr J Jetter
3,045,000
7,708,000
14,387,500
2,759,000
Other key management
Mr J Byrde
personnel
-
-
-
-
-
-
1,218,000
1,350,000
1,350,000
1,103,600
4,263,000
9,058,000
15,737,500
3,862,600
-
-
Loans to key management personnel
K.
There were no loans made to Directors and other key management personnel of the Group, including their close
family members.
L. Other transactions with key management personnel
Mr Halliday is a Non-Executive Director of Blackstone Minerals which shares either office and/or
administration service costs on normal commercial terms and conditions. Director, Mr Radonjic is Non-
Executive Director of Blackstone Minerals Limited which shares office and administration service costs on
normal commercial terms and conditions.
Mr Radonjic is a Director of Onedin Enterprises Pty Ltd who provide GIS services on an arm’s length basis on
normal commercial terms.
Venture Minerals Limited | 32
Directors’ Report
For the year ended 30 June 2020
11. Remuneration Report (continued)
L. Other transactions with key management personnel (continued)
Aggregate amounts of each of the above types of other transactions with key management personnel of Venture
Minerals Limited:
(i) Recharges to KMP related entities
Recharge of rent and shared office costs
Recharges to Alicanto Minerals Limited
Recharges to Blackstone Minerals Limited
(ii) Purchases from KMP related entities
Rent of office building and shared office costs
Payments to Blackstone Minerals Limited
Payments to Onedin Enterprises Pty Ltd
End of remuneration report.
12. Shares under Option
2020
$
2019
$
31,653
129,062
22,352
34,126
303,386
9,676
209,209
5,350
Unissued ordinary shares of Venture Minerals Limited under option at the date of this report are as follows:
Date options granted
5 Dec 18
20 Apr 18
15 Aug 12
15 Aug 12
28 Sep 12
Expiry Date
12 Apr 23
12 Apr 23
See “note A”
See “note B”
See “note C”
Exercise Price
0.1 cents
0.1 cents
50.0 cents
55.0 cents
45.0 cents
Number under Option
7,000,000
3,925,000
2,000,000
2,500,000
1,000,000
No option holder has any right under the options to participate in any other share issue of the Company or any
other entity.
Note A: The options shall expire 18 months after the vesting date being the date upon which the Company successfully
completes its first shipment of DSO product.
Note B: The options shall expire 18 months after the vesting date being the date upon which the Company has made a
decision to proceed with mining tin in Tasmania.
Note C: The options shall expire 18 months after the vesting date being the date upon which the Company successfully
obtains financing for the Mt Lindsay Tin-Tungsten Project.
Shares issued on the exercise of options
The following ordinary shares were issued during the year ended 30 June 2020 and up to the date of this report
on the exercise of options granted:
Date options granted
Unlisted options:
5 December 2018
24 December 2015
20 April 2018
Listed options:
1 July 2019
1 July 2019
Exercise date
Exercise Price
Number of shares
3 July 2020, 10 July 2020,
28 August 2020
28 August 2020
21 February 2020
3 December 2019
23 June 2020
0.1 cents
0.1 cents
0.1 cents
3.5 cents
3.5 cents
4,500,000
3,727,000
1,000,000
2,500
88,846
Venture Minerals Limited | 33
Directors’ Report
For the year ended 30 June 2020
13.
Insurance of Officers
During the financial year, Venture Minerals Limited paid a premium of $34,255 (2019: $9,870) to insure the
Directors and secretary of the Company.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may
be brought against the officers in their capacity as officers of entities in the group, and any other payments
arising from liabilities incurred by the officers in connection with such proceedings. This does not include such
liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the
officers of their position or of information to gain advantage for themselves or someone else or to cause
detriment to the Company.
14. Meetings of Directors
The number of Directors' meetings (including committees) held during the financial year that each Director
who held office during the financial year were eligible to attend and the number of meetings attended by each
Director are:
Director
Mr M Ashton
Mr A Radonjic
Mr H Halliday
Mr J Jetter
Full meetings of Directors
Number Eligible to
Attend
Meetings
Attended
7
7
7
7
7
7
7
5
Remuneration Committee
meetings
Number
Eligible to
Attend
-
-
-
-
Meetings
Attended
-
-
-
-
The Company does not have a formally constituted audit committee as the Board considers that the
Company’s size and type of operation do not warrant such a committee as all members of the Board are
involved in audit agenda items and discussions thereon.
15. Environmental Regulation
The Group’s activities are subject to the relevant environmental protection legislation (Commonwealth and
State) in relation to its exploration, development and future mining activities.
The Group believes that sound environmental practice is not only a management obligation but the
responsibility of every employee and contractor.
The Company has been granted environmental approvals, with attaching conditions, by the Tasmania
Environmental Protection Authority (EPA) and by the Federal Minister for the Environment, Heritage and
Water in relation to the Riley DSO Hematite Project.
Under the Environment Protection and Biodiversity Conservation (EPBC) Act 1999, the company were
issued with two infringement notices (total value $25,200) for contravening the EPBC 2012/6339 relating to
the unpaid compensation due to the Tasmanian Devil Program and the notice of commencement provision.
The company made the contribution of $144,000 and no further action taken. Approvals remain in good
standing.
16. Proceedings on behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the
Company for all or any part of these proceedings. The Company was not a party to any such proceedings
during the year.
Venture Minerals Limited | 34
Directors’ Report
For the year ended 30 June 2020
17. Auditor’s Independence Declaration & Non-Assurance Services
The lead auditor’s independence declaration for the year ended 30 June 2020 has been received and can be
found on page 36 of the Directors’ report.
There was no (2019: $500) engagement of non-audit services were provided to the Company during or
since the end of the financial year.
The Auditor’s audit remuneration is disclosed in Note 5.
Signed in accordance with a resolution of the Board of Directors.
Andrew Radonjic
Managing Director
Perth, Western Australia, 25 September 2020
Competent Persons Statement
The information in this report that relates to Exploration Results, Exploration Targets and Minerals Resources is based on information compiled by
Mr Andrew Radonjic, a fulltime employee of the company and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Andrew
Radonjic has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. Mr Andrew Radonjic consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
The information in this report that relates to Mineral Resources for the Mount Lindsay and Livingstone Projects is based on information compiled by
Mr Andrew Radonjic, a fulltime employee of the company and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Andrew
Radonjic has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004 and 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Andrew Radonjic consents to the inclusion in the report of the matters based on his information in
the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since
to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Peter George, who is a Member of the
Australasian Institute of Mining and Metallurgy. Mr George is an independent consultant. Mr George has sufficient experience which is relevant to the
style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr George consents
to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Notes: All material assumptions and technical parameters underpinning the Minerals Resource estimate referred to within previous ASX
announcements continue to apply and have not materially changed list last reported. The company is not aware of any new information or data that
materially affects the information included in the said announcement.
Venture Minerals Limited | 35
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
25 September 2020
The Directors
Venture Minerals Limited
Level 3, 24 Outram Street
WEST PERTH WA 6005
Dear Sirs
RE: VENTURE MINERALS LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Venture Minerals Limited.
As Audit Director for the audit of the financial statements of Venture Minerals Limited for the year ended
30 June 2020, I declare that to the best of my knowledge and belief, there have been no contraventions
of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely,
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
Liability limited by a scheme approved
under Professional Standards Legislation
Financial Statements
Contents
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
38
39
40
41
42
69
70
These financial statements cover Venture Minerals Limited as a consolidated entity consisting of Venture
Minerals Limited and the entities it controlled from time to time during the financial year (‘group’ or
‘consolidated entity’). The financial statements are presented in the Australian currency.
Venture Minerals Limited is a Company limited by shares, incorporated and domiciled in Australia. Its
registered office and principal place of business is:
Venture Minerals Limited
Level 3, 24 Outram Street
West Perth WA 6005
A description of the nature of the consolidated entity's operations and its principal activities is included in the
review of operations and activities on pages 4 to 21 in the Directors’ report, which is not part of these financial
statements.
The financial statements were authorised for issue by the Directors on 25 September 2020. The Company has
the power to amend and reissue the financial statements.
Through the use of the internet, we have ensured that our corporate reporting is timely, complete, and available
globally at minimum cost to the Company. All press releases, financial reports and other information are
available on our website: www.ventureminerals.com.au.
Venture Minerals Limited | 37
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2020
Continuing Operations
Revenue from continuing operations
Other income
Administrative costs
Consultancy expenses
Employee benefits expense
Share based payment expenses
Occupancy expenses
Compliance and regulatory expenses
Insurance expenses
Depreciation expense
Finance costs
Exploration Expenditure
Loss before income tax from continuing
operations
Income tax (expense)/benefit
Loss attributable to owners from continuing
operations
Discontinued Operations
Loss from discontinued operations
Loss attributable to owners
Other comprehensive income:
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations de-consolidated
Items that will not be classified to profit or loss
Total comprehensive loss attributable to owners
Continuing Operations
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Discontinuing Operations
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Notes
3(a)
3(b)
4(a)
24
4(b)
4(c)
4(d)
10
6
25
25
18
18
Consolidated
2020
$
2019
$
14,490
50,000
(267,431)
(178,729)
(393,379)
(78,932)
(56,840)
(87,166)
(80,318)
(14,706)
(25,010)
(1,086,538)
23,836
196,149
(463,467)
(143,908)
(366,747)
(122,017)
(60,387)
(84,516)
(38,283)
(16,782)
(13,349)
(1,746,299)
(2,204,559)
(2,835,770)
-
-
(2,204,559)
(2,835,770)
-
(147,252)
(2,204,559)
(2,983,022)
-
-
(2,204,559)
15,016
-
(2,968,006)
(0.27)
N/A
N/A
N/A
(0.54)
N/A
(0.03)
N/A
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Venture Minerals Limited | 38
Consolidated Statement of Financial Position
As at 30 June 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Trade and other receivables
Property, plant and equipment
Mine development expenditure
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Non-Current Liabilities
Provisions
Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
Notes
30 June 2020
$
30 June 2019
$
7
8
8
9
11
10
12
13
13
14
16
966,297
80,342
1,046,639
933,275
27,208
2,012,062
75,000
3,047,545
4,688,027
106,798
4,794,825
378,000
21,583
-
75,000
474,583
4,094,184
5,269,408
233,400
453,048
686,448
350,000
350,000
408,475
419,047
827,522
-
-
1,036,448
827,522
3,057,736
4,441,886
82,995,954
492,401
(80,430,619)
3,057,736
82,226,327
441,619
(78,226,060)
4,441,886
30 June 2016
$
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Venture Minerals Limited | 39
Consolidated Statement of Changes in Equity
For the Year Ended 30 June 2020
Consolidated
Contributed
Equity
Accumulated
Losses
$
$
Foreign
Currency
Translation
Reserve
$
Option
Reserve
Total
$
$
Balance at 1 July 2018
Total comprehensive income for the
year:
Loss for the year
Foreign exchange differences
Transactions with owners in their
capacity as owners:
Contributions of equity (net of
transaction costs)
Equity settled share-based payment
transactions
Balance at 30 June 2019
Balance at 1 July 2019
Total comprehensive income for the
year:
Loss for the year
Transactions with owners in their
capacity as owners:
Contributions of equity (net of
transaction costs)
Equity settled share-based payment
transactions
Transfer from reserve to equity
Balance at 30 June 2020
76,938,281
(75,243,038)
(15,016)
319,602
1,999,829
-
-
-
(2,983,022)
-
(2,983,022)
-
15,016
15,016
5,238,046
50,000
-
-
5,288,046
82,226,327
-
(78,226,060)
82,226,327
(78,226,060)
-
-
(2,204,559)
(2,204,559)
737,280
4,197
-
-
28,150
82,995,954
-
(80,430,619)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,983,022)
15,016
(2,968,006)
5,238,046
122,017
172,017
122,017
441,619
5,410,063
4,441,886
441,619
4,441,886
-
-
-
(2,204,559)
(2,204,559)
737,280
78,932
83,129
(28,150)
492,401
-
3,057,736
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Venture Minerals Limited | 40
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2020
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Payments for exploration and evaluation
Other income
Note
Consolidated
2020
2019
$
$
(1,041,350)
8,797
(1,125,849)
50,000
(1,173,063)
23,393
(2,021,063)
35,988
Net cash (outflow) from operating activities
19
(2,108,402)
(3,134,745)
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Payments for mine development expenditure
Proceeds from the sales of property, plant and equipment
Payment for Mineral Tenements
(Payment)/Refund of security bond
(20,331)
(1,784,474)
-
-
(550,000)
-
-
290,768
(25,000)
10,000
Net cash(outflow)/inflow from investing activities
(2,354,805)
275,768
Cash Flows from Financing Activities
Proceeds from issue of shares and other equity securities
Share issue transaction costs
766,908
(25,431)
5,703,607
(465,560)
Net cash inflow from financing activities
741,477
5,238,047
Net (decrease)/increase in cash and cash equivalents
(3,721,730)
2,379,070
Cash and cash equivalents at the start of the year
4,688,027
2,308,957
Cash and cash equivalents at the end of the year
7
966,297
4,688,027
Non-cash Financing and Investing Activities
In FY2019, 2,000,000 ordinary shares at $0.025 were issued to the Vendors of the Golden Grove North Project, taking the
total cost of acquisition to $25,000 cash and $50,000 of equity, totalling $75,000.
Amounts relating to payments to suppliers and employees as set out above are inclusive of goods and services tax. The
above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Venture Minerals Limited | 41
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies
This note provides a list of all significant accounting policies adopted in the preparation of these consolidated
financial statements. These policies have been consistently applied to all the years presented, unless
otherwise stated. The financial statements cover Venture Minerals Limited as a consolidated entity consisting
of Venture Minerals Limited and its subsidiaries (‘group’ or consolidated entity’).
(a) Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act
2001.
(i) Compliance with IFRS
The consolidated financial statements of Venture Minerals Limited also comply with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB).
(ii) Historical cost convention
These financial statements have been prepared on an accrual basis under the historical cost
convention, modified where applicable by amendment of fair value of financial assets and financial
liabilities.
(b) Principles of Consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of the consolidated entity
as at 30 June 2020 and the results of the parent and all subsidiaries for the year then ended.
Subsidiaries are all entities over which the group has control. The group controls an entity when the
group is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
are fully consolidated from the date on which control is transferred to the group. They are
deconsolidated from the date that control ceases. The acquisition method of accounting is used to
account for business combinations by the group.
Intercompany transactions, balances and unrealised gains on transactions between group companies
are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
statement of comprehensive income, statement of changes in equity and balance sheet respectively.
A list of controlled entities is contained in Note 27 to the financial statements. All controlled entities
have a 30 June financial year-end.
(ii) Joint arrangements
Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint
operations or joint ventures. The classification depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint arrangement. Venture Minerals Limited has
joint operations.
(iii) Joint operations
Venture Minerals Limited recognises its direct right to the assets, liabilities, revenues and expenses
of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and
expenses.
Venture Minerals Limited | 42
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
Segment reporting
(c)
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.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the group’s entities are measured using the
currency of the primary economic environment in which the entity operates (‘the functional
currency’). The consolidated financial statements are presented in Australian dollars, which is
Venture Minerals Limited’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange rates are generally recognised in profit or
loss. They are deferred in equity if they relate to qualifying cash flow hedges, qualifying net
investment hedges or are attributable to part of the net investment in a foreign operation.
Translation differences on financial assets and liabilities carried at fair value are reported as part of
the fair value gain or loss. Translation differences on non-monetary financial assets and liabilities
such as equities held at fair value through profit or loss are recognised in profit or loss as part of the
fair value gain or loss. Translation differences on non-monetary financial assets such as equities
classified as available for sale financial assets are included in the fair value reserve in equity.
(e) Revenue recognition
Revenue is recognised when performance obligations are satisfied, being when control upon good or services
underlying the performance obligation is transferred to the customer.
(i)
Interest income
Interest income is recognised as the interest accrues (using the effective interest method, which is
the rate that exactly discounts estimated future cash receipts through the expected life of the
financial instrument) to the net carrying amount of the financial asset.
(ii)
Other income
Revenue from other income, rendering goods and services is measured at the fair value of
consideration received or receivable for the sale of goods and services in the ordinary course of the
Group’s activities when control of the asset is transferred to the customer or services rendered.
(iii)
Grant income
Grant income received from Governments is recognised on a cash basis upon receipt. This includes
grants received from the ATO from the Cashflow Boost during 2020.
Venture Minerals Limited | 43
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
Income tax
(f)
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income
based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences between the tax bases of assets and liabilities and their
carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or
substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of
deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is
made for certain temporary differences arising from the initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either
accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax
assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either
to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax
balances attributable to amounts recognised directly in equity are also recognised directly in equity.
The group is entitled to claim special tax deductions and rebates on qualifying expenditure under the
Research and Development Tax Incentive Scheme in Australia. The group accounts for the rebate as an Income
Tax Benefit/Income.
Impairment of assets
(g)
At each reporting date, the group assesses whether there is any indication that an asset may be impaired. An
impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of
assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment are
reviewed for possible reversal of the impairment at each reporting date or more frequently if events or
changes in circumstances indicate that they might be impaired.
(h) Cash and cash equivalents
For the purposes of presentation of the statement of cash flows, cash and cash equivalents include cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts.
Trade and other receivables
(i)
Trade and other receivables are initially recognised initially at fair value and subsequently measured at
amortised costs using the effective interest method, less provision for impairment. Trade and other
receivables are generally due for settlement within 30 days. Collectability of trade receivables is reviewed on
an ongoing basis. Amounts that are known to be uncollectible are written off by reducing the carrying amount
directly.
(j) Exploration and evaluation expenditure
The exploration and evaluation expenditure accounting policy is to expense expenditure as incurred other
than for the capitalisation of acquisition costs.
Venture Minerals Limited | 44
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1. Summary of Significant Accounting Policies (continued)
(k) Property, plant and equipment
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the
asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the company and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to the statement of profit or loss and comprehensive
income during the financial period in which they are incurred.
Land is not depreciated. Depreciation on assets is calculated using the diminishing value method to allocate
their cost, net of their residual values, over their estimated useful lives, as follows:
Plant and equipment - office
Furniture and equipment - office
Plant and equipment - field
Motor vehicles
Leasehold improvements
40.0%
20.0%
40.0%
40.0%
25.0%
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 (Note 1(g)). Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are included in the statement of comprehensive income.
(l) 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. The amounts are unsecured and are usually paid within 30 days of
recognition.
(m) Provisions
Provisions are recognised when: the company has a present legal or constructive obligation as a result of past
events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has
been reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the balance date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense.
(n) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be
settled within 12 months of the reporting date are recognised in respect of employee’s services up to
the end of the reporting period and are measured at the amounts expected to be paid when liabilities
are settled. The liability for annual leave is recognised in the provision for employee benefits. All
other short-term employee benefit obligations are presented as other payables.
(i)
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12
months after the end of the period in which the employees render the related service is recognised in
the provision for employee benefits and measured as the present value of expected future payments
to be made in respect of services provided by employees up to the reporting date using the projected
unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures and periods of service. Expected future payments are discounted using market
yields at the reporting date on national government bonds with terms to maturity and currency that
match, as closely as possible, the estimated future cash outflows.
Venture Minerals Limited | 45
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
(n) Employee benefits (continued)
The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless
of when the actual settlement is expected to occur.
(ii)
(iii) Share-based payments
The company provides benefits to employees (including directors) of the group in the form of share-
based payment transactions, whereby employees render services in exchange for shares or rights
over shares (‘equity-settled transactions’). There is currently an Employee Incentive Option Scheme
(EIOS), which provides benefits to directors and senior executives. The cost of these equity-settled
transactions with employees is measured by reference to the fair value at the date at which they are
granted. The fair value is determined using a Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date
and expected volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the option.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of shares of Venture Minerals Limited (‘market conditions’). The
number of shares expected to vest is estimated based on the non-market vesting conditions and the
probability the option will be exercised.
(o) Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the
issue of new shares for the acquisition of a business are not included in the cost of the acquisition as part of
the purchase consideration.
(p) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the
company excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share
to take into account the after-tax effect of interest and other financing costs associated with the
dilutive potential ordinary shares and the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
(q) Goods and services tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is
not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the
asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in
the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash
flows arising from investing or financing activities which are recoverable from, or payable to the taxation
authority, are presented as operating cash flow.
Venture Minerals Limited | 46
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
(r)
Financial instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
▪ amortised cost;
▪
▪
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
▪ The contractual cash flow characteristics of the financial assets; and
▪ The entities business model for managing the financial asset.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
▪
▪
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents,
trade and most other receivables fall into this category of financial instruments.
Venture Minerals Limited | 47
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
(r)
Financial instruments (continued)
Financial assets at fair value through other comprehensive income
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
▪ The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding; and
▪ The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the statement of profit or loss and computed in the same
manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised
in OCI.
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132
Financial Instruments: Presentation and are not held for trading.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily
required to be measured at fair value. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for
derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains
or losses recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
Impairment
The Group assesses, on a forward-looking basis, the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been
a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted
by AASB, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(s) New accounting standards and interpretations adopted by the Group
The Group has considered the implications of new and amended Accounting Standards but determined that
their application to the financial statements is either not relevant or not material.
Venture Minerals Limited | 48
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
(s) New accounting standards and interpretations adopted by the Group (continued)
Mine Properties
(i) Initial recognition
Upon completion of the mine construction phase, the assets are transferred into “Property, plant and
equipment” or “Mine properties”. Items of property, plant and equipment and producing mine are stated at
cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises
its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the
initial estimate of the rehabilitation obligation, and, for qualifying assets (where relevant), borrowing costs. The
purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration
given to acquire the asset.
The capitalised value of a finance lease is also included in property, plant and equipment. Mine properties also
consist of the fair value attributable to mineral reserves and the portion of mineral resources considered to be
probable of economic extraction at the time of an acquisition. When a mine construction project moves into the
production phase, the capitalisation of certain mine construction costs ceases, and costs are either regarded as
part of the cost of inventory or expensed, except for costs which qualify for capitalisation relating to mining
asset additions, improvements or new developments, underground mine development or mineable reserve
development.
Mine Rehabilitation
Costs of land rehabilitation and site restoration are provided over the life of the mine from when development
commences and are included in the costs of that stage. Site restoration costs include the dismantling and
removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in
accordance with clauses of the mining permits. Such costs are determined using estimates of future costs on an
undiscounted basis.
(ii) Depreciation/amortisation
Accumulated mine development costs are depreciated/amortised on a Unit of Production Method (UOP) basis
over the economically recoverable reserves of the mine concerned, except in the case of assets whose useful life
is shorter than the life of the mine, in which case, the straight-line method is applied. The unit of account for
run-of-mine (ROM) costs is tonnes of ore, whereas the unit of account for post-ROM costs is recoverable metal.
Rights and concessions are depleted on the UOP basis over the economically recoverable reserves of the
relevant area. The UOP rate calculation for the depreciation/amortisation of mine development costs takes into
account expenditures incurred to date, together with sanctioned future development expenditure.
Economically recoverable reserves include proven and probable reserves. The estimated fair value attributable
to the mineral reserves and the portion of mineral resources considered to be probable of economic extraction
at the time of the acquisition is amortised on a UOP basis, whereby the denominator is the proven and probable
reserves, and for some mines, a portion of mineral resources which are expected to be extracted economically.
These other mineral resources may be included in depreciation calculations in limited circumstances and
where there is a high degree of confidence in their economic extraction.
New and amended Standards Adopted by the Group
Changes in Accounting Policies
The Group has considered the implications of new and amended Accounting Standards which have become
applicable for the current financial reporting period. The Group had to change its accounting policies and make
adjustments as a result of adopting the following Standard:
(i) AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2020.
Venture Minerals Limited | 49
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
(s) New accounting standards and interpretations adopted by the Group (continued)
The Group has adopted AASB 16: Leases retrospectively with the cumulative effect of initially applying AASB 16
recognised as of 1 July 2019. As a result of the changes in Group’s accounting policies, current or prior year
financial statements were not required to be restated as the leases were deemed to be short term and minor.
The Group as Lessee
At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease present, a
right-of-use asset and a corresponding liability are recognised by the Group where the Group is a lessee.
However, all contracts that are classified as short-term leases (i.e. leases with a remaining lease term of 12
months or less) and leases of low-value assets are recognised as an operating expense on a straight-line basis
over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Group uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
▪
▪
▪
▪
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options; and
▪
▪ payments of penalties for terminating the lease, if the lease term reflects the exercise of options to
terminate the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent measurement
of the right-of-use assets is at cost less accumulated depreciation and impairment losses. Right-of-use assets are
depreciated over the lease term or useful life of the underlying asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that the
Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the
underlying asset.
The Group as Lessor
The Group does not have any property which has been leased out, and therefore not applicable.
As a result of the changes in Group’s accounting policies, there were no material impacts on the Group’s
financial statements for the year ended 30 June 2020.
New amended standards adopted by the Group
None of the new standards and amendments to standards that are mandatory for the first time for the financial
year beginning 1 January 2020 affected any of the amounts recognised in the current period or any prior
period, although it caused minor changes to the Group’s disclosures.
Venture Minerals Limited | 50
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
1.
Summary of Significant Accounting Policies (continued)
Going Concern
(t)
The financial statements have been prepared on a going concern basis of accounting which assumes that the
Group will be able to meet its commitments, realise its assets, discharge its liabilities in the ordinary course of
business and meet exploration budgets. In arriving at this position, the Directors recognise the Group is
dependent on various funding alternatives to meet these commitments which may include share placements
and suitable project funding arrangements including earn-ins, joint ventures or project divestment.
The loss for the year ended 30 June 2020 from continuing operations was $2,204,559 with $966,297 of cash
and cash equivalents, net assets of $3,057,736 and a net decrease in cash and cash equivalents $3,721,730.
The Directors believe that at the date of signing the financial statements there are reasonable grounds to
believe that having regard to matters set out above, the Group will be able to raise sufficient funds to meet its
obligations as and when they fall due.
In the event that the Group does not achieve the matters set out above there is significant uncertainty whether
the Group will continue as a going concern and therefore whether it will realise its assets and extinguish its
liabilities in the normal course of business and at amounts stated in the financial statements.
Venture Minerals Limited | 51
Critical accounting estimates and judgements
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
2.
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the entity and that are believed to
be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. The resulting accounting estimates and
judgements may differ from the related actual results and may have a significant effect on the carrying amount
of assets and liabilities within the next financial year and on the amounts recognised in the financial statements.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
(i) Share based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined by
an internal valuation using a Black-Scholes option pricing model, using the assumptions detailed in
Note 24.
(ii) Deferred Tax Assets
Deferred tax assets are recognised for deductible temporary differences when management considers
that is probable that future taxable profits will be available to utilise those temporary differences.
(iii) Rehabilitation and restoration provisions
The Group has made estimates in determining the estimated mine rehabilitation provision. In
determining the provision consideration is given to estimated future costs to be incurred, stage of the
project development and the timing of those costs. Final rehabilitation costs are uncertain, and
estimates may vary in response to factors including: estimates of the extent and costs of
rehabilitation activities, the timing of those activities, technological changes, regulatory changes etc.
These uncertainties may cause future actual expenditure to differ from the current provision.
Accordingly, significant estimates and assumptions are made in determining the provision for mine
rehabilitation.
(iv) Impairment assessment
The Group assesses impairment at the end of each reporting period by evaluating the conditions and
events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of
relevant assets are reassessed using value-in-use calculations which incorporate various key
assumptions.
Venture Minerals Limited | 52
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
3.
(a)
Revenue
From continuing operations
Interest received
Total revenue from continuing operations
(b)
Other income
Other income – ATO Cashflow Boost
Net gain on disposal of property, plant and equipment
Total other income
Expenses
4.
Loss before income tax includes the following specific expenses:
(a)
Employee benefits expense
Salary and wages expense
Other employee provisions
Defined contribution superannuation expense
Total employee benefits expense
(b)
Occupancy expense1
Operating lease expense
Other occupancy costs
Total occupancy expense
(c)
Depreciation of non-current assets
Plant and equipment - office
Plant and equipment - field
Furniture and equipment - office
Leasehold improvements
Motor vehicles
Total depreciation of non-current assets (refer to note 9)
(d)
Finance costs in respect of finance leases
Other bank and finance charges
Total finance costs in respect of finance leases
5. Auditor’s Remuneration
Remuneration of the auditor of the group
Auditing or reviewing the financial statements
Non-audit services
Total auditor remuneration
Consolidated
2020
$
2019
$
14,490
14,490
50,000
-
50,000
23,836
23,836
35,824
160,325
196,149
270,488
63,301
59,590
393,379
262,648
44,876
59,223
366,747
37,545
19,295
56,840
3,605
2,893
1,319
6,094
795
14,706
25,010
25,010
40,551
19,836
60,387
4,965
1,353
1,678
7,462
1,324
16,782
13,349
13,349
36,279
-
36,279
38,365
500
38,865
Note 1: During the year, the Group assessed the existing leasing arrangements and determined that the arrangement for
shared offices which is on a short-term basis, did not meet the criteria for recognition as a Right of Use Asset under AASB 16
Leases, and continued to account for lease payments as an expense.
Venture Minerals Limited | 53
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
6.
(a)
Income Tax Expense
Income tax expense
Current tax
Deferred tax
Total income tax (expense)/benefit
Deferred income tax expense included in income tax expense comprises:
(Increase) in deferred tax assets (Note 6(c))
Increase in deferred tax liabilities (Note 6(d))
Consolidated
2020
$
2019
$
-
-
-
-
-
-
-
-
-
-
-
-
(b)
Numerical reconciliation of income tax expense to prima facie tax payable
Profit/(loss) from continuing operations before income tax expense
(2,204,559)
(2,835,770)
Tax (tax benefit) at the tax rate of 27.50% (2019: 27.50%)
(606,254)
(779,837)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Share based payments
Other non-deductible amounts
Disposal of foreign operations
Prior year adjustment
Non-assessable income
Unrecognised tax losses
Income tax expense
(c)
Deferred tax assets
Tax losses
Employee benefits
Other accruals
Total deferred tax assets
Set-off deferred tax liabilities (Note 6(d))
Net deferred tax assets
(d)
Deferred tax liabilities
Exploration expenditure
Other
Total deferred tax liabilities
Set-off deferred tax assets (Note 6(c))
Net deferred tax liabilities
(e)
Tax losses
Unused tax losses for which no DTA has been recognized
Potential tax benefit at 26% (2019: 27.50%)
(f)
Unrecognised temporary differences
Unrecognised deferred tax asset relating to capital raising costs
Potential tax benefit at 26% (2019: 27.50%)
21,706
(29,743)
-
(41,187)
(13,750)
(669,228)
33,555
7,668
890,284
260,148
411,818
669,228
(411,818)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
66,010,425
17,162,711
63,576,872
17,483,640
391,958
520,191
101,909
143,052
Venture Minerals Limited | 54
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
Cash & Cash Equivalents
Cash & cash equivalents
Cash at bank and in hand
Deposits at call
Total cash and cash equivalents
Consolidated
2020
$
2019
$
966,297
-
966,297
4,688,027
-
4,688,027
Cash at bank and on hand
Cash on hand is non-interest bearing. Cash at bank bears interest rates between 0.00% and 0.50% (2019:
0.00% and 0.75%).
Deposits at call
There were no deposits at call during the year. (2019: Nil).
Trade & Other Receivables
Current
Other receivables
Prepayments
Total current trade and other receivables
Non-Current
Deposits1
Total non-current trade and other receivables
80,342
-
80,342
103,684
3,114
106,798
933,275
933,275
378,000
378,000
7.
(a)
(b)
(c)
8.
(a)
(b)
1 Deposits include cash of $933,275 (2019: $353,000) including capitalise interest of $5,275, to secure a bank
guarantee facility to provide a corporate credit card facility and security deposits required by the relevant
authority for the granted exploration and mining licences. A further $900 is held on deposit for a short-term
rental property in Tasmania. Prior year deposits as at 30 June 2019 of $378,000 included $343,000 for a bank
guarantee facility, with the remaining $35,000 held in cash by the relevant authority for granted exploration
and mining licences. These were converted to bank deposits during the year.
(c)
(d)
Past due and impaired receivables
As at 30 June 2020, there were no other receivables that were past due or impaired (2019: nil).
Effective interest rates and credit risk
Information concerning effective interest rates and credit risk of both current and non-current trade and other
receivables is set out in Note 17.
Venture Minerals Limited | 55
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
Consolidated
Plant &
Equipment
$
Property, Plant & Equipment
Furniture &
Equipment
$
Leasehold
Improvements
$
Motor
Vehicle
$
Land Mining
Total
equipment
$
$
$
9.
Year ended 30 June 2020
Opening net book amount
Additions
Depreciation charge
Disposal
Effect of exchange rates
Closing net book amount
At 30 June 2020
Cost or fair value
Accumulated depreciation
Net book amount
9,269
11,014
(6,498)
-
-
13,785
6,595
-
(1,319)
-
-
5,276
3,730
9,317
(6,094)
-
-
6,953
1,989
-
(795)
-
-
1,194
146,754
(132,969)
13,785
48,778
(43,502)
5,276
36,932
(29,979)
6,953
65,676
(64,482)
1,194
-
-
-
-
-
-
-
-
-
Year ended 30 June 2019
Opening net book amount
Additions
Depreciation charge
DisposalA
Effect of exchange rates
Closing net book amount
At 30 June 2019
Cost or fair value
Accumulated depreciation
Net book amount
16,874
-
(6,318)
(1,287)
-
9,269
8,273
-
(1,678)
-
-
6,595
11,192
-
(7,462)
-
-
3,730
3,313
-
(1,324)
-
-
1,989
129,839
-
-
(129,839)
-
-
135,740
(126,471)
9,269
48,778
(42,183)
6,595
27,615
(23,885)
3,730
65,676
(63,687)
1,989
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21,583
20,331
(14,706)
-
-
27,208
298,140
(270,932)
27,208
169,491
-
(16,782)
(131,126)
-
21,583
277,809
(256,226)
21,583
A: During the prior year land held by Venture Tasmania Pty Ltd was disposed of for $250,000 for a total profit of $160,325.
10. Exploration & Evaluation Expenditure
(a)
Non-current
Opening balance
Exploration and acquisition costs
Reallocation to mine development – Note 11
Write offs/provisions
Total non-current exploration and evaluation expenditure
Consolidated
2020
$
2019
$
75,000
2,748,601
(1,662,062)
(1,086,539)
75,000
-
1,821,299
-
(1,746,299)
75,000
(b) The value of the group’s interest in exploration expenditure is dependent upon:
▪
▪
▪
the continuance of the group’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or
alternatively, by their sale.
The group’s exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites of
significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject
to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to
quantify whether such claims exist, or the quantum of such claims.
Venture Minerals Limited | 56
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
11. Mine Development Expenditure
Non-Current
Opening Balance
Mine development transferred in - Note 10
Mine Rehabilitation
Total non-current – Mine Development Expenditure
12. Trade & Other Payables
Current
Trade Payables
Other Payables
Total current trade & other payables
ppabkespayables
No trade or other payables are considered past due.
13. Provisions
Current
Employee entitlements
Total current provisions
Non-Current
Mine rehabilitation
Total non-current provisions
Movement in Environmental Provision
Opening balance
Provision for the year, capitalised to mine
development costs – Note 11
Balance as at 30 June 2020
Consolidated
2020
$
2019
$
-
1,662,062
350,000
2,012,062
-
-
-
-
123,448
109,952
233,400
307,833
100,642
408,475
453,048
453,048
419,047
419,047
350,000
350,000
-
350,000
350,000
-
-
-
-
-
14. Contributed Equity
(a)
Issued and unissued capital
Ordinary shares – fully paid
Unissued capital (note 14e)
Total issued capital
Consolidated
2020
Shares
2019
Shares
Consolidated
2020
$
2019
$
808,039,953
-
808,039,953
651,344,444
-
651,344,444
82,995,954
-
82,995,954
79,876,955
2,349,372
82,226,327
2013
(b)
(c)
Ordinary Shares
Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the
number of shares held and in proportion to the amount paid up on the shares held.
At shareholders meetings each ordinary share is entitled to one vote in proportion to the paid up amount of the
Options
share when a poll is called, otherwise each shareholder has one vote on a show of hands.
Information relating to options including details of options issued, exercised and lapsed during the financial year
and options outstanding at the end of the financial year, is set out in Note 15.
Venture Minerals Limited | 57
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
Date
Number of
Shares
Issue Price
$
Total
$
$
14. Contributed Equity (continued)
(d) Movements in issued capital
Opening Balance 1 July 2018
Placement
Acquisition of Tenements
Placement
Issues of shares under Entitlement
Offer
Less transaction costs
Closing Balance at 30 June 2019
18-Jul-18
10-Aug-18
31-May-19
31-May-19
493,959,173
24,652,832
0.030
2,000,000
0.025
2,000,000
78,091,800
0.020
78,091,800
0.020
52,640,639
(e)
Unissued capital** 30-June-19
Total issued and unissued share capital
(f) Movements in issued capital
Opening Balance 1 July 2019
Funds received in prior year**
Retail Offer and Shortfall
Exercise of Listed Options
Exercise of Unlisted Options
Exercise of Listed Options
Transfer from reserve to equity
Less transaction costs
Closing Balance at 30 June 2020
1-Jul-19
3-Dec-19
21-Feb-20
23-Jun-20
651,344,444
117,468,600
768,813,044
651,344,444
-
155,604,163
2,500
1,000,000
88,846
-
-
808,039,953
0.020
0.020
0.035
0.001
0.035
-
-
76,938,281
739,585
50,000
1,561,836
1,052,813
(465,560)
79,876,955
2,349,372
82,226,327
82,226,327
(2,349,372)
3,112,083
88
1,000
3,109
28,150
(25,431)
82,995,954
* The value of the options exercised includes the amount transferred from the option premium reserve and the funds received on exercise of the options
** Unissued share capital of $2,349,372 relate to funds received prior to 30 June 2019 for shares to be issued under the Placement and Entitlement Offer announced
on 20 May 2019. These shares were issued on 1 July 2019.
Expiry date
Exercise price
Balance at
start of year
Granted
during the
year
(Exercised)
during the year
Cancelled/
lapsed during
the year
Balance at
end of the
year
15.
(a)
Issued Share Options
2020 unlisted share option details
31 Aug 20
12 Apr 23
30 Oct 19
30 Nov 19
N/A1
N/A2
N/A3
0.1 cents
0.1 cents
3.0 cents
5.0 cents
45.0 cents
50.0 cents
55.0 cents
Weighted average exercise price
3,727,000
17,000,000
4,000,000
500,000
1,000,000
2,000,000
2,500,000
30,727,000
$0.097
-
-
-
-
-
-
-
-
-
-
(1,000,000)
-
-
-
-
-
(1,000,000)
-
(575,000)
(4,000,000)
(500,000)
-
-
-
(5,075,000)
3,727,000
15,425,000
-
-
1,000,000
2,000,000
2,500,000
24,652,000
$0.115
On 1 July 2019 and 19 July 2019, the Company issued 104,122,460 and 39,045,912 listed options (ASX: VMSOB) at
$0.035 respectively, expiring on 18 June 2020 under the Placement and Entitlement Offer announced on 20 May
2019. On 3 December 2019 and 23 June 2020, the Company issued 88,846 and 2,500 ordinary shares upon
conversion of listed options respectively. On 23 June 2020, the Company also confirmed that the remaining
143,077,026 listed options expired on 18 June 2020 has been cancelled.
(b) 2019 unlisted share option details
31 Aug 20
12 Apr 23
30 Oct 19
30 Nov 19
N/A1
N/A2
N/A3
0.1 cents
0.1 cents
3.0 cents
5.0 cents
45.0 cents
50.0 cents
55.0 cents
Weighted average exercise price
3,727,000
5,500,000
4,000,000
500,000
1,000,000
2,000,000
2,500,000
19,227,000
$0.155
-
11,500,000
-
-
-
-
-
11,500,000
$0.001
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,727,000
17,000,000
4,000,000
500,000
1,000,000
2,000,000
2,500,000
30,727,000
$0.097
1: To vest upon successfully obtaining project financing for the Mt Lindsay Tin/Tungsten Project, expire 18 months after vesting
2: To vest upon first shipment of DSO ore, expire 18 months after vesting
3: Vest upon company announcement that it has made a decision to proceed with mining tin in Tasmania, expire 18 months after vesting
Venture Minerals Limited | 58
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
16. Reserves
(a)
Unlisted option reserve
Opening balance
Share based payments expense
Exercise of options
Total unlisted option reserve
Consolidated
2020
$
2019
$
441,619
78,932
(28,150)
492,401
319,602
122,017
-
441,619
The unlisted option reserve records items recognised on valuation of director, employee and contractor
share options. Information relating to the Venture Minerals Limited Employee Incentive Scheme “EIOS”,
including details of options issued, exercised and lapsed during the financial year and options
outstanding at the end of the financial year, is set out in Note 15.
(b)
Foreign currency translation reserve
Opening balance
Exchange differences arising on translation of foreign operations
15,016
de-consolidated during the year.
Closing Balance
-
Exchange differences arising on translation of the foreign controlled entity are taken to the foreign
currency translation reserve. The reserve is recognised in the statement of profit or loss when the net
Investment is disposed of.
(15,016)
-
-
-
(c)
Total reserves
Unlisted option reserve
Exchange differences arising on translation of foreign operations
Closing Balance
492,401
-
492,401
441,619
-
441,619
17. Financial Instruments, Risk Management Objectives and Policies
The Consolidated Entity’s principal financial instruments comprise cash, short-term deposits and bonds. The
main purpose of the financial instruments is to earn the maximum amount of interest at a low risk to the group
and environmental bonds held for the mining tenements. The Consolidated Entity also has other financial
instruments such as trade and other receivables and trade and other payables which arise directly from its
operations. For the year under review, it has been the Consolidated Entity’s policy not to trade in financial
instruments.
The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk and credit risk,
with foreign currency risk considered immaterial. The Board reviews and agrees policies for managing each of
these risks and they are summarised below:
Venture Minerals Limited | 59
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
17.
Financial Instruments, Risk Management Objectives and Policies (continued)
(a)
Interest Rate Risk
The group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will
fluctuate as a result of changes in market interest rates and the effective weighted average interest rate
for each class of financial assets and financial liabilities comprises:
Consolidated
2020
Financial Assets
Cash and cash equivalents
Trade & other receivables - current
Trade & other receivables - non-current
Weighted
Average
Interest
Rate
%
Floating
Interest
Rate
Fixed
Interest
Non-
interest
bearing
Total
$
$
$
$
0.05%
0.00%
1.10%
918,467
-
-
-
933,275
47,830
80,342
-
966,297
80,342
933,275
918,467
933,275
128,172
1,979,914
Financial Liabilities
Trade & other payables - current
0.00%
Consolidated
2019
Financial Assets
Cash and cash equivalents
Trade & other receivables - current
Trade & other receivables - non-current
Weighted
Average
Interest
Rate
%
0.75%
0.00%
1.60%
-
-
-
-
233,400
233,400
233,400
233,400
Floating
Interest
Rate
Fixed
Interest
Non-
interest
bearing
Total
$
$
$
$
4,629,503
-
-
4,629,503
-
-
343,000
343,000
58,524
103,684
35,000
4,688,027
103,684
378,000
197,208
5,169,711
Financial Liabilities
Trade & other payables - current
0.00%
-
-
-
-
408,475
408,475
408,475
408,475
The maturity date for all cash, current receivables and trade and other payable financial instruments included in the above tables
is one year or less from balance date. The maturity for the non-current trade and other receivables is between 1 and 2 years
from balance date.
Venture Minerals Limited | 60
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
17.
Financial Instruments, Risk Management Objectives and Policies (continued)
(b) Group sensitivity analysis
The entity’s main interest rate risk arises from cash and cash equivalents with variable and fixed interest
rates. At 30 June 2020, the group’s exposure to interest rate risk is not considered material.
(c)
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the group. The group has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where appropriate, as a means of
mitigating the risk of financial loss from defaults. The group does not have any significant credit risk
exposure to any single counterparty or any group of counterparties having similar characteristics. The
carrying amount of financial assets recorded in the financial statements, net of any provisions for losses,
represents the group’s maximum exposure to credit risk.
(d) Liquidity risk
The group manages liquidity risk by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities. Due to the dynamic nature of the
underlying businesses, the group aims at ensuring flexibility in its liquidity profile by maintaining the
ability to undertake capital raisings. Funds in excess of short-term operational cash requirements are
generally only invested in short term bank bills.
(e) Net fair value
The carrying value and net fair values of financial assets and liabilities at balance date are:
Consolidated
Financial assets
Cash and cash equivalents
Trade & other receivables - current
Trade & other receivables - non-current
Financial Liabilities
Trade and other payables - current
2020
Carrying
Amount
$
Net fair
Value
$
2019
Carrying
Amount
$
Net fair
Value
$
966,297
80,342
933,275
1,979,914
966,297
80,342
933,275
1,979,914
4,688,027
103,684
378,000
5,169,711
4,688,027
103,684
378,000
5,169,711
233,400
233,400
233,400
233,400
408,475
408,475
408,475
408,475
Consolidated
2020
$
2019
$
18. Earnings per Share
(a) Earnings/(Loss)
Earnings/(loss) from continuing operations used in the calculation of
basic EPS
Earnings/(loss) from discontinued operations used in the calculation of
basic EPS
(2,204,559)
(2,835,770)
-
(147,252)
(b) Weighted average number of ordinary shares (‘WANOS’)
WANOS used in the calculation of basic earnings per share:
807,307,914
529,916,723
(c) Diluted Loss Per Share
Diluted loss per share is considered to be the same as the basic loss per
share, as the potential ordinary shares on issue are anti-dilutive and have
not been applied in calculated dilutive loss per share. The Group does not
have any potentially dilutive ordinary securities.
Venture Minerals Limited | 61
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
19. Cash Flow Information
a) Reconciliation of cash flows from operating activities with loss from ordinary activities after income
tax:
(Loss) attributable to owners after income tax
(2,204,559)
(2,983,022)
Consolidated
2020
$
2019
$
Depreciation
Share based payments
Impairment of plant and equipment
Gain on sales of property, plant and equipment
Net exchange differences
Changes in assets and liabilities:
- (Increase)/Decrease in operating receivables &
prepayments
- Increase/(decrease) in trade and other payables
- Increase/(decrease) in employee provisions
Net cash (outflows) from Operating Activities
a) Non-cash investing and financing
Share-based payments expense – acquisition of mineral
tenements.
Share-based payments expense -share issue costs
Refer to note 24 for further details.
20. Commitments
(a) Exploration and Development commitments
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
14,706
78,932
-
-
-
16,782
122,017
-
(160,325)
-
21,180
30,296
(52,662)
34,001
(2,108,402)
(114,060)
(46,433)
(3,134,745)
-
-
50,000
-
Consolidated
2020
$
2019
$
2,531,269
4,369,496
-
6,900,765
1,547,045
3,474,754
-
5,021,799
In order to maintain rights of tenure to mining tenements subject to these agreements, the group would have
the above discretionary exploration expenditure requirements up until expiry of leases. These obligations,
which are subject to renegotiation upon expiry of the leases, are not provided for in the financial statements
and are payable per the above maturities. If the company decides to relinquish certain leases and/or does not
meet these obligations, assets recognised in the statement of financial position may require review to
determine the appropriateness of carrying values. The sale, transfer or farm-out of exploration rights to third
parties will reduce or extinguish these obligations.
Development commitments are $1,000,000 for the first 12 months representing upgrades to roads, site works
and ongoing commitments associated with use of the haul roads and other capital expenditure requirements.
(b) Non-cancellable operating lease commitments
Not longer than one year
Longer than one year, but not longer than five years
Longer than five years
64,223
-
-
64,223
62,415
-
-
62,415
The company has made commitments with respect to two rental properties in Tasmania and site offices and
facilities associated with its Riley Iron Ore Project. The commitments are for a period of 6 months.
Venture Minerals Limited | 62
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
21. Events Occurring After Balance Date
On 3 July 2020 and 10 July 2020, the Company issued 1,250,000 and 1,500,000 shares upon the exercise of
1,250,000 and 1,500,000 unlisted Director options, exercise price of $0.001 respectively.
On 21 July 2020, The company signed a Binding Term Sheet to with Chalice Gold Mines Ltd to earn in to the
South West Project. Under the option and earn-in agreement, Chalice may earn:
▪ A 51% JV interest in the Project by spending $1.2 million on exploration within two years, including a
minimum of $300,000 in the first year.
▪ A 70% JV interest in the Project by spending a further $2.5 million on exploration over the following two
years.
▪ Venture can then elect to either contribute 30% or dilute to a minimum of 10% JV interest, in which case the
interest automatically reverts to a 1.25% NSR royalty.
▪ Venture to have a historical expenditure of $1.6M applied against the earn-in.
▪ Chalice may withdraw at any time after meeting the minimum expenditure commitment. All other terms are
consistent with an industry standard joint venture arrangement. The transaction is conditional upon normal
due diligence in relation to legal and title.
On 7 August 2020, the Company announced it has successfully completed a placement to sophisticated,
professional and institutional investors through a placement of 129,032,258 fully paid ordinary shares at an
issue price of $0.031 per share to raise up to a total of $4,000,000 (before costs). Additionally, in recognition of
the Company’s existing retail shareholders, eligible shareholders were given the opportunity to participate in s
Share Purchase Plan (“SPP”) at the same issue price per Share of $0.031. The Company intended to raise
$1,500,000 under the SPP (which amount is fully underwritten) through the issue of 48,387,097 shares. The
Company reserved the right to accept oversubscriptions under the SPP to raise up to an additional $1,000,000
which additional amount is not underwritten.
On 27 August 2020, the Company announced dry screening operations has commenced at the Riley Ore Mine.
The Company continues to work towards finalising discussions on financing of the wet screening plant whilst
the dry screening process enables the Company to potentially realise early cash-flow from Riley.
On 28 August 2020, the Company issued 5,477,000 shares upon the exercise of 5,470,000 unlisted options,
exercise price of $0.001 respectively.
On 8 September 2020, the Company announced that has been raised from SPP which closed on 2 September
2020. A total of 80,644,959 ordinary shares were issued with an issue price of $0.031 per share on 9
September 2020.
On 15 September 2020, Venture signed an earn-in agreement with Bright Point Gold Pty Ltd to acquire up to
100% of tenement E59/1989 (“the project”) on the following terms:
• A 51% JV interest by paying $200,000 cash and spending $1 million on exploration within two years,
including a minimum of $300,000 in the first year which must include a minimum of 1,500m of reverse
circulation or diamond core drilling.
• An 80% JV interest by spending a further $3 million on exploration over the following two years.
• Bright Point has the right to clawback to a 49% interest or dilute to a 10% interest upon the completion of
a Bankable Feasibility Study or Definitive Feasibility Study (whichever comes first) on the project.
• Once Venture has earned 90% interest, Bright Point must elect to either contribute or dilute to a royalty of
1% of the net smelter return.
There were no further material events subsequent to balance date.
22. Segment Information
(a) Description of segments
Management has determined the operating segments based on the reports reviewed by the chief
operating decision maker that are used to make strategic decisions. For the purposes of segment
reporting the chief operating decision maker has been determined as the board of directors. The amounts
provided to the board of directors with respect to total assets and profit or loss is measured in a manner
consistent with that of the financial statements. Assets are allocated to a segment based on the
operations of the segment and the physical location of the asset.
Venture Minerals Limited | 63
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
22. Segment Information (continued)
The board monitors the entity primarily from a geographical perspective, and has identified two
operating segments, being exploration for mineral reserves and mine development within Australia, and
the corporate/head office function.
(b)
Segment information provided to the board of directors
The segment information provided to the board of directors for the reportable segments is as follows:
2020 Extract
Total segment revenue
Interest revenue
Other income
Depreciation and amortisation expense
Total segment loss before income tax
2019 Extract
Total segment revenue
Interest revenue
Impairment Expense
Depreciation and amortisation expense
Total segment loss before income tax
Total segment assets
30 June 2020
30 June 2019
Total segment liabilities
30 June 2020
30 June 2019
Exploration and Mine Development
South East
Asia1
$
Australia
$
Corporate
$
Total
$
-
-
-
-
-
-
-
-
2,893
(1,086,539)
64,490
14,490
50,000
11,813
(1,118,020)
64,490
14,490
50,000
14,706
(2,204,559)
-
-
-
-
(147,252)
-
-
44,173
1,353
(1,746,299)
23,836
23,836
151,976
15,429
(1,089,471)
23,836
23,836
196,149
16,782
(2,983,022)
-
-
-
-
2,087,063
75,000
2,007,121
5,194,408
4,094,184
5,269,408
463,797
113,798
572,651
713,724
1,036,448
827,522
1. During the prior year, the South East Asia segment, ceased operations in Thailand and formerly liquidated the company Venture Minerals
(Thailand) Ltd a wholly owned subsidiary of the Venture T Pty Ltd a wholly owned subsidiary of Venture Minerals Limited (Parent). The Thailand
segment contributed to a net loss of $147,252 to the Group.
(c) Measurement of segment information
All information presented in part (b) above is measured in a manner consistent with that in the financial
statements.
(d)
Segment revenue
No inter-segment sales occurred during the current or previous financial year. The entity is domiciled in
Australia. No revenue was derived from external customers in countries other than the country of
domicile. Revenues of $14,490 (2019: $23,836) were derived from one Australian financial institution
during the period. These revenues are attributable to the corporate segment.
(e) Reconciliation of segment information
Total segment revenue, total segment profit/(loss) before income tax, total segment assets and total
segment liabilities as presented in part (b) above, equal total entity revenue, total entity profit/(loss)
before income tax, total entity assets and total entity liabilities respectively, as reported within the
financial statements.
Venture Minerals Limited | 64
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
23. Related Party Transactions
(a) Parent entity
The ultimate parent entity within the group is Venture Minerals Limited.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 27.
(c) Key management personnel compensations
Consolidated
2020
$
2019
$
Key Management Personnel Compensation
Short-term employee benefits
Post-employment benefits
Long term benefits
Share-based payments
Total key management personnel compensation
524,641
26,144
5,839
75,742
632,366
563,547
27,899
-
84,029
675,475
Detailed remuneration disclosures are provided within the remuneration report which can be found on pages 26 to 33 of the
directors’ report.
(d) Transactions with other related parties
The following transactions occurred with related parties:
Consolidated
2020
$
2019
$
Recharges to director related entities (excluding GST):
Recharges to Alicanto Minerals Limited
Recharges of costs to Blackstone Minerals Limited
Purchases from director related entities (excluding GST):
Recharges of shared costs from Blackstone Minerals Limited
Recharges of shared costs from Onedin Enterprises Pty Ltd
31,653
129,062
22,352
34,126
303,386
9,676
209,209
5,350
Consolidated
2020
$
2019
$
Outstanding balances arising from recharges/purchases with Director Related Parties:
Current receivables
Current payables
22,007
-
7,673
-
(e) Terms and conditions of related party transactions
Transactions between related parties are on commercial terms and conditions, no more favourable than
those available to other parties unless otherwise stated.
Venture Minerals Limited | 65
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
24. Share Based Payments
The Directors have established an Employee Incentive Option Scheme (‘EIOS’) in accordance with the listing
rules of the ASX. The purpose of the Scheme is to give employees, directors, executive officers and consultants
of the Group an opportunity, in the form of options, to subscribe for ordinary shares in the company. The
Directors consider the Scheme will enable the group to retain and attract skilled and experienced employees,
board members and executive officers and provide them with the motivation to make the group more
successful.
(a) Fair value of listed options granted
The fair value of listed options granted is calculated as the market value prevailing at the date on which
the options are authorised for issue.
(b) Fair value of unlisted options granted
30 June 2020
No options were issued during the financial year.
30 June 2019
Fair value of performance options granted with performance conditions
In the 30 June 2019 financial year, the company issued 5,750,000 unlisted options to Directors vesting 18
months after date of issue subject to remaining a director or employee of the Company. The weighted
average fair value of the 5,750,000 options granted in the current year was 2.4363 cents per option.
Fair value of performance options granted with market conditions
In the 30 June 2019 financial year, the company issued 5,750,000 performance options vesting upon the
shares trading at $0.10 based on a 10-day volume weighted average share price. The assessed fair value
at was 0.3 cents per as at 31 December 2018. The fair value at grant date is determined using Black
Scholes Model adjusted to include the possibility of not achieving the market based condition. The price
was calculated by using the Black-Scholes European Option Pricing Model applying the following inputs:
Historical volatility has been the basis for determining expected share price volatility as it assumed that
this is indicative of future tender, which may not eventuate. The life of the options is based on historical
exercise patterns, which may not eventuate in the future.
Total share-based payment transactions recognised during the year are set out below. Details of other
options movements are set out in Note 15.
Unlisted options
Options issued to directors, employees and consultants
Share issue costs
Exploration Expenditure
Consolidated
2020
$
2019
$
78,932
-
-
122,017
-
50,000
Venture Minerals Limited | 66
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
25. Discontinued Operations
The amounts presented in the Consolidated Statement of Profit or Loss and Other Comprehensive Income
under discontinued operations related the liquidation of Venture Minerals (Thailand) Ltd a wholly owned
subsidiary of the Venture T Pty Ltd a wholly owned subsidiary of Venture Minerals Limited (Parent).
(a) Loss from Discontinued Operations
Writeback of Provisions in Prior Year
Exploration Expenditure
Foreign currency translation on expenditure
Total Loss from Discontinued Operations
(b) Other Comprehensive Income
Disposal of Foreign Operations Foreign Currency Translation Reserve
Total Other Comprehensive Income
26. Contingent Liabilities
2020
$
$
2019
$
-
-
-
-
76,718
(267,435)
43,465
(147,252)
2020
$
-
-
-
2019
$
15,016
15,016
The contingent liability previously reported related to the potential to repay $950,000 under an agreement
with TasRail for certain rail and port infrastructure is no longer applicable as the agreement has been
terminated. There are no further contingent liabilities at the date of this report.
27. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries
in accordance with the accounting policy described in note 1(b):
Name of entity
Venture Uranium Pty Ltd
Venture Z Pty Ltd
Venture Iron Pty Ltd
Venture Tasmania Pty Ltd
Venture T Pty Ltd
Venture Lithium Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Class
of shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Equity holding A
2020
%
100
100
100
100
100
100
2019
%
100
100
100
100
100
100
A: The proportion of ownership interest is equal to the proportion of voting power held.
Venture Minerals Limited | 67
Notes to the Consolidated Financial Statements for the Year Ended 30 June 2020
28. Parent Entity Information
(a) Assets
Current assets
Non-current assets
Total assets
(b) Liabilities
Current liabilities
Non-current liabilities
Total liabilities
(c) Equity
Company
2020
$
1,046,639
3,047,545
4,094,184
686,448
350,000
1,036,448
2019
$
4,794,826
360,786
5,155,612
827,524
-
827,524
Contributed equity
Accumulated losses 1
Reserves
Total equity
82,226,327
(78,339,858)
441,619
4,328,088
1: The movement in accumulated losses of $2,090,761 from prior year excludes the 30 June 2019 impact of the
gain on sale of land held in Venture Tasmania Pty Ltd and a movement in the intercompany loan account of
$113,798. The total loss for the year is $2,204,559 of the Parent and the Group.
82,995,954
(80,430,619)
492,401
3,057,736
(d) Total Comprehensive loss for the year
Loss for the year after income tax
Other comprehensive income for the
year
Total comprehensive loss for the
year
(2,204,559)
-
(2,204,559)
(3,123,221)
-
(3,123,221)
(e) Contingent Liabilities of the Parent Entity
The parent entity did not have any contingent liabilities as at 30 June 2020 or 30 June 2019 other than as
disclosed in Note 26.
(f) Guarantees entered into by the Parent Entity
The parent entity has not guaranteed any loans for any entity during the year.
Venture Minerals Limited | 68
Directors’ Declaration
In the directors’ opinion:
(a) the financial statements and notes set out on pages 37 to 68 are in accordance with the Corporations Act
2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(ii) giving a true and fair view of the consolidated entity's financial position as at 30 June 2020 and of its
performance for the financial year ended on that date; and
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they
become due and payable; and
(c) the audited remuneration disclosures set out on pages 26 to 33 of the directors’ report comply with section
300A of the Corporations Act 2001; and
(d) the financial statements and notes thereto are in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board.
The directors have been given the declarations by the Managing Director and Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Andrew Radonjic
Managing Director
Perth, Western Australia, 25 September 2020
Venture Minerals Limited | 69
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
VENTURE MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Venture Minerals Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2020 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Company in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
We have defined the matter described below to be a key audit matter to be communicated in our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. This matter was addressed in the context of our audit of
the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on this matter.
Liability limited by a scheme approved
under Professional Standards Legislation
Key Audit Matters
How the matter was addressed in the audit
Capitalised Mine Development Expenditure
As at 30 June 2020, Venture Minerals Limited has
capitalised Mine Development Expenditures of
$2,012,063 in relation to the Riley Iron Ore Mine in
North West Tasmania.
The carrying value of Capitalised Mine Development
Costs is a key audit matter due to:
•
•
•
The significance of
Expenditure, representing 49% of total assets;
the Mine Development
The determination by the Board of the completion of
the exploration stage at the Riley iron Ore Project
and the subsequent reclassification of the Project to
development and
the
therefore,
capitalised exploration and evaluation costs to Mine
Development expenditure;
transfer of
The necessity to assess management’s application
of the requirements of the accounting standard
Exploration
for and Evaluation of Mineral
Resources (“AASB 6”), in relation to capitalised
exploration and evaluation costs (which were
subsequently reclassified to development costs)
and the application of the requirements of the
accounting standard AASB 116, Property, Plant and
Equipment (AASB 116) in light of any indicators of
impairment that may be present; and
•
The assessment of significant judgements made by
management in relation to the capitalised Mine
Development expenditure.
Inter alia, our audit procedures included the
following:
i. Assessing the Group’s right to tenure over
the
exploration assets by corroborating
ownership of the relevant licences for mineral
resources
registries and
relevant third-party documentation;
to government
ii. Reviewing ASX announcements, minutes and
discussing with the Management to confirm
the intention to commence mining operations
at the Riley Iron Ore Project.
iii. Reviewing the directors’ assessment of the
the capitalised mine
carrying value of
development expenditures, ensuring
the
veracity of the data presented and assessing
management’s consideration of potential
impairment indicators, commodity prices and
operating costs;
in
the model. Assessed
iv. Evaluation of the NPV Model relating to the
Riley Iron Ore Project by corroborating the
accuracy and relevance of the input data
used
the
appropriateness of cash flow projections in
the calculation of the NPV, challenging the
reasonableness of the assumptions based on
our knowledge of the Company and published
market and industry data; and
v. Consideration of
requirements of
the
accounting standard AASB 116 and reviewed
the financial statements to ensure appropriate
disclosures are made.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2020, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of
material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Directors, as well as evaluating the overall presentation of the
financial report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore key audit matters. We
describe these matters in our auditor's report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 26 to 33 of the directors’ report for the year
ended 30 June 2020. The directors of the Company are responsible for the preparation and presentation
of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards
Opinion on the Remuneration Report
In our opinion, the Remuneration Report of Venture Minerals Limited for the year ended 30 June 2020
complies with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
25 September 2020
Additional Shareholder Information
Corporate Governance Statement
In accordance with ASX Listing Rule 4.10.3 the company’s Corporate Governance Statement can be found on
the
to http://www.ventureminerals.com.au/index.php/profile/corporate-
governance.
company’s website,
refer
Distribution of equity securities
Analysis of numbers of equity security holders by size of holding as at 18 September 2020 were as follows:
Holding
1- 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Holders of less than a marketable parcel: 1,268.
Substantial Shareholders
The names of the substantial shareholders as at 18 September 2020:
Shareholder
Republic Investment Management Pte Ltd
Number of shareholders
Fully Paid Ordinary Shares
190
536
426
1,838
1,093
4,086
Number
62,804,933
Voting Rights - Ordinary Shares
In accordance with the holding company's Constitution, on a show of hands every member present in person
or by proxy or attorney or duly authorised representative has one vote. On a poll every member present in
person or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary
share held.
Options
Exercise
price
Unlisted options $0.45
Unlisted options $0.50
Unlisted options $0.55
Unlisted options $0.001
Vesting conditions
Expiry date
To vest upon successfully obtaining
project financing for the Mt Lindsay
Tin/Tungsten Project
To vest upon first shipment of DSO ore
Vest upon company announcement that
it has made a decision to proceed with
mining tin in Tasmania
Unvested
18 months after
vesting
18 months after
vesting
18 months after
vesting
Number of
options
1,000,000
Number of
holders
1
2,000,000
2,500,000
1
1
12 April 2023
10,925,000 8
Venture Minerals Limited | 74
Additional Shareholder Information
Equity security holders
The names of the twenty largest ordinary fully paid shareholders as at 18 September 2020 are as follows:
Shareholder
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ELPHINSTONE HOLDINGS PTY LTD
DELPHI UNTERNEHMENSBERATUNG
AKTIENGESELLSCHAFT
CITICORP NOMINEES PTY LIMITED
MR MALCOLM JOHN MCCLURE
"INVIA CUSTODIAN PTY LIMITED
"
WGS PTY LTD
MR HAMISH PETER HALLIDAY
MR DANIEL WILLIAM GAPES
"ALFREDSTONN HOLDINGS PTY LTD
"
"INVIA CUSTODIAN PTY LIMITED
"
"PERSHING AUSTRALIA NOMINEES PT Y LTD
"
MR GREGORY JAMES DONNELLAN
"MR CHAD STEWART RINTOUL &
MS AMANDA LOUISE THOMAS"
"BNP PARIBAS NOMS PTY LTD
Number
% Held of Issued Ordinary
Capital
65,699,573
48,075,995
25,400,000
23,180,350
18,267,741
18,013,361
15,888,887
14,622,500
11,161,741
9,792,741
9,784,821
8,593,785
7,895,161
7,850,000
7,671,723
6,859,519
6,663,788
6,500,000
6,480,741
6,000,000
324,402,427
6.40%
4.69%
2.48%
2.26%
1.78%
1.76%
1.55%
1.43%
1.09%
0.95%
0.95%
0.84%
0.77%
0.77%
0.75%
0.67%
0.65%
0.63%
0.63%
0.58%
31.62%
Venture Minerals Limited | 75
Schedule of Tenements
As at 18 September 2020
Project
Mount Lindsay
Location
Tasmania
Tasmania
Tasmania
Tasmania
Tasmania
Tasmania
Tenement
3M/2012
5M/2012
7M/2012
EL21/2005
EL45/2010
EL72/2007
Kulin
Western Australia
E70/5077
Golden Grove North2
South West WA
Caesar Project1
Bottle Creek
Perrinvale South
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
E59/2285
P59/2116
E59/2243
E59/2244
E59/2288
E59/1989
E70/4837
E70/5067
E09/2131
E09/2213
P29/2425
P29/2426
P29/2427
E29/1076
E29/1077
Interest
100%
100%
100%
100%
100%
100%
100%
95%
100%
100%
100%
100%
0%3
100%
100%
0%
90%
100%
100%
100%
100%
100%
1
2
3
Key
EL or
E:
P
M:
Venture Minerals is earning up to a 90% interest from Muggon Copper Pty Ltd on E09/2131. E09/2213 is 90% held with a 10% interest
held by Muggon Copper Pty Ltd with Venture earning up to 100%.
A 5% interest is held by Galahad Resources Pty Ltd with Venture potentially earning up to 100%.
Venture Minerals is earning up to a 90% interest from Brightpoint Gold Pty Ltd on E59/1989.
Exploration Licence or Lease
Prospecting Lease
Mining Lease
Venture Minerals Limited | 76