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QUARTERLY ACTIVITIES REPORT AND APPENDIX 5B
FOR THE QUARTER ENDING
The Board of
SUMMARY OF KEY UPDATES
· Dorfner/Anzaplan continued and completed metallurgical test work and pilot processing in Q4/2019, final report will be published in Q1/2020
· Core logging and assay testing from the summer drilling program was completed in Q4/2019 to convert JORC resource Inferred into Measured and Indicated category and upgrade resources to 10.98mt
· Application for the deep holes with more than 300m of depth covering phase 2 of the drilling program in Zone 1 has been lodged in Q4/2019 to the mining authority.
CORPORATE MATTERS
Placement
During the quarter, the Company issued 5.0m shares at an issue price of
Magna Financing Facility
As previously announced, the Company established a
During the quarter, Magna converted the remaining 103,260 convertible notes. As at
Winance Financing Facility
The Company previously announced that it had secured a
During the quarter, Winance converted 900 notes. As at
During the quarter, the Company announced that it had agreed to a long-term debt facility of
Debt Facility
On
The Debt Facility will allow the Company to repay the residual amount owing to Winance, to complete the DFS at the
Key terms and conditions of the Debt Facility are included in the announcement released on
Capital Movements
During the quarter, the Company issued the following securities:
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§
§
§
§
§
§
§
§
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Appendix 5B Quarterly Report and Statement of Cash Flows
The ASX Appendix 5B quarterly report is attached to and lodged with this report. The Company's Appendix 5B Quarterly Report covers the 3-month period from
EXPLORATION AND DEVELOPMENT ACTIVITIES
Drilling
In Q4 2019 drill core samples continued to be assayed at ALS laboratory in
Application for the deep holes with more than 300m of depth covering phase 2 of the drilling program in Zone 1 was lodged in Q4 2019 with the mining authority. An official hearing at the municipality involving compulsory public and private parties during the approval process took place on
Definitive Feasibility Study (DFS)
Results from Phase 1 of the summer drilling program (shallow holes <300m depth in Zone 1) are being assessed for eligibility to convert the JORC resource from Inferred into Measured and Indicated category and upgrade resources to 10.98mt. This will form the basis to convert the Measured and Indicated resources into JORC reserves during the DFS mine planning and scheduling.
During the 4th quarter
During the 4th quarter, Dorfner/Anzaplan completed the metallurgical test work to assess and optimize the process lines, flowsheets and layouts. This testing is to ensure a high-quality final product (Lithium Hydroxide) is produced using the most efficient and competitive metallurgical processes from the beginning of the production cycle. All metallurgic test work took place at the pilot plant for the
DRA Global has independently assessed and reviewed the metallurgical test work to complete the research in a timely manner and attended to all work stages at the testing facility in Hirschau,
Tenement Renewal
In Q4 2019 the company renewed 54 exploration and 11 mining licenses. The decision of the mining authority is based on the significant effort the Company has demonstrated to develop the
Hydrogeology
The Company continues a hydrogeology monitoring program on a weekly, monthly and quarterly time frame:
· Weekly monitoring includes measuring the water level at the surface and underground sites,
· Monthly monitoring includes sampling and analysing defined chemical and physical parameters,
· Quarterly monitoring includes water sampling and analysing water from previously defined field sites at a certified Austrian lab in
All hydrogeological data continues to be stored and secured into the Company's database.
The preparation work by SRK, and the geological consultant, GEO Unterweissacher, continues to ensure in-hole hydrogeological test work has been completed appropriately and can continue in future.
Data from the above activities is fed into a water measuring database from which an annual report is abbreviated.
Environmental
No environmental work has been carried out in Q4 2019.
Monitoring of water flows and quality from the mine have continued.
Product Marketing
The strategy for the Company remains unchanged and focuses on the supply of lithium hydroxide to the nascent lithium battery plants of
Horizon 2020
As reported in Q1/2019, the company's 100% owned subsidiary
During Q4 2019 the Company continued to work proactively in the already approved and funded Horizon 2020 LithRef programme.
Non-Executive Chairman
Competent Person's Statement
The information in this announcement pertaining to the
Tenement Status
The mining tenements held at the end of the quarter, acquired and disposed of during the quarter and their location:
Tenement reference |
Location |
Acquired interest during the quarter |
Disposed interest during the quarter |
Interest at the end of the quarter |
104/96 |
|
- |
- |
100% |
105/96 |
|
- |
- |
100% |
106/96 |
|
- |
- |
100% |
107/96 |
|
- |
- |
100% |
108/96 |
|
- |
- |
100% |
109/96 |
|
- |
- |
100% |
110/96 |
|
- |
- |
100% |
111/96 |
|
- |
- |
100% |
112/96 |
|
- |
- |
100% |
113/96 |
|
- |
- |
100% |
114/96 |
|
- |
- |
100% |
115/96 |
|
- |
- |
100% |
116/96 |
|
- |
- |
100% |
117/96 |
|
- |
- |
100% |
118/96 |
|
- |
- |
100% |
119/96 |
|
- |
- |
100% |
120/96 |
|
- |
- |
100% |
121/96 |
|
- |
- |
100% |
122/96 |
|
- |
- |
100% |
123/96 |
|
- |
- |
100% |
124/96 |
|
- |
- |
100% |
125/96 |
|
- |
- |
100% |
370/11(611/11) |
|
- |
- |
100% |
371/11(612/11) |
|
- |
- |
100% |
372/11(613/11) |
|
- |
- |
100% |
373/11(614/11) |
|
- |
- |
100% |
374/11(615/11) |
|
- |
- |
100% |
375/11(616/11) |
|
- |
- |
100% |
378/11(619/11) |
|
- |
- |
100% |
379/11(620/11) |
|
- |
- |
100% |
380/11(621/11) |
|
- |
- |
100% |
381/11(622/11) |
|
- |
- |
100% |
382/11(623/11) |
|
- |
- |
100% |
383/11(624/11) |
|
- |
- |
100% |
384/11(625/11) |
|
- |
- |
100% |
386/11(627/11) |
|
- |
- |
100% |
387/11(628/11) |
|
- |
- |
100% |
388/11(629/11) |
|
- |
- |
100% |
389/11(630/11) |
|
- |
- |
100% |
390/11(631/11) |
|
- |
- |
100% |
391/11(632/11) |
|
- |
- |
100% |
392/11(633/11) |
|
- |
- |
100% |
394/11(636/11) |
|
- |
- |
100% |
395/11(637/11) |
|
- |
- |
100% |
396/11(638/11) |
|
- |
- |
100% |
397/11(639/11) |
|
- |
- |
100% |
398/11(640/11) |
|
- |
- |
100% |
400/11(645/11) |
|
- |
- |
100% |
401/11(646/11) |
|
- |
- |
100% |
402/11(647/11) |
|
- |
- |
100% |
403/11(648/11) |
|
- |
- |
100% |
408/11(648/11) |
|
- |
- |
100% |
409/11(641/11) |
|
- |
- |
100% |
412/11(649/11) |
|
- |
- |
100% |
Andreas 1 |
|
- |
- |
100% |
Andreas 2 |
|
- |
- |
100% |
Andreas 3 |
|
- |
- |
100% |
Andreas 4 |
|
- |
- |
100% |
Andreas 5 |
|
- |
- |
100% |
Andreas 6 |
|
- |
- |
100% |
Andreas 7 |
|
- |
- |
100% |
Andreas 8 |
|
- |
- |
100% |
Andreas 9 |
|
- |
- |
100% |
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13,
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ABN |
|
Quarter ended ("current quarter") |
45 141 450 624 |
|
|
Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date (6 months) |
||
1. |
Cash flows from operating activities |
- |
- |
|
1.1 |
Receipts from customers |
|||
1.2 |
Payments for |
(1,534) |
(2,251) |
|
|
(a) exploration & evaluation |
|||
|
(b) development |
- |
- |
|
|
(c) production |
- |
- |
|
|
(d) staff costs |
- |
- |
|
|
(e) administration and corporate costs |
(274) |
(527) |
|
1.3 |
Dividends received (see note 3) |
- |
- |
|
1.4 |
Interest received |
1 |
3 |
|
1.5 |
Interest and other costs of finance paid |
- |
- |
|
1.6 |
Income taxes paid |
- |
- |
|
1.7 |
Research and development refunds |
- |
- |
|
1.8 |
Other (provide details if material) |
- |
- |
|
|
- Promotion and marketing related costs |
(19) |
(189) |
|
|
- Overseas listing fees |
- |
(19) |
|
1.9 |
Net cash from / (used in) operating activities |
(1,826) |
(2,983) |
|
|
||||
2. |
Cash flows from investing activities |
- |
- |
|
2.1 |
Payments to acquire: |
|||
|
(a) property, plant and equipment |
|||
|
(b) tenements (see item 10) |
- |
- |
|
|
(c) investments |
- |
- |
|
|
(d) other non-current assets |
- |
- |
|
2.2 |
Proceeds from the disposal of: |
- |
- |
|
|
(a) property, plant and equipment |
|||
|
(b) tenements (see item 10) |
- |
- |
|
|
(c) investments |
- |
- |
|
|
(d) other non-current assets |
- |
- |
|
2.3 |
Cash flows from loans to other entities |
- |
- |
|
2.4 |
Dividends received (see note 3) |
- |
- |
|
2.5 |
Other - Refund of costs |
- |
- |
|
2.6 |
Net cash from / (used in) investing activities |
- |
- |
|
|
||||
3. |
Cash flows from financing activities |
425 |
902 |
|
3.1 |
Proceeds from issues of shares |
|||
3.2 |
Proceeds from issue of convertible notes |
- |
2,000 |
|
3.3 |
Proceeds from exercise of share options |
- |
- |
|
3.4 |
Transaction costs related to issues of shares, convertible notes or options |
(18) |
(271) |
|
3.5 |
Proceeds from borrowings |
- |
- |
|
3.6 |
Repayment of borrowings |
- |
(812) |
|
3.7 |
Transaction costs related to loans and borrowings |
- |
- |
|
3.8 |
Dividends paid |
- |
- |
|
3.9 |
Other (provide details if material) |
- |
- |
|
3.10 |
Net cash from / (used in) financing activities |
407 |
1,819 |
|
|
||||
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
1,458 |
1,200 |
|
4.1 |
Cash and cash equivalents at beginning of period |
|||
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(1,826) |
(2,983) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
- |
- |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
407 |
1,819 |
|
4.5 |
Effect of movement in exchange rates on cash held |
(7) |
(4) |
|
4.6 |
Cash and cash equivalents at end of period |
32 |
32 |
|
5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
5.1 |
Bank balances |
32 |
1,458 |
5.2 |
Call deposits |
- |
- |
5.3 |
Bank overdrafts |
- |
- |
5.4 |
Other (provide details) |
- |
- |
5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
32 |
1,458 |
6. |
Payments to directors of the entity and their associates |
Current quarter |
6.1 |
Aggregate amount of payments to these parties included in item 1.2 |
39 |
6.2 |
Aggregate amount of cash flow from loans to these parties included in item 2.3 |
- |
6.3 |
Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 |
|
Director Fees paid to Directors (inclusive of GST)
|
7. |
Payments to related entities of the entity and their associates |
Current quarter |
7.1 |
Aggregate amount of payments to these parties included in item 1.2 |
48 |
7.2 |
Aggregate amount of cash flow from loans to these parties included in item 2.3 |
- |
7.3 |
Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 |
|
Payments included in item 7.1 are inclusive of GST and relate to payments to Director-related parties for office occupancy costs, capital raising fees, professional services and the reimbursement of business related travel and other expenses.
|
8. |
Financing facilities available |
Total facility amount at quarter end |
Amount drawn at quarter end |
8.1 |
Loan facilities |
- |
- |
8.2 |
Credit standby arrangements |
- |
- |
8.3 |
Other (Magna convertible security) |
10,000,000 |
2,000,000 |
8.4 |
Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. |
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The Company has established a convertible note facility with
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9. |
Estimated cash outflows for next quarter |
$A'000 |
9.1 |
Exploration and evaluation |
(1,565) |
9.2 |
Development |
- |
9.3 |
Production |
- |
9.4 |
Staff costs |
- |
9.5 |
Administration and corporate costs |
(579) |
9.6 |
Other - Loan and Convertible Note Repayment |
(524) |
9.7 |
Total estimated cash outflows |
(2,668)* |
* This is an estimate of the total cash outflows of the Company for the next quarter and does not take into account any anticipated cash inflows.
10. |
Changes in tenements |
Tenement reference and location |
Nature of interest |
Interest at beginning of quarter |
Interest at end of quarter |
10.1 |
Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced a |
- |
- |
- |
- |
10.2 |
Interests in mining tenements and petroleum tenements acquired or increased |
- |
- |
- |
- |
1.1 Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Notes
1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
- END -
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
Visit the Company's website to find out more about the advanced
For further information please contact:
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+61 861 819 792 |
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NEX Corporate Adviser |
+44 207 220 1666 |
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This information is provided by RNS, the news service of the