Financial Position During the year, the Group issued 28,200,000 shares to Tulla Resources Group Pty Ltd and raised $1,551,000 and issued 78,200,000 shares to Great Tang Brothers Resource Investment Pty Ltd and raised $4,301,000. The share consideration were applied to working capital, RC and diamond(met) drilling, exploration, geological evaluation and Calder Maloney/White Range feasibility study upgrade, and mining tenement maintenance and retention costs. In July 2011, the Group secured a $3 million loan from Tulla Resources Group Pty Ltd. The loan is unsecured and will provide funds for working capital, the drilling program and updating the bankable feasibility study for the White Range project. Interest is charged on this loan at 10% p.a. and is repayable in October 2012. Tulla Resources Group is willing to extend the repayment until 30 November 2013 subject to certain conditions precedent which are currently being finalised. During the year, the Directors carried out a review on the carrying value of the Group’s assets and based on that review, the Group had recognised an impairment loss of $2,481,104. Details of the impairment loss are in the accompanied financial statements.
Newbie Thomas
QMN Price at posting:
5.0¢ Sentiment: Hold Disclosure: Held
