Wrap Text
Interim Financial Report for The Half-Year Ended 30 June 2016
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(“the Company” or “Tawana”)
INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2016
This information should be read in conjunction with the 31 December 2015 Annual Report
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
TAWANA RESOURCES NL
ABN 69 085 166 721
INTERIM FINANCIAL REPORT
FOR THE HALF-YEAR ENDED
30 JUNE 2016
This information should be read in conjunction with the
31 December 2015 Annual Report
Contents
Corporate Directory 3
Directors’ Report 4
Auditor’s Independence Declaration 11
General Information 12
Statement of Comprehensive Income 13
Statement of Financial Position 14
Statement of Changes in Equity 15
Statement of Cash Flows 17
Notes to the Financial Statements 18
Directors’ Declaration 23
Independent Auditor’s Review Report to the Members 24
Corporate Directory
Directors Solicitors to the Company
Mr Michael Bohm Non-Executive Chairman Steinepreis Paganin
Mr Rob Benussi Non-Executive Director Level 4, The Read Buildings
Mr Michael Naylor Executive Director 16 Milligan Street
Perth WA 6000
Joint Company Secretary
Share Registry
Mr Michael Naylor and Ms Melanie Li
Computershare Investor Services Pty Ltd
Principal Place of Business GPO Box 2975
and Registered Office Melbourne VIC 3001
288 Churchill Avenue Tel: +61 3 9415 5000
Subiaco WA 6008 Fax: +61 3 9473 2500
Contact Details Auditor
Website: www.tawana.com.au Ernst & Young
Tel: +61 8 9489 2600 The Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited (South Africa)
JSE Code: TAW
Directors’ Report
The Directors present their report on Tawana Resources NL (“the Company”) and its controlled
entities (“Tawana” or “the consolidated entity”) for the half-year ended 30 June 2016.
Directors
The names of the Directors in office at any time during or since the end of the half-year are as follows:
Mr Michael Bohm – Non-Executive Chairman
Mr Michael Naylor – Executive Director
Mr Robert Benussi – Non-Executive Director
All Directors have been in office for this entire period unless otherwise stated.
Operating results
The loss of the consolidated entity for the half-year ended 30 June 2016 after providing for income tax
amounted to $561,730 (to 30 June 2015: $875,536).
No dividends were declared or paid during the half-year ended 30 June 2016.
Review of operations
Mt Belches Lithium Projects
In August 2016, Tawana acquired the Mount Belches Pty Ltd (“Mt Belches”), which has one tenement
application and rights (via an option agreement) to acquire 100% of three exploration licences and
one exploration licence application, all of which are highly prospective for lithium and located in the
Goldfields region of Western Australia.
The Cowan Lithium Project (“Project”) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt Marion Lithium
project.
The Project area comprises Archaean quartz-biotite metasediments and amphibolites of the Eastern
Goldfields Terrane of the Yilgarn Craton. These metasediments trend north-south and have been
intruded by large numbers of pegmatites.
Two main belts of rare element Lithium-Caesium-Tantalum type (“LCT”) pegmatites are known in the
Project area. LCT type pegmatites are derived from highly siliceous, peraluminous (S-Type, ‘fertile’
granites) as highly fractionated granitic melts. These fractionated melts contain the rare elements (Be,
Rb, Cs, Sn, Nb, Ta etc) and a high volatile content (H2O, F, B, P and Li). Petr ?erný's pegmatite
classification (?erný 1991) is the accepted standard. Under this pegmatite classification scheme the
Project area is prospective for:
i) LCT Albite-spodumene: These are typically unzoned, homogeneous pegmatites with subhedral
spodumene in a quartz-albite matrix. The Mt Marion pegmatites (located 75km to the northwest)
are examples of this subclass.
ii) LCT Albite: Zoned albite pegmatites have a fine grained albite and quartz border zone with
albite, often of the cleavelandite variety, as the central pegmatite zone. Small quartz lenses and
scattered pods of coarsely crystallized quartz, microcline with accessory minerals of beryl and
phosphates with mica are found irregularly within the albite.
iii) LCT Complex: There are considered to be four subclasses depending upon which Li-bearing
mineral is dominant in the pegmatite.
a) Spodumene: spodumene-dominant lithium-bearing pegmatites that are zoned and
mineralogically complex (Greenbushes, Mt Cattlin).
b) Petalite: Zoned pegmatites dominated by petalite and/or its alteration products
(Londonderry 105km WNW).
c) Lepidolite: Pegmatites simple or zoned with are rich in lepidolite (Mt Deans 105km SW).
d) Amblygonite: Amblygonite-rich pegmatites (Ubini).
Directors’ Report
The two large LCT pegmatite belts in Project area are:
1) Mt Belches – Bald Hill (“MBBH Belt”)
This pegmatite belt striking north/north west extends for at least 15km, however likely extends
for at least 25km under transported cover. A large number of albite rich and LCT type Albite-
Spodumene pegmatites occur over a width of about 4km. Previous exploration and
exploitation has been focused on tantalum and tin. About 10km strike of the belt is located on
the Mount Belches tenements.
2) Claypan Dam- Madoonia (“CDM Belt”)
This less explored north west oriented LCT pegmatite belt has a strike of at least 22km and
width of at least 7km. The belt is known to contain LCT Albite pegmatites with tantalite and tin
and potentially hosts LCT Albite-Spodumene pegmatites. A significant portion of the belt is
covered by the Mount Belches tenements.
The Yallari Project is located 25km southeast of Coolgardie and about 10km west of Mt Marion. The
project areas cover portions of the greenstone sequence that hosts the Mt Marion and Londonderry
pegmatite fields. Numerous pegmatites have been mapped by nickel and base metal explorers however
there are no records on the rare element content of the pegmatites. These pegmatites based on their
mineralogy are probably derived from a peraluminous and possible ‘fertile’ granite. The geological setting
of the pegmatites and the proximity to the Mt Marion and Londonderry lithium bearing pegmatite fields is
encouraging.
Mofe Creek Iron Ore Project
Tawana’s 100% owned Mofe Creek Project (“the Project”) is in the heart of Liberia’s historic iron ore
district, located 20km from the coast and 80km from the country’s capital city and major port,
Monrovia (refer figure 2).
Mineral Development Agreement
The Company is awaiting a formal response from Liberia’s IMCC with regard to the first pass
submission of Tawana Liberia Inc.’s Mineral Development Agreement (“MDA”). A response is
anticipated by the end of 2016.
The MDA is an agreement outlining the technical, commercial and social/environmental
commitments to be undertaken to build, operate and sustain a project within Liberia, and is a
legislative document passed as a bill in parliament for a term of 25 years.
Infrastructure and Logistics
On 18 May 2015, Tawana and WISCO CAD (Hong Kong) Mining Company Limited (WISCO) signed a
non-binding memorandum of understanding (MoU)1 to negotiate in good faith, a potential definitive
Cooperation Agreement between the parties in relation to access and use of WISCO CAD’s port
facilities in the port of Freeport, Monrovia. Negotiations are ongoing.
Exploration
In February 2016, Tawana announced that diamond drilling had confirmed the presence of high grade
DSO style hematite mineralisation, with iron grades up to 66% Fe, located a short trucking distance to
the operating port of Freeport, Monrovia.
Six diamond drill holes (376.5m) were drilled over the north east section of the Goehn Prospect where
there was a concentration of high grade Magnetite/Hematite mineralisation mapped and samples
reported an average grade of 66% Fe (Refer to ASX Announcement of 8 July 2015)2.
The six holes were drilled across two lines 200m apart on nominal 50m drill spacing. The program
was designed to test at depth the identified DSO and high grade friable iron formation from previous
field work. The program was successful as all the holes intersected either DSO or high grade friable
iron formation or a combination of both, see Figure 5.
Directors’ Report
The core was processed on site with assays taken every meter by a hand held XRF machine with
appropriate QAQC procedures followed. Table 2 lists all significant assay results from the six drilled
holes.
Table 1. Drill program for Goehn prospect3
Hole ID Hole Type East North RL Dip Azimuth Hole depth
(m)
GSEDD01 NQ core 269,303 755,744 107 -50 330 40
GSEDD02 NQ core 269,337 755,694 96 -50 330 66
GSEDD03 NQ core 269,431 755,856 93 -50 305 53.4
GSEDD03A NQ core 269,431 755,847 92 -60 305 77.4
GSEDD04 NQ core 269,397 755,879 110 -50 305 68.4
GSEDD05 NQ core 269,361 755,910 112 -50 125 71.3
Co-ordinate system: UTM WGS84 Zone 29N
Table 2. Significant assay results3
Hole ID Depth Depth Intersection Fe % Si % Al % P% S%
From (m) To (m) (m)
GSEDD001 1 12 11 60.2 1.8 6.3 0.03 0.04
20 36 16 45.0 4.4 5.7 0.03 BDL
GSEDD002 3 14 11 50.9 2.1 4.7 0.01 BDL
27 45 18 44.9 5.2 5.2 0.02 BDL
51 66 15 44.5 3.2 1.6 0.02 0.08
GSEDD003 1 29 28 51.5 1.1 1.4 BDL BDL
including 1 5 4 63.3 0.6 0.8 BDL BDL
GSEDD003A surface 11 11 52.9 1.7 2.2 BDL BDL
including 1 5 4 60.9 1.4 1.7 BDL BDL
GSEDD004 2 20 18 51.2 1.3 1.9 BDL BDL
including 4 9 5 59.0 0.8 1.3 BDL BDL
28 42 14 61.1 0.9 1.3 BDL BDL
49 62 13 51.7 1.0 0.7 BDL BDL
GSEDD005 surface 22 22 54.5 1.6 2.0 BDL BDL
including 3 15 12 62.1 1.4 1.8 BDL BDL
26 35 9 52.1 1.9 3.1 BDL BDL
including 31 34 3 62.1 1.8 3.2 BDL BDL
41 48 7 55.0 2.0 2.3 BDL BDL
including 45 48 3 63.6 1.8 2.1 BDL BDL
50 66 16 49.8 1.2 1.4 BDL BDL
Note: All results reported using a handheld XRF machine and are considered semi-quantative in
nature. BDL = Below detection limit.
Tawana is considering a range of potential options to unlock value for shareholders, including joint
venture or outright sale options.
Corporate
Share Consolidation
On 8 April 2016, the Company completed a one-for-twenty consolidation of its issued capital. The
consolidation resulted in the shares on issue being reduced from approximately 1,475.3 million to
73.8 million (before any subsequent capital raising).
All outstanding options were also consolidated on the same ratio which resulted in a total of 1.12
million options on issue.
Directors’ Report
Rights Issue
In June 2016, the Company completed a fully subscribed 1 for 1 pro rata non-renounceable rights
issue at an issue price of $0.015 raising $1,106,441 before costs.
Sale of Subsidiary
In January 2016, BlueRock Diamonds purchased the Company’s total shareholding and loan account
in Diamond Resources (a 100% owned subsidiary of Tawana Resources NL) for ZAR 700,000
(A$70,300).
Events occurring after the reporting period
Placement
Subsequent to 30 June 2016, the Company raised $1,750,000 by issue of shares at a price of $0.025
per share as follows:
- In July, Tranche 1 of the capital raising was completed and 19,620,000 ordinary shares at an issue
price $0.025 per share were issued to sophisticated investors.
- Tranche 2 of 50,400,000 shares at an issue price of $0.025 per share was approved by
shareholders at the General Meeting held on 23 August 2016. The Directors participated in the
placement and were issued 2,000,000 shares each at $0.025 per shares.
Appointment of Chief Executive Officer
Mark Calderwood was appointed Chief Executive Officer (“CEO”) of the Company effective 11 July
2016. He has extensive experience in mineral exploration and production management, he is an
authority on pegmatites and was a co-author of the ‘Pegmatites of Western Australia”. Mr Calderwood
was CEO of Perseus Mining Limited for 9 years and is currently non-executive director of three junior
gold explorers. Mr Calderwood has the requisite 5 years’ experience for reporting on the results of
rare metal pegmatite exploration.
Completion of Acquisition of Mt Belches Pty Ltd
On 23 August 2016, the shareholders of Tawana approved the purchase of Mt Belches Pty Ltd. The
Company subsequently issued 40,000,000 shares to the owners of My Belches Pty Ltd, which has
one tenement application and rights (via an option agreement) to acquire 100% of three exploration
licences and one exploration licence application, all of which are highly prospective for lithium and
located in the Goldfields region of Western Australia. The acquisition of Mt Belches Pty Ltd has been
treated as an acquisition of an exploration asset.
Issue of Options
In July 2016, the Company issued 3,000,000 options to the Chief Executive Officer at an exercise
price of $0.06 per option and an expiry date of 30 June 2019.
At the General Meeting held on 23 August 2016, shareholders approved the issue of 1,000,000
options to each of the Directors at an exercise price of $0.06 per option and an expiry date of 30 June
2019.
Auditor’s independence declaration
The lead auditor’s independence declaration for the half-year ended 30 June 2016 has been received
and is attached to this Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Michael Naylor
Executive Director
Dated this 12th day of September 2016
Competent Persons Statement
Mt Belches Lithium Projects
Directors’ Report
The information in this announcement that relates to Mt Belches Exploration Results is based on and fairly
represents information and supporting documentation compiled by Mr Mark Calderwood. Mr Calderwood is a
member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood has sufficient experience
relevant to the style of mineralisation 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 Calderwood consents to the inclusion in this
report of the matters based on their information in the form and context in which it appears.
Mofe Creek Iron Ore Project
The information in this report that relates to Mofe Creek Iron ore Exploration Results and Resources is based
on information compiled by Shane Tomlinson, who is a member of the Australian Institute of Geoscientists.
Shane Tomlinson has sufficient experience which is relevant to the style of mineralisation and type of deposit
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’. Shane Tomlinson consents to the inclusion of the matters in this report based on his information in
the form and context in which it appears.
Notes
1: Disclaimer
(i) The MOU represents a non-binding intention of the parties to negotiate a formal cooperation
agreement in good faith. The parties are yet to agree on any definitive operational,
commercial and/or legal terms (including tonnage capacity or delivery schedules) for the
cooperation agreement;
(ii) there is no certainty or assurance that parties will reach a final agreement on the terms of the
cooperation agreement.
Refer to ASX announcement on 18 May 2015 for further information.
2: For more information, refer ASX announcement. Tawana Resources NL is not aware of any new
information or data that materially effects the information included in the said announcement.
3:For more information, refer ASX announcement on 18 February 2016. Tawana Resources NL is not
aware of any new information or data that materially effects the information included in the said
announcement.
Auditor’s Independence Declaration
Auditor’s Independence Declaration to the Directors of Tawana Resources NL
As lead auditor for the review of Tawana Resources NL for the half-year ended 30 June 2016, I declare to the
best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the review; and
b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Tawana Resources NL and the entities it controlled during the financial period.
Ernst & Young
R J Curtin
Partner
12 September 2016
General Information
The half year consolidated financial statements cover Tawana Resources NL as a consolidated entity
consisting of Tawana Resources NL and its subsidiaries. The half year consolidated financial
statements are presented in Australian dollars, which is Tawana Resources NL’s functional and
presentation currency.
Tawana Resources NL is a listed public company limited by shares, incorporated and domiciled in
Australia. Its registered office and principle place of business are:
288 Churchill Avenue
SUBIACO WA 6008
Telephone: +61 8 9489 2600
website: www.tawana.com.au
A description of the nature of the consolidated entity’s operations and its principle activities are
included in the directors’ report which is not part of the half year consolidated financial statements.
The half year consolidated financial statements were authorised for issue, in accordance with a
resolution of directors on 12 September 2016.
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2016
Note 30 June 2016 30 June 2015
$ $
Continuing operations
Income 3 6,274 18,953
Corporate costs 3 (313,356) (461,138)
Depreciation (13,243) (34,166)
Employee benefits expense 3 (107,479) (315,645)
Share-based payments - (118,421)
Exploration expenses written off (132,974) -
Foreign exchange gain 638 67,081
Other expenses (1,590) -
Loss before income tax expense (561,730) (843,336)
Income tax expense - -
Net loss for the period from
continuing operations (561,730) (843,336)
Loss from discontinued operations
after tax - (32,200)
Net loss for the period attributable
to Tawana Resources NL (561,730) (875,536)
Other comprehensive (loss)/income
Items that may be reclassified to profit
or loss
(Loss)/gain on translation of foreign
operations (1,821) 208,868
Total comprehensive loss for the
period attributable to Tawana
Resources NL (563,551) (666,668)
Basic and diluted loss per share from
continuing and discontinued operations
(cents) 11 (0.67) (1.40)
Basic and diluted loss per share from
continuing operations (cents) 11 (0.67) (1.40)
Basic and diluted loss per share from
discontinued operations (cents) 11 N/A (0.04)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
Consolidated Statement of Financial Position
As at 30 June 2016
Note 30 June 31 December
2016 2015
$ $
Current assets
Cash and cash equivalents 4 1,213,012 808,342
Receivables 150,701 82,549
Total current assets 1,363,713 890,891
Non-current assets
Plant and equipment 5 45,918 60,416
Total non-current assets 45,918 60,416
Total assets 1,409,631 951,307
Current liabilities
Trade and other payables 303,038 339,088
Provisions - 4,161
Total current liabilities 303,038 343,249
Non-current liabilities
Provisions 15,919 15,441
Total non-current liabilities 15,919 15,441
Total liabilities 318,957 358,690
Net assets 1,090,674 592,617
Equity
Contributed equity 6(a) 55,451,796 54,419,776
Reserves 2,165,943 2,166,972
Accumulated losses (56,527,065) (55,994,131)
Total equity 1,090,674 592,617
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2016
Reserves
Issued Options Foreign Other Accumulated Total
capital Reserve Currency Reserves losses
Reserve
$ $ $ $ $ $
Balance at 1
January 2016 54,419,776 411,645 1,732,443 22,884 (55,994,131) 592,617
Comprehensive
income
Loss for the
period - - - - (561,730) (561,730)
Other
comprehensive
loss for the
period - - (1,821) - - (1,821)
Total
comprehensive
loss for the
period - - (1,821) - (561,730) (563,551)
Transactions
with
owners in their
capacity as
owners
Shares issued,
net of costs 1,032,020 - - - - 1,032,020
Options
exercised or
lapsed - (28,796) - - 28,796 -
Options issued
and vested - 29,588 - - - 29,588
Total
transactions with
owners in their
capacity as
owners 1,032,020 792 - - 28,796 1,061,608
Balance at 30
June 2016 55,451,796 412,437 1,730,622 22,884 (56,527,065) 1,090,674
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2016
Reserves
Issued Options Foreign Other Accumulate Total
capital Reserve Currency Reserv d losses
Reserve es
$ $ $ $ $ $
Balance at 1
January 2015 54,419,776 1,929,719 1,062,674 22,884 (47,936,896) 9,498,157
Restatement of
comparatives - - - - (218,380) (218,380)
54,419,776 1,929,719 1,062,674 22,884 (48,155,276) 9,279,777
Comprehensive
income
Loss for the
period - - - - (875,536) (875,536)
Other
comprehensive
income for the
period - - 208,868 - - 208,868
Total
comprehensive
income/(loss) for
the period - - 208,868 - (875,536) (666,668)
Transactions
with
owners in their
capacity as
owners
Shares issued,
net of costs - - - - - -
Options
exercised or
lapsed - (502,214) - 502,214 - -
Options issued
and vested - 118,421 - - - 118,421
Total transactions
with
owners in their
capacity as
owners - (383,793) - 502,214 - 118,421
Balance at 30
June 2015 54,419,776 1,545,926 1,271,542 525,098 (49,030,812) 8,731,530
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2016
Note 30 June 2016 30 June 2015
$ $
Cash flows from operating activities
Payments to suppliers and employees (586,227) (823,579)
Interest received 4,238 18,953
Other income 1,400 -
Net cash flows used in operating activities (580,589) (804,626)
Cash flows from investing activities
Proceeds from disposal of plant and equipment 9,540 -
Payments for exploration (128,744) (423,557)
Cash disposed as a part of discontinued operations - (32,650)
Proceeds received in advance for sale of subsidiary 70,813 -
Net cash flows used in investing activities (48,391) (456,207)
Cash flows from financing activities
Proceeds from issue of shares 1,077,395 -
Capital raising costs (44,415) -
Net cash flows from financing activities 1,032,980 -
Net (decrease)/increase in cash and cash
equivalents 404,000 (1,260,833)
Cash and cash equivalents at beginning of period 808,342 2,802,978
Effects of exchange rates on cash holdings in
foreign currencies 670 70,431
Cash and cash equivalents at end of period 4 1,213,012 1,612,576
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes.
Notes to the Financial Statements
For the half-year ended 30 June 2016
1. Basis of preparation
These half-year consolidated financial statements are general purpose condensed financial
statements prepared in accordance with the requirements of the Corporations Act 2001 and
Australian Accounting Standard AASB 134: Interim Financial Reporting.
It is recommended that these financial statements be read in conjunction with the annual
financial report for the year ended 31 December 2015 and any public announcements made by
Tawana Resources NL and its controlled entities (“the Group”) during the half-year in
accordance with continuous disclosure requirements arising under the Corporations Act 2001.
The half-year financial statements do not include full disclosures of the type normally included in
annual financial statements.
The accounting policies applied by the Group in the consolidated interim financial statements
are the same as those applied by the Group in its consolidated financial report for the year
ended 31 December 2015.
All new and amended Accounting Standards and Interpretations effective from 1 January 2016
have been adopted. The adoption of these new standards and interpretations had no effect on
the financial position of performance of the Group.
Reporting Basis and Conventions
The half-year financial statements have been prepared on an accruals basis and are based on
historical costs.
2. Dividends
No dividend has been declared or paid during the half-year or the previous corresponding
period.
3. Revenue and Expenses
30 June 30 June
2016 2015
$ $
Revenue
Interest Received 4,774 18,953
Other Income 1,500 -
6,274 18,953
Expenses
Corporate expenses include:
Auditors’ remuneration 53,198 49,194
Compliance and regulatory fees 62,988 48,395
Consultancy and legal fees 35,352 141,818
Travel expenses 6,941 50,236
Other expenses 154,877 171,495
313,356 461,138
Employee benefits expenses include:
Salaries and wages 45,763 232,374
Superannuation 3,014 27,817
Directors’ fees 62,208 47,395
Other employee expenses (including
movements in provision for annual leave
and long service leave) (3,506) 8,059
107,479 315,645
Notes to the Financial Statements
For the half-year ended 30 June 2016
4. Cash and cash equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents are
comprised of the following:
30 June 31 December
2016 2015
$ $
Cash at bank and in hand 1,213,012 788,342
Short term deposits - 20,000
Total cash and cash equivalents 1,213,012 808,342
5. Property, Plant and Equipment
30 June 31 December
2016 2015
$ $
Gross carrying amount
Balance at beginning of the year 292,285 1,210,415
Disposals (119,562) (926,237)
Foreign currency translation 598 8,107
Balance at end of the year 173,321 292,285
Accumulated depreciation
Balance at beginning of the year 231,869 1,105,682
Depreciation 13,243 52,327
Depreciation reversal on disposal (119,562) (926,237)
Foreign currency translation 1,853 97
Balance at end of the year 127,403 231,869
Net book value 45,918 60,416
6. Contributed equity
(a) Movements in share capital
30 June 31 December
2016 2015
$ $
Ordinary shares, fully paid 55,451,796 54,419,776
Movement in ordinary shares on issue
Number $
Balance at 1 January 2016 1,475,250,387 54,419,776
Less share consolidation 20:1 (1,401,487,636) -
Shares issued 73,762,751 1,106,441
Share issue costs - (74,421)
Balance at 30 June 2016 147,525,502 55,451,796
Notes to the Financial Statements
For the half-year ended 30 June 2016
(b) Share options
Exer- Expiry date Balance at Options Issued Expired or Balance at
cise beginning of consoli- during the forfeited or end of
price period dation period lasped period
during the
period
Number Number Number Number Number
Unlisted options $0.30 12 Dec 16 1,500,000 (1,425,000) - - 75,000
Unlisted options $0.36 12 Dec 16 10,000,000 (9,500,000) - - 500,000
Unlisted options $0.78 20 Jan 17 1,000,000 (950,000) - (50,000) -
Unlisted options $0.178 26 May 18 11,000,000 (10,450,000) - - 550,000
Unlisted options $0.008 7 Jul 18 2,000,000 (1,900,000) - (100,000) -
Unlisted options $0.035 14 Jun 18 - - 2,500,000 - 2,500,000
25,500,000 (24,225,000) 2,500,000 (150,000) 3,625,000
The valuation inputs used in determining the fair value of the options granted (using the Black-
Scholes model) during the half-year were as follows:
Quantity 2,500,000
Grant date 16 Jun 16
Expiry date 14 Jun 18
Grant date share price $0.026
Exercise price $0.035
Expected volatility 100%
Option life (years) 2
Expected dividend yield 0%
Risk free rate at grant date 1.55%
7. Segment information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed
and used by the Board of Directors (the chief operating decision makers) in assessing
performance and in determining the allocation of resources.
The Group only has one segment being, mineral exploration in Liberia. Accordingly, all
significant operating disclosures are based upon analysis of the Group as one segment. The
financial results from this segment are equivalent to the financial statements of the Group as a
whole.
8. Contingent assets and liabilities and commitments
There has been no significant change to contingent liabilities and commitments since 31
December 2015.
9. Related party transactions
There have been no other significant transactions with related parties that were entered into
during the period.
10. Financial instruments
The fair value of financial assets and financial liabilities of the Group approximated their
carrying amount.
Notes to the Financial Statements
For the half-year ended 30 June 2016
11. Loss per share
30 June 30 June
2016 2015
Loss from continuing and discontinuing operations used in
the calculation of basic EPS (561,730) (875,536)
Loss from continuing operations used in the calculation of
basic EPS (561,730) (843,336)
Loss from discontinued operations used in the calculation
of basic EPS - (32,200)
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share (share
consolidation 20:1 in 2016) 83,249,707 81,859,315
The loss per share calculation as disclosed on the Consolidated Statement of Comprehensive
Income does not include instruments that could potentially dilute basic earnings per share in the
future as these instruments were anti-dilutive in the periods presented.
The comparative weighted average number of share on issue has been adjusted for the share
consolidation and rights issue completed during the 6 months to 30 June 2016.
Headline loss per share disclosed as required by the JSE Limited is detailed below:
30 June 30 June
2016 2015
Headline loss (561,730) (875,536)
Headline loss per share (cents) 0.67 1.40
12. Subsequent events
Placement
Subsequent to 30 June 2016, the Company raised $1,750,000 by issue of shares at a price of $0.025
per share as follows:
- In July, Tranche 1 of the capital raising was completed and 19,620,000 ordinary shares at an issue
price $0.025 per share were issued to sophisticated investors.
- Tranche 2 of 50,400,000 shares at an issue price of $0.025 per share was approved by
shareholders at the General Meeting held on 23 August 2016. The Directors participated in the
placement and were issued 2,000,000 shares each at $0.025 per shares.
Appointment of Chief Executive Officer
Mark Calderwood was appointed Chief Executive Officer (“CEO”) of the Company effective 11 July
2016. He has extensive experience in mineral exploration and production management, he is an
authority on pegmatites and was a co-author of the ‘Pegmatites of Western Australia”. Mr Calderwood
was CEO of Perseus Mining Limited for 9 years and is currently non-executive director of three junior
gold explorers. Mr Calderwood has the requisite 5 years’ experience for reporting on the results of
rare metal pegmatite exploration.
Completion of Acquisition of Mt Belches Pty Ltd
On 23 August 2016, the shareholders of Tawana approved the purchase of Mt Belches Pty Ltd. The
Company subsequently issued 40,000,000 shares to the owners of My Belches Pty Ltd, which has
one tenement application and rights (via an option agreement) to acquire 100% of three exploration
licences and one exploration licence application, all of which are highly prospective for lithium and
Notes to the Financial Statements
For the half-year ended 30 June 2016
located in the Goldfields region of Western Australia. The acquisition of Mt Belches Pty Ltd has been
treated as an acquisition of an exploration asset.
Issue of Options
In July 2016, the Company issued 3,000,000 options to the Chief Executive Officer at an exercise
price of $0.06 per option and an expiry date of 30 June 2019.
At the General Meeting held on 23 August 2016, shareholders approved the issue of 1,000,000
options to each of the Directors at an exercise price of $0.06 per option and an expiry date of 30 June
2019.
13. Restatement of comparative information
The opening equity balance at 1 January 2015 in these financial statements has been restated to
adjust for the reclassification of the R&D tax rebate of $218,380 from the profit or loss to capitalised
exploration expenditure in the statement of financial position during the financial year ended 31
December 2014.
This restatement did not impact financial position of the Group as at 30 June 2015 and for the half-
year then ended.
Directors’ Declaration
In accordance with a resolution of the Board of Directors, I state that:
In the opinion of the Directors:
1. The interim financial statements and notes are in accordance with the Corporations Act 2001
and:
(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001; and
(b) Give a true and fair view of the financial position of the consolidated entity as at 30 June
2016 and of its performance for the half-year ended on that date.
2. There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
On behalf of the Board
Mr Michael Naylor
Executive Director
Dated this 12th day of September 2016
Independent Auditor’s Report
To the members of Tawana Resource NL
Report on the Half-year Financial Report
We have reviewed the accompanying half-year financial report of Tawana Resources NL, which comprises the
consolidated statement of financial position as at 30 June 2016, the consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year
ended on that date, notes comprising a summary of significant accounting policies and other explanatory
information, and the directors’ declaration of the consolidated entity comprising the company and the entities it
controlled at the half-year end or from time to time during the half-year.
Directors’ Responsibility for the Half-year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal controls as the directors determine are necessary to enable the preparation of the half-year financial
report that is free from material misstatement, whether due to fraud or error .
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a
Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of
the procedures described, we have become aware of any matter that makes us believe that the financial report is
not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated
entity’s financial position as at 30 June 2016 and its performance for the half-year ended on that date; and
complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001. As the auditor of Tawana Resources NL and the entities it controlled during the half-year, ASRE 2410
requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be identified
in an audit. Accordingly, we do not express an audit opinion.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is
included in the Directors’ Report.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that
the half-year financial report of Tawana Resources NL is not in accordance with the Corporations Act 2001,
including:
a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its
performance for the half-year ended on that date; and
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
Ernst & Young
R J Curtin
Partner
Perth
12 September 2016
Date: 12/09/2016 10:27:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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