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SUREFIRE RESOURCES NL Interim / Quarterly Report 2024
65857_rns_2024-10-30_2cbe8c37-94cf-47f9-92b7-81fb6591d81d.pdf
Interim / Quarterly Report
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QUARTERLY ACTIVITIES REPORT SEPTEMBER 2024
Surefire ResourcesNL ("Surefire", or "theCompany")is pleased to report on its activities for the quarter ending 30 September 2024.
Figure 1: Surefire Resources Project Location Map
VICTORY BORE PROJECT: E57/1036 and M 57/667
The Victory Bore Project is the Company's flagship project comprising a world-scale critical and battery minerals deposit located in the resource rich Mid-West of Western Australia approximately 530km north of Perth. The project is well located close to existing infrastructure of power and road links. The Company completed a Pre-Feasibility Study on the project in December 2023 (see ASX announcement 5 December 2023).
Figure 2: Location of Victory Bore and Unaly Hill projects, over airborne magnetic image.
Project Status
- Pre- Feasibility Study completed (December 2023)
- 24-year mine life
- NPV10 AU $1.7B
- IRR 42%
- Ore Reserve
- Mining Licence in application
- Environmental Surveys
- Heritage surveys
- Offshore processing will allow low operating costs and production close to market
- MOU with Saudi Government
- MOU with Ajlan Bros Mining and Metals
- HOA with DRA Global
- Mid-West Port agreement
Mineral Resources
The project is one of the largest vanadium resources in Australia with a Mineral Resource Estimate (MRE) of 464Mt @ 0.3% V2O5, 5.12% TiO2, 17.7% Fe, and an Ore Reserve of 93Mt@ 0.35% V2O5, 5.2% TiO2, 19.8% Fe (see ASX announcement 5 December 2023), and appendix A.
Development
The Company is progressing the development of a mining and beneficiation operation at the Victory Bore deposit site to produce a high-quality magnetite concentrate.
The magnetite concentrate will then be transported to Geraldton Port and on-shipped to Port Daaman in the Kingdom of Saudi Arabia (KSA), where a downstream processing facility will be established to produce high purity products of Vanadium Pentoxide, Ferrovanadium, vanadium electrolyte, Pig-Iron, Iron oxide. Titanium slag.
The Company is progressing discussions with Saudi entities for this processing facility (see below).
DRA Global
During the quarter the Company executed a Heads of Agreement (HOA) with international engineering group DRA Global for a total engineering services package.
DRA is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals and metals industry. The Group has an extensive track record across a wide range of commodities and deep expertise in the mining, minerals and metals processing industries, as well as related non-process infrastructure such as water and energy solutions. DRA covers all major mining centres with offices across Africa, the Middle East, North and South America, and Asia-Pacific.
The agreement with DRA provides Surefire with study, Engineering Procurement Construction Management (EPCM), Non-Process Infrastructure (NPI), Project delivery, operational readiness and operations & maintenance (OM) services, subject to future agreements between the Parties for the provision of those services when required.
DRA also has significant major project experience and expertise in mineral processing and mining operations in Saudi Arabia and Australia which will be beneficial to Surefire' s development plans. The agreement with DRA will also assist and support Surefire in any project development, project delivery and project finance discussions.
Magnetite Concentrate
The Company is continuing to investigate the potential to produce the magnetite concentrate on site and then ship this direct to steel mills or blast furnace operations in China/Asia that can accept an Iron-Vanadium concentrate. The Victory Bore concentrate contains good grades of Iron, Vanadium and Titanium. Approaches have been made to Chinese and Japanese companies.
Logistics
During the quarter the Company has progressed discussions with logistic groups for the mining and transport of the concentrate.
Meetings have occurred with Verbrec regarding the Mid-West Shared Infrastructure Project (MWSIP) in relation to a proposed multi – user slurry pipeline for magnetite concentrates.
Mid-West Ports (Geraldton)
Discussions with the port authority on the availability of loading facilities and concentrate storage were carried out, to put the Victory Bore project on their forward-looking schedule of projects.
Offtake
During the quarter the Company held discussions with leading vanadium and ferrous trading groups.
Kingdom of Saudi Arabia
The Company has engaged with the Kingdom of Saudi Arabia as it is a low power and fuel cost jurisdiction and provides the Company with significant operational advantages including reduction in operating costs favourable incentives for funding, availability of infrastructure and reagents. The KSA also has a significant steel sector with demand for iron and vanadium products, including ferrovanadium.
The company has had further contact and discussions with Saudi based companies during the quarter and has engaged with SABIC, Ministry of Industry and Mineral Resources and Metals(MIMM) and the Saudi Industrial Centre (SIC) together with Austrade and the Saudi Embassy who remain available to assist with any visits and or meetings.
Ajlan & Bros. Mining and Metals
During the quarter the Company progressed discussions with Ajlan & Bros. Mining and Metals (Ajlan) Due diligence has been completed by Ajlan and management is in continued discussions regarding their investment structure for the project. A detailed business plan was prepared and the MOU with Ajlan was extended.
Definitive Feasibility Study
During the quarter, Management assessed work quotations for the Definitive Feasibility Study in conjunction with other work streams on the project.
Research and Development
Vanadium Extraction by Leach
During the quarter the Company continued testwork with the aim of producing physical samples of vanadium pentoxide and vanadium electrolyte from the successful leach, (see ASX announcement 24 January 2024).
This test work has repeated the earlier extraction results however unexpected chemical interactions were encountered and there was insufficient liquor to then undertake the solvent extraction and precipitation phases.
The Company is pleased it has achieved a leach that is effective at extracting the vanadium (plus iron and titanium) in high recoveries exceeding 90% and will continue to test and assess other extractants to produce physical samples from the leach liquor.
UNALY HILL PROJECT: E57/1068
The Unaly Hill vanadium – iron project is located adjacent to the Company's flagship project Victory Bore.
During the quarter the company initiated a metallurgical test work programme to assess the potential to produce a high-grade iron, vanadium and titanium concentrate from this deposit (see ASX announcement 27 June 2024).
The Company appointed METS Engineering ("METS") to develop and manage the assessment to produce a concentrate with an iron content of in excess of 62% by separating out the titanium, and additionally, an assessment for the recovery of a high-grade titanium concentrate.
YIDBY GOLD PROJECT : E59/2845, E59/2444, E59/2390
The Yidby Gold Project is an emerging large gold system and contains significant mineralised zones up to 80m wide. The anomalous gold currently extends over a 3km strike length and is open along strike and at depth.
Metallurgical work undertaken by the Company shows that the gold is recoverable by leaching which increases the potential of the project area. The Company considers there is scope for a larger gold system at depth, with more intensely developed high grade zones within the overall shear – porphyry system.
A review of targets for drilling has been ongoing during the quarter and involves new Induced Polarization (IP) survey interpretation and review of structural targets to extend the gold hosted porphyry, together with re-logging of drill core and RC chips by an independent structural geologist.
ASX Announcement ASX: SRN - FSE: GBL
Figure 3: Yidby Gold Project location.
YIDBY COPPER PROJECT: E59/2426
PHAT BOY Copper Prospect
A review of previous exploration on tenement E59/2426 located to the east of the companies Gold project, revealed records of gossans in and around the extensive banded iron formation (BIF) that dominates the area, with up to 2000 ppm Ni in rock chip samples and up to 101 ppm Gold in stream sediment sampling and 400ppm Copper in broad spaced soil sampling.
In addition, sulphides, including chalcopyrite and native copper were reported from drilling carried out by Prosperity Resources Ltd in 2008 during investigations of the Iron grade and potential of the BIF. Prosperity also noted that "the presence of disseminated sulphide mineralisation (pyrite, chalcopyrite and native copper) within high magnesian basalts, is thought to be related to seafloor volcanism and may suggest that potential exists for Volcanogenic Massive Sulphide (VMS) style mineralisation within the area" (Source: Prosperity Resources Ltd. Annual Technical Report 22 July 2007 to 21 July 2008). Pancontinental Mining recorded a maximum gold sample result of 101ppm from stream samples originating in the banded iron formations present in the area. (source: Pancontinental Mining Ltd. Exploration Licence 59/88 Relinquishment report, 14 October 1985).
Exploration
In July 2024, Surefire initiated a soil sampling, mapping and geological investigations of the area. Soil samples were collected on north-south lines 250m apart, with samples collected at 100m intervals.
Assay results revealed an extensive contiguous zone of anomalous copper and zinc values with up to 310 ppm Copper; 100 ppm Zinc, 100 ppm Cobalt, 452 ppm Sulphur. These are shown on figure 4 and 5.
The anomalous zones are large ranging from approximately 500m x 400m up to 1km x 500m in size and are contiguous across sample lines.
Figure 4: Copper anomalies in soil samples.
Figure 5: Zinc anomalies in soil samples
Geological setting
The Golden Grove Volcanic Hosted Massive Sulphide (VHMS) deposit is located 50km to the North West from Yidby East in the Warrieddar fold belt (see Figures 1 and 4), with mineralisation occurring along the northeastern flank of the structure.
Mineralisation is associated with folded banded iron stones, meta volcanics and volcanic derived sediments, see figure 6; (Source: Ray Smith, CRC LEME, 2003. "Gossan Hill Cu-Zn-Au Deposit, Western Australia").
The Yidby East/Phat Boy area has a similar geological and structural setting with rock formations contemporaneous with the Golden Grove Warrieddar fold belt.
Figure 6: Regional geology of the Warriedar Fold belt, and Golden Grove deposits showing structure and scale (From Smith et al)
PERENJORIMAGNETITE PROJECT: E70/5575, E59/2446, E70/5572, E70/6402.
The Perenjori Magnetite project is in the infrastructure-rich Mid-West mining district of Western Australia. The magnetite project is located on E70/5311 (see figure 7). The project is well positioned to deliver high-grade iron concentrates into next-generation zero-carbon steel plants. The project is closer to the Geraldton Port than other Western Australian magnetite projects, with a rail distance of 219km.
Development
During the quarter the Company had approaches from a number of interested parties in the project and is assessing potential offtake and development opportunities.
Environmental approvals and Permitting
During the quarter the company met with the EPA and discussed an agreeable way forward. The Company's appointed consultants Auroa Environmental also attended the meeting and will now prepare a referral for the Company's plans to progress this project.
Figure7: Location of Perenjori Project.
KOOLINE SIVER-LEAD PROJECT: E08/2373
The Kooline Base Metals Project is in the prospective Ashburton region of Western Australia.
The project area contains prospective lead-silver and copper mineralisation with high grade lead up to 16.2%, silver up to 55g/t and copper up to 2.62%, (see figure 8).
ASX Announcement ASX: SRN - FSE: GBL
Figure 8: Airborne Electro-Magnetic (AEM) slice over the Kooline silver-lead field showing historic mines and mineralised trends**.**
CORPORATE
Listing on the Frankfurt Stock Exchange
During the quarter the company completed a dual listing of the Company's ordinary shares on the Frankfurt Stock Exchange (FSE) under the code GBL. (see ASX announcement 27 June 2024 and 22 July 2024).
The Company mandated Axino Capital to undertake the process. Axino is a leading consultant in the mining and natural resources sector in Germany and has assisted many natural resource companies from ASX and TSX to dual list. For more information, please see www.axino.com.
The Frankfurt stock exchange is one of Europe's largest stock exchanges handling total trades from within Germany and from other European countries. The aim of the dual listing is to expand the company's investor reach and increase its exposure to the European markets.
Financial Position
The Company had total cash reserves of $917k at 30 September 2024.
The company is in discussions with a number of companies regarding funding. Further details can be found in the enclosed Appendix 5B - Quarterly Cash Flow Report.
ASX ADDITIONAL INFORMATION – Guidance Note 23 Disclosures
Surefire provides the following information pursuant to ASX Listing Rule requirements:
-
- ASX Listing Rule 5.3.1 Exploration and Evaluation Expenditure during the quarter was $58K. Full details of exploration activities during the quarter are set out in this report;
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- ASX Listing Rule 5.3.2 There was no substantive mining production and development activities during the quarter;
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- ASX Listing Rule 5.3.3 Details of mining tenements acquired or disposed of during the quarter, and held at the end of the quarter are set out in this report; and
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- ASX Listing Rule 5.3.5 Payments to related parties of the Company and their associates during the quarter: $185K. The Company advises that this relates to remuneration of Directors for executive chairman consultancy services,managing director employment, and non-executive directorial services.
Authorised for release to ASX by Paul Burton, Managing Director, 30 October 2024.
Inquiries:Paul Burton Managing Director +61 8 6331 6330
APPENDIX A
VICTORY BORE MINERAL RESOURCES AND ORE RESERVES
The Mineral Resource Estimate set out in the table below was released in an ASX announcement on 5 December 2023 and has been prepared in accordance with the JORC Code 20212.
Mineral Resource
| Cut-off (% | Tonnes | ||||||
|---|---|---|---|---|---|---|---|
| Classification: | V2O5) | (Mt) | V2O5(%) | TiO2(%) | Fe (%) | Al2O3(%) | SiO2(%) |
| Measured | 0.15 | 25.3 | 0.35 | 4.96 | 19.20 | 17.0 | 34.9 |
| Indicated | 0.15 | 113.2 | 0.32 | 4.70 | 18.19 | 17.4 | 35.9 |
| Inferred | 0.15 | 326.1 | 0.28 | 5.28 | 17.41 | 16.0 | 36.4 |
| Total | 0.15 | 464.6 | 0.30 | 5.12 | 17.70 | 16.4 | 36.2 |
Ore Reserve
The Ore Reserve set out in the table below was released in an ASX announcement on 5 December 2023 and has been prepared in accordance with the JORC Code 20212.
| Ore tonnes | V2O5 | TiO2 | Fe | Al2O3 | SiO2 | |
|---|---|---|---|---|---|---|
| Classification | (Mt) | (%) | (%) | (%) | (%) | (%) |
| Probable | 93.1 | 0.35 | 5.2 | 19.8 | 16.8 | 34.3 |
The estimated ore reserves and/or mineral resources underpinning the production target have been prepared by a competent person in accordance with the requirements in the JORC Code. The Company confirms that all material assumptions and technical parameters underpinning the Mineral Resource Estimates continue to apply and have not materially changed.
TENEMENT SCHEDULE
| PROJECT | LEASE | NAME | LOCALITY | LEASE STATUS |
|---|---|---|---|---|
| YIDBY GOLD PROJECT | E59/2426 | Nynghan | WA | Granted |
| E59/2390 | Yalgoo | WA | Granted | |
| E59/2444 | Yidby Hill | WA | Granted | |
| E59/2845 | Yidby | WA | Granted | |
| PERENJORI PROJECT | E70/5311 | Southwest | WA | Granted |
| VICTORY BORE-UNALY | E57/1036 | Victory Bore | WA | M Application |
| HILL PROJECT | M57/667 | |||
| UNALY HILL | E57/1068 | Unaly Hill | WA | (R) Granted |
| NORTH PERENJORI | E70/5575 | Kadji | WA | Granted |
| E59/2446 | Perenjori 2 | WA | Granted | |
| E70/5572 | Fitzroy | WA | Granted | |
| KOOLINE | E08/2373 | Kooline-Wyloo | WA | Granted |
The Company held a direct or indirect interest in the following tenements as at 30 September 2024
Competent Person Statements
The information in this report that relates to exploration results has been reviewed, compiled, and fairly represented by Mr Horst Prumm, a Member of the Australian Institute of Mining and Metallurgy ('AusIMM') and the Australian Institute of Geoscience ('AIG') and a fulltime employee of Prumm Corporation Pty Ltd. Mr Prumm has sufficient experience relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ('JORC') Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Prumm consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to the Victory Bore Vanadium mineral resource estimation is based on work completed by Mr. Stephen Hyland, a Competent Person and Fellow of the AusIMM. Mr. Hyland is Principal Consultant Geologist with Hyland Geological and Mining Consultants (HGMC), who is a Fellow of the Australian Institute of Mining and Metallurgy and holds relevant qualifications and experience as a qualified person for public reporting according to the JORC Code in Australia.
The information in this report that relates to metallurgical results has been reviewed, compiled, and fairly represented by Mr Damian Connelly, a Member of the Australian Institute of Mining and Metallurgy ('AusIMM') and the Australian Institute of Geoscience ('AIG') and a fulltime employee of METS engineers. Mr Connelly has sufficient experience in the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ('JORC') Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Connelly consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
NewInformation orData
SRNconfirmsthatitisnotawareofanynewinformationordatathatmateriallyaffects theinformationincluded previous market announcements and, in the case of Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant announcements continue to apply and have not materially changed. The Company confirms that the formand contextinwhich theCompetent Person's findings are presented have not materially changed from the original market announcement.
Forward Looking Statements
This announcement contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date onwhich the statements weremade. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flaw, projections, targets and expectations,mineralreserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause theCompany's actualresults,level of activity,performance, orachievements to bemateriallydifferentfrom those expressed or implied by such forward-looking information.
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Name of entity | |
|---|---|
| SUREFIRE RESOURCES NL | |
| ABN: | Quarter ended ("Current Quarter") |
| 48 083 274 024 | 30 September 2024 |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(3months)$A'000 | |
|---|---|---|---|
| 1. | Cash flows from operating activities | ||
| 1.1 | Receipts from customers | - | - |
| 1.2 | Payments for | ||
| (a)exploration & evaluation | (58) | (58) | |
| (b)development | - | - | |
| (c)production | - | - | |
| (d)staff costs | (319) | (319) | |
| (e)administration and corporate costs | (193) | (193) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 3 | 3 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (provide details if material) | - | - |
| 1.9 | Net cash from / (used in) operatingactivities | (567) | (567) |
| 2. | Cash flows from investing activities | |||
|---|---|---|---|---|
| 2.1 | Payments to acquire or for: | |||
| (a) | entities | - | - | |
| (b) | tenements | - | - | |
| (c) | property, plant and equipment | (1) | (1) | |
| (d) | exploration & evaluation | - | - | |
| (e) | investments | - | - | |
| (f) | other non-current assets | - | - |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(3months)$A'000 | |
|---|---|---|---|
| 2.2 | Proceeds from the disposal of: | ||
| (a)entities | - | - | |
| (b)tenements | - | - | |
| (c)property, plant and equipment | - | - | |
| (d)investments | - | - | |
| (e)other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (provide details if material) | - | - |
| 2.6 | Net cash from / (used in) investingactivities | (1) | (1) |
| 3. | Cash flows from financing activities | ||
|---|---|---|---|
| 3.1 | Proceeds from issues of equity securities(excluding convertible debt securities) | - | - |
| 3.2 | Proceeds from issue of convertible debtsecurities | - | - |
| 3.3 | Proceeds from exercise of options andconversion of partly paid shares into fullypaid shared | - | - |
| 3.4 | Transaction costs related to issues of equitysecurities or convertible debt securities | - | - |
| 3.5 | Proceeds from borrowings | - | - |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans andborrowings | - | - |
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (provide details if material) | - | - |
| 3.10 | Net cash from / (used in) financingactivities | - | - |
| 4. | Net increase / (decrease) in cash andcash equivalentsfor the period | ||
|---|---|---|---|
| 4.1 | Cash and cash equivalents at beginning ofperiod | 1,485 | 1,485 |
| 4.2 | Net cash from / (used in) operatingactivities (item 1.9 above) | (567) | (567) |
| 4.3 | Net cash from / (used in) investing activities(item 2.6 above) | (1) | (1) |
| 4.4 | Net cash from / (used in) financing activities(item 3.10 above) | - | - |
ASX Listing Rules Appendix 5B (17/07/20) Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(3months)$A'000 | |
|---|---|---|---|
| 4.5 | Effect of movement in exchange rates oncash held | - | - |
| 4.6 | Cash and cash equivalents at end ofperiod | 917 | 917 |
| 5. | Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
|---|---|---|---|
| 5.1 | Bank balances | 63 | 41 |
| 5.2 | Call deposits | 836 | 1,426 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) Office rental bond | 18 | 18 |
| 5.5 | Cash and cash equivalents at end ofquarter (should equal item 4.6 above) | 917 | 1,485 |
| 6. | Payments to related partiesof the entityand theirassociates | Current quarter$A'000 |
|---|---|---|
| 6.1 | Aggregate amount of payments to related parties and theirassociates included in item 1 | 185 |
| 6.2 | Aggregate amount of payments to related parties and theirassociates included in item 2 | - |
| Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an |
explanation for, such payments.
| 7. | FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity. | Total facilityamountat quarterend$A'000 | Amount drawnatquarter end$A'000 |
|---|---|---|---|
| 7.1 | Loan facilities- | - | |
| 7.2 | Credit standby arrangements | -- | |
| 7.3 | Other (please specify) | - | - |
| 7.4 | Total financing facilities | - | - |
| 7.5 | Unused financing facilities available at quarter end- | ||
| 7.6 | Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well. |
| 8. | Estimated cash available for future operating activities | $A'000 | ||
|---|---|---|---|---|
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (567) | ||
| 8.2 | (Payments for exploration & evaluation classified as investingactivities) (item 2.1(d)) | - | ||
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (567) | ||
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 917 | ||
| 8.5 | Unused finance facilities available at quarter end (item 7.5) | |||
| 8.6 | Total available funding (item 8.4 + item 8.5) | 917 | ||
| 8.7 | Estimated quarters of funding available (item 8.6 divided byitem 8.3) | 1.62 | ||
| Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | ||||
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: | |||
| 8.8.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not? | ||||
| Answer: SRN expects that it will continue to have negative operating cash flows as is usualfor mining exploration entities, but expenditures on discretionary explorationexpenses will be curtailed as needed, dependent on available cash resources. | ||||
| 8.8.2Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful? | ||||
| Answer: SRN is currently in discussions and having regard to its record of raising funds asand when required, these negotiations are expected to result in additional capitalbeing raised. The Company has entered into an agreement for a loan drawdownfacility of up to $500k with a company associated with Mr Vladimir Nikolaenko asthe lender, with an option to increase the facility to $750k.The Company has alsoentered into an At-The-Market Placement Agreement with Acuity Capital (referprevious announcements made 26.10.2018, 29.10.2018, 30.11.2018, 1.2.2021,31.1.2023 and 29.10.2024) which as yet has not been actioned. At the date of thisreport, a total of 20 million ASX:SRN shares could be placed at market to activatethe facility. | ||||
| 8.8.3Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis? | ||||
| Answer: SRN expects to be able to continue its operations and meet its business objectivesbased on its responses to 8.8.1 and 8.8.2 above. | ||||
| Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
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.
Date: 31 October 2024
Authorised by: Rudolf Tieleman – Company Secretary (Name of body or officer authorising release – see note 4)
Notes
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- This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
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- If this quarterly cash flow 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 cash flow 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.
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- 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.
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- If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
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- If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.