Impact Minerals Ltd Annual Report 2022 55 Notes to the Consolidated Financial Statements continued NOTE 8: OTHER CURRENT ASSETS Consolidated 2022 $ 2021 $ Prepayments 43,929 – Deposits 32,084 27,047 76,013 27,047 NOTE 9: ASSETS HELD FOR SALE Consolidated 2022 $ 2021 $ Tenements held for sale 3,482,942 115,141 3,482,942 115,141 In February 2021, the Company announced that it had reached an agreement for the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd an unrelated company. As at 30 June 2021 these tenements were held as Assets Held for Sale - $115,141. During the year the sale was completed, and the Company recognised a gain on the sale of the tenements of $114,859 (Note 3). The Company also holds 250,000 shares in Orange Minerals NL. In April 2022, the Company announced that it had sold Mining Lease ML 2386 to Peter Campbell FT Pty Ltd (“PCFT”) an unrelated Company for $30,000. The Company also granted PCFT an option (“Option”) to buy all of the shares in Blackridge Exploration Pty Ltd (“Blackridge” a wholly owned subsidiary of Impact). The assets of Blackridge are three exploration licences EPM26806, EPM27410 and EPM27571. PCFT paid the non-refundable Option Fee of $50,000 in August 2022 and has two years to exercise the Option. Upon exercise of the Option, PCFT will pay $350,000 for the shares in Blackridge and the Company will retain a 1% gross gold royalty after the first 5,000 ounces have been recovered from any of the tenements. At 30 June 2022 the Blackridge tenements were held at their fair value ($342,942). In August 2022 the Company announced that it had agreed to implement a Share Purchase Agreement (“SPA”) with Burrendong Minerals Limited (“Burrendong”) whereby Burrendong would acquire 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd (“Endeavour”). The principal assets of Endeavour are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). Burrendong intends to list on the ASX. Burrendong paid Impact a non-refundable exclusivity fee of $25,000 for eight weeks. The exclusivity period can be extended by for a further eight weeks for a second non-refundable payment of $25,000. The principal terms of the SPA are to include: – on execution of the SPA Impact to receive a non-refundable payment of $250,000; – following execution of the SPA Burrendong will have nine months to complete an ASX listing; – upon listing Impact will receive a further $250,000 in cash, a 19.9% interest in the newly listed company and will also retain a 25% interest in the project. – the project will operate under an Incorporated Joint Venture with Burrendong to sole fund exploration until the earlier of the first $5 million of expenditure or a Decision to Mine. – normal dilution clauses will subsequently apply and if Impact reduces to less than a 10% interest it will convert to a royalty of 2% NSR; and – Impact shareholders will be entitled to a priority right to subscribe for up to $3,000,000 worth of shares. At 30 June 2022 the Company’s 75% interest in the Commonwealth tenements was held at their fair value ($3,140,000).
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