62 Impact Minerals Ltd Annual Report 2022 Notes to the Consolidated Financial Statements continued NOTE 19: AUDITOR’S REMUNERATION Consolidated 2022 $ 2021 $ Audit services Hall Chadwick WA Audit Pty Ltd – Audit and review of the financial reports 35,500 34,750 Total remuneration 35,500 34,750 NOTE 20: CONTINGENT ASSETS AND LIABILITIES Contingent assets The Group had contingent assets in respect of: Future bonus and royalty payments In September 2018 the Company completed the sale of its wholly owned subsidiary Drummond East Pty Ltd, the holder of its seven Pilbara licences, to Pacton Gold Inc. (Pacton). Under the terms of the Sale Agreement Pacton must pay a CAD$500,000 Bonus to the Company upon publishing a measured, indicated or inferred gold resource of more than 250,000 ounces on the licences. The Company retains a 2% NSR royalty on the licences with Pacton retaining the right to buy back 1% of the royalty for CAD$500,000 at any time. During the year the completed 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 (this company ultimately listed as Orange Minerals NL ASX:OMX) (“Orange”). Impact retains a 1% Net Smelter Royalty over the project. Contingent liabilities The Group had contingent liabilities in respect of: Future royalty payments In March 2016, Impact Minerals Limited completed the acquisition of tenement EL7390 from Golden Cross Resources Limited (“Golden Cross”) for $60,000 cash. Golden Cross retains a royalty equal to 1% of gross revenue on any minerals recovered from the tenement. At its election, Impact has the right to buy back the royalty for $1.5 million cash at any time up to a decision to mine, or leave the royalty uncapped during production. During the 2021 financial year the Company completed the acquisition five tenements in the Yilgarn Craton of Western Australia (“Arkun project”) from Milford Resources Pty Ltd (”Milford”). Milford retains a 1% net smelter royalty on any minerals recovered. During the 2021 financial year the Company acquired tenement EL70/5424 from Beau Resources Pty Ltd (”Beau”). Beau retains a 2% gross revenue royalty on any minerals recovered. During the financial year the Company acquired tenements E70/5761 and E70/5780 from Beau. Beau retains a 2% gross royalty on all products extracted from the tenements. NOTE 21: EVENTS OCCURRING AFTER THE REPORTING PERIOD 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. There have been no other events subsequent to the reporting date which are sufficiently material to warrant disclosure.
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