58 Impact Minerals Ltd Annual Report 2023 Notes to the Consolidated Financial Statements continued NOTE 22: CONTINGENT ASSETS AND LIABILITIES (CONTINUED) 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 2022 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 23: EVENTS OCCURRING AFTER THE REPORTING PERIOD On 1 August 2023, the Company held an Extraordinary General Meeting where the following resolutions were passed: – Ratification of the prior issue of 72,205,583 Placement Shares; – Ratification of prior issue of 30,000,000 shares in relation to the option to earn an interest in the Lake Hope Project; – Approval to issue 20,000,000 shares and 30,000,000 options in relation to the option to earn an interest in the Lake Hope Project; – Approval to issue up to 120,000,000 shares to the vendors of the Lake Hope Project upon an announcement of a Preliminary Feasibility Study; and – Approval to issue up to 100,000,000 shares to the vendors of the Lake Hope Project upon an announcement of a Definitive Feasibility Study. On 16th August 2023 the Company announced that it had finalised revised terms for the sale of up to a 75% interest in the Company’s 100% owned Commonwealth Project to Burrendong Minerals Ltd, an unrelated public company. There have been no other events subsequent to the reporting date which are sufficiently material to warrant disclosure. NOTE 24: COMMITMENTS In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligations of the Group are subject to the minimum expenditure commitments required as per the Mining Act 1978 (Western Australia), the Mining Act 1992 (New South Wales) and the Mineral Resources Act 1989 (Queensland) and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity of the relevant area of interest. As at balance date, total exploration expenditure commitments on granted tenements held by the Group that have not been provided for in the financial statements and which cover the following 12-month period amount to $3,088,445 (2022: $2,723,444). For the period greater than 12 months to five years, commitments amount to $7,158,617 (2022: $8,748,542). These obligations are also subject to variations by farm-out arrangements, relinquishment or sale of the relevant tenements.
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