72 Impact Minerals Ltd Annual Report 2023 Independent Auditor’s Report continued Key Audit Matter How our audit addressed the Key Audit Matter • data indicating that, although a development in the specific area is likely to proceed, the carrying amount of the exploration asset is unlikely to be recovered in full from successful development or sale. Assets classified as held for sale - $3,277,513 (Refer to Note 9) • The Company announced a Share Purchase Agreement with Burrendong Minerals Limited to dispose of 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd. The principal assets of the subsidiary are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252) in the year 2022. A revised term sheet has been entered and Burrendong Mineral Limited will acquire 51% interest and to acquire further 24% interest subject to expending $5 million on these tenements within 3 years. With a revised term entered, an impairment of $205,429 has been recognised during year 2023. • The Company granted Peter Campbell FT Pty Ltd an option to buy all the shares in Blackridge Exploration Pty Ltd. The principal assets are three exploration licenses EPM26806, EPM27410 and EPM27571. At balance date the Company’s Blackridge tenements was carried at $342,942. We considered this as a key audit matter because of the size and nature of the transactions. Our audit procedures included but were not limited to: • Review of the Agreements; • Assessment of the transactions to verify the measurement and classification of the assets to ensure they were recorded at the lower of the carrying amount or fair value less cost to sell; and • Assessing the appropriateness of the related disclosures in the financial statements.
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