RE: March VWAP15 Mar 2018 13:32
Not entirely, but working on it. It seems that they did rather well considering that PNX gave them LC in 2016.
During the half-year, the Company completed the sale of its wholly owned subsidiary Leigh Creek
Copper Mine Pty Ltd (�LCCM�) to Resilience Mining Australia Limited (�RMA�, formerly Hillsgold
Resources Pty Ltd). RMA exercised the option to acquire LCCM it had held since April 2015 on 31
October 2016, and the transaction was completed on 21 November 2016.
LCCM holds three mining leases in the Leigh Creek area including Mountain of Light. The sale
included two exploration licences held by the Company in the vicinity of Leigh Creek.
There was no up-front cash consideration; however, RMA assumes all rehabilitation obligations and
is required to pay the Company $100,000 if and when 3,000 tonnes of copper are produced from
future operations at the three mining leases. No gain or loss was recorded on the sale as the
Financial Report for Half-Year ended 31 December 2016 13 PNX METALS LIMITED
disposal group had been carried in the consolidated financial statements at a net nil value and the
fair value of the contingent consideration has been assessed as nil.
To assist RMA with its costs of transitioning to ownership of LCCM, the Company provided RMA
with a loan of $50,000, which was drawn on 16 December 2016. The loan is secured by specified
plant and equipment at Mountain of Light and bears interest at 6%, payable semi-annually. The loan
is to be re-paid at the earliest of the following:
o 31 October 2018;
o The date that is 6 months after first production from any of the three mining leases held
by LCCM;
o Following an equity capital raise by RMA in excess of $1.5 million (cumulative from 31
October 2016); or
o The date RMA sells or transfers any of the acquired tenements.
The loan has been classified as a non-current receivable in the Statement of Financial Position.
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