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NOTES TO THE FINANCIAL STATEMENTS
AT 30 JUNE 2009
(CONTINUED)
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26. CONTINGENT LIABILITIES
HINTON COAL PROJECT Ð DEFERRED CONSIDERATION
ON 19 FEBRUARY 2009 THE COMPANY COMPLETED ITS ACQUISITION OF COALSPUR MINES (HOLDINGS) PTY LTD (ÒCOALSPUR HOLDINGSÓ) (FORMERLY CIP COAL PTY LTD) WHICH HOLDS THE RIGHTS TO ACQUIRE 100% OF THE HINTON COAL PROJECT (ÒPROJECTÓ) IN ALBERTA, CANADA FROM CONSOLIDATED TANAGER LTD (ÒCTLÓ).
PURSUANT TO A MEMORANDUM OF UNDERSTANDING PREVIOUSLY SIGNED BETWEEN COALSPUR HOLDINGS AND CTL, A FORMAL TRANSFER OF LEASES AGREEMENT WAS ALSO EXECUTED ON 19 FEBRUARY 2009 BETWEEN CTL AND COALSPUR MINES (OPERATIONS) LTD (ÒCOALSPUR OPERATIONSÓ) (PREVIOUSLY CIP COAL CANADA LTD), WHICH IS A WHOLLY OWNED SUBSIDIARY OF COALSPUR HOLDINGS.
IN ACCORDANCE WITH THE TERMS OF THE TRANSFER OF LEASES AGREEMENT, AN INITIAL PAYMENT OF C$2,000,000 HAS BEEN MADE TO CTL AND PROVIDES THAT COALSPUR OPERATIONS WILL BE TRANSFERRED THE TITLE TO THE PROJECT UPON THE FOLLOWING FURTHER MILESTONE PAYMENTS:
¥ C$6,000,000 UPON THE EARLIER OF THE COMPLETION OF A FEASIBILITY STUDY ON THE PROJECT OR 19 FEBRUARY 2012; AND ¥ C$10,000,000 UPON THE EARLIER OF REACHING AN AVERAGE PRODUCTION RATE OF 90,000 TONNES OF COAL PER MONTH FROM THE
PROJECT OVER A THREE MONTH PERIOD OR 19 FEBRUARY 2016.
ÒFEASIBILITY STUDYÓ IN THIS CONTEXT MEANS A FEASIBILITY STUDY AS DEFINED IN NI 43-101 OF THE CANADIAN SECURITIES ADMINISTRATORS OR A COMPARABLE REPORT PREPARED IN ACCORDANCE WITH THE JORC CODE, BUT DOES NOT INCLUDE A PRE-FEASIBILITY STUDY OR SCOPING STUDY.
IN ADDITION TO THE CONSIDERATION PAYABLE ABOVE, CTL IS ENTITLED TO A ROYALTY EQUAL TO 1% OF THE SALES REVENUE GENERATED FROM THE SALE OF COAL PRODUCED FROM THE PROJECT.
AS IT IS ONLY POSSIBLE, NOT PROBABLE, THAT THE ABOVE MILESTONES WILL OCCUR (HENCE REQUIRING THE MILESTONE PAYMENTS TO BE MADE) NO PROVISION FOR ANY LIABILITY HAS BEEN RECOGNISED IN THESE FINANCIAL STATEMENTS.
27. EVENTS SUBSEQUENT TO BALANCE DATE ¥ ON 14 AUGUST 2009, THE COMPANY ISSUED 20 MILLION ORDINARY SHARES AT $0.11 EACH TO SOPHISTICATED INVESTORS TO RAISE
$2.2 MILLION BEFORE COSTS. THIS PLACEMENT WAS RATIFIED BY SHAREHOLDERS AT A GENERAL MEETING HELD ON 30 SEPTEMBER 2009.
¥ ON 17 AUGUST 2009, MR EUGENE WUSATY WAS APPOINTED MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF THE COMPANY.
¥ ON 31 AUGUST 2009, MR PETER WOODMAN RESIGNED AS A NON-EXECUTIVE DIRECTOR OF THE COMPANY.
¥ FOLLOWING SHAREHOLDER APPROVAL AT A GENERAL MEETING HELD ON 30 SEPTEMBER 2009 THE COMPANY CHANGED ITS NAME FROM ÒXENOLITH RESOURCES LIMITEDÓ TO ÒCOALSPUR MINES LIMITEDÓ.
¥ FOLLOWING SHAREHOLDER APPROVAL AT A GENERAL MEETING HELD ON 30 SEPTEMBER 2009 THE COMPANY GRANTED THE FOLLOWING INCENTIVE OPTIONS TO MR EUGENE WUSATY, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER:
¥ 2,750,000 INCENTIVE OPTIONS EXERCISABLE AT $0.10 EACH ON OR BEFORE 31 DECEMBER 2013, VESTING IMMEDIATELY;
¥ 2,750,000 INCENTIVE OPTIONS EXERCISABLE AT $0.15 EACH ON OR BEFORE 30 JUNE 2014, VESTING AFTER 8 MONTHS SERVICE;
¥ 2,750,000 INCENTIVE OPTIONS EXERCISABLE AT $0.20 EACH ON OR BEFORE 31 DECEMBER 2014, VESTING AFTER 16 MONTHS SERVICE; AND
¥ 2,750,000 INCENTIVE OPTIONS EXERCISABLE AT $0.25 EACH ON OR BEFORE 30 JUNE 2015, VESTING AFTER 24 MONTHS SERVICE. ¥ ON 30 SEPTEMBER 2009, THE COMPANY GRANTED 600,000 INCENTIVE OPTIONS EXERCISABLE AT $0.50 EACH ON OR BEFORE
31 MARCH 2011 TO KEY CONSULTANTS OF THE COMPANY.
OTHER THAN AS OUTLINED ABOVE, AT THE DATE OF THIS REPORT, THERE ARE NO MATTERS OR CIRCUMSTANCES, WHICH HAVE ARISEN SINCE 30 JUNE 2009 THAT HAVE SIGNIFICANTLY AFFECTED OR MAY SIGNIFICANTLY AFFECT:
¥ THE OPERATIONS, IN FINANCIAL YEARS SUBSEQUENT TO 30 JUNE 2009, OF THE CONSOLIDATED ENTITY; ¥ THE RESULTS OF THOSE OPERATIONS, IN FINANCIAL YEARS SUBSEQUENT TO 30 JUNE 2009, OF THE CONSOLIDATED ENTITY; OR ¥ THE STATE OF AFFAIRS, IN FINANCIAL YEARS SUBSEQUENT TO 30 JUNE 2009, OF THE CONSOLIDATED ENTITY.
IN ACCORDANCE WITH A RESOLUTION OF THE DIRECTORS OF COALSPUR MINES LIMITED:
1 IN THE OPINION OF THE DIRECTORS:
(A) THE ATTACHED FINANCIAL STATEMENTS, NOTES THERETO AND THE ADDITIONAL DISCLOSURES INCLUDED IN THE DIRECTORSÕ REPORT DESIGNATED AS AUDITED, ARE IN ACCORDANCE WITH THE CORPORATIONS ACT 2001, INCLUDING:
(I) SECTION 296 (COMPLIANCE WITH ACCOUNTING STANDARDS AND CORPORATIONS REGULATIONS 2001); AND
(II) SECTION 297 (GIVES A TRUE AND FAIR VIEW OF THE FINANCIAL POSITION AS AT 30 JUNE 2009 AND OF THE PERFORMANCE FOR THE YEAR ENDED ON THAT DATE OF THE COMPANY AND CONSOLIDATED GROUP); AND
(B) THERE ARE REASONABLE GROUNDS TO BELIEVE THAT THE COMPANY AND THE GROUP WILL BE ABLE TO PAY ITS DEBTS AS AND WHEN THEY BECOME DUE AND PAYABLE.
2 THE REMUNERATION DISCLOSURES INCLUDED IN PAGES 17 TO 21 OF THE DIRECTORSÕ REPORT (AS PART OF THE AUDITED REMUNERATION REPORT), FOR THE YEAR ENDED 30 JUNE 2009, COMPLY WITH SECTION 300A OF THE CORPORATIONS ACT 2001.
3 THE DIRECTORS HAVE BEEN GIVEN A DECLARATION REQUIRED BY SECTION 295A OF THE CORPORATIONS ACT 2001 FOR THE FINANCIAL YEAR ENDED 30 JUNE 2009.
ON BEHALF OF THE BOARD
IAN MIDDLEMAS CHAIRMAN
PERTH, 30 SEPTEMBER 2009
COALSPUR MINES LIMITED - ANNUAL REPORT 2009 69