ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 36 Farm-In and Joint Venture Agreement – NSW Projects EQ Resources Limited entered into a binding Farm-In and Joint Venture Agreement with Sozo Resources Pty Ltd (“Sozo”) in November 2021 whereby Sozo can earn up to an 80% interest in EQR’s 100% owned NSW projects, Crow Mountain (EL6648) and Panama Hat (EL8024), by completing expenditure of $1.6 million over 4 years as follows: ▪ Stage 1 – Sozo to complete $100K of expenditure within 9 months from the Agreement’s Commencement date; ▪ Stage 2 – Sozo will spend a further $750K within 24 months to earn a 49% interest. If Sozo elects to continue sole funding exploration expenditure at the end of Stage 2, it will have earned a further 2% (51% in total), and a Joint Venture will be formed and ▪ Stage 3 – Sozo is to spend a further $750K of expenditure and complete a Scoping Study (as defined by the 2012 JORC Code) within a further 24 months to earn a further 29% (in total $1.6M for 80%). Sozo Resources has successfully completed the Stage 1 Farm-In Conditions and has elected to proceed to Stage 2 Farm-In, providing Sozo the exclusive right to earn a 49% legal and beneficial interest in the Joint Venture gold properties subject to conditions. 12. TRADE AND OTHER PAYABLES 2024 $ 2023 $ PAYABLES Trade payables 31,992,515 3,489,058 Other taxation 497,830 779,477 Unearned revenue 805,920 461,247 Accrued expenses 2,403,296 1,678,556 Other Payables - other persons/corporation 5,443,290 4,901,516 Other payables – related entities 1,504,263 - 42,647,114 11,309,854 Payables from related entities represent the Company’s 50% portion of loans payable to the unincorporated joint venture since its inception. These loans are unsecured and non-interest bearing and are recorded as a current asset pending the acquisition by EQR of CR Australia’s joint venture interest in the Mt Carbine Retreatment Joint Venture (refer ASX Announcement “EQR Executes Definitive Agreement to Acquire Mt Carbine Retreatment Joint Venture Interest from Cronimet” dated 5 July 2024). 13. ISSUED CAPITAL 2024 $ 2023 $ Share Capital 1,787,288,465 (2023: 1,474,486,938) ordinary shares fully paid 43,031,133 27,376,334 278,000,000 (2023: Nil) ordinary shares fully paid under escrow 25,307,296 - 68,338,429 27,376,334 Notes to the Consolidated Financial Statements continued 102 EQ Resources Limited Annual Report 2024
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