ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 45 2 The Company’s wholly owned subsidiary and 50% unincorporated joint venture partner, Mt Carbine Retreatment Pty Ltd’s, Offtake Advance recognition. The Loan is denominated in USD and the Offtake Advance Agreement between CRONIMET Asia Pte Ltd, CRONIMET Australia Pty Ltd and Mt Carbine Retreatment Pty Ltd governs the terms and repayment of this advance. A further offtake prepayment facility of US $3 million was secured from the Company’s joint venture and offtake partner, CRONIMET Asia Pte Ltd, with US $1 million of this additional facility being drawn as at 30 June 2022 (refer ASX Announcement “CAPEX Funding for Mt Carbine Expansion Secured” dated 2 May 2022). Note: The Company’s wholly owned subsidiary and 50% unincorporated joint venture partner, Mt Carbine Retreatment Pty Ltd, interest in the offtake prepayment equates to 50% of the total prepayment facility. The contract liability arrangements for the Offtake Advance are secured as follows: ▪ general security deed from Mt Carbine Retreatment Pty Ltd over its present and subsequent acquired assets; ▪ general security deed from CRONIMET Australia Pty Ltd over all its present and subsequent acquired assets; and ▪ mortgage from Mt Carbine Quarries Pty Ltd over mining leases ML4867 and ML4919. This mortgage also includes an interest over “Featherweight Property”, which is all other property of Mt Carbine Quarries Pty Ltd other than the mining leases. The mortgage is limited recourse in that it is limited to the value of the mining leases. The contract liability arrangement for the unincorporated joint venture between Mt Carbine Retreatment Pty Ltd and CRONIMET Australia Pty Ltd (Joint Venture) is as follows: ▪ Deed of Cross Security between the Joint Venture parties and Mt Carbine Retreatment Management Pty Ltd (as the manager), which secures the performance of their obligations to each other under the Joint Venture; and ▪ General Security Deed from Mt Carbine Quarries Pty Ltd in favour of the Joint Venture parties over all present and after acquired property of Mt Carbine Quarries Pty Ltd including its rights under the Mining Leases. 24. BORROWINGS 2024 $ 2023 $ Unsecured borrowing at amortised cost Loan from related parties 1,798,570 1,650,618 1,798,570 1,650,618 Secured borrowing at amortised cost Bank loans 40,348,612 - Bank loans – undrawn (572,450) Bank loans – capitalised interest 450,742 - 40,226,904 - Current 42,025,474 1,650,618 Principal features of the Group’s borrowing are as follows: (a) The Group has 5 principal bank loans: ▪ A loan of $12,911,556 (€8,000,000) was taken out on 31 March 2021, comprising interest-only payments at a rate of 4.92%. The loan is due for renewal on 10 December 2024 and is secured by a letter of credit from Oaktree Capital Management L.P. As at reporting date $12,575,949 (€7,792,058) of the loan was drawn. ▪ A loan of $8,069,722 (€5,000,000 ) was taken out on 21 October 2020, comprising interest-only payments at a rate of 5.00%. The loan is due for renewal on 11 October 2024 and is secured by a letter of credit from Oaktree Capital Management L.P. As at reporting date $8,067,941 (€4,998,921) of the loan was drawn. ▪ A loan of $5,648,806 (€3,500,000 ) was taken out on 1 October 2021, comprising interest-only payments at a rate of 5.00%. The loan was renewed on 15 September 2024 and is secured by a letter of credit from Oaktree Capital Management L.P. EQ Resources Limited Annual Report 2024 111
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