ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 46 ▪ As at reporting date $572,450 (€354,690) of the loan was drawn. ▪ A loan of $5,648,806 (€3,500,000 ) was taken out on 31 January 2022, comprising interest-only payments at a rate of 5.00%. 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 $5,573,773 (€3,453,510) of the loan was drawn. ▪ A loan of $8,069,722 (€5,500,000 ) was taken out on 7 September 2022, comprising interest-only payments at a rate of 5.42%. The loan is due for renewal on 21 June 2024 and is secured by a letter of credit from Oaktree Capital Management L.P. As at reporting date $7,913,459 (€4,903,179) of the loan was drawn. (b) The Group has 1 unsecured related party loan: A 6-month unsecured loan facility was provided by a related party of the Group, Director and shareholder, Zhui Pei Yeo, at an interest rate of 8% per annum charged on the outstanding loan balance. As announced on 31 July 2023, a secondary Variation Agreement was entered into to extend the repayment date from 31 July 2023 to 31 July 2024, hence its classification as a current liability in the Statement of Financial Position. Approval was given at the Extraordinary General Meeting held on 29 July 2024 for the issue of up to 39,304,733 shares and 13,101,578 free attaching options to Zhui Pei Yeo (or his nominee) in consideration for the settlement of above related party loan. Refer ASX announcements “Notice of Extraordinary General Meeting/Proxy Form” dated 26 June 2024 and “Results of Meeting” dated 29 July 2024. 25. OTHER FINANCIAL LIABILITIES 2024 $ 2023 $ Financial liabilities carried at fair value through profit or loss:1 - Current 1,245,147 1,334,992 Non-current 10,538,413 11,505,740 11,783,560 12,840,732 Deferred interest:2 Current 49,665 34,204 Non-current 281,436 282,181 331,101 316,385 Total Financial Liabilities 12,114,661 13,157,117 1 A discounted cash flow method using a discount rate of 5.455% (2021: n/a) was used to capture the net present value of the revenues for the life of mine as determined in the May 2023 Update of the BFS. 2 Deferred interest relates to that portion of the Regal Resources Royalties Fund where actual payments did not satisfy the interest component due to the staged ramp-up of Open Cut operations. These costs will be amortised over the period in which the first stage royalty of $10 million is scheduled to be repaid. The Company entered into a Royalty Funding Package with Regal Resources Royalties Fund with the Group receiving $10 million in two separate tranches. The financing consists of a royalty percentage of 3% with a buy-back option after the recovery of the first stage royalty, $10 million (and before the 7 anniversary of the definitive agreement execution) and a payment of $2.75 million, reducing the liability to 1.5% for the life of mine. 26. LEASES Movements in the Group’s lease liabilities during the year are as follows: Notes to the Consolidated Financial Statements continued 112 EQ Resources Limited Annual Report 2024
RkJQdWJsaXNoZXIy MjE2NDg3