ANNUAL Report June 2024 Notes to the Consolidated Financial Statements 31 3. ACQUISITION OF SUBSIDIARIES On 18 January 2024, the Group acquired 100% of the issued share capital of Saloro S.L.U. (“Saloro”), obtaining control of Saloro. Saloro is a Spanish company dedicated to the production and marketing of tungsten and qualifies as a business as defined in IFRS 3 Business Combinations. Saloro was acquired as it aligned with the Group’s corporate strategy to become a substantial and globally leading supplier of sustainably produced critical minerals. $ Cash consideration 2 Total purchase consideration 2 Assets and liabilities acquired at fair value: Financial assets 12,266,801 Inventory 13,695,649 Property, plant and equipment 78,991,585 Identifiable intangible assets - Financial liabilities (80,519,021) Deferred tax assets/(liabilities) - Net identifiable assets and liabilities acquired 24,434,014 Bargain purchase1 24,435,012 Total consideration 2 Purchase consideration – cash inflow Cash consideration 2 Less: cash and cash equivalents acquired 8,280,498 Total consideration transferred 8,280,496 Revenue and profit contribution from the date of acquisition to year-end Revenue 14,195,709 Profit / (loss) after tax (8,098,536) 1 The bargain gain arising on the Saloro acquisition is provisional pending the final valuation of the acquired net identifiable assets and liabilities. EQ Resources Limited Annual Report 2024 97
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