Half-Year Report for period ended 31 December 2020

RNS Number : 9477T

Aura Energy Limited

30 March 2021

 

AURA ENERGY LIMITED

 ("Aura" or the "Company")

 Half-Year Report for Financial Period Ended 31 December 2020

Aura announces its unaudited interim results for the six months ended 31 December 2020.

To view the full PDF version of the report, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/9477T_1-2021-3-30.pdf

Aura Energy Limited Peter Reeve (Managing Director) SP Angel Corporate Finance LLP (Nominated Advisor and Joint Broker) Ewan Leggat Caroline Rowe WH Ireland Limited (Joint Broker) Adrian Hadden James Sinclair-Ford Yellow Jersey PR Limited Felicity Winkles Joe Burgess

Telephone: [phone] [e-mail] Telephone: [phone] Telephone: [phone] Telephone: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

During the second half 2020 business activities were largely on hold pending discussions to settle the ongoing legal disputes and a recapitalisation plan for the company.

With the assistance of a major shareholder, the Company commenced settlement negotiations on the outstanding legal disputes and this has been largely successful.

Covid-19 continues to restrict access to our projects (both the Australian government and to a lesser extent the Mauritanian government travel bans).

Aura lists its assets as:

· The construction-ready Tiris Uranium Project

· Excellent gold assets

· Häggån Vanadium Project

Tiris Project, Mauritania (85% owned)

No activity took place on the Tiris Project.

Häggån Battery Metals Project, Sweden (100% owned)

Activities at the Häggån Battery Metals project remained on care-and-maintenance.

Tasiast South Gold Project, Mauritania (100% owned)

A corporate transaction for the gold assets continues, albeit at a slower pace.

Corporate

P Hains has been appointed Company Secretary of the Company and will be the nominated person under Listing Rule 12.6 for communications with the Australian Securities Exchange.

P Hains replaces JM Madden who had advised the Company on 14 August 2020 of his decision to step down as Company Secretary as soon as practicable.

ASX listing rules

The Company is unable to issue new securities without prior security holder approval, unless the issue comes within an exception in Listing Rule 7.2.

The Directors present their report on the Group consisting of Aura Energy Limited (AEE) and its controlled entities at the end of or during the half-year ended 31 December 2020 (the period). Financial comparisons used in this report are of results for the half-year ended 31 December 2019 (the prior corresponding period) for statement of profit or loss and cash flow analysis, and 30 June 2020 for statement of financial position analysis.

Directors

PD Reeve  Executive Chairman (until 17 March 2021); Managing Director (from 17 March 2021) 

R Beeson  Non-Executive Director (resigned on 17 March 2021)

JL Bennett  Non-Executive Director (resigned on 17 March 2021) 

RC Craigie  Non-Executive Director (resigned on 17 March 2021)

 PD Heber  Non-Executive Director (resigned on 17 March 2021)

 JC Perkins  Non-Executive Director (resigned on 17 March 2021)

M Rogers Non-Executive Chairman (appointed on 17 March 2021) 

P Ward  Non-Executive Director (appointed on 17 March 2021)

Operating Results

The Group recorded a net loss after tax of $1,699,461 for the half-year ended 31 December 2020 (the net loss after tax for the comparative half-year was $1,231,480). The higher net loss for the half-year was due to higher consulting charges, offset by lower finance charges and share registry costs.

Dividends

No dividends were declared and paid during the year (2019: nil).

State of affairs of the Company

No significant changes in the Company's state of affairs occurred during the financial year.

Events After Balance Date

The following directors resigned, effective as at the Annual General meeting: R Beeson, JL Bennett, RC Craigie, PD Heber and JC Perkins. Furthermore, PD Reeve stood down as chairman, but retained his directorship.

The Group held its Annual General Meeting on 17 March 2021. The following resolutions were passed at the AGM and subsequently enacted:

· M Rogers was appointed as non-executive director and chairman.

· P Ward was appointed as non-executive director.

· PD Reeve was appointed as managing director.

· All issued shares and options were consolidated at a ratio of 13 to 1. For clarity, all share numbers quoted in this note are on the pre-consolidation basis.

· The shareholders approved the issue of 155,000,000 shares to Lind Global Macro Fund LP, to extinguish the liability of $310,000.

· The shareholders approved the issue of 77,708,331 Options to sophisticated and professional investors, each exercisable at $0.008, on or before 2 years from the date of issue

· The following shares approved by the shareholders to be issued to existing non-executive directors to extinguish outstanding remuneration:

(a)  Up to 34,675,000 Shares to R Beeson;

(b)  Up to 34,675,000 Shares to JC Perkins;

(c)  Up to 23,725,000 Shares to JL Bennett;

(d)  Up to 15,955,000 Shares RC Craigie;

(e)  PD Heber will not be issued equity in relation to his outstanding remuneration as he maintains his independence for AIM purposes; and

(f)  Up to 8,460,000 Shares to B Fraser.

at a price of $0.002 per Share to extinguish outstanding obligations.

· The shareholders approved the issue of 50,000,000 Shares to the PD Reeve (executive chairman) at a price of $0.002 per share to partly extinguish outstanding remuneration.

· The shareholders approved the placement to issue 25,000,000 shares to P Ward and 50,000,000 shares to M Rogers, the incoming directors, at a price of $0.002 per share.

· The shareholders approved the placement to issue the following shares to sophisticated and professional investors:

(a)  75,000,003 Shares to P Proksa;

(b)  50,000,002 Shares to J Hancock;

(c)  50,000,002 Shares to A Molyneux;

(d)  50,000,002 Shares to D O'Neill;

(e)  50,000,002 Shares to M Holland; and

(f)  50,000,002 Shares to K Kerridge;

at an issue price of $0.002 per Share for proceeds of $650,000.

· The shareholders approved the issue of 75,000,000 options to P Ward and 200,000,000 options to M Rogers, the incoming directors. All options are exercisable at $0.004 per option, on or before 30 June 2024.

· The shareholders approved the issue of 75,000,000 shares at an issue price of $0.004 each, to ASEAN, Sartingen, Pre-Emptive Trading Pty Ltd (PET) in settlement of litigation.

· The shareholders approved the issue of 75,000,000 options, exercisable at $0.004 each, on or before 30 June 2023, to ASEAN, Sartingen, Pre-Emptive Trading Pty Ltd (PET) in settlement of litigation.

· The shareholders approved the issue of 45,000,000 shares to CFO Solutions Pty Ltd, for the provision of accounting, ASX compliance and company secretary services.

· The shareholders approved the issue of 50,000,000 options to L1 Capital Global Opportunities Master Fund at an exercise price of $0.004 each, as part of the convertible securities agreement.

The capital raising initiatives have realised $800,000 in funding in February and March 2021.

Proceedings on behalf of the Group

The Company has lodged with the Kingdom of Sweden a claim for compensation for the alleged expropriation of its rights to mine and produce uranium concentrate from the tenements held by Vanadis Battery Metals AB, a controlled entity of the Company.  

CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME

For   the   six   months   ended 31 December

		2020	2019
		$	$
Totalrevenueandotherincome		30,452	286,542
Expenditure Accountingandauditfees		18,048	16,192
Computers and communications		14,029	14,693
Depreciation		499	2,125
Employeebenefits		338,548	446,949
Exchange fluctuations		10,923	1,754
Financingcosts		212,297	292,929
Impairmentofexplorationandevaluationexpenditure		-	39,655
Insurances		4,688	40,431
Consulting fees and corporate advisory		546,062	296,370
Litigation settlement		465,640	-
Government and public relations		1,791	13,120
Rentandutilities		35,542	40,122
Share-based payments		10,500	163,629
Share registryandlistingfees		54,014	112,084
Travel and accommodation		-	12,069
Other		17,332	25,900
Totalexpenditure		1,729,913	1,518,022
Lossbeforetaxforyear		(1,699,461)	(1,231,480)
Income tax (expense)/benefit		-	-
Net loss attributable toshareholders		(1,699,461)	(1,231,480)
Totalcomprehensive income/(loss)for the year attributableto:
Foreigncurrencymovement		114,498	48,774
Other comprehensive incomefortheyear,netoftax		114,498	48,774
Total comprehensive income/(loss) for theyear		(1,584,963)	(1,182,706)
Earnings/(loss) pershare Basiclosspershare(centspershare)	3	(0.066)	(0.096)
Dilutedlosspershare(centspershare)	3	(0.066)	(0.096)

  CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Note	31December 2020	30June 2020
		$	$
Assets
Currentassets Cashandcashequivalents		51,960	234,689
Tradeandotherreceivables		87,242	77,752
Financialassets		91,866	91,866
Totalcurrentassets		231,068	404,307
Non-currentassets Plantandequipment		-	499
Explorationandevaluation	5	19,973,438	19,737,751
		19,973,438	19,738,250
Totalassets		20,204,506	20,142,557
Liabilities
Currentliabilities Tradeandotherpayables	6	1,954,793	760,058
Employeebenefitsobligation		137,623	117,108
Financialliabilities		34,445	34,445
Vendorconsideration	7	-	145,709
Borrowings	8	740,500	310,000
Totalcurrentliabilities		2,867,361	1,367,320
Non-currentliabilities Employeebenefitsobligation		26,366	21,495
		26,366	21,495
Totalliabilities		2,893,727	1,388,815
Netassets		17,310,779	18,753,742
Equity Sharecapital	9	50,975,797	50,967,094
Othercontributedequity		357,056	357,056
Reserves	10	1,395,109	1,147,314
Accumulatedlosses		(35,417,183)	(33,717,722)
Totalequity		17,310,779	18,753,742

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	ShareCapital $	OtherContributedEquity $	Share-based PaymentsReserve $	Translation Reserve $	Accumulated Losses $	Equity $
Asat1July2019	46,315,150	-	855,670	418,159	(27,939,514)	19,649,465
TransactionswithownersintheircapacityasownersoftheCompany Contributionsfromloyaltyoptions	-	78,167	-	-	-	78,167
Conversionofconvertiblenotesintoordinaryshares	700,000	-	-	-	-	700,000
Share-basedpaymentstocontractorsandconsultants	268,035	-	-	-	-	268,035
Conversionrightsrecognisedasequity	77,778	-	-	-	-	77,778
	1,045,813	78,167	-		-	1,123,980
Netlossfortheperiod	-	-	-	-	(1,231,480)	(1,231,480)
Othercomprehensiveincome	-	-	-	48,774	-	48,774
Totalcomprehensiveincome	-	-	-	48,774	(1,231,480)	(1,182,706)
Movementsinreserves Optionsissuedduringfinancialperiod	-	-	52,826	-	-	52,826
Optionscancelledduringfinancialperiod	-	-	(97,789)	-	97,789	-
Performancesharesissuedduringfinancialperiod	-	-	163,629	-	-	163,629
Performancesharesconvertedduringthefinancialperiod	105,000	-	(105,000)	-	-	-
Asat31December2019	47,465,963	78,167	869,336	466,933	(29,073,205)	19,807,194
Asat1July2020	50,967,094	357,056	551,998	595,316	(33,717,722)	18,753,742
TransactionswithownersintheircapacityasownersoftheCompany Equityraisingcosts	8,703	-	-	-	-	8,703
	8,703	-	-	-	-	8,703
Netlossfortheperiod	-	-	-	-	(1,699,461)	(1,699,461)
Othercomprehensiveincome	-	-	-	114,498	-	114,498
Totalcomprehensiveincome	-	-	-	114,498	(1,699,461)	(1,584,963)
Movementsinreserves Optionsissuedduringfinancialperiod	-	-	122,797	-	-	122,797
Performancesharesissuedduringfinancialperiod	-	-	10,500	-	-	10,500
Asat31December2020	50,975,797	357,056	685,295	709,814	(35,417,183)	17,310,779

CONSOLIDATED STATEMENT OF CASH FLOWS

 

For the six months ended 31 December

	2020	2019
	$	$
Cashflows from/(used)inoperatingactivities Paymentstoemployeesandsuppliers	(335,413)	(605,315)
Otherincome	30,450	285,168
Interestpaid	-	(11,250)
Interestreceived	2	1,374
Netcashflowsfrom/(used)inoperatingactivities	(304,961)	(330,023)
Cashflowsfrom/(used)ininvestingactivities Paymentsforexplorationandevaluation	(207,845)	(736,865)
Netcashflowsfrom/(used)ininvestingactivities	(207,845)	(736,865)
Cashflowsfrom/(used)infinancingactivities Proceedsfromshareissues	-	78,167
Proceedsfromborrowings	-	250,000
Repaymentofborrowings	-	(250,000)
Proceedsfromconvertiblenote	341,000	350,000
Commitmentfeepaid	-	(8,750)
Netcashflowsfrom/(used)infinancingactivities	341,000	419,417
Netcashflows	(171,806)	(647,471)
Cashandcashequivalentsasatthestartof thefinancialperiod	234,689	812,296
Changesinforeigncurrencyheld	(10,923)	(1,754)
Cashandcashequivalentsasattheendof thefinancialperiod	51,960	163,071

Note 1  Corporate information

These   are   the   consolidated   financial   statements   and   notes   of   Aura   Energy   Limited   and   controlled   entities (the "Group").   Aura Energy   Limited   is   a   company   limited   by   shares,   domiciled   and   incorporated   in   Australia.

The   separate   financial   statements   of   the   parent entity,   Aura   Energy   Limited,   have   not   been   presented   with   this   financial   report   as   permitted   by   the   Corporations   Act   2001   (Cth).

a.  Basis   of   preparation

i.  Statement   of   compliance

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations,   other authoritative pronouncements of the Australian Accounting Standards Board and the  Corporations Act 2001 (Cth).

Australian Accounting Standards set out accounting policies that the AASB has concluded would result   in a financial report containing relevant and reliable information about transactions, events and   conditions to which they apply. Compliance with Australian Accounting Standards ensures that the   financial statements and notes also complywith International Financial Reporting Standards as issued   by the IASB. Material accounting policies adopted in the preparation of these financial statements are   presented below.   They   have   been   consistently   applied   unless   otherwise   stated.

These consolidated interim financial reports do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by Aura Energy Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The   financial   statements   were   authorised   for   issue   on   30   March   2021   by   the   directors   of   the Company.

ii.  Going   concern

The financial statements have been prepared on a going concern basis, which contemplates the   continuity   of   normal   business   activity   and   the   realisation   of   assets   and   the   settlement   of   liabilities   in   the   ordinary course of business.

The Group incurred a loss for the half-year of $1,699,461 (2019: $1,231,480) and a net cash outflow   from operating activities of $304,961 (2019: $330,023). Excluding non-cash based finance costs and   impairment   of   exploration   and   evaluation   the   net   loss   after   tax   for   the   period   was   $1,487,164   (2019:

$898,896).

As   at   31   December   2020,   the   Group   had   negative   working   capital   of   $2,636,293   (30   June   2020:

$963,013).

The ability of the Group to continue as a going concern is principally dependent upon the ability of the   Group   to   secure   funds   by   raising   capital   from   equity   markets   or   by   other   means,   and   by   managing   cash   flows in line with available funds, and/or the successful development of the Group's exploration assets.   These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to   continue as a going concern.

In   assessing   the   Group   as   a   going   concern:

· the Directors anticipate to secure additional working capital through the issue of shares to   sophisticated and professional investors approved at the Annual General Meeting of the company   as disclosed in note 11 for $650,000;

· Settlement   of   the   existing   convertible   note   debt   of   $310,000   via   the   issue   of   shares   (note   11);

· Settlement   of   the   litigation   accrual   of   $465,640   and   related   party   payables   via   the   issue   of   shares   and options (note 11); and

· Raising   of   additional   funds   via   an   anticipated   placement   or   rights   issue.

Based   on   past   experience,   the   Directors   are   confident   that   they   can   raise   additional   capital   if   and   when   required. Based upon cash flow forecasts, the directors are satisfied that the going concern basis of   preparation is appropriate, including the meeting of exploration commitments.

Should   the   Group   be   unable   to   continue   as   a   going   concern   it   may   be   required   to   realise   its assets   and extinguish its liabilities other than in the normal course of business and at amounts different to   those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification   of asset carrying amounts or to the amount and classification of liabilities that might result should the   Group   be   unable   to   continue   as   a   going   concern   and   meet   its   debts   as   and   when   they   fall   due.

iii.  Use   of   estimates   and   judgements

The preparation of financial statements requires management to make judgements, estimates and   assumptions that affect the application of policies and reported amounts of assets and liabilities,   income and expenses. These estimates and associated assumptions are based on historical   experience and various factors that are believed to be reasonable under the circumstances, the results   of which form the basis of making the judgements about carrying values of assets and liabilities that are   not   readily   apparent   from   other   sources.   Actual   results   may   differ   from   these   estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting   estimates are recognised in the period in which the estimate is revised and in any future periods   affected.

Note 2  Segment reporting

i.  Identification   of   reportable   segments

The Group operates predominantly in the mining industry.   This comprises exploration and evaluation   of   uranium   projects.   Inter-segment   transactions   are   priced   at   cost   to   the   Group.

The   Group   has   identified   its   operating   segments   based   on   the   internal   reports   that   are   provided   to   the   Board of Directors on a monthly basis. Management has identified the operating segments based on   geographical location - Mauritania and Sweden, where exploration and evaluation activities take place, and Australia, as the corporate head office.

Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.

Segment assets include the costs to acquire tenements and the capitalised exploration costs of those   tenements. Financial assets including cash and cash equivalents, and investments in financial assets,   are reported in the Treasury segment.

ii.  Basis   of   accounting   for   purposes   of   reporting   by   operatingsegments

(1) Accounting   policies   adopted

Unless stated otherwise, all amounts reported to the board of directors, being the chief decision makers with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

(2) Inter-segment   transactions

An internally determined transfer price is set for all inter-segment sales.This price is reset quarterly     and  is   based   on   what   would   be   realised   in   the   event   the   sale   was  made   to   an   external   party   at   arm's   length.  
All  such  transactions  are   eliminated   on   consolidation   of   the   Group's  financial  statements.

Corporate charges are allocated to reporting segments based on the segments' overall proportion   of revenue generation within the Group. The board of directors believes this is representative of   likely consumption of head office expenditure that should be used in assessing segment   performance and cost recoveries.

Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of transaction costs.
If inter-segment loans receivable and payable are not on commercial terms, these are notadjusted to fair value based on market interest rates.
This policy represents a departure from that applied to the statutory financial statements.

(3) Segment   assets

Where an  asset is used across multiple segments, the asset is allocated to that segment that  receives  majority  economic   value   from   that   asset.  In   the   majority   of   instances,   segment  
assets   are  clearly   identifiable on   the   basis   of   their   nature   and   physical  location.

(4) Segment   liabilities

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the   liability   and   the   operations   of   the segment.   Borrowings   and tax   liabilities   are   generally   considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings.

Forthehalf-yearended31December2020	Mauritania  Sweden $  $	Australia $	Total $
Segment revenue	-  -	30,452	30,452
Segmentresult
Amountsnotincludedinsegmentresultsbutreviewedbythe
board:
Expensesnotdirectlyallocabletoidentifiablesegments
Accountingandaudit fees		(18,048)	(18,048)
Employeeexpensebenefitsexpense		(338,548)	(338,548)
Financecosts		(212,297)	(212,297)
Consultingandadvisoryfees		(1,011,702)	(1,011,702)
Rentandutilities		(35,542)	(35,542)
Secretarialcosts		(54,014)	(54,014)
Otherexpenses	(77)  (5)	(59,680)	(59,762)
Lossafterincometax			(1,699,461)
Asat31December2020
Segmentassets	296,933  7,437,832	12,469,741	20,204,506
Segmentassetincreasesfortheperiod:
Capitalexpenditure	-  40,217	114,261	154,478
Segment liabilities	-  58,743	2,834,984	2,893,727

Forthehalf-yearended31December2019	Mauritania $	Sweden $	Australia $	Total $
Segmentrevenue	-	-	286,542	286,542
Segment result Amountsnotincludedinsegmentresultsbutreviewedbytheboard: Expensesnotdirectlyallocabletoidentifiablesegments Accountingandauditfees			(16,192)	(16,192)
Employeeexpensebenefitsexpense			(446,949)	(446,949)
Financecosts			(292,953)	(292,953)
Consultingandadvisoryfees			(296,370)	(296,370)
Rentandutilities			(40,122)	(40,122)
Secretarialcosts			(112,084)	(112,084)
Otherexpenses	(65)	(75)	(313,212)	(313,352)
Lossafterincometax				(1,231,480)
Asat30June2020Segmentassets	348,167	7,243,226	12,551,164	20,142,557
Segment asset increasesfortheperiod:Capitalexpenditure	149,843	320,873	-	470,716
Impairmentofexplorationassets	-	(44,344)	(2,616,725)	(2,661,069)
	(149,843)	276,529	2,616,725	(2,190,353)
Segmentliabilities	-	35,136	1,353,679	1,388,815

Note 3  Earnings per share

For the six months ended 31 December

    2020  2019  

Lossfromcontinuingoperationsfortheyear		$ (1,699,461)	$ (1,231,480)
Weightedaveragenumber of ordinary sharesoutstandingduringtheyearusedincalculationofbasicanddilutedEPS		2,557,535,966	1,423,940,558
Basicanddilutedlosspershare(centspershare)		(0.066)	(0.096)

Note 4  Dividends paid and proposed

No dividends were paid during the half-year and no dividend is proposed to be paid as at the end of the half-year ended 31 December 2020 (2019: nil).

Note5	Explorationandevaluation
		31December	30June
		2020	2020
		$	$
	Atstartoffinancialyear	19,737,751	21,008,293
	ExpenditurecapitalisedduringthefinancialyearEffectofexchangeratechangesonexploration	154,478	1,252,969
	andevaluationassets	81,209	137,558
	Impairment	-	(2,661,069)
	Atendoffinancialyear	19,973,438	19,737,751
	Thecarryingvalueofexplorationandevaluationexpenditureatbalancedateisrepresentedby
	thefollowingprojects:
	Tirisuranium	11,857,090	11,769,138
	Hagganvanadium	7,396,600	7,220,847
	TasiastSouthgold	719,748	747,766
		19,973,438	19,737,751

a.  The value   of   the   Group   interest   in   exploration   expenditure   is   dependent   upon:

• The   continuance   of   the   Group's   rights   to   tenure   of   theareas   of   interest;

• The   results   of   future   exploration;   and

• The recoupment of costs through successful development and exploitation of the areas of   interest, or alternatively, by their sale.

The Group's exploration properties may be subjected to claim(s) under Native Title (or jurisdictional   equivalent),   or   contain   sacred   sites,   or   sites   of   significance   to   the   indigenous   people   of   Sweden   and   Mauritania.

As a result, exploration properties or areas within the tenements may be subject to exploration   restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify   whether such claims exist, or the quantum of such claims.

On   22   May 2018, the   Group   lodged   exploitation   applications   for   Ain Seder,   Oued   El   Foule   Est   and   Oum Ferkik.

The Islamic Republic of Mauritania granted exploitation licences for the Ain Sder and Oued El Foule Est   on   9   February   2019.   The   Group   is   in   discussions   with   the   government   to   secure   an   exclusivity   over   the   Oum Ferkik tenement.

Covid-19   lockdowns   have   prevented   the   Group   from   undertaking   negotiations   of   an   exclusivity   over   the   Oum Ferkik tenement. The board of directors believes its relationship with the government will result in   it eventually securing an exclusivity and noted that the government had not revoked the Oum Ferkik   tenement due to the representations made by the Group to secure the exclusivity.

Note6	Payables-current
		31December 2020	30June 2020
		$	$
	Tradepayables	612,222	342,978
	Accruedexpenses	1,342,571	381,564
	Othertaxespayable	-	35,516
		1,954,793	760,058

Trade payables are non-interest bearing and arise from the usual operating activities of the Group. Trade and other payables are usually settled within the lower of terms or 30 days.

Due to the short-term nature of these payables, the carrying amounts recorded in the financial statements for trade payables and other payables are the fair values.

Note 7  Vendor obligations

31 December  30 June

2020  2020

$  $

Vendors of Nomads Mining Company sarl  -  145,709

The Group extinguished the final entry fee obligations owing to Nomads Mining Company sarl with cash payments on the 8 and 9 September 2020.

Note8  (a)Borrowings
	31December 2020	30June 2020
	$	$
BorrowingsCurrentportion	127,000	-
Non-currentportion	-	-
	127,000	-
Openingbalance	-	-
Drawdowns	106,000	250,000
Repayments	-	(250,000)
FinanceCosts	21,000	-
Closingbalance	127,000	-
Presentvalue	127,000	-
	127,000	-

On 18 August 2020, the Company entered into a short-term Loan Agreement with Lind Global Macro Fund LP for $106,000. A facility fee of $6,000 was payable on inception of the agreement. The lender advanced the Company the net amount on inception of the loan.

The loan matures on maturity 31 December 2020, and $127,000 was repayable to the lender under this agreement. At the date of this report, the loan has not been repaid. Interest of 10% per annum is payable on the overdue repayment.

(b) Convertible notes

	31December	30June
	2020	2020
	$	$
Convertiblenote
Currentportion	613,500	310,000
Non-currentportion	-	-
	613,500	310,000
Openingbalance	310,000	1,388,431
Notesissued	250,000	350,000
Conversionrights	-	(46,667)
Optionsoverordinaryshares Conversionofconvertiblenotesintofullypaid	-	(52,825)
ordinaryshares	-	(2,510,000)
Financecost	53,500	1,181,061
Closingbalance	613,500	310,000
Presentvalue	613,500	310,000
	613,500	310,000

On 30 April 2019, the Group entered into the Convertible Security Facility Agreement with Lind Global Macro Fund, LLP (see ASX Announcement, dated 30 April 2019) and a Follow-on Convertible Security Facility Agreement on 18 November 2019 (see ASX announcement, dated 18 November 2019). In total, Lind has converted $2,510,000 convertible notes and with a further

$310,000 convertible notes available for conversion. The Company has issued Lind 912,599,210 fully paid ordinary shares under the convertible note facilities. At the AGM on 17 March 2021, the shareholders approved the issue of 155,000,000 shares to Lind Global Macro Fund LP, to extinguish the liability of $310,000.

On 19 August 2020, the Group entered into a Convertible Securities Agreement with L1 Capital Global Opportunities Master Fund. The Group issued 250,000 convertible securities for $250,000. The securities carry a face value of $312,500 and a maturity date of 21 February 2021 or any date within 6 months of this date at the sole discretion of the investor. By 31 December 2020, $53,500 finance costs has been recognised on the agreement. At the AGM on 17 March 2021, the shareholders approved the issue of 50,000,000 Options with an exercise price of $0.004 each, as part of the convertible securities agreement. It is the Company's intention to settle the amount in cash.

Note9  Contributedequity a.Equity raisedduringthefinancialyear		31December	30June
		2020	2020
		$	$
TheCompanyhasissuedsharecapitalamountto 2,557,535,966(June2020:2,557,535,966)fully
paidordinarysharesat noparvalue		50,975,797	50,967,094
Equity raised during the financialyear At the beginning of the reporting period		50,967,094	46,315,150
Sharesissuedduringtheyear: 11,111,111sharesissuedon12July2019	a	-	100,000
5,000,000sharesissuedon12July2019	b	-	105,000
3,251,773sharesissuedon12July2019	c	-	36,127
1,893,233sharesissuedon12July2019	d	-	21,564
1,931,218sharesissuedon12August2019	e	-	21,475
14,285,715sharesissuedon4September2019	f	-	100,000
2,041,281sharesissuedon4September2019	g	-	22,209
16,666,667sharesissuedon24September2019	h	-	100,000
18,811,250sharesissuedon24September2019	i	-	150,490
2,021,250sharesissuedon24September2019	j	-	16,170
14,285,715sharesissuedon27October2019	k	-	100,000
8,750,000sharesissuedon18November2019	l	-	-
33,333,334sharesissuedon20December2019	m	-	100,000
66,666,668sharesissuedon23December2019	n	-	200,000
105,416,664sharesissuedon14January2020	o	-	474,375
11,164,037sharesissuedon10February2020	p	-	89,312
48,750,000sharesissuedon18February2020	q	-	195,000
4,193,788sharesissuedon1March2020	r	-	33,550
50,000,000sharesissuedon9March2020	s	-	200,000
50,000,000sharesissuedon18March2020	t	-	200,000
50,000,000sharesissuedon18March2020	u	-	200,000
62,500,000sharesissuedon8April2020	v	-	125,000
5,807,178sharesissuedon20April2020	w	-	24,973
60,000,000sharesissuedon24April2020	x	-	120,000
115,000,000sharesissuedon26April2020	y	-	230,000
120,000,000sharesissuedon8May2020	z	-	330,000
63,263,741sharesissuedon13May2020	aa	-	240,402
280,000,000sharesissuedon15May2020	ab	-	560,000
90,000,000sharesissuedon17May2020	ac	-	180,000
17,500,000sharesissuedon18May2020	ad	-	385,000
		-	4,660,647
Transactioncostsrelatingtoshareissues		8,703	(8,703)
		8,703	4,651,944
Atreportingdate		50,975,797	50,967,094

		31December 2020	30June 2020
Ordinarysharesonissueatthestartofthe
financialyear Sharesissuedduringtheyear 11,111,111sharesissuedon12July2019	a	2,557,535,966  1,223,891,343   -  11,111,111
5,000,000sharesissuedon12July2019	b	-  5,000,000
3,251,773sharesissuedon12July2019	c	-  3,251,773
1,893,233sharesissuedon12July2019	d	-  1,893,233
1,931,218sharesissuedon12August2019	e	-  1,931,218
14,285,715sharesissuedon4September 2019	f	-  14,285,715
2,041,281sharesissuedon4September 2019	g	-  2,041,281
16,666,667sharesissuedon24September 2019	h	-  16,666,667
18,811,250sharesissuedon24September 2019	i	-  18,811,250
2,021,250sharesissuedon24September 2019	j	-  2,021,250
14,285,715sharesissuedon27October2019	k	-  14,285,715
8,750,000sharesissuedon18November2019	l	-  8,750,000
33,333,334sharesissuedon20December2019	m	-  33,333,334
66,666,668sharesissuedon23December2019	n	-  66,666,668
105,416,664sharesissuedon14January2020	o	-  105,416,664
11,164,037sharesissuedon10February2020	p	-  11,164,037
48,750,000sharesissuedon18February2020	q	-  48,750,000
4,193,788sharesissuedon1March2020	r	-  4,193,788
50,000,000sharesissuedon9March2020	s	-  50,000,000
50,000,000sharesissuedon18March2020	t	-  50,000,000
50,000,000sharesissuedon18March2020	u	-  50,000,000
62,500,000sharesissuedon8April2020	v	-  62,500,000
5,807,178sharesissuedon20April2020	w	-  5,807,178
60,000,000sharesissuedon24April2020	x	-  60,000,000
115,000,000sharesissuedon26April2020	y	-  115,000,000
120,000,000sharesissuedon8May2020	z	-  120,000,000
63,263,741sharesissuedon13May2020	aa	-  63,263,741
280,000,000sharesissuedon15May2020	ab	-  280,000,000
90,000,000sharesissuedon17May2020	ac	-  90,000,000
17,500,000sharesissuedon18May2020	ad	-  17,500,000
		-  1,333,644,623

Ordinary shares on issue at the end of the

financial year  2,557,535,966  2,557,535,966

The details of each issue of shares are as follows:

a Exercise of options over ordinary shares (expiry 15 November 2018) b Issue of shares for settlement of supplier obligations

c   Issue of shares for settlement of supplier obligations d Conversion of performance rights into ordinary shares e Issue of shares pursuant to private placement

f  Issue of shares pursuant to private placement

g  Issue of shares under terms and conditions of share purchase plan h Issue of shares for settlement of supplier obligations

i   Issue of collateral shares to Lind Global Macro Fund LP j  Issue of shares for services under Letter of Engagement k Issue of shares for services under Letter of Engagement

l  Issue of shares pursuant to securing option of gold exploration licence in Mauritania a Issue of shares on conversion of convertible notes

b  Issue of shares on conversion of performance rights

c  Issue of shares pursuant to securing Farm-in and Joint Venture with Nomads Mining Co sarl d Issue of shares for services under Letter of Engagement

e   Issue of shares for services under Letter of Engagement f  Issue of shares on conversion of convertible notes

g Issue of shares for services under Letter of Engagement h Issue of shares on conversion of convertible notes

i  Issue of shares for settlement of supplier obligations j  Issue of shares for services as Joint Broker

k  Issue of shares on conversion of convertible notes l Issue of shares on conversion of convertible notes m Issue of shares on conversion of convertible notes n Issue of shares on conversion of convertible notes o Issue of shares pursuant to Share Placement

p Issue of shares for services under Letter of Engagement q Issue of shares on conversion of convertible notes

r  Issue of shares for services under Letter of Engagement s Issue of shares on conversion of convertible notes

t  Issue of shares on conversion of convertible notes u Issue of shares pursuant to Share Placement

v  Issue of shares on conversion of convertible notes

w  Issue of shares for services under letter of Engagement x Issue of shares on conversion of convertible notes

y   Issue of shares on conversion of convertible notes z Issue of shares pursuant to Share Placement

aa Issue of shares for settlement of contract employee, consultants and drilling contractor obligations

ab Issue of shares on conversion of convertible notes ac Issue of shares on conversion of convertible notes ad Issue of shares on conversion of performance rights

Ordinary shares

Ordinary shares have the rights to receive dividends as declared and, in the event of winding up, participate in the proceeds from the sale of all surplus assets in proportion to the number of, and amounts paid up on, the shares held.

Each fully paid ordinary share carries one vote.

Ordinary shares issued to shareholders since incorporation have had no par value.

Options over ordinary shares

There are no options over ordinary shares on issue.

Performance rights

At the general meeting of shareholders on the 30 November 2017, the Executive Chairman of the Company was awarded 35,000,000 performance rights with 17,500,000 vesting on 30 November 2018 and the remainder on the 30 November 2019.

On 17 June 2018, Messrs NJ Clifford, WR Goodall and JM Madden were each awarded 5,000,000 performance rights with 33.3% vesting on 17 June 2019, 33.3% vesting on 17 June 2020 and

33.4% vesting on 17 June 2021.

The group has accounted for the above-mentioned performance rights in accordance with AASB 2 Share-based payments.

b.  Options over ordinary shares and performance rights on issue

The   total   number   of   options   and performance   rights   on issue   is as   follows:

	31December	30June
	2020	2020
	No	No
Performanceshares	10,000,000	10,000,000
Unlisted optionsoverordinaryshares	95,541,679	118,797,598
Unlisted warrantsoverordinaryshares	-	-
	105,541,679	128,797,598
Note10  Reserves
a.  Share-basedpaymentsreserve
	31December 2020	30June 2020
	$	$
Openingbalance	551,998	855,670
Issueofoptions	122,797	52,825
Issueofperformanceshares	10,500	231,292
Expiryofwarrants	-	(97,789)
Conversionofperformanceshares	-	(490,000)
Closingbalance	685,295	551,998

b.  Translation

	31December	30June
	2020	2020
	$	$
Openingbalance	595,316	418,159
Translationofforeigncurrencyfinancial statementsintothefunctionalcurrency	114,498	177,157
Closingbalance	709,814	595,316

The Company agreed to issue L1 Capital Global Opportunities Master Fund 50,000,000 Options, exercisable at $0.004 per Options and within 2 years of issue. The issue of Options was subsequently approved by the shareholders at the AGM on 17 March 2021. The Options have a fair value of $122,797 at 31 December 2020.

Note 11  Events after balance date

The following directors resigned, effective as at the Annual General meeting: R Beeson, JL Bennett, RC Craigie, PD Heber and JC Perkins. Furthermore, PD Reeve stood down as chairman, but retained his directorship.

The Group held its Annual General Meeting on 17 March 2021. The following resolutions were passed at the AGM and subsequently enacted:

· M Rogers was appointed as non-executive director and chairman.

· P Ward was appointed as non-executive director.

· PD Reeve was appointed as managing director.

· All issued shares and options were consolidated at a ratio of 13 to 1. For clarity, all share numbers quoted in this note are on the pre-consolidation basis.

· The shareholders approved the issue of 155,000,000 shares to Lind Global Macro Fund LP, to extinguish the liability of $310,000.

· The shareholders approved the issue of 77,708,331 Options to sophisticated and professional investors, each exercisable at $0.008, on or before 2 years from the date of issue.

· The following shares approved by the shareholders to be issued to existing non-executive directors to extinguish outstanding remuneration:

(a)  Up to 34,675,000 Shares to R Beeson;

(b)  Up to 34,675,000 Shares to JC Perkins;

(c)  Up to 23,725,000 Shares to JL Bennett;

(d)  Up to 15,955,000 Shares RC Craigie;

(e)  PD Heber will not be issued equity in relation to his outstanding remuneration as he maintains his independence for AIM purposes; and

(f)  Up to 8,460,000 Shares to B Fraser.

at a price of $0.002 per Share to extinguish outstanding obligations.

· The shareholders approved the issue of 50,000,000 Shares to the PD Reeve (executive chairman) at a price of $0.002 per share to partly extinguish outstanding remuneration.

· The shareholders approved the placement to issue 25,000,000 shares to P Ward and 50,000,000 shares to M Rogers, the incoming directors, at a price of $0.002 per share.

· The shareholders approved the placement to issue the following shares to sophisticated and professional investors:

(a)  75,000,003 Shares to P Proksa;

(b)  50,000,002 Shares to J Hancock;

(c)  50,000,002 Shares to A Molyneux;

(d)  50,000,002 Shares to D O'Neill;

(e)  50,000,002 Shares to M Holland; and

(f)  50,000,002 Shares to K Kerridge;

at an issue price of $0.002 per Share for proceeds of $650,000.

· The shareholders approved the issue of 75,000,000 options to P Ward and 200,000,000 options to M Rogers, the incoming directors. All options are exercisable at $0.004 per option, on or before 30 June 2024.

· The shareholders approved the issue of 75,000,000 shares at an issue price of $0.004 each, to ASEAN, Sartingen, Pre-Emptive Trading Pty Ltd (PET) in settlement of litigation.

· The shareholders approved the issue of 75,000,000 options, exercisable at $0.004 each, on or before 30 June 2023, to ASEAN, Sartingen, Pre-Emptive Trading Pty Ltd (PET) in settlement of litigation.

· The shareholders approved the issue of 45,000,000 shares to CFO Solutions Pty Ltd, for the provision of accounting, ASX compliance and company secretary services.

· The shareholders approved the issue of 50,000,000 options to L1 Capital Global Opportunities Master Fund at an exercise price of $0.004 each, as part of the convertible securities agreement.

The capital raising initiatives have realised $800,000 in funding in February and March 2021.

Note 12  Related party disclosures

Directors

The directors of the parent entity during the financial period were:

PD Reeve R Beeson JL Bennett RC Craigie PD Heber JC Perkins

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Other transactions with key management personnel are set out in the Remuneration Report. There are no other related party transactions.

In accordance with a resolution of the board of directors of Aura Energy Limited, I state that: In the opinion of the board of directors:

(a)  financial statements, the accompanying notes to the financial statements and the additional disclosures set out in the Directors' Report are in accordance with the Corporations Act 2001, including:

(i)  giving a true and fair view of the Company's financial position as at 31 December 2020 and of their performance for the period ended on that date; and

(ii)  complying with Australian Accounting Standards (including Australian Accounting Interpretations) and Corporations Regulations 2001;

(b)  the financial statements and notes also comply with International Financial Reporting Standards as issued by the International Accounting Standard Board, as disclosed in Note 1a; and

(c)  there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed on behalf of the Board of Directors

PD Reeve

Managing Director

30 March 2021

 

END

 

 

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