Announcement PDF INTERIM CONSOLIDATED FINANCIAL STATEMENTS RAREX LIMITED (FORMERLY SAGON RESOURCES LIMITED) ABN: 65 105 578 756 AND CONTROLLED ENTITIES FINANCIAL STATEMENTS FOR HALF YEAR ENDED 31 DECEMBER 2019 RAREX LIMITED AND CONTROLLED ENTITIES CORPORATE DIRECTORY DIRECTORS LAWYERS Mr John Young Non-Executive Chairman HWL Ebsworth Lawyers Level 20 240 St Georges Terrace Perth Western Australia 6000 Mr Jeremy Robinson Executive Director Mr Shaun Hardcastle Non-Executive Director AUDITOR Ms Oonagh Malone Walker Wayland WA Audit Pty Ltd Level 3, 1 Preston Street Como Western Australia 6152 PRINCIPAL PLACE OF BUSINESS SHARE REGISTRY Suite 23, 513 Hay Street Subiaco Western Australia 6008 Automic Registry Services Level 5 126 Phillip Street Sydney NSW 2000 Australia COMPANY SECRETARY Telephone: (08) 6143 6720 Website: www.rarex.com.au REGISTERED OFFICE Suite 23, 513 Hay Street Subiaco Western Australia 6008 ASX CODES: REE Telephone: 1300 288 664 RAREX LIMITED AND CONTROLLED ENTITIES TABLE OF CONTENTS DIRECTORS’ REPORT .......................................................................................................................................... 1 AUDITOR’S INDEPENDENCE DECLARATION .................................................................................................... 3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................... 4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................. 5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................. 6 CONSOLIDATED STATEMENT OF CASH FLOWS............................................................................................... 7 NOTES TO THE FINANCIAL STATEMENTS ......................................................................................................... 8 DIRECTORS’ DECLARATION .............................................................................................................................. 24 INDEPENDENT AUDITOR’S REPORT ............................................................................................................... 25 RAREX LIMITED AND CONTROLLED ENTITIES DIRECTORS’ REPORT The Board of Directors have pleasure in presenting its report on the consolidated entity for the half year ended 31 December 2019. 1. DIRECTORS The names of the Company’s directors in office during the half year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated. Mr John Young (appointed 18 February 2020) Mr Jeremy Robinson (appointed 27 September 2019) Mr Shaun Hardcastle Mr Scott Patrizi (resigned 18 February 2020) Mr David Scoggin (resigned 23 August 2019) 2. PRINCIPAL ACTIVITIES The principal activities of the Group are mineral exploration and development. No significant change in the nature of these activities occurred during the half year. 3. REVIEW OF OPERATIONS During the half year, the Company:        4. undertook a consolidation of capital on the basis of 1 share for every 25 shares held; acquired 100% of the Cummins Range Rare Earths Project; completed two capital raisings which raised a total of $2.42m before costs; commenced exploration activities at Cummins Range Rare Earths Project which comprised of an extensive passive seismic survey; changed its name to RareX Limited and its ASX code to REE; appointed Mr Gavin Beer as lead consultant metallurgist and Mr Guy Moulang as head of exploration; and acquired the Weld North Project. FINANCIAL RESULTS The loss of the Company for the period ending 31 December 2019 was $8,115,869 (Six months to 31 December 2018: loss of $1,206,211). During the half year, total expenses amounted to $8,128,232 (Six months to 31 December 2018: $1,351,011). The total expenses includes an expense for acquisition costs of the Company’s Cummins Range Rare Earths Project of $6,095,382 which the Directors have elected to charge to the Consolidated Statement of Profit or Loss and Other Comprehensive Income. Unrestricted cash and cash equivalents amounted to $1,985,352 as at 31 December 2019 (30 June 2019: $427,318). 5. EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD There are no matters or circumstances which have arisen since the end of the half year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial periods, other than:  The Company announced on 31st January 2020 it has reached an agreement with TSX Venture Exchange (“TSXV”) listed company Kincora Copper Limited (“Kincora Copper”) for the partial sale of its NSW Copper Gold tenements. RareX Ltd has entered a binding Memorandum of Understanding (“MoU”) with Kincora Copper whereby Kincora Copper has paid a non-refundable option payment of C$25,000 (A$27,650) to RareX Ltd for 6-week exclusive option period ("Exclusivity Period"). Upon exercise of the option by Kincora Copper, it must pay RareX Ltd an additional C$150,000 and issue RareX Ltd 14.95 million shares in Kincora Copper at a deemed issue price of C$0.065 each equating to C$971,750. The shares will be subject to a 12-month voluntary escrow period, subject to standard exceptions. 1 RAREX LIMITED AND CONTROLLED ENTITIES DIRECTORS’ REPORT (continued) Upon exercise of the option by Kincora Copper, RareX Ltd will transfer a 65% interest in its NSW tenements and RareX Ltd will retain a 35% free carried interest until such time as positive scoping study or preliminary economic assessment is delivered following which industry standard JV dilution mechanisms will apply. 6.  On 12th March 2020, the Company announced that Kincora Copper had exercised the option with respect to the NSW Copper Gold tenements.  On 18th February 2020, Mr John Young was appointed as Non-Executive Chairman of the Company and Mr Scott Patrizi resigned as Non-Executive Director.  The Company secured a landmark strategic partnership with Talaxis Limited (“Talaxis”) a wholly-owned subsidiary of Noble Group Holdings Limited. Talaxis will assist the Company with securing offtake, financial partners and strategic investors to develop the Cummins Range Rare Earths Project. AUDITOR’S INDEPENDENCE DECLARATION The auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 3 and forms part of the Directors’ Report for the half year ended 31 December 2019. This report is made in accordance with a resolution of the Directors. On behalf of the Directors. Jeremy Robinson Executive Director Signed this 13th day of March 2020. 2 Auditor’s Independence Declaration Under Section 307C of The Corporations Act 2001 to The Directors of RareX Limited I declare that, to the best of my knowledge and belief, during the half-year end 31 December 2019 there have been no contraventions of: (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. WALKER WAYLAND WA AUDIT PTY LTD Richard Gregson CA Director Level 3, 1 Preston Street, COMO WA 6152 Dated this 13th day of March 2020. Liability limited by a scheme approved under Professional Standards Legislation RAREX LIMITED AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2019 Notes Consolidated 6 months 6 months ended 31 ended 31 December December 2019 2018 $ $ Income Other income 3 12,363 97,854 Sale of tenements 4 - 591,479 - (544,533) 12,363 144,800 Administration expenses (259,679) (155,089) Consultants & management expenses (122,154) (148,277) - (2,090) (33,689) (209,648) (1,294,328) (568,993) (324,261) (266,914) (6,095,382) - Foreign exchange gain 1,455 - Impairment (194) - Total expenses (8,128,232) (1,351,011) Loss from continuing operations before income tax expense (8,115,869) (1,206,211) - - (8,115,869) (1,206,211) (1,887) (1,085) (8,117,756) (1,207,296) (3.5729) cents (0.9000) cents Loss on revaluation of financial assets Total Income Expenses Depreciation, amortisation and impairment expense 5 Legal expenses Share based payments expense 17 Exploration expenses Acquisition of tenements 6 Income tax expense Loss from continuing operations after income tax expense Other comprehensive income Exchange rate differences on translating foreign operations Total comprehensive loss attributable to owners of the parent Loss per share - basic and diluted The above Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the accompanying notes 4 RAREX LIMITED AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE HALF YEAR ENDED 31 DECEMBER 2019 Consolidated 31 December 2019 30 June 2019 $ $ Notes ASSETS Current Assets Cash and cash equivalents 7 1,985,352 427,318 160,755 283,140 - 307,737 2,146,107 1,018,195 1,656,046 505,032 Total Non-current Assets 1,656,046 505,032 TOTAL ASSETS 3,802,153 1,523,227 1,303,972 165,869 7,074 - Total Current Liabilities 1,311,046 165,869 TOTAL LIABILITIES 1,311,046 165,869 NET ASSETS 2,491,107 1,357,358 Trade and other receivables Financial assets at fair value through profit or loss 11 Total Current Assets Non-current Assets Exploration & evaluation assets 9 LIABILITIES Current Liabilities Trade and other payables 12 Provisions (current) EQUITY Contributed equity 13 27,615,453 20,405,948 Reserves 14 4,416,473 2,376,360 (29,540,819) (21,424,950) 2,491,107 1,357,358 Accumulated losses TOTAL EQUITY The above Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes. 5 RAREX LIMITED AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2019 CONSOLIDATED Notes At 1 July 2019 Ordinary Shares Options Reserve Share Based Payments Reserve (Accumulated Losses) Total Equity $ Foreign Currency Translation Reserve $ $ $ $ $ 20,405,948 2,294,087 83,840 (1,567) (21,424,950) 1,357,358 Currency translation differences (1,887) Total comprehensive income for the period, net of tax (1,887) (8,115,869) (8,115,869) Transactions with owners in their capacity as owners Share issues 13 7,379,122 7,379,122 Transaction costs 13 (169,617) (169,617) Share based payments 17 2,042,000 2,042,000 At 31 December 2019 27,615,453 4,336,087 83,840 (3,454) (29,540,819) 2,491,107 At 1 July 2018 19,455,681 2,279,087 - - (19,215,941) 2,518,827 Currency translation differences - - - (1,085) - (1,085) Total comprehensive income for the period, net of tax - - - (1,206,211) (1,206,211) Transactions with owners in their capacity as owners Share issues 13 1,010,003 - - - - 1,010,003 Transaction costs 13 (59,739) - - - - (59,739) Share based payments 17 - 152,500 416,493 - - 568,993 20,405,945 2,431,587 416,493 (1,085) (20,422,152) 2,830,788 At 31 December 2018 The above Consolidated Statement of Changes in Equity is to be read in conjunction with the accompanying notes. 6 RAREX LIMITED AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 Consolidated 6 months to 31 December 2019 6 months to 31 December 2018 $ $ Notes CASH FLOWS USED IN OPERATING ACTIVITIES Payments to suppliers and employees (660,265) (693,924) 1,704 1,647 (658,561) (692,277) - (49,587) (525,000) (247,084) Proceeds from disposal of tenements - 208,200 Proceeds from disposal of investments 490,255 - - 100,000 339 - (34,406) 11,529 2,420,000 750,003 610 - Costs of share issue (169,617) (59,739) NET CASH FLOWS FROM FINANCING ACTIVITIES 2,250,993 690,264 NET DECREASE IN CASH AND CASH EQUIVALENTS 1,558,026 9,516 427,318 470,269 8 258 1,985,352 480,043 Interest received NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS USED IN INVESTING ACTIVITIES Payments for capitalised exploration expenditure Payments to acquire tenements Proceeds from disposal of royalty Cash acquired on acquisition of subsidiary NET CASH FLOWS (USED IN)/FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issue Proceeds from issue of share options Cash and cash equivalents at beginning of period Effect of movement in exchange rate CASH AND CASH EQUIVALENTS AT END OF PERIOD 7 The above Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes. 7 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 1. CORPORATE INFORMATION The consolidated financial report of RareX Limited (“the Company”) for the half year ended 31 December 2019 was authorised for issue in accordance with a resolution of the Directors on 13th March 2020. RareX Limited is a company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange. The principal activities during the year of the entities within the consolidated entity were mineral exploration and development. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The half year financial report does not include all the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report, and should be read in conjunction with the annual Financial Report of RareX Limited for the year ended 30 June 2019. It is also recommended that the half year financial report be considered together with any public announcements made by RareX Limited and its controlled entities (‘the Group’) during the half year ended 31 December 2019 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001. (a) Basis of Preparation The half year consolidated financial report has been prepared in accordance with AASB 134 “Interim Financial Reporting”. The half year financial report has been prepared on a historical cost basis, except for the revaluation of financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars. For the purpose of preparing the half year financial report, the half year has been treated as a discrete reporting period. This report presents financials for the six month period to 31 December 2019, with comparatives for the six month period to 31 December 2018. Going concern As at 31 December 2019, the Group had working capital of $842,135 (30 June 2019: $852,326) and returned a loss attributable to owners of $8,115,869 (31 December 2018: $1,206,211). The loss for the half year to 31 December 2019 included an expense for acquisition costs of the Cummins Range Rare Earths Project of $6,095,382 (31 December 2018: nil) which the Directors have elected to charge to the Consolidated Statement of Profit or Loss and Other Comprehensive Income. The ability of the Group to continue as a going concern is dependent upon the future successful raising of the necessary funding through disposal of assets, equity and/or debt and the successful exploitation of the Group’s tenements. The Directors believe it is appropriate to prepare the Financial Statements on a going concern basis because the Directors have appropriate plans to raise additional funds if required. These Financial Statements have been prepared on the basis that the Group can meet its commitments as and when they fall due and can therefore continue normal business activities and the realisation of its assets and settlement of its liabilities can occur in the ordinary course of business. In the event the Group is not able to achieve the above requirements, there is uncertainty whether the Group will continue as a going concern and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in its financial report. (b) Changes in accounting policies The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended 30 June 2019. The Group has adopted all mandatory new and amended standards and interpretations applicable for the current period. The adoption of these standards and interpretations had no material impact on these financial statements or on the financial position or performance of the Group. 8 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Group has not elected to early adopt any other new standards or amendments that are issued but not yet effective. Certain amounts in the comparative financial statements have been reclassified to conform to the current period presentation. (c) Basis of consolidation The half year consolidated financial statements comprise the financial statements of RareX Limited and its controlled subsidiary. (d) Exploration and Evaluation Expenditure Assets Exploration and evaluation costs are accumulated and accounted for separately on an area of interest basis. An area of interest is represented by an exploration project, which may include multiple tenements within a single geographic region. For each area of interest, the Company makes an election regarding its treatment of exploration and evaluation expenditure (including the costs of tenement acquisitions) and whether it will be charged to the income statement as incurred, under the expense category “exploration expenditure” (or other appropriate expense category), or capitalised as an exploration and evaluation asset, or a combination thereof. An exploration and evaluation asset can only be recognised in relation to an area of interest if the following conditions are satisfied: a) b) the rights to tenure of the area of interest are current; and at least one of the following conditions is also met: i. the exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; and ii. exploration and evaluation activities in the area of interest have not at the end of the reporting period reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Capitalised exploration and evaluation expenditures are recorded as an exploration asset at cost less impairment charges. All capitalised exploration and evaluation expenditure are monitored for indicators of impairment. Where an impairment indicator is identified, an assessment is performed for each area of interest to which the exploration and evaluation expenditure is attributed. To the extent that capitalised expenditure is not expected to be recovered it is charged to the income statement. (e) Critical Accounting Estimates and Judgements The directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. Key estimates (i) Impairment – general The Group assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the Group that may be indicative of impairment triggers. Where impairment has been triggered, assets are written down to their recoverable amounts. (ii) Options and Share Based Payments value The options and share based payments issued by the Group during the half year (refer Note 17) have been valued by the Directors using the Black-Scholes option pricing model based on the inputs shown at Note 17. (iii) Tenement acquisition costs The Directors have elected to expense certain tenement acquisition costs in relation to the Cummins Range Rare Earths Project as disclosed in Note 6. 9 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (f) New Standards and Interpretations In the half year ended 31 December 2019, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group’s operations and effective for annual reporting periods commencing on or after 1 July 2019. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group and, therefore, no change is necessary to accounting policies. The adoption of AASB 16 Leases from 1 July 2019 has not affected balances of the Group because the Group does not have any leases. Future effects of the implementation of this standard will depend on details in future agreements. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the Group. 3. OTHER INCOME Consolidated 6 months 6 months ended 31 ended 31 December December 2019 2018 $ $ Interest received 5,582 2,558 - 100,000 Gain/(loss) on sale of investments 6,900 (4,704) Foreign exchange loss (119) - 12,363 97,854 Proceeds from sale of royalty 4. SALE OF TENEMENTS During the half year ended 31 December 2019, there were no tenements sold. During the half year ended 31 December 2018, Pacton Gold Inc (“Pacton”) acquired a 70% equity interest in the Company’s Hong Kong Project in the Pilbara (Exploration Licence E47/3566). $ Cash consideration 208,200 Fair value of Pacton shares received as consideration 1,561,687 Total Consideration 1,769,887 Less: carrying value of 70% interest in Hong Kong Project 1,178,408 Gain on sale of tenement 5. 591,479 EXPENSES Consolidated 6 months 6 months ended 31 ended 31 December December 2019 2018 $ $ Depreciation of plant & equipment 10 - 2,090 - 2,090 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 6. ACQUISITION OF TENEMENTS During the period, the Directors elected to expense the following costs in relation to the acquisition of the Cummins Range Rare Earths Project to the Consolidated Statement of Profit or Loss and Other Comprehensive Income: Consolidated 6 months 6 months ended 31 ended 31 December December 2019 2018 $ $ Option fee 50,000 - Upfront consideration – cash 500,000 - Upfront consideration – fair value of Rarex Ltd shares issued 813,634 - Exploration asset - Cummins Range Pty Ltd (Note 10) 4,731,748 6,095,382 7. - CASH AND CASH EQUIVALENTS Consolidated 31 December 30 June 2019 2019 $ $ Cash at bank 8. 1,985,352 427,318 1,985,352 427,318 FINANCIAL ASSETS For all financial instruments held as at 31 December 2019, the carrying value approximates fair value. 11 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 9. EXPLORATION AND EVALUATION ASSETS Consolidated 31 December 30 June 2019 2019 $ $ Cummins Range Rare Earths Project Opening balance - - Tenement acquisition costs (refer Table 9.1) 2,363,634 - Exploration asset - Cummins Range Pty Ltd (Note 10) 4,731,748 - 151,014 - Less: Acquisition costs expensed (Note 6) (6,095,382) - Closing balance 1,151,014 - 505,032 1,683,440 Tenement acquisition costs - - Stamp duty on acquisition of tenement - - Less: Disposal of 70% interest - (1,178,408) 505,032 505,032 Opening balance - - Capitalised exploration costs - 50,251 Less: Impairment - (50,251) Closing balance - - 1,656,046 505,032 Stamp duty on acquisition of tenement Hong Kong Gold Project Opening balance Closing balance Moroccan Cobalt Project During the period, Cummins Range Pty Ltd acquired the Cummins Range Rare Earths Project from Element 25 Ltd. The consideration for the acquisition of the project in accordance with the agreement between Cummins Range Pty Ltd and Element 25 Ltd is as follows:     non-refundable option fee of $50,000; upfront consideration of $500,000 cash and $500,000 settled in shares in RareX Ltd being 13,338,261 shares at a deemed price of $0.0375 per shares. As the share price at the date of issue of these shares was $0.061 per share, for accounting purposes these 13,338,261 shares have a fair value of $813,634; deferred consideration to be settled on or before 27 September 2020 consisting of $500,000 in cash and a further $500,000 to be settled in cash or shares in RareX Ltd at the election of Rarex Ltd; and subject to a positive bankable feasibility study (BFS) being achieved within 36 months from settlement, further deferred consideration of $1,000,000 is payable to Element 25 Ltd and is to be settled in cash or shares in RareX Ltd at the election of RareX Ltd. As this further deferred consideration is subject to a positive BFS, it has not being included in the tenement acquisition costs, however, has been disclosed as a contingent liability in Note 15(d). 12 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 9. EXPLORATION AND EVALUATION ASSETS (continued) The fair value of the tenement acquisition costs paid or payable to Element 25 Ltd for the Cummins Range Rare Earths Project brought to account is as follows: Table 9.1 10. $ Option fee paid in cash 50,000 Cash consideration paid 500,000 Fair value of 13,338,261 shares in RareX Ltd 813,634 Deferred consideration to be settled in September 2020 1,000,000 Fair value of tenement acquisition costs paid or payable to Element 25 Ltd 2,363,634 ACQUISITION OF SUBSIDIARY During September 2019, the Company completed the acquisition of 100% of the issued share capital of Cummins Range Pty Ltd which holds the tenements for the Cummins Range Rare Earths Project. The consideration for the acquisition of Cummins Range Pty Ltd was as follows:  non-refundable deposit of $25,000;  60,000,000 shares in RareX Ltd issued to the shareholders of Cummins Range Pty Ltd or their nominees with a fair value of $3,660,000; and  25,000,000 options in RareX Ltd with an exercise price of $0.025 and an expiry date of 27/9/21 with a fair value of $1,097,250. $ Cash deposit 25,000 Fair value of 60,000,000 shares in RareX Ltd 3,660,000 Fair value of 25,000,000 options in RareX Ltd 1,097,250 Total consideration paid 4,782,250 The assets and liabilities recognised as a result of the acquisition of Cummins Range Pty Ltd are as follows: $ Cash 339 Other receivables 5,626 Exploration and evaluation assets 50,000 Trade and other payables (5,463) Net identifiable assets acquired 50,502 Add: Exploration asset 4,731,748 Net assets acquired 4,782,250 Total consideration paid 4,782,250 The acquisition of Cummins Range Pty Ltd has been accounted for as an acquisition of an asset on the basis that it does not constitute a business as defined by AASB 3 Business Combinations. 13 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 11. FINANCIAL ASSETS AT FAIR VALUE Consolidated 31 December 30 June 2019 2019 $ $ Financial assets at fair value through profit or loss Current Shares in listed corporations, at fair value - Cadence Minerals PLC (nil shares; 30 June 2019: 7,000,000 shares) - 13,911 - Pacton Gold Inc (nil shares; 30 June 2019:1,687,113 shares) - 293,826 - 307,737 Investment in Atlas Managem Sarl (20% interest) 507,084 507,084 Less: Impairment (507,084) (507,084) - - Non-Current 12. TRADE AND OTHER PAYABLES Consolidated 31 December 30 June 2019 2019 $ $ Trade and other payables Deferred consideration for Cummins Range Rare Earths Project Stamp duty accrued on Cummins Range acquisition 14 152,958 165,869 1,000,000 - 151,014 - 1,303,972 165,869 RAREX LIMITED AND CONTROLLED ENTITIES NOTES TO ACCOUNTS FOR THE HALF YEAR ENDED 31 DECEMBER 2019 13. CONTRIBUTED EQUITY Consolidated 31 December 30 June 2019 2019 $ $ Ordinary shares 27,615,453 20,405,948 27,615,453 20,405,948 Fully paid ordinary shares carry one vote per share and carry the right to dividends. 6 months ended 31 December 2019 Number of shares Movement in ordinary shares on issue As at beginning of period: $ 3,504,387,675 20,405,948 3,124,385,675 19,455,681 15,500,000 - - - (3,379,092,015) - - - Shares issued 60,000,000 (2) 3,660,000 1,000 3 Shares issued 68,823,540 1,170,000 250,000,000 750,000 Shares issued 2,329,412 (3) 142,094 130,000,000 (1) 260,000 Shares issued 5,629,412 (4) 343,394 1,000 3 Shares issued 13,338,261 (5) 813,634 - - Shares issued 20,833,334 1,250,000 - - Less: Transaction costs - (169,617) - (59,739) As at end of the period: 311,749,619 27,615,453 3,504,387,675 20,405,948 Conversion of performance rights Consolidation of capital (1) (2) (3) (4) (5) 14. $ 12 months ended 30 June 2019 Number of shares Fair value of shares issued 24 October 2018 for part consideration in relation to the Moroccan licences. Fair value of shares issued 27 September 2019 for part consideration for acquisition of Cummins Range Pty Ltd. Fair value of shares issued 27 September 2019 for settlement of unpaid director fees. Fair value of shares issued 27 September 2019 for settlemen