Announcement PDF Raiden Resources Limited ACN 009 161 522 Interim Report - 31 December 2023 Raiden Resources Limited Corporate directory 31 December 2023 Directors Mr Dusko Ljubojevic – Managing Director Mr Michael Davy – Non-Executive Chairman Mr Dale Ginn – Non-Executive Director Ms Kyla Garic - Non-Executive Director Company secretary Ms Kyla Garic Registered office 7/63 Shepperton Road Victoria Park WA 6100 Share registry Automic Pty Ltd Level 2, 267 St Georges Terrace Perth WA 6000 Auditor RSM Australia Partners Level 32, 2 The Esplanade Perth WA 6000 Bankers NAB 197 St Georges Terrace Perth WA 6000 Stock exchange listing Raiden Resources Limited Shares are listed on the Australian Securities Exchange (ASX code: RDN / DAX code: YM4) Website www.raidenresources.com.au 1 Raiden Resources Limited Directors' report 31 December 2023 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Raiden Resources Limited (referred to hereafter as the 'Company) and the entities it controlled at the end of, or during, the half-year ended 31 December 2023. Directors The following persons were Directors of Raiden Resources Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Name Mr Dusko Ljubojevic Mr Michael Davy Mr Dale Ginn Ms Kyla Garic Position Managing Director Non-Executive Chairman Non-Executive Director Non-Executive Director Principal activities During the half year, the principal activities of the consolidated entity was mineral exploration in the Pilbara region of Western Australia, on the Andover North-South, Mt Sholl and Arrow Lithium projects. In addition the Company holds rights to projects in the Western Tethyan metallogenic belt in Eastern Europe, where it has established an exploration footprint in Serbia and Bulgaria. Significant changes in the state of affairs Refer below to the review of operations for significant changes in the state of affairs of the consolidated entity during the financial half-year. Matters subsequent to the end of the financial half-year The Company announced that it had secured Heritage surveys over both the Andover North and Andover South projects, these are important progress steps for the Company and its progress to the objective of drill testing. No matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Review of operations During the half-year ended 31 December 2023, the following activities occurred: Exploration Activities in Western Australia Andover Project Detailed structural mapping and outcrop sampling program was undertaken throughout the reporting period on E47/4062, as the Company continued to gather data required for effective planning of the upcoming drill program. A total of 545 rock chip samples were collected from outcrops on the Andover South Project during the sampling program, of which a total of 79 samples assayed >1% Li2O, with the highest results being sample R21843 with 3.80% Li2O1. Other notable high-grade results included: o o o o o o 3.64% Li2O - sample R21952 2.97% Li2O - sample R21923 2.87% Li2O - sample R21989 2.79% Li2O - sample R21949 2.77% Li2O - sample R21922 2.71% Li2O - sample R21918 These results supported Management assessment of the high-grade nature of outcropping pegmatites at Andover South, with multiple, high-grade pegmatites assaying with significant Li2O values. During November the Company engaged CSA Global to assist in a re-evaluation exercise of the Andover South pegmatite project in the Pilbara2. The field program included re-mapping of the defined pegmatites and analysis of the outcrop. 2 Raiden Resources Limited Directors' report 31 December 2023 The following are the key observations on the basis of the analysis; • Majority of observed pegmatites are classified as “complex zoned” pegmatites. In such pegmatites, mineralised zones are typically distributed around the quartz core(s) and can be variable in nature along the strike and dip of the individual pegmatite. • In reference to a global dataset of K-feldspar K/Rb fractionation data (provided by CSA Global), which indicates that pegmatites globally, with a K/Rb value of <30, have the highest potential to host lithium mineralisation, it was determined that: o The K-feldspar fractionation data from the Andover South pegmatites specifically indicate that the high-grade lithium mineralisation is associated with K/Rb values of <10. Multiple pegmatites / zones of pegmatites are fractionated (K/Rb 10-20) but are not associated with positive samples. Figure 1: Andover South Project – K-Feldspar K/Rb ratios showing fractionation trends2 (where <10 corresponds with current highest Li2O grade pegmatites and <30 shows very highly fractionated pegmatites, being most likely to host further LCT mineralisation) o The most fractionated pegmatites in Raiden’s Project area have K/Rb values of <10 and have coincident anomalous Cs and Ta. These very highly fractionated pegmatites correspond to rock chip samples with significantly elevated Li 2O (up to 3.80% Li2O1) and observed spodumene mineralisation. Raiden Resources Limited Directors' report 31 December 2023 Figure 2: Andover South Project – zones of interest based on fractionation analysis of pegmatites2 The Company also undertook further semi-quantitative XRD analysis on whole rock chip samples collected during late August 2023. Samples selected for analysis had previously returned 2.14% (sample # R21533) and 2.11% (sample #R21826) Li 2O values. The XRD analysis further confirmed previously reported results 3 that Spodumene is likely the dominant lithium bearing mineral, with a highest result of 29% Spodumene returned in sample R21160 from the Andover South project. It should be noted that these XRD analysis results were undertaken on outcropping rock samples and not from drill core therefore may not be representative of the entire mineralised system. On completion of the drilling program, management will submit larger, representative samples for further analysis. Further observations from the analysis indicate that the samples contain low content of micas, which supports the theory that the Li2O mineralisation is predominantly derived from Spodumene mineralisation and unlikely to be associated with lithium bearing Micas, which were not defined by the XRD analysis from the samples submitted to date. Mt Sholl Project The Company executed a soil sampling program over the northern tenement during October. The samples were analysed for the full suite of LCT elements, as well as other elements. On the basis of the results to date, several distinct geochemical trends have been defined. A +30ppm lithium soil trend in the central western part of the permit area extends along a 3.5km east-west trending corridor, with peak values of 138.5ppm lithium 4. The strike of the trend aligns with GreenTech Metals Ltd8 (ASX:GRE) released lithium-in-soil anomalies, positive rock sampling, and GRE’s announced intersection of pegmatites in drilling (Figure 3). The highest soil anomaly values are in the western part of the project area, as depicted in Figure 3. Raiden Resources Limited Directors' report 31 December 2023 A >50ppm lithium soil anomaly in the southern part of the license extends over a 2.5km strike extent, with a peak value of 187.5ppm lithium. This trend does not seem to be associated with any of the known anomalies/trends in the district and is a new target area which the Company will evaluate through the upcoming programs. A follow-up infill soil sampling program was undertaken on E47/3181 during January 2024 and results will be reported as they are received and interpreted. Figure 3: Mt Sholl Project with the results of Raiden’s lithium soil sampling program 4, in relation to GreenTech Metals Ltd’s Osbourne JV results5 Arrow Project Throughout the reporting period, the Company undertook a reconnaissance mapping exercise over the Arrow project. As a result of the program announced in October 20236, the Company reported that it has mapped outcropping pegmatites on the Arrow project. Indication of potential Spodumene mineralisation, from samples collected from the pegmatites, was provided by the fluorescence test of samples under Ultraviolet (“UV”) light. Spodumene mineralisation may fluoresce (usually pink), under UV light and is a commonly used field technique to evaluate for the presence of Spodumene mineralisation. The Company has also submitted the soil samples, previously collected during the gold exploration program, to the laboratory for lithium and associated element analysis. These results are being evaluated and next steps will be determined on the basis of these results. Raiden Resources Limited Directors' report 31 December 2023 Tabba Tabba Throughout the reporting period the Company undertook a review and compilation of historical exploration and geophysical data over the project. On the basis of this interpretation and analysis, management have defined potential for Lithium bearing pegmatite host geology at the Tabba Tabba Project (~80km2). As reported by the Company in October 20237, the analysis of available magnetic data sets indicates the presence of relict mafic rocks immediately adjacent to Split Rock Supersuite granite, which is interpreted to be the source of lithium-bearing pegmatite mineralisation in the district. Shallow transported material at Tabba Tabba Project obscures underlying geology and management believes that alternative exploration techniques, such as the application of Ultrafine soil sampling may assist in defining potential targets. Other Australian Projects Management continued to engage with potential partners regarding the divestment and partnerships regarding non-core assets in Australia. Exploration Activities in Bulgaria Vuzel No field activities were undertaken on the project through the reporting period. Throughout the reporting period, the Company, through its 51% owned Bulgarian subsidiary, Vuzel Minerals Ltd, successfully extended the project for a further 2-year exploration term. Management is planning for a drill campaign on the project, to be undertake in 2024, to follow up on the high grade targets defined on the on the project to date. Zlatusha Throughout the reporting period, target generation work has been undertaken on the project by Velocity Minerals, as per the option/earn-in agreement, as announced by the Company on the 24th of January 2023 9 As part of this program, Velocity has spent approximately $516,572 and executed on the following works: - Completion and processing of a property-wide 2,400 line-km drone magnetic survey - Completion of a 4,500-station ground radiometric survey - Collection and analysis of 660 rock samples - Collection and analysis of 1,800 soil samples and; - Detailed mapping of key target areas Under the terms of the agreement executed between the parties, Velocity Minerals have the option to earn into a 75% project level interest by sole funding and completing a Preliminary Economic Assessment (PEA), which will be based on a minimum of 40,000 metres of exploration drilling, as well as making cash and stock payments of C$1m to Raiden over the term of the agreement. To date, Velocity has made the first stage payment of C$220k to Raiden in the form of Velocity stock and has also undertaken the maintenance of all Zlatusha project work program and environmental bank guarantees. Kalabak Further target generation work was undertaken on the project by Velocity Minerals under an option agreement announced by the Company on the 9th of August 20238. Due to lack of defined targets Velocity Minerals have informed the Company that it will terminate the Option Agreement over the project in 2024, the Company received subsequent to the half year. The Company does not intend to continue with further exploration activities on the Kalabak project and will undertake the required steps to relinquish the project to the Ministry of Energy in Bulgaria. BG1 project No activities were undertaken on the project during the reporting period. Raiden Resources Limited Directors' report 31 December 2023 Exploration Activities in Serbia Donje Nevlje No field activities were undertaken during the reporting period. Management continues to engage with potential strategic partners regarding the Donje Nevlje project. Acquisitions Mt Sholl Project The Company secured a 100% interest of Ni-Cu-PGE and LCT mineral rights over the Mt Sholl project when it acquired the remaining 20% interest held by Welcome Exploration Ltd. (“Welcome”) in the project 10. Under the terms of the agreement, Raiden will acquire the remaining 20% interest of tenement holding from Welcome and after the transaction will have 100% of the mineral rights in the 12 tenements subject to the agreement. The transaction not only provides Raiden with 100% exposure to the asset, but it allowed the company to consider alterative models (e.g. strategic partnerships), for future financing of exploration and development costs of the Mt Sholl project, while retaining a significant upside exposure to the asset. On completion of consolidation of the Mt Sholl project mineral rights, the Company announced that it entered into an MOU over the Mt Sholl Ni-Cu-PGE project rights with First Quantum Minerals Australia Ltd 11 (“FQMA"). Raiden retained 100% of the LCT rights. Under the terms of the non-binding Memorandum of Understanding (“MOU”), FQMA has the option to earn into a 70% position in the Mt Sholl Ni-Cu-PGE project through staged project investments, by achieving defined technical milestones, as well as making milestone payments to Raiden. The parties will aim to execute a binding letter agreement in the following months, which will be consistent with the terms of the MOU. Arrow Project During the reporting period the company entered into an agreement with Arrow Minerals Limited (ASX:AMD) to earn-in to an 85% position on the Arrow Project (E47/3476 and E47/3478) Lithium-Caesium-Tantalum rights which included an option to purchase 100% of those rights12. The Company currently owns 100% of the two tenements, but the Li-Cs-Ta rights are currently owned by Arrow Minerals Limited (ASX:AMD) and were the subject of the above transaction. Historic exploration in the area has identified fertile and fractionated granitic intrusions, which are known to be related to mineralised Li-Cs-Ta bearing (LCT) pegmatites. Historical rock sampling and analysis, along with field observations confirmed that the Satirist Granite was a potential source rock for LCT bearing pegmatites following which Raiden subsequently exercised its rights to acquire 100% of the LCT rights on the Arrow Project. Corporate During the reporting period the Company successfully raised $6,000,000 by issuing 272,727,272 shares at issue price of $0.022 to sophisticated and professional investors (“Placement”). The Company issued 7,828,966 ordinary fully paid at $0.022 to partly settle Joint Lead Manager fees and issued 120,000,000 broker options at issue price of $0.00001, exercisable at $0.015 expiring on 30 November 2024. The Company raised approximately $2,861,162 on exercise of 174,856,047 listed options with various exercise prices and $914,687 under the ATM Agreement with 8 Equity Pty Ltd. On 31 December 2023, 39,787,310 listed options exercisable at $0.04 expired without exercise. Raiden Resources Limited Directors' report 31 December 2023 ASX Announcements referenced in this report 1ASX:RDN 09 November 2023 Exceptional lithium results & additional spodumene XRD 2ASX:RDN 22 December 2023 Independent analysis confirms five new zones at Andover 3ASX:RDN 17 October 2023 XRD confirms high Spodumene content at Andover South 4ASX:RDN 5 December 2023 Multiple lithium soil samples defined at Mt Sholl Project 5ASX:GRE 29 November 2023 Maiden diamond Hole completed Osborne Joint Venture 6ASX:RDN 30 October 2023 Pegmatites and Spodumene Mapped at Arrow Project 7ASX:RDN 02 October 2023 Tabba Tabba Project Lithium Prospectivity review 8ASX:RDN 09 August 3023 RDN options Kalabak project in Bulgaria to Velocity Minerals 9 ASX:RDN 24 January 2023 Sale of up to 75% in Zlatusha through minimum earn-in & c$1m 10ASX:RDN 12 December 2023 Raiden Acquires 100% of LCT & Ni-Cu-PGE Mineral Rights 11ASX:RDN 13 December 2023 Raiden enters strategic partnership with FQM at Mt Sholl 12ASX:RDN 7 August 2023 Raiden acquires lithium rights over the Arrow Project Competent Person’s Statement and Previously Reported Information The Company confirms that it is not aware of any information or data that materially affects the information included in the market announcements referenced in the footnote 1 – 4 and 6 – 12 and that all material assumptions and technical parameters continue to apply. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the Directors ___________________________ Michael Davy Non-Executive Chairman 14 March 2024 8 RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Raiden Resources Limited for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. RSM AUSTRALIA PARTNERS Perth, WA Dated: 14 March 2024 ALASDAIR WHYTE Partner THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation Raiden Resources Limited Contents 31 December 2023 Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's review report to the members of Raiden Resources Limited 11 12 13 14 15 20 21 General information The financial statements cover Raiden Resources Limited as a consolidated entity consisting of Raiden Resources Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Raiden Resources Limited's functional and presentation currency. Raiden Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Registered Office and principal place of business 7/63 Shepperton Road Victoria Park WA 6100 A description of the nature of the consolidated entity's operations and its principal activities are included in the Directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 14 March 2024. 10 Raiden Resources Limited Consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2023 Note Revenue Interest income Other income 31 December 31 December 2023 2022 $ $ 65,364 25,000 1,382 200,000 (97,293) (80,169) (163,117) (5,514) (106,599) (1,095,781) (282,914) (65,671) (80,293) (142,896) (77,719) (75,135) (96,795) (657) (119,599) (2,115,745) (2,799,237) (69,059) (47,024) - (2,029,883) (5,199,588) - - (2,029,883) (5,199,588) Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations (6,807) (18,954) Other comprehensive loss for the half-year, net of tax (6,807) (18,954) Total comprehensive loss for the half-year (2,036,690) (5,218,542) Loss for the half-year is attributable to: Non-controlling interest Owners of Raiden Resources Limited (48,370) (1,981,513) (7,433) (5,192,155) (2,029,883) (5,199,588) (48,370) (1,988,320) (7,433) (5,211,109) (2,036,690) (5,218,542) Cents Cents (0.09) (0.09) (0.34) (0.34) Expenses Accounting and other professional fees Administrative costs Corporate expenses Depreciation and amortisation expense Director fees Exploration expenditure Impairment of assets Legal fees Marketing and investor relations Share-based payments 8 Loss before income tax expense Income tax expense Loss after income tax expense for the half-year Other comprehensive loss Total comprehensive loss for the half-year is attributable to: Non-controlling interest Owners of Raiden Resources Limited Basic loss per share Diluted loss per share The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 11 Raiden Resources Limited Consolidated statement of financial position As at 31 December 2023 31 December 2023 $ 30 June 2023 7,713,855 139,157 166,383 161,802 8,181,197 737,795 40,309 224,475 39,959 1,042,538 46,952 11,757,054 11,804,006 52,387 9,328,173 9,380,560 19,985,203 10,423,098 Current liabilities Trade and other payables Employee benefits Other liabilities Total current liabilities 186,857 14,378 201,235 363,582 11,083 227,404 602,069 Total liabilities 201,235 602,069 19,783,968 9,821,029 36,027,282 4,567,471 (20,750,571) 19,844,182 (60,214) 26,690,549 1,911,382 (18,769,058) 9,832,873 (11,844) 19,783,968 9,821,029 Note $ Assets Current assets Cash and cash equivalents Trade and other receivables Financial assets Other current assets Total current assets Non-current assets Plant and equipment Exploration and evaluation expenditure Total non-current assets 4 Total assets Liabilities Net assets Equity Issued capital Reserves Accumulated losses Equity attributable to the owners of Raiden Resources Limited Non-controlling interest 5 6 Total equity The above consolidated statement of financial position should be read in conjunction with the accompanying notes 12 Raiden Resources Limited Consolidated statement of changes in equity For the half-year ended 31 December 2023 Issued capital Share-based payment reserve Option reserve Total equity Foreign Accumulate currency d losses reserve $ $ $ 23,912,859 1,377,900 163,200 - - - - (5,192,155) - - - (18,954) - - - - (18,954) (5,192,155) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Issue of options 1,615,230 - - 326,488 - - - 1,615,230 326,488 Balance at 31 December 2022 25,528,089 1,377,900 489,688 73,798 (18,277,758) (7,433) 9,184,284 Issued capita Share-based l payment reserve Option reserve Foreign Accumulate currency d losses reserve Noncontrolling interest Balance at 1 July 2022 Loss after income tax expense for the half-year Other comprehensive loss for the half-year, net of tax Total comprehensive loss for the half-year $ Noncontrolling interest $ $ $ 92,752 (13,085,603) - 12,461,108 $ $ 26,690,549 1,377,900 489,688 - - - - (1,981,513) - - - (6,807) - Total comprehensive loss for the half-year - - - (6,807) (1,981,513) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 5) Share-based payments (note 8) 9,336,733 - 17,896 2,645,000 - - Balance at 31 December 2023 36,027,282 1,395,796 3,134,688 Loss after income tax expense for the half-year Other comprehensive loss for the half-year, net of tax - (18,954) (7,433) (5,218,542) Total equity $ Balance at 1 July 2023 (7,433) (5,199,588) $ $ $ $ 43,794 (18,769,058) (11,844) 9,821,029 36,987 (20,750,571) (48,370) (2,029,883) - (6,807) (48,370) (2,036,690) - 9,336,733 2,662,896 (60,214) 19,783,968 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 13 Raiden Resources Limited Consolidated statement of cash flows For the half-year ended 31 December 2023 Note 31 December 31 December 2023 2022 $ $ Cash flows from operating activities Payments to suppliers and employees Payments for exploration and evaluation Joint venture exploration advances received Joint venture exploration advances expended Interest received (941,734) (1,176,761) 516,572 (516,572) 42,498 (554,960) (1,523,015) 1,382 Net cash used in operating activities (2,075,997) (2,076,593) Cash flows from investing activities Payments for exploration tenements Proceeds from sale of tenements Cash on acquisition of subsidiary (450,000) 11,000 - 75,000 84,158 Net cash (used in)/from investing activities (439,000) 159,158 6,639,741 2,879,242 1,413,995 326,489 Net cash from financing activities 9,518,983 1,740,484 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents 7,003,986 737,795 (27,926) (176,951) 536,163 4,898 Cash and cash equivalents at the end of the financial half-year 7,713,855 364,110 Cash flows from financing activities Proceeds from issue of shares (net of costs) Proceeds from exercise of options 5 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 14 Raiden Resources Limited Notes to the consolidated financial statements 31 December 2023 Note 1. Material accounting policy information Statement of compliance These general-purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. This half-year financial report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the consolidated entity as in the full financial report. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. Basis of preparation This half-year consolidated financial report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Note 2. Operating segments The consolidated entity has identified one operating segment based on the internal reports that are reviewed and used by the Board of Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The consolidated entity’s sole operating segment is consistent with the presentation of these consolidated financial statements. Note 3. Advances from Joint Venture On 24 January 2023, the Company entered into a binding “Letter Agreement” with Velocity Minerals (“Velocity”) for the Zlatusha project in Bulgaria. Under the agreement Velocity has the options to acquire up to a 75% project level interest, by making staged cash and stock payments to the Company; executing minimum drilling programs and achieving technical milestones. The key terms of the agreement are as follows: ● ● ● C$1 million staged Velocity stock and cash payment to the Company; Drill 28,000 metres and definition of an Inferred Mineral Resources to earn 51%; Drill a further 12,000 metres (40,000 metres cumulative and publish a Preliminary Economic Assessment (“PEA”), on the project to earn a further 24% interest (75% cumulative interest). As at 31 December 2023, the Company received $516,572 and spent $516,572 in funding for Zlatusha project from Velocity. Note 4. Exploration and evaluation expenditure Exploration and evaluation cost 15 31 D