Westgold Resources Limited Annual Report 2020

100 Westgold Resources Limited Annual Report 2020 Financial Report Notes to the Consolidated Financial Statements for the year ended 30 June 2020 36. INFORMATION RELATING TO WESTGOLD RESOURCES LIMITED (THE PARENT ENTITY) (CONTINUED) Guarantees entered into by the parent entity in relation to the debts of its subsidiaries. Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785, Westgold and its wholly owned subsidiaries (except Location 53 Pty Ltd) entered into a deed of cross guarantee on 28 November 2016 (the Guarantee). The effect of the Guarantee is that Westgold has guaranteed to pay any deficiency in the event of winding up of any controlled entity which is a party to the Guarantee or if they do not meet their obligations under the terms of any debt subject to the Guarantee. The controlled entities which are parties to the Guarantee have given a similar guarantee in the event that Westgold is wound up or if it does not meet its obligations under the terms of any debt subject to the Guarantee. The Consolidated Statement of Financial Position and Consolidated Statement of Comprehensive Income for the closed group is not different to the Group’s Statement of Financial Position and Statement of Comprehensive Income. Other contingent liabilities of the parent entity Nil Contractual commitments by the parent entity for the acquisition of property, plant or equipment Nil 37. EVENTS AFTER THE BALANCE SHEET DATE There are no significant events after the balance sheet date. 38. GAIN ON DEMERGER OF SUBSIDIARY On 3 December 2019, Castile Resources Pty Ltd was demerged from the Westgold Consolidated Group, following approval by Westgold Shareholders at the Annual General Meeting held on 25 November 2019. Existing Westgold shareholders received shares in Castile on a 1 Castile share for every 4 Westgold shares held (in specie distribution). The fair value of Castile at demerger was determined to be $21,855,388 being distributed as a demerger dividend of $13,051,549 with an associated reduction in share capital of $8,803,840. The number of Castile shares on issue was 99,844,305 resulting in a market value of $0.2189 per share. Carrying value of net assets of demerged entity 2020 Assets Cash and cash equivalents 86,966 Bonds 20,000 Trade and other receivables 38 Property, plant and equipment 264,969 Mine properties and development 756,919 Exploration and evaluation expenditure 16,129,868 17,258,760 Liabilities Trade and other payables (201,877) Provisions (1,172) Deferred tax liabilities (3,927,940) (4,130,989) Net assets and liabilities disposed of 13,127,771 Reduction in share capital (8,803,840) Demerger dividend (13,051,549) Gain on demerger of entity (8,727,618)