Westgold Resources Limited Annual Report 2020

33 Westgold Resources Limited Annual Report 2020 CORPORATE Lithium Royalties Westgold still retains the Mount Marion Lithium Royalty which is likely to provide an income stream in future financial years. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Total equity increased to $521,860,827 (2019: $443,485,911), representing 20,530,313 shares issued at $46,102,000 less capital raising costs of $2,270,000; the conversion of 10,545,603 listed options at $21,542,506 less costs of $171,700 and a reduction in share capital of $8,803,840 upon the demerger of Castile Resources Pty Ltd. Castile Resources Ltd (Castile) demerged from the Westgold Group on 3 December 2019 with the in-specie distribution of Castile shares to Westgold shareholders on a one for four basis, post approval from shareholders at the Annual General Meeting on 25 November 2019. Castile successfully listed on the ASX on 14 February 2020 and is now an independent company trading under ASX code: CST. SIGNIFICANT EVENTS AFTER THE BALANCE DATE There have been no significant events after the balance date. LIKELY DEVELOPMENTS AND EXPECTED RESULTS The Group is expected to continue exploration, mining, processing, production and marketing of gold bullion in Australia, and will continue the development of its gold exploration projects. ENVIRONMENTAL REGULATION AND PERFORMANCE The Group’s operations are subject to the relevant environmental protection legislation (Commonwealth and State legislation). The Group holds various environmental licenses issued under these laws, to regulate its mining and exploration activities in Australia. These licenses include conditions and regulations in relation to specifying limits on discharges into the air, surface water and groundwater, rehabilitation of areas disturbed during the course of mining and exploration activities and the storage of hazardous substances. The board of directors monitors all environmental performance obligations. The operations are subjected to Government agency audits and site inspections from time to time. There have been no material breaches of the Group’s licenses and all mining and exploration activities have been undertaken in compliance with the relevant environmental regulations. SHARE OPTIONS Employee options On 7 May 2020, the Company granted 684,141 unlisted employee options (WGXO) to senior management under the Employee Share Option Plan. Included in this issue are 153,810 options granted to the Executive Chairman which are subject to shareholder approval. The principle terms being: – The Employee Options have been issued for nil consideration; – Each Employee Option carries an entitlement to one fully paid ordinary share in the Company for each Employee Option vested; – Vesting only occurs after the end of the Performance Periods (30 June 2022) and the number of Employee Options that vest (if any) will depend on: – Growth in Return on Capital Employed over the Performance Periods; and – Total shareholder return relative to the S&P/All Ordinaries Gold Index over the Performance Periods. – Employee Options that vest will expire if not exercised on the vesting date; – Unvested Employee Options lapse on cessation of a holder’s employment with Westgold; – Any Employee Options that do not vest after the end of the Performance Periods will automatically lapse; and – No amount is payable by a holder of Employee Options in respect of the shares allocated upon vesting of the Employee Option.