Westgold Resources Limited Annual Report 2021

87 Westgold Resources Limited Annual Report 2021 28. RESERVES Share-based payments reserve Equity reserve Total At 30 June 2019 14,282,408 181,493,631 195,776,039 Share-based payments 183,956 – 183,956 At 30 June 2020 14,466,364 181,493,631 195,959,995 Share-based payments 800,132 – 800,132 At 30 June 2021 15,266,496 181,493,631 196,760,127 Equity reserve This reserve relates to the intercompany loans with Metals X Ltd written off on demerger of the Group and includes tax consolidated adjustments. Share-based payments reserve This reserve is used to recognise the fair value of options issued to employees in relation to equity-settled share-based payments. 29. SHARE-BASED PAYMENTS (a) Recognised share-based payment expense The expense recognised for services received during the year is shown in the table below: 2021 2020 Expense arising from equity-settled share-based payments 800,132 183,956 The share-based payment plan is described below. There have been no cancellations or modifications to the plan during 2021, 2020 and 2019. (b) Transactions settled using shares There were no transactions settled using shares in the year ending 30 June 2021. Transactions settled using shares in the previous financial year are listed below: – On 23 April 2020, the Company announced that it had agreed to acquire the Albury Heath project from Cervantes Corporation Limited. Consideration for the acquisition included the issue of 303,313 fully paid ordinary shares to the value of $700,000. Contingent consideration includes $400,000 if future production from the project exceeds 25,000 ounces and an additional $200,000 if the quantity of gold produced exceeds 35,000 ounces. The contingent consideration is payable in cash and/or shares. The Company determined that it could not readily estimate the fair value of the assets acquired on the basis that this was an exploration asset. The purchase was measured by reference to the share issued measured at market value on 8 May 2020 (acquisition date) at $2.31 per share. – On 27 November 2019, the Company announced that it had agreed to acquire the 20% free carried interest owned by Fe Ltd in the Peak Hill JV agreement. Consideration for the acquisition included the issue of 200,000 fully paid ordinary shares. The Company determined that it could not readily estimate the fair value of the assets acquired on the basis that this was an exploration asset. The purchase was measured by reference to the share issued measured at market value on 04 December 2019 (acquisition date) at $2.01 per share. (c) Employee share and option plan Under the Employee Share and Option Plan (ESOP), grants are made to senior executives and other staff members who have made an impact on the Group’s performance. ESOP grants are delivered in the form of share options or performance rights which vest over periods as determined by the Board of Directors.