Westgold Resources Limited Annual Report 2021

97 Westgold Resources Limited Annual Report 2021 37. EVENTS AFTER THE BALANCE SHEET DATE The directors, at their meeting on 27 August 2021, recommended a final unfranked dividend for the year ended on 30 June 2021 of 2 (two) cents per share to all ordinary shareholders registered at 1 October 2021. The amount is not recognised as a liability at 30 June 2021. The Directors will establish a DRP with the issue price for shares under the DRP being at a 7.5% discount to the daily VWAP of the Company’s share price for the 5 business days from the commencing of trading after the record date. There have been no other significant events after the balance 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 03/12/2019 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) 39. ACCOUNTING STANDARDS New and amended standards and interpretations The Group has adopted all Accounting Standards and Interpretations effective from 1 July 2020. The accounting policies adopted are consistent with those of the previous financial year. Several new and amended Accounting Standards and Interpretations applied for the first time from 1 July 2020 but did not have an impact on the consolidated financial statements of the Group and, hence, have not been disclosed.