Mako Gold Limited Annual Report 2017
Added on 2023-06-11
33 Pages13240 Words416 Views
MAKO GOLD LIMITED
A.C.N. 606 241 829
ANNUAL REPORT 30 JUNE 2017
A.C.N. 606 241 829
ANNUAL REPORT 30 JUNE 2017
MAKO GOLD LIMITED
ANNUAL REPORT 2017
2
INDEX
Page Number
Corporate Information 3
Review of Operations 4 - 5
Directors’ Report 6 - 10
Auditor Independence Declaration 11
Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Equity 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 30
Directors’ Declaration 31
Independent Auditor’s Report to the Members 32
ANNUAL REPORT 2017
2
INDEX
Page Number
Corporate Information 3
Review of Operations 4 - 5
Directors’ Report 6 - 10
Auditor Independence Declaration 11
Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Equity 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 30
Directors’ Declaration 31
Independent Auditor’s Report to the Members 32
MAKO GOLD LIMITED
ANNUAL REPORT 2017
3
CORPORATE INFORMATION
This annual report covers Mako Gold Limited (“Company” or “Mako”) as a consolidated entity
comprising Mako Gold Limited and its subsidiaries (‘the Consolidated Entity”). A description of the
operations and of the principal activities is included in the directors’ report and the review of
operations. The directors’ report is not part of the financial report.
DIRECTORS
Mark Elliott (Non-Executive Chairman)
Peter Ledwidge (Managing Director)
Michele Muscillo (Non-Executive Director)
SECRETARY
Paul Marshall
AUSTRALIAN BUSINESS NUMBER
ABN 84 606 241 829
REGISTERED OFFICE
Level 8
Waterfront Place
1 Eagle St
Brisbane Qld 4000
Telephone: (07) 3108 3500
Facsimile: (07) 3108 3501
Email: admin@makogold.com.au
Web: www.makogold.com.au
AUDITORS
BDO Audit Pty Ltd
Level 10,
12 Creek St
Brisbane QLD 4000
SOLICITORS
HopgoodGanim
Level 8
Waterfront Place
1 Eagle St
Brisbane Qld 4000
ANNUAL REPORT 2017
3
CORPORATE INFORMATION
This annual report covers Mako Gold Limited (“Company” or “Mako”) as a consolidated entity
comprising Mako Gold Limited and its subsidiaries (‘the Consolidated Entity”). A description of the
operations and of the principal activities is included in the directors’ report and the review of
operations. The directors’ report is not part of the financial report.
DIRECTORS
Mark Elliott (Non-Executive Chairman)
Peter Ledwidge (Managing Director)
Michele Muscillo (Non-Executive Director)
SECRETARY
Paul Marshall
AUSTRALIAN BUSINESS NUMBER
ABN 84 606 241 829
REGISTERED OFFICE
Level 8
Waterfront Place
1 Eagle St
Brisbane Qld 4000
Telephone: (07) 3108 3500
Facsimile: (07) 3108 3501
Email: admin@makogold.com.au
Web: www.makogold.com.au
AUDITORS
BDO Audit Pty Ltd
Level 10,
12 Creek St
Brisbane QLD 4000
SOLICITORS
HopgoodGanim
Level 8
Waterfront Place
1 Eagle St
Brisbane Qld 4000
MAKO GOLD LIMITED
ANNUAL REPORT 2017
4
The directors present their review of operations for the year ended 30 June 2017.
Mako Gold is an exploration company focussed on the discovery of large high-grade gold deposits in
highly prospective and under-explored terrains in Burkina Faso and other favourable countries in West
Africa.
The Company was established in June 2015 and acquired its first project interests in July 2016. It
raised $700,000 in seed capital from investors in April 2017. The conversion of Mako Gold to a public
company was completed in June 2017 and Mako is seeking to list on the ASX in the near term.
Mako Gold’s first two gold projects are in highly mineralised terrain in Burkina Faso that have no
known drilling and which contain extensive artisanal workings indicating the presence of gold
mineralisation.
The Niou Project is located in the central part of the Burkina Faso. It is only 50km north of Burkina
Faso's capital Ouagadougou it is easily accessed by a good road system. The Tangora Project is
located in the Banfora greenstone belt in the southwest of Burkina Faso.
Burkina Faso Projects
Initial exploration work was undertaken on the Burkina Faso projects during May and June 2017 with
the following highlights:
• An airborne helicopter survey was completed at the Niou Gold Project with the entire 250km2
permit was flown for a total of 2750 line kilometres at a spacing of 100m and a survey height of
30m. Lines were flown north-south to intersect regional east-west structures and local NW-SE
and NE-SW structures that appear to be associated with gold mineralisation.
• Geology crew finished a rock chip sampling and preliminary mapping of the extensive artisanal
mining sites on the Niou Gold Project and on the Tangora Gold Project.
• Visible gold was observed in samples excavated from an artisanal mining shaft on Niou Project.
• An exploration office was established in Ouagadougou.
ANNUAL REPORT 2017
4
The directors present their review of operations for the year ended 30 June 2017.
Mako Gold is an exploration company focussed on the discovery of large high-grade gold deposits in
highly prospective and under-explored terrains in Burkina Faso and other favourable countries in West
Africa.
The Company was established in June 2015 and acquired its first project interests in July 2016. It
raised $700,000 in seed capital from investors in April 2017. The conversion of Mako Gold to a public
company was completed in June 2017 and Mako is seeking to list on the ASX in the near term.
Mako Gold’s first two gold projects are in highly mineralised terrain in Burkina Faso that have no
known drilling and which contain extensive artisanal workings indicating the presence of gold
mineralisation.
The Niou Project is located in the central part of the Burkina Faso. It is only 50km north of Burkina
Faso's capital Ouagadougou it is easily accessed by a good road system. The Tangora Project is
located in the Banfora greenstone belt in the southwest of Burkina Faso.
Burkina Faso Projects
Initial exploration work was undertaken on the Burkina Faso projects during May and June 2017 with
the following highlights:
• An airborne helicopter survey was completed at the Niou Gold Project with the entire 250km2
permit was flown for a total of 2750 line kilometres at a spacing of 100m and a survey height of
30m. Lines were flown north-south to intersect regional east-west structures and local NW-SE
and NE-SW structures that appear to be associated with gold mineralisation.
• Geology crew finished a rock chip sampling and preliminary mapping of the extensive artisanal
mining sites on the Niou Gold Project and on the Tangora Gold Project.
• Visible gold was observed in samples excavated from an artisanal mining shaft on Niou Project.
• An exploration office was established in Ouagadougou.
MAKO GOLD LIMITED
ANNUAL REPORT 2017
5
The Company also entered into a Farm-in and Joint Venture Agreement (JV) on the Napié Permit in
Côte d’Ivoire, West Africa on September 7, 2017 with Perseus Mining Limited’s Côte d’Ivoire
subsidiary, Occidental Gold SARL (OG).
The agreement gives Mako the right to earn 51% by spending US$1.5M within 3 years and 75% by
sole funding to completion of a Feasibility Study.
If Mako chooses not to fund to feasibility after having earned its 51% interest, Mako’s interest would
drop to 39%. The agreement is subject to successful completion of legal and technical due diligence
and successful IPO on the ASX.
OG’s original joint venture partner in respect of the Napié Permit, African American Investment Fund
SA (AAIF), retains a 10% free carry to feasibility and can elect to contribute post feasibility. OG can
elect to contribute on a pro-rata basis once Mako has reached its 51% interest.
The project has strong and extensive historic gold-in-soil geochemical anomalies over four prospect
areas with historic high-grade rock chip samples, up to 59.4g/t Au, along favourable geology and
structure. Significant gold intercepts in historic RAB drilling along the anomalous gold trend include:
- 5m @ 3.66g/t – ended in mineralisation
- 4m @ 8.49g/t
- 9m @ 3.76g/t – ended in mineralisation
- 16m @ 2.08g/t
- 6m @ 3.12g/t – ended in mineralisation
Napié Permit in Côte d’Ivoire
ANNUAL REPORT 2017
5
The Company also entered into a Farm-in and Joint Venture Agreement (JV) on the Napié Permit in
Côte d’Ivoire, West Africa on September 7, 2017 with Perseus Mining Limited’s Côte d’Ivoire
subsidiary, Occidental Gold SARL (OG).
The agreement gives Mako the right to earn 51% by spending US$1.5M within 3 years and 75% by
sole funding to completion of a Feasibility Study.
If Mako chooses not to fund to feasibility after having earned its 51% interest, Mako’s interest would
drop to 39%. The agreement is subject to successful completion of legal and technical due diligence
and successful IPO on the ASX.
OG’s original joint venture partner in respect of the Napié Permit, African American Investment Fund
SA (AAIF), retains a 10% free carry to feasibility and can elect to contribute post feasibility. OG can
elect to contribute on a pro-rata basis once Mako has reached its 51% interest.
The project has strong and extensive historic gold-in-soil geochemical anomalies over four prospect
areas with historic high-grade rock chip samples, up to 59.4g/t Au, along favourable geology and
structure. Significant gold intercepts in historic RAB drilling along the anomalous gold trend include:
- 5m @ 3.66g/t – ended in mineralisation
- 4m @ 8.49g/t
- 9m @ 3.76g/t – ended in mineralisation
- 16m @ 2.08g/t
- 6m @ 3.12g/t – ended in mineralisation
Napié Permit in Côte d’Ivoire
MAKO GOLD LIMITED
ANNUAL REPORT 2017
6
Directors’ Report
The directors present their report on Mako Gold Limited and its controlled entities (the “company”,
“consolidated entity”, “Group” or “Mako”) for the year ended 30 June 2017.
Directors
The names and details of the Company’s directors in office during the financial year and until the date
of this report are as follows. Directors were in office for the entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
SM Elliott (Non-Executive Chairman) Dip Appl Geology, PhD, FAICD, FAusIMM(CP Geol), FAIG,
FSEG
Appointed 14 March 2017
Mark Elliott, a founder of Mako Gold, is a Chartered Professional (CP) geologist with over 40 years’
experience in economic geology, exploration, mining, project development and in corporate
management roles as chairman and managing director for a number of ASX-listed resource
companies.
Mark has extensive experience in managing companies and exploration/mining operations in a wide
range of commodities including gold. His management experience includes founding IPOs from
commencement of project acquisition, exploration to production, capital raising and negotiating joint
ventures. Dr Elliott is a Non-Executive Director of environmental audit and hazardous materials
analytical laboratory and geothermal developer company HRL Holdings Limited and a Non-Executive
Director of Western Australian Archean gold explorer, Nexus Minerals Limited.
P Ledwidge (Managing Director) BSc Geology, MAusIMM
Appointed 4 June 2015
Peter Ledwidge, a founder of Mako Gold, is a qualified geologist with over 30 years’ experience in the
exploration and mining industry. His career has focussed primarily on gold exploration along with
some base metals exploration. Peter has worked extensively in Canada, Africa and Australia, in a
variety of roles in exploration, development and mining projects.
Most recently he spent six years working for ASX-listed Orbis Gold in progressive senior management
roles whereby he secured all of Orbis’ permits in Burkina Faso and Côte d’Ivoire. Peter played a
critical role in the discovery of the Nabanga gold deposit in Burkina Faso and thereafter contributed
geological ideas which helped achieve success for the company including the discovery of the
Natougou gold deposit, currently being developed by TSX-listed Semafo.
Peter is fluently bilingual in French and has established and maintained good professional contacts in
Burkina Faso and Cote d’Ivoire in government as well as the private sector.
M Muscillo (Non-Executive Director) LLB
Appointed 20 April 2017
Michele Muscillo is a Partner specialising in corporate law with HopgoodGanim Lawyers. He is an
admitted Solicitor and has a practice focusing almost exclusively on mergers and acquisitions, and
capital raising. He has a Bachelor of Laws from Queensland University of Technology and was a
recipient of the QUT University Medal.
In his role with HopgoodGanim Lawyers, Mr Muscillo has acted on a variety of corporate transactions
including initial public offerings, takeovers and other acquisitions. Michele’s experience brings to the
Board expertise on corporate regulation, governance and compliance matters.
Mr Muscillo was previously a director of ASX-Listed Orbis Gold Limited until its takeover by TSX-Listed
Semafo, and is a non-executive director of ASX-Listed Aeris Resources Limited.
ANNUAL REPORT 2017
6
Directors’ Report
The directors present their report on Mako Gold Limited and its controlled entities (the “company”,
“consolidated entity”, “Group” or “Mako”) for the year ended 30 June 2017.
Directors
The names and details of the Company’s directors in office during the financial year and until the date
of this report are as follows. Directors were in office for the entire period unless otherwise stated.
Names, qualifications, experience and special responsibilities
SM Elliott (Non-Executive Chairman) Dip Appl Geology, PhD, FAICD, FAusIMM(CP Geol), FAIG,
FSEG
Appointed 14 March 2017
Mark Elliott, a founder of Mako Gold, is a Chartered Professional (CP) geologist with over 40 years’
experience in economic geology, exploration, mining, project development and in corporate
management roles as chairman and managing director for a number of ASX-listed resource
companies.
Mark has extensive experience in managing companies and exploration/mining operations in a wide
range of commodities including gold. His management experience includes founding IPOs from
commencement of project acquisition, exploration to production, capital raising and negotiating joint
ventures. Dr Elliott is a Non-Executive Director of environmental audit and hazardous materials
analytical laboratory and geothermal developer company HRL Holdings Limited and a Non-Executive
Director of Western Australian Archean gold explorer, Nexus Minerals Limited.
P Ledwidge (Managing Director) BSc Geology, MAusIMM
Appointed 4 June 2015
Peter Ledwidge, a founder of Mako Gold, is a qualified geologist with over 30 years’ experience in the
exploration and mining industry. His career has focussed primarily on gold exploration along with
some base metals exploration. Peter has worked extensively in Canada, Africa and Australia, in a
variety of roles in exploration, development and mining projects.
Most recently he spent six years working for ASX-listed Orbis Gold in progressive senior management
roles whereby he secured all of Orbis’ permits in Burkina Faso and Côte d’Ivoire. Peter played a
critical role in the discovery of the Nabanga gold deposit in Burkina Faso and thereafter contributed
geological ideas which helped achieve success for the company including the discovery of the
Natougou gold deposit, currently being developed by TSX-listed Semafo.
Peter is fluently bilingual in French and has established and maintained good professional contacts in
Burkina Faso and Cote d’Ivoire in government as well as the private sector.
M Muscillo (Non-Executive Director) LLB
Appointed 20 April 2017
Michele Muscillo is a Partner specialising in corporate law with HopgoodGanim Lawyers. He is an
admitted Solicitor and has a practice focusing almost exclusively on mergers and acquisitions, and
capital raising. He has a Bachelor of Laws from Queensland University of Technology and was a
recipient of the QUT University Medal.
In his role with HopgoodGanim Lawyers, Mr Muscillo has acted on a variety of corporate transactions
including initial public offerings, takeovers and other acquisitions. Michele’s experience brings to the
Board expertise on corporate regulation, governance and compliance matters.
Mr Muscillo was previously a director of ASX-Listed Orbis Gold Limited until its takeover by TSX-Listed
Semafo, and is a non-executive director of ASX-Listed Aeris Resources Limited.
MAKO GOLD LIMITED
ANNUAL REPORT 2017
7
Company Secretary
P Marshall LLB, ACA
Appointed 13 April 2017
Paul Marshall holds a Bachelor of Law degree and is a Chartered Accountant. He has more than
thirty years experience including over twenty years spent in commercial roles as Company Secretary
and CFO for a number of listed and unlisted companies mainly in the resources sector.
Ann Ledwidge BSc Geology (hon), MAusIMM
Appointed 16 May 2016, resigned 13 April 2017
Ann Ledwidge, the Company’s Exploration Manager, was the initial Company Secretary from the date
of Mako’s incorporation up to the appointment of Paul Marshall in April 2017.
Interests in the shares and options of the Company
Interests of the directors in the shares and options of the Company as at the date of this report are:
Ordinary Shares
Mark Elliott 8,666,667
Peter Ledwidge 18,333,433
Michele Muscillo 500,000
Corporate Information
Corporate Structure
Mako Gold Limited is a company limited by shares that is incorporated and domiciled in Australia.
Mako Gold Limited has prepared a consolidated financial report encompassing the entities that it
controlled or had significant influence over during the financial year: Mako Gold Limited had the
following investments in controlled companies throughout the financial year:
- Mako Gold SARL (Incorporated in Burkina Faso - 100%)
Principal Activities
The principal activities of the consolidated entity during the year were the acquisition of and
exploration of gold tenements.
Operating Results
During the year Mako acquired its first project interests in Burkina Faso.
Revenue
As an early stage exploration company, Mako Gold Limited does not generate any income.
Expenses
The Consolidated Entity’s main sources of expenses are as follows:
2017
$
Employment and consultancy expenses 17,333
Corporate & Administration expenses 46,235
Total expenses 53,568
ANNUAL REPORT 2017
7
Company Secretary
P Marshall LLB, ACA
Appointed 13 April 2017
Paul Marshall holds a Bachelor of Law degree and is a Chartered Accountant. He has more than
thirty years experience including over twenty years spent in commercial roles as Company Secretary
and CFO for a number of listed and unlisted companies mainly in the resources sector.
Ann Ledwidge BSc Geology (hon), MAusIMM
Appointed 16 May 2016, resigned 13 April 2017
Ann Ledwidge, the Company’s Exploration Manager, was the initial Company Secretary from the date
of Mako’s incorporation up to the appointment of Paul Marshall in April 2017.
Interests in the shares and options of the Company
Interests of the directors in the shares and options of the Company as at the date of this report are:
Ordinary Shares
Mark Elliott 8,666,667
Peter Ledwidge 18,333,433
Michele Muscillo 500,000
Corporate Information
Corporate Structure
Mako Gold Limited is a company limited by shares that is incorporated and domiciled in Australia.
Mako Gold Limited has prepared a consolidated financial report encompassing the entities that it
controlled or had significant influence over during the financial year: Mako Gold Limited had the
following investments in controlled companies throughout the financial year:
- Mako Gold SARL (Incorporated in Burkina Faso - 100%)
Principal Activities
The principal activities of the consolidated entity during the year were the acquisition of and
exploration of gold tenements.
Operating Results
During the year Mako acquired its first project interests in Burkina Faso.
Revenue
As an early stage exploration company, Mako Gold Limited does not generate any income.
Expenses
The Consolidated Entity’s main sources of expenses are as follows:
2017
$
Employment and consultancy expenses 17,333
Corporate & Administration expenses 46,235
Total expenses 53,568
MAKO GOLD LIMITED
ANNUAL REPORT 2017
8
Comparison with Prior Year
For the year ended 30 June 2017, the loss for the Consolidated Entity after providing for income tax
was $62,879 (2016: loss of $26,399):
2017 2016
$ $
Revenue and other income 690 -
Employment costs (17,333) -
Travel costs - (18,082)
Other expenses (46,235) (8,317)
Loss before income tax (62,879) (26,399)
This increase is attributable to:
$
Increase in employee costs 17,333
Reduction in travel costs (18,082)
Other net changes in sundry revenue, administrative and other costs 37,229
36,480
Review of Financial Condition
Capital structure
In the 2017 financial year Mako issued the following new securities:
• April 2017 issue of founders shares - 29,000,000 at $0.001 per share
• April 2017 issue of 1,000,000 shares to NED & Company Secretary at $.01 per share
• May 2017 issue of 14,000,000 shares at $0.05 to seed capital applicants
At 30 June 2017, the Company had 44,000,100 ordinary shares on issue.
Treasury policy
The Company does not have a formally established treasury function. The Board is responsible for
managing the Company’s currency risks and finance facilities.
Liquidity and funding
The Company has in the 2017 financial year raised initial seed capital of $700,000 (before costs of
issue) with the aim being that these funds will be sufficient to see the company through to an IPO and
a listing on ASX.
Dividends
No dividend was paid during the year and none is recommended as at 30 June 2017.
Significant Changes in the State of Affairs
There were no significant changes in the State of Affairs of the Consolidated Entity during the year
apart from those items covered in the review of operations above.
Matters Subsequent to the End of the Financial Year
The Company also entered into a Farm-in and Joint Venture Agreement (JV) on the Napié Permit in
Côte d’Ivoire, West Africa on September 7, 2017 with Perseus Mining Limited’s Côte d’Ivoire
subsidiary, Occidental Gold SARL (OG).
The agreement gives Mako the right to earn 51% by spending US$1.5M within 3 years and 75% by
sole funding to completion of a Feasibility Study.
ANNUAL REPORT 2017
8
Comparison with Prior Year
For the year ended 30 June 2017, the loss for the Consolidated Entity after providing for income tax
was $62,879 (2016: loss of $26,399):
2017 2016
$ $
Revenue and other income 690 -
Employment costs (17,333) -
Travel costs - (18,082)
Other expenses (46,235) (8,317)
Loss before income tax (62,879) (26,399)
This increase is attributable to:
$
Increase in employee costs 17,333
Reduction in travel costs (18,082)
Other net changes in sundry revenue, administrative and other costs 37,229
36,480
Review of Financial Condition
Capital structure
In the 2017 financial year Mako issued the following new securities:
• April 2017 issue of founders shares - 29,000,000 at $0.001 per share
• April 2017 issue of 1,000,000 shares to NED & Company Secretary at $.01 per share
• May 2017 issue of 14,000,000 shares at $0.05 to seed capital applicants
At 30 June 2017, the Company had 44,000,100 ordinary shares on issue.
Treasury policy
The Company does not have a formally established treasury function. The Board is responsible for
managing the Company’s currency risks and finance facilities.
Liquidity and funding
The Company has in the 2017 financial year raised initial seed capital of $700,000 (before costs of
issue) with the aim being that these funds will be sufficient to see the company through to an IPO and
a listing on ASX.
Dividends
No dividend was paid during the year and none is recommended as at 30 June 2017.
Significant Changes in the State of Affairs
There were no significant changes in the State of Affairs of the Consolidated Entity during the year
apart from those items covered in the review of operations above.
Matters Subsequent to the End of the Financial Year
The Company also entered into a Farm-in and Joint Venture Agreement (JV) on the Napié Permit in
Côte d’Ivoire, West Africa on September 7, 2017 with Perseus Mining Limited’s Côte d’Ivoire
subsidiary, Occidental Gold SARL (OG).
The agreement gives Mako the right to earn 51% by spending US$1.5M within 3 years and 75% by
sole funding to completion of a Feasibility Study.
End of preview
Want to access all the pages? Upload your documents or become a member.