EQ Resources Limited Annual Report 2021

EQ Resources Limited Annual Report 2021 57 ANNUAL Report June 2021 Notes to the Consolidated Financial Statements 43 The contract liability arrangements for the Offtake Advance are secured as follows:  general security deed from Mt Carbine Retreatment Pty Ltd over its present and subsequent acquired assets;  general security deed from CRONIMET Australia Pty Ltd over all its present and subsequent acquired assets; and  mortgage from Mt Carbine Quarries Pty Ltd over mining leases ML4867 and ML4919. This mortgage also includes an interest over “Featherweight Property” which is all other property of Mt Carbine Quarries Pty Ltd other than the mining leases. The mortgage is limited recourse, in that it is limited to the value of the mining leases. The contract liability arrangement for the unincorporated joint venture between Mt Carbine Retreatment Pty Ltd and CRONIMET Australia Pty Ltd (Joint Venture) are as follows:  Deed of Cross Security between the Joint Venture parties and Mt Carbine Retreatment Management Pty Ltd (as the manager) which secures the performance of their obligations to each other under the Joint Venture; and  General Security Deed from Mt Carbine Quarries Pty Ltd in favour of the Joint Venture parties over all present and after acquired property of Mt Carbine Quarries Pty Ltd including its rights under the Mining Leases. 22. LEASES Right-of-use assets 2021 $ 2020 $ Balance at 1 July 2020 1,225,390 - Additions: - Plant & equipment 57,066 1,201,234 - Motor vehicle - 32,848 Depreciation charge for the year (163,526) (8,692) Balance at 30 June 2021 1,118,930 1,225,390 Lease Liability - Maturity Analysis Less than 1 year 268,167 200,715 1 to 5 years 681,140 968,094 5+ years - - 949,307 1,168,809 Amounts Recognised in profit or loss Interest on lease liabilities 29,425 855 Expenses relating to short-term leases - - 29,425 855 Amounts recognised in statement of cash flows Total cash outflow for leases 10,523 7,892 23. CORPORATE INFORMATION The Financial Report of the Group for the year ended 30 June 2021 was authorised for issue in accordance with a resolution of the Directors on 27 September 2021. EQ Resources Limited is a company limited by shares and incorporated in Australia. Its shares are publicly traded on the Australian Securities Exchange under the ticker code “EQR”.