Notes to the Consolidated Financial Statements continued ANNUAL Report June 2023 Notes to the Consolidated Financial Statements 36 5. FINANCIAL ASSETS 2023 $ 2022 $ Shares in listed companies:1 Critical Resources Limited (ASX: CRR) 5,156 5,543 5,156 5,543 Capitalised borrowing costs:2 Current 108,417 - Non-current 200,084 - 308,501 - Unexpired interest:2 Current 707,232 - Non-current 2,133,500 - 2,840,732 Deferred acquisition costs:3 Non-Current 221,729 - 221,729 - 3,376,118 5,543 1 Equity instruments are measured at fair value as at reporting date with all changes recognised as other comprehensive income / (loss) in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. 2 During the reporting period the Company entered into a Royalty Funding Package with Regal Resources Royalties Fund with the Group receiving $10 million in two separate tranches. The financing consists of a royalty percentage of 3% with a buy-back option after the recovery of the first stage royalty, $10 million, (and prior to the 7th anniversary of the definitive agreement execution) and a payment of $2.75 million reducing the liability to 1.5% for the life of mine. The capitalised borrowing costs represent those costs directly attributable to securing this funding package and will be amortised over the period in which the first stage royalty of $10 million will be repaid. The unexpired interest component will be recognised over the life of mine in line with each of the scheduled periodic repayments to Regal Resources Royalties Fund. A discounted cash flow method using a discount rate of 5.455% (2021: n/a) was used to capture the net present value of the revenues for the life of mine as determined in the May 2023 Update of the BFS. 3 Deferred acquisition costs represent those costs directly attributable to the acquisition of leading European tungsten producer Saloro S.L.U. from global investment manager, Oaktree. These costs will be amortised over the life of mine. 6. AUDITOR’S REMUNERATION 2023 $ 2022 $ Audit-related services Amounts paid or payable to Nexia Melbourne Audit Pty Ltd - Audit services 88,680 65,100 Taxation Services Amounts paid or payable to Nexia Melbourne Pty Ltd - Tax compliance services (tax returns) 16,700 13,000 - Other tax advice - - 105,380 78,100 78 EQ Resources Limited Annual Report 2023
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