ANNUAL Report June 2025 Notes to the Consolidated Financial Statements 23 The final values of the identifiable assets and liabilities acquired are as follows: Item Final Fair Value Financial assets 12,266,801 Inventory 13,695,649 Property, Plant & Equipment 66,160,352 Financial liabilities (80,519,021) Total identifiable assets acquired and liabilities assumed 11,603,781 Bargain Purchase Gain 11,603,781 Purchase Consideration Cash consideration 2 Less: cash and cash equivalents 8,280,498 Total cash inflow from investing activities 8,280,496 Asset Acquisition - Mt Carbine Retreatment Management Pty Ltd x 50% Interest On 1 July 2024, the Group acquired the 50% share of the issued share capital of Mt Carbine Retreatment Management Pty Ltd (MtCRM) from CROMINET Australia Pty Ltd (CROMINET). MtCRM’s activities cover the crushing, screening, and processing of ore from the open cut mining operations supplemented by the LowGrade Stockpile at the Mt Carbine Mine Site. The acquisition of CROMINET’s 50% interest dissolved the unincorporated joint venture, giving the Group full control of these activities. The acquisition has been accounted for as an asset acquisition in accordance with IFRS, as it did not meet the definition of a business under IFRS 3 Business Combinations. 30/06/2025 $ Assets and liabilities acquired at fair value: Financial assets 576,397 Inventory 14,600,000 Property, plant and equipment (including capitalised borrowing costs) 4,834,859 Financial liabilities (13,661,457) Total identifiable assets acquired and liabilities assumed 6,349,799 Purchase consideration: Equity instruments (127,323,657 ordinary shares of the Company) 11,459,129 Total consideration transferred 11,459,129 During the period, an independent valuation of the inventory acquired was undertaken. As a result of this valuation, an impairment loss of $4,614,769 was recognised in accordance with IFRS 2 Inventories. This impairment has been included in the Consolidated Statement of Profit or Loss under operating expenses. The impairment does not affect the consideration transferred, which remains at $11,459,129, but does result in a difference between the initial fair value of the inventory acquired and its carrying amount post valuation. No goodwill was recognised as the transaction did not constitute a business combination. EQ Resources Limited Annual Report 2025 89
RkJQdWJsaXNoZXIy MjE2NDg3