Announcement PDF www.kingstonresources.com.au ACN 009 148 529 17 July 2015 Company Announcements Office Australian Securities Exchange Quarterly Activities Report and Appendix 5B for the period ending 30 June 2015 Kingston Resources Limited (ASX: KSN) has had an eventful April-June quarter. The collaboration agreement and drilling contract for our flagship Mineral Systems Drilling Program were signed in Adelaide. The field team will mobilise in late July with drilling expected to commence at Six Mile Hill on 1 August 2015. Kingston also entered into a Joint Venture Agreement to secure the final piece of ground at our Cootanoorina project. The 7 July Open Letter to Shareholders and Video Interview with Executive Director provide a useful overview of Kingston upcoming exploration programs. Both are available at www.kingstonresources.com.au Mineral Systems Drilling Program agreements signed On 26 June, the collaboration agreement and drilling contract for the Mineral Systems Drilling Program were signed in Adelaide. A press release from the event is available in our announcement of 26 June 2015. Figure 1: Kingston Resources, Minotaur Exploration, Geological Survey of South Australia and Deep Exploration Technologies CRC representatives at the signing of the Collaboration Agreement. 25 - 27 Jewell Parade, North Fremantle, Western Australia 6159 +61 8 9336 6619 info@kingstonresources.com.au 1 www.kingstonresources.com.au ACN 009 148 529 Joint Venture Agreement Expands Cootanoorina Project Area Shortly after the quarter, Kingston entered into a Joint Venture Agreement to secure Exploration Licence (EL) 5309 in the center of its 100% owned Cootanoorina project. EL 5309 is held privately by a South Australian geophysicist who recognised the potential of the area and conducted gravity and magnetics surveys at his own expense. Kingston’s analysis of this data has revealed a coincident gravity and magnetic feature that warrants investigation. It is one of the strongest gravity feature in the Cootanoorina project area. Kingston intends to test our best drill targets at Cootanoorina following completion of our upcoming drilling campaign at Six Mile Hill. Further details of the Joint Venture are available in our announcement of 13 July 2015. Figure 2: Cootanoorina Project surface geology and historic mineral occurrences. EL 5309 in centre. 25 - 27 Jewell Parade, North Fremantle, Western Australia 6159 +61 8 9336 6619 info@kingstonresources.com.au 2 www.kingstonresources.com.au ACN 009 148 529 Kingston’s Exploration Projects Kingston’s exploration are focused on the ancient Gawler Craton in South Australia in both the world class Olympic Copper-Gold province and the emerging mineral province of the northern Eyre Peninsula. Figure 3: Kingston’s exploration projects and major copper-gold deposits of the Gawler Craton 25 - 27 Jewell Parade, North Fremantle, Western Australia 6159 +61 8 9336 6619 info@kingstonresources.com.au 3 www.kingstonresources.com.au ACN 009 148 529 Of the Company’s Tenements, eight are wholly owned and four are in joint venture arrangements. The principle aim of the Company’s exploration programs is the discovery and development of Iron Oxide Copper Gold – IOCG – deposits. Tenement State Project Km2 EL 5625 SA Cootanoorina 508 Ownership Change since last Quarter 100% N/A EL 5487 SA Cootanoorina East 311 100% N/A EL 5599 SA Cootanoorina North 24 100% Granted 27/4/15 EL 5101 SA Mt Morgan 909 100% Surrendered 9/5/2015 EL 5479 SA Mt Morgan East 92 100% Surrendered 9/5/2015 EL 4915 SA Mt Eba 237 100% N/A EL 4524 SA Yalymboo 280 100% Lapsed 19/6/2015 EL 5626 SA Six Mile Hill 296 100% N/A EL 5498 SA Six Mile Hill East 540 100% N/A EL 5591 SA Six Mile North 131 100% Granted 22/4/2015 EL 5379 SA Sunset Hill 160 100% N/A EL 5011 SA Myall Creek 381 50% N/A EL 5010 SA Spencer 321 25% N/A Farm –In Arrangements as follows: EL 5309 SA Cootanoorina 36 Earning in Farm -in signed 12/7/15 EL 4933 VIC Orbost 341 Earning in Farm- in signed 27/1/15 Figure 5: Tenement Schedule (ASX LR 5.3.3) 25 - 27 Jewell Parade, North Fremantle, Western Australia 6159 +61 8 9336 6619 info@kingstonresources.com.au 4 www.kingstonresources.com.au ACN 009 148 529 Please refer to the Appendix 5B quarterly commitments report for period ended 30 June 2015. Dated this 17th day of July 2015. Mr Jonathan Davies Chairman Kingston Resources Limited 25 - 27 Jewell Parade, North Fremantle, Western Australia 6159 +61 8 9336 6619 info@kingstonresources.com.au 5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Rule 5.5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013 Name of entity KINGSTON RESOURCES LIMITED (ASX: KSN) ABN Quarter ended (“current quarter”) 44 009 148 529 30 JUNE 2015 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Current quarter $A’000 Year to date (12 months) $A’000 - - (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other (provide details if material) (346) (83) 8 (643) (379) 21 - - Net Operating Cash Flows (421) (1,001) - - - - (421) (1,001) Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) Net investing cash flows Total operating and investing cash flows (carried forward) + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 1 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (421) (1,001) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other – expenses related to issue of shares (26) 754 (171) Net financing cash flows (26) 583 Net increase (decrease) in cash held (447) (418) 1.20 1.21 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 753 - 724 - 1.22 Cash at end of quarter 306 306 1.14 1.15 1.16 1.17 1.18 1.19 Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 82 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions Nil Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows On 29 May 2015, the Company issued 491,667 shares at a deemed price of $0.015 per share in lieu of a $7,375 cash liability for consultant geophysical services provided to the Company for exploration work on its projects. + See chapter 19 for defined terms. Appendix 5B Page 2 01/05/2013 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available $A’000 3.1 Loan facilities 3.2 Credit standby arrangements Amount used $A’000 - - - - Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation* 4.2 Development 4.3 Production 4.4 Administration 150 75 225 Total *Note: The Company has prepaid (in the June 15 Quarter) its cash contribution to the SA Government funded Mineral Systems Drilling Program commencing at its Six Mile Hill project in the September 15 quarter. The Directors are considering various capital raising alternatives to fund future exploration activities. Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 5.2 Current quarter $A’000 Previous quarter $A’000 9 15 Deposits at call 297 738 5.3 Bank overdraft - - 5.4 Other (provide details) - - 306 753 Total: cash at end of quarter (item 1.22) + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 3 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Changes in interests in mining tenements and petroleum tenements Tenement reference and location 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed * 6.2 Interests in mining tenements and petroleum tenements acquired or increased * Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter *Refer to attached Quarterly Report for LR 5.3.3 Tenement Information Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 7.2 7.3 7.4 7.5 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions +Ordinary securities Total number Number quoted - - Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks +Convertible debt securities (description) - Issue price per security (see note 3) (cents) - Amount paid up per security (see note 3) (cents) - - - - 145,944,745 145,944,745 491,667 491,667 Nil $0.015 $0.015 Nil + See chapter 19 for defined terms. Appendix 5B Page 4 01/05/2013 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 7.6 7.7 7.8 7.9 7.10 7.11 7.12 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter Debentures (totals only) Unsecured notes (totals only) Nil Nil 25,707,500 28,624,769 25,707,500 28,624,769 Nil Nil Nil Nil Nil Nil Exercise price $0.20 $0.07 Expiry date 31 December 2015 30 June 2016 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here: ............................................................ Date: 17 July 2015 (Company secretary) Print name: Mathew Whyte + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 5 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 01/05/2013