A40 0.00% 8.2¢ alita resources limited

From the Cowan annual report. At 31 December 2018, the Company...

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    From the Cowan annual report.

    At 31 December 2018, the Company had cash and cash equivalents of $205,411. The Company incurred a net loss of $925,130 and had cash outflows from operating activities of $418,628 during the period ended 31 December 2018.

    The directors have prepared the consolidated financial statements on a going concern basis which contemplates the continuation of normal business activities and the realisation of assets and the settlement of liabilities in the normal course of business.

    During the period, the Company was well-advanced in seeking admission on the Australian Securities Exchange (ASX) and lodged and prepared a Prospectus dated 22 August 2018 accordingly. Due to prevailing market conditions for funding exploration companies at the time and what is believed to be a short-term downward sentiment in the lithium market, the board decided to defer the ASX listing.

    The balance of cash and cash equivalents as at 31 December 2018 is not sufficient to meet the Group’s planned expenditures to continue to fund working capital for advancing the Cowan Lithium Project and general corporate activities over the next 12 months. The Directors have determined the company will have the required funds to meet its planned expenditures for the following reasons:

    • Subsequent to 31 December 2018 $230,000 in cash was received from the sale of the Mofe Creek Iron Ore Project as set out in note 25 Events After Balance Date.

    • It is the current intention of the Group to raise required equity capital from strategic investors and/or existing shareholders.

    In the event that the Group is unable to obtain sufficient funding to meet its expenditures and liabilities as required, there is material uncertainty whether it will continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report. The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities, that may be necessary should the consolidated entity not be able to continue as a going concern.
 
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Currently unlisted public company.

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