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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 105
Notes to the consolidated financial statements
30 June 2016
(continued)
Group structure
This section of the notes provides information which will help users understand how the group structure affects the
financial position and performance of the Group.
22 Business combination
(a) Summary of acquisition
On 22 September 2015, Independence Group NL acquired 100% of the issued capital of Sirius Resources NL (Sirius).
Sirius was an ASX listed minerals exploration and development company with a key focus on the development of the
Nova Project, located east of Norseman in Western Australia.
Details of the purchase consideration and the net assets acquired are as follows:
$'000
Purchase consideration (refer to (b) below):
Cash paid
250,285
Ordinary shares issued
860,629
Total purchase consideration
1,110,914
The fair value of the 275,842,684 shares issued as part of the consideration paid for Sirius ($860,629,000) was based
on the published share price on 22 September 2015 of $3.12 per share.
The assets and liabilities recognised as a result of the acquisition are as follows:
Fair value
$'000
Cash
48,233
Trade and other receivables
6,008
Inventories
214
Plant and equipment
3,432
Mine properties
984,776
Exploration and evaluation expenditure
34,100
Deferred tax assets
63,646
Trade and other payables
(20,942)
Deferred tax liability
(1,974)
Provisions
(6,579)
Net identifiable assets acquired
1,110,914
There were no acquisitions in the year ending 30 June 2015.
Revenue and profit contribution
The acquired business contributed revenues of $409,000 and net loss of $1,372,000 to the Group for the period from 22
September 2015 to 30 June 2016.
If the acquisition had occurred on 1 July 2015, consolidated pro-forma revenue and loss for the year ended 30 June
2016 would have been $414,140,000 and $75,807,000 respectively.
Cash flows
Since acquisition, expenditure of $179,475,000 was incurred by the acquired entity relating to the construction and
development of the Nova Project.
Independence Group NL
77