IGO Interactive Annual Report 2018

DIRECTORS’ REPORT 30 JUNE 2018 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS During the current year, the Company completed the divestment of the Stockman Project to CopperChem Limited (CopperChem), a subsidiary of Washington H. Soul Pattinson and Company Limited. The Company entered into an agreement to sell its Stockman Project in north-east Victoria to CopperChem on 14 June 2017 for total proceeds of up to $47.2 million, comprising $32.2 million in cash payments and a 1.5% net smelter return royalty with provisional value of up to $15.0 million. Completion of the transaction was subject to the satisfaction of certain conditions relating to the Stockman Project. All sales conditions were satisfied and completion of the sale occurred in December 2017. Partial proceeds of $22.2 million have been received to 30 June 2018, with the balance of $10.0 million due to be received in the first half of FY19. On 25 May 2018, the Company announced that it had entered into an agreement with CopperChem to divest the Jaguar Operation for a total consideration of $73.2 million. The consideration comprised $25.0 million in cash on completion of the transaction and an additional $48.2 million in deferred cash payments. The transaction was completed on 31 May 2018, with the Company receiving a cash payment of $25.0 million, with three future cash payments of $16.1 million to be received on each of the three anniversaries of the completion date. The Company also restructured its existing banking facilities during the period, with the cancellation of the outstanding $200.0 million revolving loan facility expiring in September 2020. There have been no other significant changes in the state of affairs of the Group during the year. EVENTS SINCE THE END OF THE FINANCIAL YEAR On 29 August 2018, the Company announced that a final dividend for the year ended 30 June 2018 would be paid on 27 September 2018. The dividend is 2 cents per share and will be fully franked. On 3 July 2018, the Company announced that it had entered into tenement purchase and joint venture agreements (the JV Agreements) with three entities owned and controlled by Mark Creasy (Creasy Group). The group of tenements, to be called the Southern Hills tenements, are contiguous to the Nova Mining Lease and cover approximately 1,100 square kilometres of highly prospective Fraser Range geology over the primary gravity ridge west and southwest of Nova. Following the execution of and pursuant to the JV Agreements, the Company paid the Creasy Group $21.0 million in July 2018 to earn a 70% managing interest in the Southern Hills tenements. The $21.0 million purchase price comprised a cash payment of $5.3 million and the issue of $15.7 million in shares in Independence Group NL at an issue price equal to the 20-day volume weighted average price to 28 June 2018. Other than the above, there has been no other transaction or event of a material and unusual nature likely, in the opinion of the Directors, to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years. COMPANY SECRETARY Ms. Joanne McDonald was appointed to the position of Company Secretary on 5 October 2015. Ms. McDonald is a qualified Chartered Secretary with over 14 years’ experience working for listed companies in multiple jurisdictions. Ms. McDonald was previously Assistant Company Secretary with Paladin Energy Ltd and, during her eight years at Paladin, she also held the role of Company Secretary of Summit Resources Ltd. Ms. McDonald is a Fellow of the Governance Institute Australia and a Graduate of the Australian Institute of Company Directors. IGO ANNUAL REPORT 2018— 43