Announcement PDF Tesoro Resources Limited (Formerly Plukka Limited) ABN 91 106 854 175 Annual Report for the year ended 30 June 2020 TABLE OF CONTENTS Corporate Directory 2 Chairman’s Letter 3 Directors’ Report 5 Auditor’s Independence Declaration 24 Consolidated Statement of Profit or Loss and Other Comprehensive Income 25 Consolidated Statement of Financial Position 26 Consolidated Statement of Changes in Equity 27 Consolidated Statement of Cash Flows 28 Notes to the Financial Statements 29 Directors’ Declaration 56 Independent Auditor’s Report 57 ASX Additional Shareholder Information 61 Tenements Schedule 65 CORPORATE DIRECTORY Tesoro Resources Limited (formerly Plukka Limited) is an Australian listed company focused on the acquisition, exploration and development of commercially significant resource projects in Chile, with a focus on gold. For more details visit www.tesororesources.com.au. DIRECTORS Mr John Toll (Non-Executive Chairman) Mr Zeffron Reeves (Managing Director) Mr Geoffrey McNamara (Non-Executive Director) COMPANY SECRETARY Ms Shannon Coates REGISTERED OFFICE Suite 5 62 Ord Street WEST PERTH WA 6005 AUDITORS RSM Australia Partners Level 32 Exchange Tower 2 The Esplanade PERTH WA 6000 SHARE REGISTRAR Automic Pty Ltd Level 2, 267 St Georges Terrace PERTH WA 6000 GPO Box 5193, SYDNEY, NSW 2000 Telephone: 1300 288 664 (within Australia) Email: hello@automic.com.au SECURITIES EXCHANGE LISTING Australian Securities Exchange Limited (Home Exchange: PERTH, Western Australia) Code: TSO 2|P a g e Tesoro Resources Limited Chairman’s Letter Dear Fellow Shareholder, Welcome to the 2020 and first Annual Report for Tesoro Resources Limited (ASX: TSO), reflecting a successful first eight months as a publicly listed company. After listing on the ASX on 7 February 2020, and, raising $4.63 million, your Company has achieved many important milestones on its path to exploring and developing its flagship El Zorro Gold Project in Chile. The team behind Tesoro Resources has worked diligently here in Australia and on site at the El Zorro Gold Project in Chile, during one of the most challenging periods in global history and I am extremely proud of the efforts of everyone involved. The listing on ASX represented an important phase following three years of work and investment, to secure, explore and execute the exploration program that has delivered outstanding results to date and I thank all shareholders who have supported us on the journey so far. We believe there is much to come and I look forward to reporting that to you in due course. Following the Reverse Takeover (RTO) of ASX listed Plukka Limited by Tesoro Australia and associated $4.63m capital raising at an issue price of $0.03 per share, the Company was fully funded to commence the second phase of exploration at the El Zorro Gold Project in Chile. The initial drilling programs which were completed pre-listing gave the Board the confidence that there was a significant gold deposit across the El Zorro concessions and the first drilling program demonstrated that potential. Early success at El Zorro allowed us to complete a subsequent capital raising via a placement and entitlement offer, raising a further $5.89 million at an issue price 100% higher than the RTO listing price, with an expanded exploration program now well underway. Consecutive drilling programs continued to prove the Company’s confidence in the region and it has now become clear that Tesoro Resources is delineating what looks like a large-scale gold deposit in the coastal Cordillera region of Chile, close to infrastructure, a major regional city, access to water and personnel. Our 2020 exploration program has been very aggressive and the results of the drilling programs wholly support our strategy. The El Zorro Gold Project is made of five prospects namely; Ternera, Buzzard, Toro Gordo, Drone Hill and Toro Blanco. Most of the drilling to date has focused on Ternera, including drilling subsequent to the end of the financial year which has now confirmed mineralisation extends over 750m in length and more than 300m in depth. In fact, almost all drill holes to date at El Zorro’s Ternera prospect have been mineralised. September 2020 drilling continues and at time of writing a wide 60m interval of visible gold was reported in ZDDH00051 at Ternera and assays remain pending. Mineralisation at El Zorro has been confirmed as a series of broad mineralised zones, and mineralisation generally starts close to surface and extends down over 250m in most holes. Metallurgical testwork has shown the mineralised material is free milling with gold recoveries up to 99%, another positive development for the project. With such an intense and successful series of drilling programs, our geological team is beginning to understand the scale of El Zorro and we look forward to continuing to explore the Ternera extensions. With historic and recent drilling results coming together, Tesoro will likely be able to model a Maiden Resource in the first half of 2021, however as we continue to find more gold, the model remains quite dynamic. Operating under the COVID-19 restriction umbrella has been challenging both in terms of Chilean site staff and contractors, assay logistics and reporting and domestic administration and operational work. It is testament to all our teams at Tesoro Resources that the focus has been on exploring this project and getting the job completed in a safe, compliant, and sustainable way. Our reputation for our standards of operation are very important and this will continue to influence the way in which Tesoro Resources goes about its business. 3 | Page Tesoro Resources Limited Chairman’s Letter In closing, I would like to thank all shareholders for their confidence and positivity. I am sure you will all share my enthusiasm for the ongoing and future exploration and development of what we are understanding to be a significant gold project in South America and one that should continue to provide reward to shareholders through its next phases. I would also like to thank our Managing Director Zeff Reeves, for his tireless focus and our Board members and employees for their ongoing support. We look forward to another successful year ahead. John Toll Chairman Tesoro Resources Limited 4 | Page Tesoro Resources Limited Directors' report 30 June 2020 The Directors present their report, together with the financial statements, of the Group (referred to hereafter as the “consolidated entity” or “the Group”) and the entities it controlled at the end of, or during, the financial year ended 30 June 2020. Directors The following persons were Directors of Tesoro Resources Limited (formerly Plukka Limited) during or since the end of the financial year: John Toll Zeffron Reeves Geoffrey McNamara Cameron Williams Peter Ruse Non-Executive Chairman Managing Director (appointed 29 January 2020) Non-Executive Director (appointed 29 January 2020) Non-Executive Director (resigned 29 January 2020) Non-Executive Director (resigned 29 January 2020) Information on Directors John Toll Non-Executive Chairman B Comm, CA Mr Toll brings valuable experience as a partner of Azure Capital Limited, a leading corporate advisory firm based in Perth, Western Australia. Mr Toll has over 15 years’ experience in corporate advisory, focusing mainly on equity financing transactions across a range of industries including mining, technology, general industrials, biotech and infrastructure. He has advised local and international clients on transactions ranging from private capital raisings for early stage companies through to strategic and transformation capital raising for established businesses. Mr Toll has a Bachelor of Commerce, has completed the Institute of Chartered Accountants CA Program and a Graduate Diploma in Applied Finance. Zeffron Reeves Managing Director BSc (Hons) (Applied Geology), MBA, MAIG Mr Reeves is a geologist with over 20 years’ experience in the resources sector working on mineral resource projects through all facets of development from greenfield exploration, discovery, definition and feasibility, construction, production to closure. Mr Reeves was most recently Managing Director of ASX listed Metallum Ltd which had a number of development and operational projects in Chile. He has also held senior management positions with Cleveland Mining Ltd and Ashburton Minerals Ltd, developing projects in Brazil. Mr Reeves has a Bachelor of Applied Geology (Honours), a Masters of Business Administration from Curtin University and is a member of the Australia Institute of Geoscientists. Geoffrey McNamara Non-Executive Director BSc (Applied Geology), AusIMM, FINSIA, AICD Mr McNamara is a geologist with over 25 years of international resource sector experience, operational roles include Project Manager, Senior Mine Geologist and Mine Geologist for Ivanhoe Mines, Lion Ore International and Western Mining Corporation. Previously he worked in Private Equity (FUM USD800 million) and as a Director of Societe General’s Mining Finance team in New York. Geoffrey holds a Bachelors degree in Geology and a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australasia. He is a member of the Australian Institute of Company Directors (AICD) and the Australasian Institute of Mining and Metallurgy (AusIMM). 5 | Page Tesoro Resources Limited Directors' report 30 June 2020 Company Secretary Shannon Coates LLB, BJuris, AGIA, ACIS, GAICD Ms Coates is a qualified lawyer with over 20 years’ experience in corporate law and compliance. She is currently non-executive director of ASX listed companies Vmoto Limited and Bellevue Gold Limited and company secretary to a number of public unlisted and ASX listed companies. She has significant experience in a wide range of corporate and commercial matters, including strategy, remuneration, mergers and acquisitions, debt and equity capital markets, risk management and compliance, regulation and corporate governance, both in Australia and internationally. Shannon holds a Bachelor of Laws from Murdoch University, is a Chartered Secretary and a graduate of the AICD’s Company Directors course. She is a past recipient of the West Australian Women in Mining scholarship and was selected for the AICD Chairman’s Mentoring Program. Directorships of Other Listed Companies Directorships of other listed companies held by Directors currently and in the 3 years immediately before the end of the financial year are as follows: Company Director John Toll Zeffron Reeves Geoffrey McNamara Cora Gold Ltd Alita Resources Ltd Period of Directorship 09/10/2017-19/112019 14/12/2018 – 18/12/2019 Principal activities The principal activities of the Company and its subsidiaries are the acquisition, exploration and development of commercially significant resource projects in Chile. The Company currently holds interests in Chile, namely the El Zorro Gold Project in Chile, which is prospective for gold. Operating results The loss, after tax, attributable to the Group for the financial year ended 30 June 2020, amounted to $4,707,766 (2019: $510,402 loss). Control gained over entities, basis of preparation and comparative information Tesoro Resources Limited (formerly Plukka Limited) completed the acquisition of Tesoro Australia Limited (“Tesoro Subsidiary”) on 29 January 2020 and relisted on the ASX on 7 February 2020. As a result of the acquisition, the former shareholders of Tesoro Subsidiary effectively obtained control of the combined entity. Accordingly, under the principles of the Australian Accounting Standard AASB3 Business Combinations, Tesoro Subsidiary was deemed to be the accounting acquirer in this transaction. The acquisition has been accounted for as a reverse acquisition by which Tesoro Subsidiary acquired the net assets and listing status of Tesoro Resources Limited (formerly Plukka Limited). Accordingly, the consolidated financial statements of Tesoro Resources Limited have been prepared as a continuation of the business and operations of Tesoro Subsidiary. As the deemed acquirer, Tesoro Subsidiary has accounted for the acquisition of Tesoro Resources Limited from 29 January 2020. The comparative information (pcp) for the year ended 30 June 2019 presented in the consolidated financial statements are that of Tesoro Resources Limited (formerly Plukka Limited). Where necessary, comparative information has been reclassified and repositioned for consistency with current period disclosures. Most of the accounting policies have changed from those of the former Plukka Limited to those of the Tesoro Subsidiary. Dividends No dividends were paid or declared since the start of the financial year. No recommendations for payment of dividends has been made. 6|P a g e Tesoro Resources Limited Directors' report 30 June 2020 Directors’ Interests in Shares, Options and Performance Rights At the date of this report, the follow represents the shares, options and performance rights holdings of the Directors of the Company: Ordinary shares Direct Indirect 1. 2. 3. Performance Rights Direct Indirect Directors John Toll1 Zeffron Reeves2 - 3,671,696 20,647,222 - Geoffrey McNamara3 - 35,594,805 - Total - 59,913,723 - 63,027,195 73,812,805 136,840,000 3,671,696 fully paid ordinary shares are held by Mr John Toll as trustee for the Toll Family Discretionary Trust. 20,647,222 fully paid ordinary shares and 63,027,195 performance rights are held by Mr Zeffron Charles Reeves as trustee for the Palin Trust. 22,410,546 fully paid ordinary shares are held by Tanamera Resources Pte Ltd (a company registered in Singapore). Geoffrey McNamara is the sole director and shareholder of Tanamera Resources Pte Ltd. 13,184,259 fully paid ordinary shares and 73,812,805 performance rights are held by Linkwood Holdings Pte Ltd (a company registered in Singapore). Geoffrey McNamara is a director and substantial shareholder of Linkwood Holdings Pte Ltd. Review of Operations On the 3 October 2019, the Company announced it had entered into a Share Purchase Agreement (SPA) to acquire 100% of the issued capital of Tesoro Australia Limited (Tesoro) (previously Tesoro Resources Limited), a Chilean gold exploration company with a focus on its flagship El Zorro Gold Project (El Zorro Project). The acquisition of Tesoro by the Company represented an opportunity to acquire an interest in a highly prospective gold exploration project located within the Coastal Cordillera of Chile, and subject to satisfaction of a number of conditions, facilitate the reinstatement of the Company to the Official List of ASX. The Company subsequently satisfied the conditions, which included a public offer raising of $4.6 million in January 2020 and was successfully re-admitted to the Official List of ASX on 7 February 2020. Following the Company’s successful completion of the acquisition of Tesoro, the Board and management of the Company were refreshed to bolster the new phase of operations as a gold exploration company. As part of the refresh, Messrs Zeffron Reeves and Geoffrey McNamara, experienced geologists and mining executives, with a focus on international projects were appointed to the Board as Managing Director and Non-Executive Director respectively. Under the new management, the Company has focussed its efforts on delineating gold resources at the El Zorro Project, where a comprehensive drilling program continues to demonstrate the scale and quality of the project. El Zorro Gold Project The El Zorro Project area consists of approximately 10,000 hectares of granted concessions and is ideally located just 130km by road from the city of Copiapo in Region III, northern Chile and 57km by road from the port town of Caldera. The Company, via its 95% owned Chilean subsidiary, Tesoro Mining Chile SpA has a 70% interest in the El Zorro Project, with the right to increase to an 80% interest subject to certain payment and project development milestones, as set out in the ASX announcement on 23 March 2020. Tesoro has identified five highly prospective prospects at El Zorro, namely, Ternera, Buzzard, Toro Gordo, Drone Hill and Toro Blanco. Drilling has been conducted at the Ternera prospect only. Immediately following its readmission to the ASX, the Company commenced a drilling program at the El Zorro Project with an initial 10 hole diamond drilling campaign at the Ternera Prospect. On 6 March 2020, the Company announced that exceptional wide, high-grade gold assay results had been received for part of hole ZDDH00017, the first drill hole of the initial 10 hold drilling program. Final assays 7|P a g e Tesoro Resources Limited Directors' report 30 June 2020 were received early March 2020 (ASX Announcement 12 March 2020) for hole ZDDH00017, which intercepted 86.45m @ 2.29g/t Au, with a higher-grade zone returning 50.50m @ 3.63 g/t Au. Up until the end of the reporting period, the Company continued its drilling campaign at the Ternera Prospect, with a total of 11 drill holes completed for 2,855.30m. Assay results were received for all 11 holes with all returning highly encouraging results. Wide high-grade assay results were returned from several drill holes, with multiple high-grade gold intersections associated with the CC500 fault. Figure 1: Ternera Prospect Interpreted geology map and drilling (see ASX Announcement 10 June 2020). 8|P a g e Tesoro Resources Limited Directors' report 30 June 2020 The CC500 fault zone is one of several, high-grade gold bearing structures cross cutting the El Zorro Tonalite (EZT) controlling gold mineralisation at the Ternera Prospect. Gold mineralisation within the CC500 has been intersected in multiple diamond drill holes and has currently been defined by drilling over 180m of its strike, is typically between 20m and 80m wide, with drill intercepts within the high-grade zone ranging between 3.00g/t Au and 7.50g/t Au, with grades up to 56.20g/t having been encountered. The high-grade mineralisation occurs within a broad lower grade envelope up to 200m wide, with gold grades between 0.50g/t and 1.50g/t defined by drilling and surface sampling. Ternera Prospect drilling underway Post the end of the period, the Company announced on 3 July 2020 the commencement of a further drilling program at the Ternera Prospect, with two diamond drill rigs undertaking infill and extensional drilling. Given the encouraging results from the previous drilling campaign, the Company intends to undertake the further drilling to delineate the Ternera deposit through an initial 20 holes for approximately 5,000m of drilling. Channel Sampling Results In May 2020, Tesoro announced additional surface assay results for controlled outcrop channel sampling at the El Zorro Project, which identified wide zones of surface gold mineralisation associated with the CC350 and CC450 faults, and confirmed and extended previous results from the Toro Gordo Prospect. The proven gold mineralisation at the Ternera and Toro Gordo Prospects now extends for over 1.5km of strike, with only approximately 700m of strike having been tested by drilling. The results of this channel sampling significantly increase the known gold footprint at the Ternera Prospect, as well as confirm the occurrence of high-grade gold zones controlled by the CC structures. 9|P a g e Tesoro Resources Limited Directors' report 30 June 2020 Figure 2 – Ternera Channel Sampling Results (refer ASX Announcement 13 May 2020) In late June 2020, Tesoro reported channel and rock chip sampling results from the Buzzard Prospect, 2km south of the Ternera Prospect which confirms the Buzzard Prospect as an emerging new gold target and forming part of the El Zorro gold mineralised system (which incorporates the Buzzard, Toro Gordo, Ternera, Drone Hill and Toro Blanco Prospects), that has now been identified for over 5km in length. Results indicate that Buzzard is a large gold bearing vein system identified over an area approximately 1,100m long and 750m wide – open in all directions, with individual mineralised veins up to 250m long identified (Figure 3). 10 | P a g e Tesoro Resources Limited Directors' report 30 June 2020 Figure 3 - Buzzard Prospect geology map, new results highlighted in gold 11 | P a g e Tesoro Resources Limited Directors' report 30 June 2020 Metallurgical testwork results In June 2020, Tesoro announced results of initial metallurgical testwork conducted on 50kg of mineralised, fresh rock material from the Ternera Prospect at the El Zorro Project. The initial metallurgical testwork indicated that material was free milling with gold recoveries up to 99%. The work completed consisted of cyanide leach tests, gravity recovery testwork and determination of bond work index (hardness) testwork. The work was carried out by ALS Laboratories Pty Ltd (Perth) and results reviewed and interpreted by Mintrex Pty Ltd. Gold recoveries reported were 94% at 250 µm grind size and 99% at 75µm grind size. The results also demonstrated the material is amenable to gravity concentration, with 55% to 75% of the gold reporting to the gravity concentration at various grind sizes. Mintrex Pty Ltd who is engaged as Tesoro’s metallurgical and process engineering consultant, has reviewed the results and will advise on future metallurgical testwork programs and flowsheet design. The Company intends to implement the recommendations provided by Mintrex for a detailed metallurgical testwork program testing both transitional and fresh ore types of high and low gold grade domains. Espina Gold Project As announced on 6 April 2020, in late 2019, prior to the Company’s re-admission to the ASX, a detailed mapping and sampling program was undertaken at the Espina Gold Project (Espina Project) to assess previously identified gold mineralisation along the Puertelera and Infernillio structures. A total of 130 rock chip, channel samples and 441 soil samples were collected. Results delineated zones of strong gold mineralisation along the Puertelera structure and a large gold in soil anomaly at the northern end of the Infernillio Structure at Dona Clara. In May 2020, Tesoro made the decision to terminate the Espina Option Agreement, pursuant to which the Company’s 95%-owned subsidiary, Tesoro Chile Mining SpA, had the right to earn up to a 100% interest in the Espina Project. Exploration at the Espina Project was negatively impacted by strict lockdown restrictions in response to COVID-19, which were imposed in late March 2020 and affected the Company’s ability to carry out exploration activities to meet certain Stage 1 project expenditure commitments as part of the Espina Option Agreement. The Board resolved to terminate the Espina Option Agreement to avoid incurring any further costs associated with holding the project or administering the JV while uncertainty around COVID-19 restrictions in the Santiago Metropolitan Region remained. COVID-19 impact All the Company’s staff and contractors, including those on site at the El Zorro Project in Chile are safe. The Company has implemented procedures to ensure all staff and contractors remain safe and healthy during the COVID-19 pandemic, including regular testing, altered rosters and strict quarantining procedures. As at the date of this report, the Company’s operations at the El Zorro Project have not been directly affected by COVID-19 restrictions in Chile, however the Company continues to monitor this closely with the health and wellbeing of all staff and contractors priority. Corporate Prior to the completion of the acquisition of Tesoro Australia Limited in January 2020, the Company, formerly known as Plukka Limited, sought Shareholder approval at its 2019 AGM for a number of corporate transactions, including the consolidation of capital on a 15:4 basis; change of Company name to Tesoro Resources Limited (from Plukka Limited) and various share issues, to facilitate the readmission of the Company on ASX. The Company was successfully re-admitted to the Official List of the ASX on 7 February 2020, following completion of the acquisition and a successful public offer capital raising of $4.63 million. Following re- 12 | P a g e Tesoro Resources Limited Directors' report 30 June 2020 admission, the Company had approximately $4.02 million in cash (after payment of creditors, and relisting and capital raising costs). Capital Raising In June 2020, Tesoro announced a capital raising to raise up to $5.98 million comprised of: • placement to institutional, sophisticated and professional investors to raise up to $3.26 million (before costs) (Placement); • 1:8 accelerated pro-rata non-renounceable entitlement offer at $0.06 per Share to raise up to an additional $2.72 million (before costs) involving; -an accelerated offer to eligible institutional Shareholders, expected to comprise the issue of up to 18,979,357 Shares to raise up to approximately $1.13 million (Institutional Entitlement Offer); • an offer to eligible retail Shareholders, expected to comprise the issue of up to 26,354,817 Shares to raise up to approximately $1.58 million (Retail Entitlement Offer). As announced on 18 June 2020 the Placement was oversubscribed and Institutional Entitlement Offer closed oversubscribed, raising a combined total of approximately $4.39 million (before costs). Funds raised pursuant to the Placement and the Institutional and Retail Entitlement Offers were applied towards an accelerated infill and extensional diamond drilling program, detailed metallurgical testwork program, commencement of a Scoping Study at the Company’s El Zorro Project, working capital, as well as satisfying the costs of the capital raising. As at the end of the FY2020 the Company had $5.871 million in cash. Meetings of Directors The number of meetings of the Company's Board of Directors ('the Board') and of each Board committee held during the year ended 30 June 2020 were: Board meetings Attended Eligible to attend John Toll 3 3 Zeffron Reeves2 3 3 2 Geoffrey McNamara 3 3 1. The full Board currently undertakes all nomination, remuneration, audit and risk functions. 2. Appointed 29 January 2020 The meetings of the directors was for the period between the reverse acquisition occurred on 29 January 2020 and 30 June 2020. Shares As at the date of this report, there are 476,293,924 fully paid ordinary shares on issue. Options At the date of this report, there are nil unissued ordinary shares of Tesoro Resources Limited under option. During the year ended 30 June 2020, nil shares were issued upon the exercise of options. Performance Rights As at the date of this report, there are 146,231,405 performance rights on issue which will vest subject to meeting applicable performance criteria. During the year ended 30 June 2020, nil performance rights vested. 13 | P a g e Tesoro Resources Limited Directors' report 30 June 2020 Financial Position The Group had a total issued capital of $14,499,180 (2019: $3,325,066) at the end of the reporting period. During the financial year, the Group had a net increase in contributed equity of $11,174,114 (2019: $1,014,848) net of share issue costs as a result of the acquisition of Tesoro Australia Pty Ltd (formerly Tesoro Resources Limited.) As at 30 June 2020, the total assets for the Group are $9,058,789 (2019: $2,948,699) and total liabilities (being trade creditors, borrowings and provisions) amount to $388,496 (2019: $730,784). The Directors believe the Group is in a strong financial position to pursue the current operations. Significant changes in the state of affairs There were no other significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year As the impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. On 3 July 2020, the Company announced the drilling program at the Ternera Prospect, El Zorro Project in Chile had commenced. On 3 July 2020, the Company announced the results of the General Meeting with all resolutions carried on a poll. Shareholders approved: - The issue of 5,000,000 fully paid ordinary shares in the Company to a nominee of Sir Jose Bahamondes, the vendor of the El Zorro Gold Project, increasing the Company’s holding of the El Zorro Project to 70%. - The issue of 659,562 fully paid ordinary shares in the Company in lieu of cash consideration for corporate advisory services - The issue of 8,333,333 fully paid ordinary shares in the Company to satisfy the Company’s obligations under Mr. Zeffron Reeves’ Executive Service Agreement On 7 July 2020, the Company announced the completion of Retail Entitlement Offer of 1 new fully paid ordinary share for every 8 existing fully paid ordinary shares, as announced on 12 June 2020. The total amount raised under the Entitlement Offer was $2,720,050 (before costs). This includes the previously announced institutional component of the Entitlement Offer, which was completed on 18 June 2020 and raised $1,132,309 (before costs). On 31 July 2020, the Company announced it had expanded its land position at the El Zorro Gold Project in Chile by 360% to 395km2. On 4 August 2020, the Company provided an exploration update for its current exploration program at the El Zorro Gold Project in Chile. On 10 August 2020, the Company announced the results of the geophysical IP surveying conducted at the El Zorro Gold Project in Chile. On 26 August and 4 September 2020, the Company announced assay results from the current drilling program at Ternera Prospect at the El Zorro Gold Project in Chile. On 17 September 2020, the