9. Prepayments and deferred offering costs

(a) Prepayments

The drill-rig prepayment relates to the cost of a diamond drill rig purchased for use under the drilling contract with the Mota-Engil group. Under that agreement the rig is made exclusively available to Mota-Engil for use solely in connection with the Chilwa drilling contract; Mota-Engil reduces its drilling service invoices by 30% until the full cost of the rig has been recovered by the Group, and ownership of the rig transfers to Mota-Engil on completion of the drilling contract. The arrangement does not convey to the Group the right to control the use of an identified asset and is therefore not a lease; the cost of the rig is carried as a prepayment for future drilling services and will be reduced over the life of the drilling contract with Mota-Engil as cost is recovered.

At June 30, 2026, prepaid equity raising costs comprise incremental costs of $236,564 directly attributable to the issue of new ordinary shares (in the form of American Depositary Shares) under the proposed NASDAQ initial public offering, comprising legal, underwriting and other directly attributable offer costs. The offering had not completed at June 30, 2026 and no securities had been issued under it; the costs have therefore been deferred and recognised as an asset and will be deducted from contributed equity when the offering completes (note 16). Were the offering not to proceed, the costs would be recognised in profit or loss at that time. The balance is classified as current because the offering is expected to complete within twelve months of the reporting date. The status of the offering at the date of authorisation is described in note 25.