Prospectus - Kingsrose Mining

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Section 9 Investigating Accountant’s Report Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for each individual asset, unless the asset's value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs. (g) (h) Impairment In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value or money and the risks specific to the asset or group of assets being assessed. Payables Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the company. Trade accounts are normally settled within 60 days. Payables to related parties are initially recognised at fair value and subsequently measured at amortised cost. (i) (j) (k) Employee benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled plus related on costs. Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured. Issued capital Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the proceeds received. 2. PROFORMA TRANSACTIONS Proforma Unaudited represents Unaudited 31 August 2007 figures adjusted to reflect:- (a) The effect of the proposed subscription issue of 30,000,000 fully paid ordinary shares at an issue price of 20c per share to raise $6,000,000. (b) The estimated capital raising costs of the prospectus of $400,000. (c) (d) (e) (f) (g) The issue in October 2007 of 8,800,000 fully paid ordinary shares for cash to raise seed capital of $63,000. The proposed issue of 6,250,000 fully paid ordinary shares at an issue price of 20c per share to repay $1,250,000 of the loan from Airedale (Asia) Limited. The proposed issue of 5,000,000 convertible notes at an issue price of 20c each to repay $1,000,000 of the loan from Airedale (Asia) Limited. The proposed issue of 6,000,000 convertible notes at an issue price of 20c each to repay $1,200,000 of the loan from JW Phillips. The proposed payment of estimated stamp duty of $144,000 on the asset sale agreement. (h) The proposed payment of the bank equipment loans of $251,212. (i) The proposed payment by cash from the proceeds of the issue of the balance of the loan accounts totalling $631,472. Page 48
Unaudited Proforma 31 August 2007 Unaudited $ $ 3. CASH AND CASH EQUIVALENTS CURRENT Cash at bank and on hand 167,741 167,741 Proceeds on proposed issues - 6,063,000 Less - estimated expenses of offer - (400,000) - proposed payment of loans from associates - (631,472) - proposed payment of bank equipment loans - (251,212) - proposed payment of stamp duty on asset loan agreement - (144,000) 167,741 4,804,057 NON CURRENT Term deposit 188,338 188,338 The term deposit has been provided as security for the bank equipment loans set out in Note 9 and cannot be withdrawn until those loans are repaid in full. Unaudited Proforma 31 August 2007 Unaudited $ $ 4. RECEIVABLES GST receivable 40,220 40,220 Other 7,627 7,627 47,847 47,847 5. INVENTORY Gold Stock on hand at market value 624,084 624,084 Less royalty payable on sale at 2% (12,482) (12,482) 611,602 611,602 Subsequent to year end the inventory was sold for the market value disclosed above. 6. PROPERTY PLANT AND EQUIPMENT Cost 1,435,128 1,435,128 Accumulated Depreciation (154,672) (154,672) 1,280,456 1,280,456 7. MINE DEVELOPMENT COSTS Acquired from <strong>Kingsrose</strong> Unit Trust 1,634,706 1,634,706 Estimated Stamp Duty payable - 144,000 1,634,706 1,778,706 Unaudited Unaudited Proforma Proforma Page 49
Page 1 and 2: Kingsrose Mining Limited ABN 49 112
Page 3 and 4: Table of Contents Section 1 Key Poi
Page 5 and 6: Section 2 Chairman’s Letter Dear
Page 7 and 8: Application of Proceeds at Full Sub
Page 9 and 10: 4.4 Application for Shares Applicat
Page 11 and 12: Section 5 Company and Project Overv
Page 13 and 14: Section 6 Directors and Corporate G
Page 15 and 16: As the Company’s activities devel
Page 17 and 18: Additionally, tenements are subject
Page 19 and 20: Potential Acquisitions As part of i
Page 21 and 22: In addition, GIPL made independent
Page 23 and 24: Figure 2. Regional Geology 1. Intro
Page 25 and 26: Figure 3. Project Geology and Tenem
Page 27 and 28: 6. Past Exploration up to 1998 The
Page 29 and 30: 1. Proving up gold resources to the
Page 31 and 32: Table 3. Significant Results The su
Page 33 and 34: Holla, L.A., 2001. Geological setti
Page 35 and 36: Conduits Conglomerate Country rock
Page 37 and 38: Lava Limestone Lineament Lithologic
Page 39 and 40: Stockwork Stratabound Stratigraphy
Page 41 and 42: Under the terms of an asset sale ag
Page 43 and 44: APPENDIX 1 ASSETS BEING ACQUIRED AN
Page 45 and 46: To be read in conjunction with the
Page 47 and 48: APPENDIX 2 STATEMENT OF CASH FLOWS
Page 49: (b) (c) (d) (e) (f) (g) Income tax
Page 53 and 54: $ $ 10. CONVERTIBLE NOTES - UNSECUR
Page 55 and 56: 2.1 Western Australia Tenements in
Page 57 and 58: included a revised threshold test f
Page 59 and 60: • Compensation may have to be agr
Page 61 and 62: Notes: 1. The tenement is subject t
Page 63 and 64: expenditure will be borne by the pa
Page 65 and 66: Section 12 Additional Information 1
Page 67 and 68: Rights on Winding Up Subject to the
Page 69 and 70: Early Redemption by Noteholder The
Page 71 and 72: Section 13 Director’s Responsibil
Page 73 and 74: Application This Application Form r
Page 75 and 76: Application This Application Form r
Page 77 and 78: Airleg miner boring a level drive f

Prospectus - Kingsrose Mining

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