2000 Annual Report - Heron Resources Limited

Directors’ Report
4.0 Continued page 41
Ken Hellsten was appointed as a Director on 17 September 1999. Mr Hellsten was the Centaur Nickel Pty Limited and Centaur
Mining & Exploration Limited ("Centaur") nominee to the Board pursuant to the Strategic Alliance Agreement between Heron and
Centaur. Mr Hellsten resigned on 26 May 2000 following which Peter James Lee was appointed as Centaur’s nominee pursuant
to the Strategic Alliance.
PRINCIPAL ACTIVITIES
The principal activities of the economic entity during the year were:
a) Lateritic nickel mineral exploration and development; and
b) Various non-nickel mineral exploration activities, often implemented through farm-out.
There has been no significant change in the nature of these activities during the year.
OPERATING RESULTS
The consolidated loss of the economic entity for the 2000 financial year after income tax of nil (1999 : nil) was $535,636
(1999 : $5,680,473).
DIVIDENDS
No dividends were paid during the year and the Directors do not recommend the payment of a dividend.
OPERATIONS REVIEW
The detailed Operations Review of the economic entity for the year is contained in Section 2.0 of this Annual Report.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than noted below there were no significant changes in the state of affairs of the economic entity during the year.
On 17 September 1999 the Company entered into a Strategic Alliance Agreement with Centaur Mining & Exploration Limited.
The Alliance supports the planned Stage II expansion of the Cawse Nickel Project to a production level of more than 40,000
tonnes per annum of LME grade nickel. Pursuant to the Agreement the Company received $3,132,000 and granted Centaur
Mining & Exploration Limited an option, at no additional cost, to call for the issue of 10,440,000 Shares in the Company.
On 28 September 1999 Centaur Mining & Exploration Limited called for the issue of the 10,440,000 Shares, which Shares have
since been issued.
There were no significant changes in the state of affairs of controlled entities during the year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Other than mentioned below at the date of this Report there is no matter or circumstance which has arisen since 30 June 2000
that has significantly affected or may significantly affect:
a) The operations, in the financial years subsequent to 30 June 2000, of the economic entity;
b) The results of those operations; or
c) The state of affairs, in the financial years subsequent to 30 June 2000, of the economic entity.
In June 2000 Optionholders of the Company exercised 10,000,000 Options at 25 cents each which were to expire on 30 June
2000 and 150,000 Options at 25 cents each which were to expire on 15 December 2001. Shares were allotted and issued to
Optionholders on 13 July 2000.
Heron Resources NL Annual Report 2000