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Investor Presentaiton

Armour Energy and controlled entities Financial report continued Notes to the consolidated financial statements continued NOTE 21. DEFERRED CONSIDERATION Current Deferred consideration payable Non-current Deferred consideration payable Consolidated 30 June 30 June 2020 $ 2019 $ 1,000,000 1,000,000 NOTE 23. NON-CURRENT LIABILITIES - BORROWINGS TOTAL SECURED LIABILITIES The total secured liabilities are as follows: Tribeca Loan Facility 919,143 FIIG Corporate Bonds FIIG Corporate Bonds - issue costs 1,000,000 1,919,143 armourenergy.com.au Consolidated 30 June 2020 $ 30 June 2019 $ 45,100,000 (1,977,421) 4,648,566 55,000,000 (2,233,323) 43,122,579 57,415,243 ACCOUNTING POLICY FOR DEFERRED CONSIDERATION On 1 September 2015 Armour Energy (Surat Basin) Pty Ltd, a subsidiary of Armour Energy Ltd, entered into agreements to acquire the Kincora Project from Oil Investments Pty Ltd (Origin Energy). The combined agreements totalled a cash purchase price of $10 million plus $3 million deferred consideration, which was contingent on first gas. The Group achieved first gas in September 2017, and the deferred consideration became due. Refer to note 26 for further information on financial risk management. The Group complied with all covenant requirements of the Tribeca loan facility and FIIG Corporate bonds during the year ended 30 June 2020. For personal use, only 88 The deferred element consisted of three $1 million payments to be made on the 1st, 2nd, and 3rd anniversary of first gas. The final payment is due in September 2020 and $1 million has been classified as a current liability. NOTE 22. CURRENT LIABILITIES - BORROWINGS Tribeca Loan Facility FIIG Corporate Bond FIIG Corporate Bond accrued interest Consolidated 30 June 2020 $ 30 June 2019 $ Corporate Bond facility Consolidated Movement in carrying amounts: 30 June 30 June Face value of corporate bond facility 51,150,000 2020 $ 2019 Issue costs of corporate bond facility (2,350,866) 55,000,000 (2,350,866) $ Amortisation of bond facility costs 373,445 117,543 5,663,940 6,050,000 1,203,125 Tribeca loan facility 49,172,579 52,766,677 11,713,940 1,203,125 Movement in carrying amounts: Face value of loan facility Issue costs of loan facility 6,759,200 (137,218) 6,759,200 (137,218) Other equity securities - value of conversion rights, net of issue costs (2,893,012) (2,893,012) Amortisation of loan facility Amortisation of issue costs 1,885,603 49,367 895,986 23,610 5,663,940 4,648,566 89
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