Note 23. Subsidiaries Ownership interest held by group* Name of entity Country of incorporation Class of shares 2022 2021 Avalon Minerals Adak AB Sweden Ordinary 100% 100% Scandian Metals Pty Ltd Australia Ordinary 100% 100% Scandian Metals AB Sweden Ordinary 100%1 100%1 Litiumloydos Oy Finland Ordinary 0% 83.6%2 Sunstone Metals Canada Limited Canada Ordinary 100% 100% Sunstone Metals Ecuador S.A. Ecuador Ordinary 100%3 100%3 La Plata Minerales SA Ecuador Ordinary 87.5% 87.5% Golden Exploration Ecuador SA Ecuador Ordinary 70%4 0%4 * The proportion of ownership interest is equal to the proportion of voting power held 1 Scandian Metals AB is a 100% owned subsidiary of Scandian Metals Pty Ltd 2 Litiumloydos Oy was an 83.6% owned subsidiary of Scandian Metals AB before being sold 3 Sunstone Metals Ecuador is a 100% owned subsidiary of Sunstone Metals Canada 4 Golden Exploration Ecuador SA is subject to a Staged Acquisition Agreement for Sunstone to ultimately hold 100% On 7 October 2021 Sunstone acquired 51% of the shares in Golden Exploration Ecuador SA (“GOEX”), having met the requirements under the Staged Acquisition Agreement dated 5 October 2020 for US$2 million in exploration expenditure and payments to the vendors totalling US$600,000. On 25 February 2022 Sunstone elected to move to 70% ownership of GOEX by payment of an additional US$300,000 to the vendors. Sunstone holds the right under the agreement to acquire 100% of GOEX by making an additional payment to the vendors of US$2 million on or before 1 July 2024. Note 24. Contingent assets and liabilities Future consideration of $1.5 million is receivable from NewPeak Metals Limited contingent on delivery of at least 450,000 ounces of gold in Measured and Indicated Resources from the acquired permits in Finland. As the project is at an early stage of exploration it is not considered virtually certain that this milestone will be met, as required under AASB 137, and therefore Sunstone has not recognised a receivable for this further consideration contributing to the loss on sale of subsidiary in the Consolidated Statement of Profit or Loss and Other Comprehensive Income. The Company is not aware of any other material contingent assets or liabilities at 30 June 2022 not otherwise disclosed in the Financial Statements. Note 25. Dividends No dividend was paid or declared by the Company in the period since the end of the previous financial year, and up to the date of this report. The Directors do not recommend that any amount be paid by way of dividend for the financial period ended 30 June 2022 (2021: nil). The balance of the Company’s franking account is nil (2021: nil). Note 26. Events occurring after reporting date No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or economic entity in subsequent financial periods. Note 27. Segment reporting The Group has determined its operating segment based upon reports reviewed by the Board (Chief Operating Decision Makers) for making strategic decisions. The Board has identified three operating segments being the two exploration projects in Ecuador, Bramaderos and El Palmar, as well as Corporate investments held through the Australian Parent Company (Finland is included for comparative purposes). Notes to the Financial Statements for the year ended 30 June 2022 56 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022
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