IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the interim periods ended December 31, 2023 and 2022


 
PAGE
FINANCIAL STATEMENTS
  
F-2
F-3
F-4
F-5
F-6

IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022
 graphic

        Six Months Ended
    Six Months Ended
 
     Note  
December 31, 2023
US$
    
December 31, 2022
US$
 
                 
Continuing operations
                
Research and development costs
        
(3,763,468
)
    
(2,099,309
)
Exploration and evaluation expenses
        (1,458,125
 )
     (1,517,474
 )
Corporate and administrative expenses
        
(2,470,238
)
    
(2,161,671
)
Business development expenses
        
(1,320,441
)
    
(1,333,073
)
Share-based payment expense
        
(1,108,090
)
    
(1,566,231
)
Finance income
        
210,558
      
198,282
  
Finance costs
        
(61,638
)
    
(30,717
)
Other income and expenses
        
(523,577
)
    
(243,884
)
Loss before income tax
        
(10,495,019
)
    
(8,754,077
)
Income tax expense
        
-
      
-
  
Loss for the period
        
(10,495,019
)
    
(8,754,077
)
Loss attributable to members of IperionX Limited
        
(10,495,019
)
    
(8,754,077
)
                     
Other comprehensive income
                    
Items that may be reclassified subsequently to profit or loss:
                    
Exchange differences arising on translation of foreign operations
        
571,034
      
(102,645
)
Other comprehensive loss for the period, net of tax
        
571,034
      
(102,645
)
Total comprehensive loss for the period
        
(9,923,985
)
    
(8,856,722
)
Total comprehensive loss attributable to members of IperionX Limited
        
(9,923,985
)
    
(8,856,722
)
                     
Loss per share
                    
Basic and diluted loss per share (US$ per share)
        
(0.05
)
    
(0.06
)


The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

F-2
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Condensed Consolidated Statement of Financial Position
AS AT DECEMBER 31, 2023 AND JUNE 30, 2023
  graphic

   
Note
    
December 31, 2023
US$
    
June 30, 2023
US$
  
                   
ASSETS
                  
Current Assets
                  
Cash and cash equivalents
          
17,329,952
      
11,937,941
  
Trade and other receivables
          
2,704,811
      
228,395
  
Prepayments
         
3,527,497
      
588,395
  
Total Current Assets
          
23,562,260
      
12,754,731
  
                       
Non-Current Assets
                      
Property, plant and equipment
    
4
      
4,580,521
      
3,989,783
  
Exploration and evaluation assets
    5
       5,900,713       3,059,021  
Prepayments
             -       3,000,000  
Total Non-Current Assets
            
10,481,234
      
10,048,804
  
TOTAL ASSETS
            
34,043,494
      
22,803,535
  
                         
LIABILITIES
                        
Current Liabilities
                        
Trade and other payables
    
6
      
2,185,625
      
1,180,984
  
Loans and borrowings
    
7
      
440,482
      
382,626
  
Provisions
            
-
      
84,009
  
Total Current Liabilities
            
2,626,107
      
1,647,619
  
                         
Non-Current Liabilities
                        
Loans and borrowings
    
7
      
1,241,626
      
592,688
  
Total Non-Current Liabilities
            
1,241,626
      
592,688
  
TOTAL LIABILITIES
            
3,867,733
      
2,240,307
  
                         
NET ASSETS
            
30,175,761
      
20,563,228
  
                         
EQUITY
                        
Contributed equity
    
8
      
78,897,119
      
58,764,248
  
Reserves
    
9
      
13,970,489
      
13,995,808
  
Accumulated losses
            
(62,691,847
)
    
(52,196,828
)
TOTAL EQUITY
            
30,175,761
      
20,563,228
  

The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

F-3
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Condensed Consolidated Statement of Changes in Equity
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022
  graphic

   
Contributed
Equity
US$
    
Share-
Based
Payments
Reserve
US$
    
Foreign
Currency
Translation
Reserve
US$
    
Accumulated
Losses
US$
    
Total
Equity
US$
  
                               
Balance at July 1, 2023
    
58,764,248
      
15,004,052
      
(1,008,244
)
    
(52,196,828
)
    
20,563,228
  
Net loss for the period
    
-
      
-
      
-
      
(10,495,019
)
    
(10,495,019
)
Exchange differences arising on translation of foreign operations
    
-
      
-
      
571,034
      
-
      
571,034
  
Total comprehensive loss
    
-
      
-
      
571,034
      
(10,495,019
)
    
(9,923,985
)
Issue of shares - share placement
    
17,088,750
      
-
      
-
      
-
      
17,088,750
  
Issue of shares - exercise of options
    
3,127,752
      
(1,388,649
)
    
-
      
-
      
1,739,103
  
Issue of shares - conversion of RSUs
    
225,735
      
(225,735
)
    
-
      
-
      
-
  
Issue of shares - conversion of employee rights
    15,059       (15,059 )     -       -       -  
Issue of shares to a consultant
    75,000       (75,000 )     -       -       -  
Share issue costs
    
(399,425
)
    
-
      
-
      
-
      
(399,425
)
Share-based payment expense
    
-
      
1,108,090
      
-
      
-
      
1,108,090
  
Balance at December 31, 2023
    
78,897,119
      
14,407,699
      
(437,210
)
    
(62,691,847
)
    
30,175,761
  
                                         
Balance at July 1, 2022
    
29,782,268
      
12,985,856
      
(596,331
)
    
(34,752,074
)
    
7,419,719
  
Net loss for the period
    
-
      
-
      
-
      
(8,754,077
)
    
(8,754,077
)
Exchange differences arising on translation of foreign operations
    
-
      
-
      
(102,645
)
    
-
      
(102,645
)
Total comprehensive loss
   
-
      
-
      
(102,645
)
    
(8,754,077
)
    
(8,856,722
)
Issue of shares - share placement
    
16,117,800
      
-
      
-
      
-
      
16,117,800
  
Issue of shares - exercise of options
    
194,205
      
(72,935
)
    
-
      
-
      
121,270
  
Issue of shares - conversion of RSUs
    167,487       (167,487 )     -       -       -  
Share issue costs
    
(1,347,128
)
    
354,788
      
-
      
-
      
(992,340
)
Share-based payment expense
    
-
      
1,566,231
      
-
      
-
      
1,566,231
  
Balance at December 31, 2022
   
44,914,632
      
14,666,453
      
(698,976
)
    
(43,506,151
)
    
15,375,958
  

The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

F-4
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Condensed Consolidated Statement of Cash Flows
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022
  graphic

   
Note
    
Six Months Ended
December 31, 2023
US$
    
Six Months Ended
December 31, 2022
US$
  
                   
Cash flows from operating activities
                  
Receipts from customers
          25,415       -  
Payments to suppliers and employees
          
(8,158,175
)
    
(7,625,235
)
Interest received
          
210,558
      
46,412
  
Interest paid
         
(52,665
)
    
(12,137
)
Net cash flows used in operating activities
          
(7,974,867
)
    
(7,590,960
)
                       
Cash flows from investing activities
                      
Purchase of property, plant and equipment
          (2,005,366 )     (1,179,703 )
Purchase of exploration and evaluation assets
    
5
      
(2,841,692
)
    
(418,200
)
Net cash flows used in investing activities
            
(4,847,058
)
    
(1,597,903
)
                         
Cash flows from financing activities
                        
Proceeds from issue of shares
            
18,827,852
      
16,239,070
  
Share issue costs
            
(399,425
)
    
(992,340
)
Repayment of borrowings
            
(2,928
)
    
(2,751
)
Payment of principal portion of lease liabilities
            
(198,121
)
    
(338,366
)
Net cash flows from financing activities
            
18,227,378
      
14,905,613
  
                         
Net increase in cash and cash equivalents
            
5,405,453
      
5,716,750
  
Net foreign exchange differences
            
(13,442
)
    
49,225
  
Cash and cash equivalents at the beginning of the period
            
11,937,941
      
5,672,551
  
Cash and cash equivalents at the end of the period
            
17,329,952
      
11,438,526
  

The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

F-5
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022
graphic



1.          MATERIAL ACCOUNTING POLICY INFORMATION
 
Corporate information
 
IperionX Limited (“IperionX” or “Company”) is a for-profit company limited by shares, incorporated and domiciled in Australia. Our registered office is located at Level 9, 28 The Esplanade, Perth, Western Australia, 6000. Our ordinary shares are listed on the Australian Securities Exchange, or ASX, under the symbol “IPX”, and our American Depository Shares, or ADSs, each representing ten (10) of our ordinary shares, are listed on the Nasdaq Capital Market, or Nasdaq, under the symbol “IPX”.
 
The principal activities of the Group during the six months ended December 31, 2023 consisted of the exploration and development of its mineral properties in the United States and the research and development of its associated metals technologies to support an integrated titanium processing operation.
 
The unaudited interim condensed consolidated financial statements of IperionX and its subsidiaries (the “Consolidated Entity” or the “Group”) for the six months ended December 31, 2023 (the “Interim Financial Statements”) were authorised for issue in accordance with a resolution of the Directors on March 14, 2024.
 
Basis of preparation
 
The Interim Financial Statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting issued by the International Accounting Standard Board (“IASB”). The preparation of the Interim Financial Statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year-to-date basis. Actual results may differ from those estimates.
 
The Interim Financial Statements do not include all the notes of the type normally included in annual financial statements and are not necessarily indicative of the results of operations and cash flows expected for the year ended June 30, 2024.  Accordingly, the Interim Financial Statements are to be read in conjunction with the annual consolidated financial statements of the Group for the year ended June 30, 2023. In the opinion of management, the accompanying Interim Financial Statements reflect all adjustments consisting only of normal recurring adjustments, which are necessary for a fair presentation of the financial results of such period. The financial report has been prepared on a historical cost basis and is presented in United States dollars ($).
 
The accounting policies and methods of computation adopted in the preparation of the Interim Financial Statements are consistent with those adopted and disclosed in the annual consolidated financial statements of the Group for the year ended June 30, 2023, except as disclosed below. These accounting policies are consistent with Australian Accounting Standards.
 
Going concern
 
The interim financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realization of assets and the settlement of liabilities in the normal course of business.
 
The Group had net cash outflows from operating and investing activities of US$12,821,925 for the six months ended December 31, 2023 (December 31, 2022: US$9,188,863). At December 31, 2023, the Group had cash and cash equivalents of US$17,329,952 (December 31, 2022: US$11,438,526).
 
The ongoing operation of the Group remains dependent upon raising further additional funding from shareholders or other parties. In light of the future expenditures to be incurred in executing on the Group’s current strategic plans to commercialize the Group’s titanium technologies and develop economically recoverable mineral deposits from the Group’s exploration properties, the Group is dependent on obtaining financing through equity financing, debt financing or other means. In the longer term, if the Group’s exploration, appraisal, and pilot activities are ultimately successful, additional funds will be required to develop the Group’s titanium technologies and exploration properties and commence commercial production. The ability to arrange such funding in the future will depend in part upon the prevailing capital market conditions as well as the business performance of the Group. There is no assurance that the Group will be successful in its efforts to raise additional funding on terms satisfactory to the Group. If the Group does not obtain additional funding, the Group may be required to delay, reduce the scope of, or eliminate its current or future exploration, appraisal, and pilot activities or relinquish rights to certain of its interests.

F-6
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 (continued)
graphic

1.          MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED)

Basis of preparation (continued)
Going concern (continued)
 
These matters indicate that there is a material uncertainty related to events or conditions that may cast significant doubt (or raise substantial doubt as contemplated by Public Company Accounting Oversight Board (“PCAOB”) standards) about the Group’s ability to continue as a going concern and therefore the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. However, the Directors are of the view that the Group will be able to raise additional funds as required to meet its obligations as and when they fall due and that the use of the going concern basis remains appropriate.

New and amended standards and interpretations
 
In the current period, the Group has adopted all of the new and revised standards, interpretations and amendments that are relevant to its operations and effective for annual reporting periods beginning on or after July 1, 2023.
 
The new standards have not had a material effect on the Group’s financial statements.
 
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.


2.          SEGMENT INFORMATION
 
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.
 
The Consolidated Entity operates in one segment, being exploration and development of minerals and metals in the United States.
 

3.          DIVIDENDS PAID OR PROVIDED FOR
 
No dividend has been paid or provided for during the six months ended December 31, 2023 (December 31, 2022: nil).
 

4.          PROPERTY, PLANT AND EQUIPMENT
 
   
Plant and
equipment
US$
    
Right-of-use
assets
US$
    
Total
US$
  
December 31, 2023
                  
Carrying value at July 1, 2023
    
2,822,765
      
1,167,018
      
3,989,783
  
Additions
    
2,005,366
      
907,843
      
2,913,209
  
Disposals
     (2,030,083 )     -       (2,030,083 )
Depreciation
   
(49,510
)
    
(242,878
)
    
(292,388
)
Carrying amount at December 31, 2023
    
2,748,538
      
1,831,983
      
4,580,521
  
- at cost
    
3,009,884
      
2,451,719
      
5,461,603
  
- accumulated depreciation
   
(261,346
)
    
(619,736
)
    
(881,082
)
                         
June 30, 2023
                        
Carrying value at July 1, 2022
    
922,118
      
465,868
      
1,387,986
  
Additions
    
2,077,794
      
950,537
      
3,028,331
  
Depreciation
   
(177,147
)
    
(249,387
)
    
(426,534
)
Carrying amount at June 30, 2023
    
2,822,765
      
1,167,018
      
3,989,783
  
- at cost
    
3,034,599
      
1,543,876
      
4,578,475
  
- accumulated depreciation
   
(211,834
)
    
(376,858
)
    
(588,692
)
 
F-7
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 (continued)
graphic


5.          EXPLORATION AND EVALUATION ASSETS
 
   
Titan Project
US$
  
December 31, 2023
      
Carrying value at July 1, 2023
    
3,059,021
  
Additions
    
2,841,692
  
Carrying amount at December 31, 2023 (1)
   
5,900,713
  
         
June 30, 2023
        
Carrying value at July 1, 2022
    
2,431,229
  
Additions
    
627,792
  
Carrying amount at June 30, 2023 (1)  
    
3,059,021
  
 

Notes:
(1)
The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful development and commercial exploitation or sale of the respective areas of interest.


6.          TRADE AND OTHER PAYABLES
 
   
December 31, 2023
US$
    
June 30, 2023
US$
  
Current
            
Trade payables
    
1,068,905
      
711,011
  
Accruals
    
1,100,562
      
455,241
  
Employee benefits
    
16,158
      
14,732
  
Total trade and other payables
    
2,185,625
      
1,180,984
  

F-8
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 (continued)
graphic


7.          LOANS AND BORROWINGS
 
   
December 31, 2023
US$
    
June 30, 2023
US$
  
Current
            
Lease liabilities
    
434,314
      
376,655
  
Other loans and borrowings
    
6,168
      
5,971
  
Total current loans and borrowings 
    
440,482
      
382,626
  
                 
Non-current
                
Lease liabilities
    
1,219,860
      
567,796
  
Other loans and borrowings
    
21,766
      
24,892
  
Total non-current loans and borrowings 
    
1,241,626
      
592,688
  
                 
Total loans and borrowings
    
1,682,108
      
975,314
  
 

8.          CONTRIBUTED EQUITY
 
Issued capital
 
   
December 31, 2023
US$
    
June 30, 2023
US$
  
224,297,550 ordinary shares (June 30, 2023: 193,493,973)
    
78,897,119
      
58,764,248
  
     
78,897,119
      
58,764,248
  
 
Movements in issued capital
 
   
No. of
Ordinary
Shares
    
No. of Class A
Performance
Shares
    
No. of Class B
Performance
Shares
    
US$
  
December 31, 2023
                        
Opening balance at July 1, 2023
    
193,493,973
      
19,800,000
      
19,800,000
      
58,764,248
  
Issue of shares - share placement
    
21,000,000
      
-
      
-
      
17,088,750
  
Issue of shares - exercise of options
    
9,331,823
      
-
      
-
      
3,127,752
  
Issue of shares - conversion of rights
     13,755       -       -       15,059  
Issue of shares - conversion of RSUs
     341,461       -       -       225,735  
Issue of shares to a consultant
    
116,538
      
-
      
-
      
75,000
  
Share issue costs
    
-
      
-
      
-
      
(399,425
)
Closing balance at December 31, 2023
    
224,297,550
      
19,800,000
      
19,800,000
      
78,897,119
  
                                 
December 31, 2022
                                
Opening balance at July 1, 2022
    
140,288,491
      
19,800,000
      
19,800,000
      
29,782,268
  
Issue of shares - share placement
    
30,000,000
      
-
      
-
      
16,117,800
  
Issue of shares - exercise of options
   
737,000
      
-
      
-
      
194,205
  
Conversion of RSUs
     200,001       -       -       167,487  
Share issue costs
    
-
      
-
      
-
      
(1,347,128
)
Closing balance at December 31, 2022
    
171,225,492
      
19,800,000
      
19,800,000
      
44,914,632
  

F-9
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 (continued)
graphic


9.          RESERVES
 
Reserves
 
   
December 31, 2023
US$
    
June 30, 2023
US$
  
Share based payments reserve
   
14,407,699
      
15,004,052
  
Foreign currency translation reserve
    
(437,210
)
    
(1,008,244
)
Total reserves
    
13,970,489
      
13,995,808
  
 
Movements share based payments reserve
 
   
No. of
Unlisted
Options
    
No. of
Performance
Rights
    
No. of
RSUs
    
US$
  
December 31, 2023
                        
Opening balance at July 1, 2023
    
23,011,372
      
28,746,000
      
824,371
      
15,004,052
  
Grant of employee incentive securities
    
-
      
3,921,000
      
405,124
      
-
  
Exercise of options
    
(9,362,000
)
    
-
      
-
      
(1,388,649
)
Conversion of RSUs
    
-
      
-
      
(341,461
)
    
(225,735
)
Conversion of performance rights
     -       (21,000 )     -       (15,059 )
Issue of shares to a consultant
     -      
-
      
-
       (75,000 )
Share-based payments expense
    
-
      
-
      
-
       1,108,090  
Closing balance at December 31, 2023
    
13,649,372
      
32,646,000
      
888,034
      
14,407,699
  
                                 
December 31, 2022
                                
Opening balance at July 1, 2022
    
23,824,000
      
27,620,000
      
600,000
      
12,985,856
  
Grant of employee incentive securities
    
424,372
      
1,135,000
      
424,372
      
-
  
Exercise of options
   
(737,000
)
    
-
      
-
      
(72,935
)
Conversion of RSUs
     -       -       (200,001 )     (167,487 )
Grant of options to advisor
     1,000,000       -       -       354,788  
Share-based payment expense
    
-
      
-
      
-
      
1,566,231
  
Closing balance at December 31, 2022
    
24,511,372
      
28,755,000
      
824,371
      
14,666,453
  
 

10.          SUBSIDIARIES
 
          Equity Interest
  
 
Country of
Incorporation
  
December 31, 2023
%
      
June 30, 2023
%
  
IperionX Inc.
USA
    
100
%
    
100
%
IperionX Critical Minerals, LLC
USA
    
100
%
    
100
%
IperionX Technology, LLC
USA
    
100
%
    
100
%
Hyperion Metals (Australia) Pty Ltd
Australia
    
100
%
    
100
%
Calatos Pty Ltd, LLC
USA
    
100
%
    
100
%
 
F-10
IperionX Limited
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended December 31, 2023 and 2022

Notes to the Condensed
Consolidated Financial Statements
FOR THE PERIODS ENDED DECEMBER 31, 2023 AND 2022 (continued)
graphic


11.          CONTINGENT ASSETS AND LIABILITIES
 
Titan Project

At December 31, 2023, the Group had entered into exclusive option agreements with local landowners in Tennessee, United States, in relation to its Titan Project, which upon exercise, allows the Group to lease or, in some cases purchase, approximately 9,576 acres of surface property and the associated mineral rights from the local landowners. During the option period, our option agreements provide us with exclusive right to access, enter, occupy and use the surface property for all purposes related to exploring for and evaluating all minerals in return for making annual option payments and bonus payments during periods when we conduct drilling. Upon exercise, in the case of an option to lease, the Company will pay a production royalty to the landowners, subject to a minimum royalty. Upon exercise, in the case of a purchase, the Company will pay cash consideration approximating the fair market value of the property, excluding the value of any minerals, plus a premium.

Blacksand

At December 31, 2023, the Group had an exclusive option to purchase certain assets (including all intellectual property rights) of Blacksand Technology, LLC (“Blacksand”). Blacksand holds the exclusive commercial licensing rights for more than 40 global patents through a license agreement with the University of Utah including the global patents for patented technologies that can produce low-cost and low-carbon titanium metal. IperionX can exercise its option any time prior to 31 December 2024 (“Option Period”). As consideration for the option, IperionX shall make option payments to Blacksand totalling US$6,000,000 during the Option Period (US$1,500,000 paid in January 2023, US$1,500,000 paid in June 2023, US$500,000 paid in January 2024, US$500,000 payable in July 2024, and US$2,000,000 satisfied through the issue of shares in IperionX in January 2024). If IperionX chooses to exercise its option, IperionX shall pay Blacksand: (1) any option payments that have not been paid at the date of exercise; and (2) an additional US$6,000,000. Subject to shareholder approval, IperionX may elect to satisfy 30% of the total purchase price through the issue of shares in IperionX. IperionX shall also commit to donate US$1,000,000 to establish an endowed chair professorship at the University of Utah in Dr. Fang’s name. If net sales from the acquired assets exceed US$300,000,000, then IperionX shall pay Blacksand a royalty equal to 0.5% of net sales in excess of US$300,000,000 for the life of the licensed patents. If IperionX chooses not to exercise its option, IperionX retains options to licence key technologies from Blacksand, including HAMR and GSD technologies that can produce low-cost and low-carbon titanium metal, for consideration comprising a license fee and a royalty.
 

12.          SUBSEQUENT EVENTS AFTER BALANCE DATE
 
On January 30, 2024, the Company issued 3,006,163 shares to nominees of Blacksand Technology LLC (“Blacksand”) in lieu of future cash option payments totaling US$2,000,000 owed to Blacksand under the option agreement between the Company and Blacksand pursuant to which the Company has the exclusive option to acquire the intellectual property rights of Blacksand to certain patented titanium technologies.

Other than as outlined above, at the date of this report there are no other significant events occurring after balance date requiring disclosure.

F-11