NORTH077 Annual Report 2020 V5.2 DIGITAL

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NORTHERN MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
8. Financial Assets and Financial Liabilities and other receivables and liabilities
(continued)
(e)
Interest Bearing Liabilities
At Amortised Cost Interest Rate 2021
$
2020
$
Current
Convertible note (Unsecured) - JHY Inv Pty Ltd 10%/16% - 3,831,044
Convertible note (Unsecured) - Yuzhen Ma 10% - 319,726
Equipment finance (Secured) 2.90%-6.50% 16,307 142,865
Right of use asset lease liability (Refer to note
15% 56,752 -
10)
73,059 4,293,635
Non-Current
Equipment finance (Secured) 2.90%-6.50% - 25,485
Right of use asset lease liability (Refer to note
15%
10)
219,280 -
219,280 25,485
At Fair value through profit and loss
Current
Convertible note (Unsecured) - Lind 0% - 1,534,558
- 1,534,558
Total Interest Bearing Liabilities
Current 73,059 5,828,193
Non-Current 219,280 25,485
292,339 5,853,678
Commitments in relation to hire purchase leases are payable as
follows:
Within one year 16,884 147,371
Later than one year but not later than five years - 25,485
Minimum lease payments 16,884 172,856
Future finance charges (577) (4,506)
Total lease liabilities 16,307 168,350
The present value of hire purchase lease liabilities is as follows:
Within one year 16,307 147,753
Later than one year but not later than five years - 20,597
Minimum lease payments 16,307 168,350
Aside from amounts disclosed above as measured at Fair Value through profit and loss, borrowings are
classified as loans and are initially recognised at fair value net of directly attributable transaction costs.
Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in the statement of profit or loss when
the liabilities are derecognised. Interest bearing liabilities are classified as current liabilities, except
when the Group has an unconditional right to defer settlement for at least 12 months after the reporting
date in which case the liabilities are classified as non-current.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw down occurs. The fee is capitalised as a prepayment and amortised over the
remaining period of the facility to which it relates once it is drawn down.
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NORTHERN MINERALS _ ANNUAL REPORT 2021