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89<br />
NORTHERN MINERALS LIMITED<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
13. Subsidiaries<br />
The following are wholly owned subsidiaries of the Company:<br />
−<br />
−<br />
−<br />
−<br />
−<br />
Northern Uranium Pty Ltd<br />
Northern Commodities Pty Ltd<br />
Northern P2O5 Pty Ltd<br />
Northern Rare Earth Metals Pty Ltd; and<br />
Northern Xenotime Pty Ltd.<br />
Subsidiaries are entities controlled by the parent entity. Control exists where the parent entity is<br />
exposed, or has rights to, variable returns from its involvement with the subsidiary and has the ability<br />
to affect those returns through its power over the subsidiary. A parent entity has power over the<br />
subsidiary, when it has existing rights to direct the relevant activities of the subsidiary which are those<br />
which significantly affect the subsidiary returns.<br />
14. Contingent Liabilities<br />
Co-Existence Agreement<br />
Under the terms of the Browns Range Co-existence Agreement announced to ASX on 16 June 2014,<br />
the Company has an obligation to make certain payments as well as maximising local employment.<br />
The majority of payments are subject to the commencement of commercial production at the<br />
Company’s Browns Range Project and cannot be reliably measured at this time.<br />
During the Pilot Plant Phase, the payment obligations do not apply and are substituted with alternative<br />
payment obligations.<br />
Guarantees<br />
The Group has guarantees in the form of security deposits for rent and performance bonds of A$74,138<br />
(<strong>2020</strong>: A$60,522).<br />
57<br />
NORTHERN MINERALS _ ANNUAL REPORT 2021
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