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(b) Material Uncertainty
Carrying Value of Balmoral South Iron Ore Project
Australasian?s subsidiary, International Minerals Pty Limited (?International Minerals?) operates under a Sublease agreement with Mineralogy Pty Limited (?Mineralogy?). The sublease covers the terms and conditions in which International Minerals has the right to mine 1 Billion tonnes of magnetite ore from prescribed areas within the Balmoral region. The Sublease is also contingent on the Group remaining solvent, under terms within the Sublease, if an "insolvency event" occurs, this allows Mineralogy to terminate the Sublease and the Company potentially loses control of its major asset. The Board believe this event will not occur as they closely monitor cash reserves and are currently in discussions with parties in relation to raising capital to meet short and medium term Group commitments