TIDMSML
RNS Number : 9551O
Strategic Minerals PLC
25 August 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
25 August 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company" or "SML")
Proposed Directors and Management Options Programme
Targeting Market Capitalisation of GBP100m and Share Price of
GBP0.10
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified
mineral production and development company, announces that its
Board has proposed the implementation of an options programme
designed to incentivise the Board and Management of the Company to
target, over the next five years, a market capitalisation of
GBP100m and progressing onto a share price of GBP0.10 ("Options
Programme"). The Options Programme is subject to shareholder
ratification at the Company's General Meeting to be held on 24
October 2017.
With the recent vesting of Board and Management options, the
Board has received a number of enquiries, from shareholders and the
general market, as to the future direction of the Company and how
the Board and Management would be incentivised to achieve market
capitalisation and share price growth. Accordingly, the Board has
reviewed market capitalisation and share price targets, over a five
year time horizon, and has developed an Options Programme,
consisting of three Tranches, designed to incentivise Directors and
Management to achieve market capitalisation and share price growth
over this period.
The three Tranches and vesting conditions proposed are:
Tranche Number of Options Vesting Exercise Maturity
Price Price Date
30 June
1 120,000,000 GBP0.055 GBP0.0275 2020
30 June
2 55,000,000 GBP0.075 GBP0.0375 2021
30 June
3 25,000,000 GBP0.100 GBP0.0500 2022
Apart from each Tranche having specific price vesting
requirements, the Company has adopted an overarching vesting
requirement which ensures that the Company cannot, at any point in
time, have unexercised options exceeding 10% of the Company's
issued shares (currently 1,245,825,560). Under this vesting
criterion, it is possible to have Tranches partially vested and
this would be applied pro-rata to option holders.
On average, the Tranches provide the option holders the ability
to participate in less than 11% of the increase in market
capitalisation, starting from GBP0.03 (incorporated in current
vested options) and prior to any dilution effects.
As the bulk of these options are for the Board, it is considered
appropriate that the adoption of this proposal be ratified by
shareholders at a General Meeting to be held in London on 24
October 2017 at a venue to be confirmed. It is currently intended
that 30% of each Tranche will be allocated to the Managing
Director, John Peters, 20% to the Non-Executive Chairman, Alan
Broome and another 20% to Non-Executive Director Peter Wale.
Upon the Tranches being confirmed by shareholders, the Board
will have the authority to allocate the balance of the options as
it sees fit between Directors and Management.
Related Party Transaction
The grant of the options is a related party transaction for the
purposes of Rule 13 of the AIM Rules for Companies.
Given that no Directors are deemed to be independent of the
grant of the options, SP Angel Corporate Finance LLP, the Company's
nominated adviser, considers that the grant of the Executive
Options is fair and reasonable insofar as the shareholders of the
Company are concerned.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"Under current management, the Company has a successful track
record of identifying ambitious targeted market capitalisations and
share prices and then enacting strategies that result in these
being achieved. The proposed new options reflect the Board and
Management's view of growth in shareholder value that can be
achieved over the medium term. This sets the framework in which the
Company's strategies will be developed.
The distribution of options amongst Directors reflects the
cohesive, balanced and proven team that has been established at
Board level and the contribution of all in helping to deliver
results for shareholders.
The Board and Management relish the challenge inherent in these
targets and look forward to delivering once again through the
continued development of our diversified global mining portfolio
consisting of our cash generative Cobre magnetite stockpile
operation in New Mexico; Redmoor tin-tungsten exploration project
in Cornwall, UK; and CARE tenements in Western Australia
prospective for cobalt, nickel laterites and nickel sulphides."
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
Vox Markets: https://www.voxmarkets.co.uk/company/SML/
Twitter: @SML_Minerals
LinkedIn: https://www.linkedin.com/company/strategic-minerals-plc
Facebook: https://www.facebook.com/search/top/?q=strategic%20minerals%20plc
+44 (0)20
SP Angel Corporate Finance LLP 3470 0470
Nominated Adviser and Joint Broker
Ewan Leggat
+44 (0)20
Optiva Securities Limited 3411 1880
Joint Broker
Graeme Dickson
+44 (0) 7825
Yellow Jersey PR 916 715
Financial PR
Felicity Winkles
Joe Burgess
Henry Wilkinson
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America, the UK and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash
generating asset; the Cobre magnetite tailings dam project in New
Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 with the acquisition of
shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia and the Northern Territory that are
prospective for cobalt, gold, nickel sulphides and rare earths. The
Company has since acquired all shares in Central Australian Rare
Earths Pty Ltd. In May 2016, an additional exploration asset was
acquired when the company entered into an agreement with New Age
Exploration Limited to acquire up to 50% of the Redmoor
Tin/Tungsten project in Cornwall, UK. This 50% acquisition has now
been completed and drilling at the project has commenced.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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