30th Oct 2015 09:17
LONDON (Alliance News) - Nyota Minerals Ltd on Friday supplied an incentive to its board to push the company forward over the next three years after it outlined proposals to give away just under a 5% stake in the company to three directors including its chief executive if they can hit targets.
Nyota proposed giving Chief Executive Richard Chase, Executive Director Mike Langout and Non-Executive Evan Kirby performance rights that, if converted, would give them a 4.8% stake in the company. The three directors make up the entire company board.
Shareholders will have the final say on the proposals at the annual general meeting booked in for November 30.
Under the proposals, Nyota will issue 72.0 million performance rights to the three directors over three tranches. The directors will only be awarded each tranche once a certain milestone has been hit. Each performance right equates to one share.
Under the first phase, each director will be issued 8.0 million performance rights each if they can secure a deal that would be classed as a reverse takeover under AIM rules before the end of 2016.
They will then be issued with another 8.0 million rights each if they can complete 3,000 metres of drilling at the company's Ivrea project before the end of 2017.
The last phase, also comprised of 8.0 million rights each, will be awarded if the directors can do one of four things before the end of 2018.
The directors can either secure a 50,000 tonne nickel resource at an average grade of at least 0.75% nickel at the Ivrea project, sell a project or joint venture for more than USD5.0 million, find an investor to acquire at least 15% of the company, or get its market cap up to USD10.0 million.
The optional target to get an investor to obtain at least a 15% stake in the company can include existing investors, but doesn't include shares obtained through the performance rights being proposed.
On the assumption that the directors hit all three milestones, each director will have been awarded 24.0 million performance rights which have a current value of around AUD11,542 each or 72.0 million shares valued at AUD34,625 in total.
Nyota shares were up 4.9% to 0.0472 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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