13th Dec 2006 08:35
International Ferro Metals Limited13 December 2006 AIM ANNOUNCEMENT 13 December 2006 International Ferro Metals Limited ("IFML" or "the Company") Incentive Bonus Scheme As previously disclosed in the Company's Annual Report for the year ending 30June 2006, IFML has established an employee bonus scheme for key executiveswhereby they can receive bonuses calculated as a percentage of their salarybase. The percentage is determined by taking account of the following key variables: •the time that the Company takes to complete construction of its mine and smelter project (the "Project") compared to the scheduled timetable of 18 months; •whether the Project is completed within budget; •IFML's safety record; and •the ramp up period to reach 100% steady state production as against the scheduled 12 month ramp up period. In order to avoid diluting existing shareholders, a trust (the "Trust") has beenestablished for the purposes of the bonus scheme. The Trust recently acquired2,000,000 shares in the Company, such shares to be used by the Trust to satisfyelections arising under the bonus scheme. A number of directors of IFML are eligible to participate in the bonus schemeand have elected to receive shares in IFML should they become entitled to abonus payment. If the construction of the Project is completed within the 18month timetable and within budget, the bonus amount (payable in shares) theywould be entitled to receive will be as follows: Director Bonus Amount Number of Shares Anthony Grey - Executive Chairman £128,795 310,350Stephen Turner - Managing Director £204,167 491,969Xiaoping Yang £108,853 262,297 The price at which the number of shares will be calculated for the bonus schemeis £0.415, being the closing price of the shares at December 11 2006. The executives entitled to participate in the bonus shares have undertaken toindemnify the Company against any loss that it may incur in the event that theTrust does not distribute the shares to the executives and is required to sellthe shares it has acquired in respect of their potential bonus entitlement. ENDS For more information contact:International Ferro Metals Limited Parkgreen CommunicationsStephen Turner, Managing Director Simon Robinson / Ana RibeiroMob: +61 418 440 844 Tel: 020 7493 3713www.ifml.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
IFL.L