Ann: Notice of Extraordinary General Meeting/Proxy Form, page-3

Two points with the documents: 1) Directors seek to take (free) options and 2) exercise price of options.

A quick read indicates that the Board has reduced the sum remuneration to Directors by $325,038 per annum (19% reduction). The directors also seek to have ordinary share options will be issued (free of charge). Stated reason is that a reduction in remuneration and replacement with options is "reasonable", is part of each Director’s remuneration package, and is an effective way to align the interests of Directors and shareholders whilst maintaining the Company’s cash reserves.

The Options, for each director, are that 50% are exercisable at $0.20 per option, expiring 31 December 2018 and the remaining 50% will be exercisable at $0.25 per, expiring 31 December 2019. Specifics are:

Craig Readhead – Non-executive Chairman - 1,750,000 Options
Simon Jackson – Chief Executive Officer and Managing Director - 6,000,000 Options
Glen Masterman – Executive Director - Geology and Corporate Development - 5,000,000 Options
Brant Hinze – Non-executive Director - 1,750,000 Options
Mr Timo Jauristo – Non-executive Director - 1,750,000 Options

What do we think about this? Not sure how to interpret. I can see that the total value of the options vastly exceeds the remuneration reduction ($325,038 vs $3.6m). Not sure what options have been paid in the past or whether such a difference is an acceptable standard for companies.

What about exercise prices for the options ($0.20 and $0.25). Sound reasonable? Any implications for expected SP?