Ann: Loyalty Bonus Option and Name Change , page-11

this is my hypothesis;
they are aboout to spin off or sell the vanadium business at a price possibly more than 15-20cps with possible part dividends to share holders; --directors hold shares. they cant buy on market if they have access to privileged information however they can issue listed options which everyone gets without immediate dilution. but the price of the optrions will react in response to a near term event and can give profits to the holder of the options and at the same time can potentially generate working capital for 'king river copper'. appears a win win for everyone
i dont see why otherwise they would choose a strike price of 20cents

another possibility is that the directors live a couple of light years away and are going off the share price 2 years back