@K23 I am no means an expert on options but the easiest way to...

@K23 I am no means an expert on options but the easiest way to think of them is if you own an option you own a right to exchange said option for one share at the strike price. In the case of LGM and LGMO, the strike price is 20.5c, meaning if you excise your option, you pay the company 20.5c and recieve one FPO share in LGM in return.

As it currently stands, the LGMOs are in the money (FPO price higher than strike price) meaning they can be excised, however if you were for example the buyer who purchased LGMO today at 8c, the total cost of buying a FPO share in LGM via an option is 8c+20.5c meaning its cost you 28.5c to gain one share, and it is more cost effective to buy FPO at the market price at the moment.

Options are exchangeable on the ASX just like the FPOs, and have the same rules around 12 month CGT discounts as FPOs. The advantage in them is the leverage. Options trail the FPO share price, and as such buying at 8c today means that at 16c you are up 100% on your investment. Options tend to lag the FPO price by the strike price, so using rounded numbers say the FPO price goes to $1, around 80m MC, a roughly 400% gain from 25c, the options theoetically will follow and sit something round the 70-80c mark (FPO price of $1 less strike price), which is a 900-1000% return on investment if you bought LGMO at 8c. So that's quite lucrative in itself, the other strategy is to excise, as excising when the share price is $1 would mean that you have just gained FPOs in LGM at 8c+20.5c when the FPOs are trading at $1.

Best to think of Options as FPOs in respect to SOI when calculating MC when they are in the money as they can be exchanged at any time. Money paid for the excise fee goes to the company and can be used wherever for ongoing operations. I would imagine if we have some significant development here the SH will be approached to excise rather than do a further capital raise issuing new shares resulting in dilution, as these shares already exist however aren't released to the market until excised.

Hope that makes sense.
OP.