Ann: Placement Advice , page-71

Thx red dog
I assumed that might be the case as mostly it seems that options are attached to shares - two benefits
1 a bit of an incentive for purchaser of shares
2 as you say, raise a bit of money down the track.

In this case the wording suggested that they went different ways which leads me to seriously query the purpose of the options.

Not needed as an incentive to purchase the shares, but will raise some money for the company further down the track. However in my view the next few weeks, as results come in from the drilling, is critical for MLS. If there is not a commercial amt of U down there the company will struggle to survive. If there is, the shares will be well over 2c and they wouldn't need to dilute by 50 mil shares.

As I said before I can't believe the co. needed the $5000 that is gifting someone with a large slice of the company for next to nothing. A pure gift! Why would the Directors agree to give away the company, and who was the lucky recipient. It smells bad IMO. Further investigation required!

I hope crackpot is able to elaborate on the reasons provided by David Zukerman, particularly the commercial justification for the options.