DRKOB

I know this probably need a thread, but I would like to get information on options.
There are currently oppies (DRKOB) on the sell side for $.001
Exercisable at $.003
Issue price $.005

My understanding is when the share price (DRK) hits $.003, you can exercise the options (DRKOB) for a cost of $.002 each, bringing the total worth of the share to $.005

If the share price takes off with the new acquisition, eg. $.010, you still pay the $.002 to exercise the options but then can sell at a rate higher than what you paid?

Would that be correct?