Great Northern Minerals - Expired Options at Lower Strike for Insiders

What's happening?

Great Northern Minerals is proposing to issue new options to holders of the recently expired GNMOC series. These new options:

• have a lower exercise price ($0.02 versus the original higher price of $0.06)
• have an extended expiry date (2 more years)
• and come with 20,000,000 broker option to CPS Capital as underwriter

This is effectively a rollover of expired options - a benefit to a very select group.

Who Benefits?
The option registry tells the story:

• Celtic Capital Pty Ltd - 16.2% (associated with Jason Petersen, MD of CPS Capital, the underwriter)
• Stevsand Investments Pty Ltd - 11.2% (linked to Director Steven Formica)
• Sunset Capital Management Pty Ltd - 4.0% (Perth broking associated in the CPS network)
• King Corporate Pty Ltd - 3.2% (linked to Director Ariel (Eddie) King

Together, the Top 20 holders control 82% of the expired series.
A copy of the Top 20 Option holders can be found in the 2024 Annual Report - page 63
https://announcements.asx.com.au/asxpdf/20240927/pdf/068fj6m5wzvfcz.pdf

This is not about "rewarding loyal shareholders." It is insiders and associates recycling value.

Why it matters:
ASX Listing Rule 6.23.3 prohibits reducing the exercise price or extending the term of existing options.

• Letting them expire and then issuing "new" options at cheaper terms looks like a way around that rule.
• The beneficiaries are directors, underwriter associates, and Perth insiders - not ordinary shareholders.
• CPS Capital clips the ticket twice: as underwriter and through its associate Celtic Capital Pty Ltd

Governance concern

• Director Steven Formica (11.2%) directly benefits.
• Ariel (Eddie) King (via King Corporate Pty Ltd) also benefits.
• Jason Petersen (via Celtic Capital Pty Ltd) benefits while CPS Capital Pty Ltd takes the underwriting fee + options.
• Sunset Capital Management Pty Ltd rounds out the network.
• The Board has no independent oversight - the third director is also Company Secretary.C
• Fair and reasonable to all shareholders, or just a select few insiders.

Bottom Line
Shareholders should question whether this is:

• Consistent with the intent of Listing Rule 6.23.3, and
• Fair and reasonable to all shareholders, or just a select few insiders.

I will be raising this as my second query with ASX Listing Compliance.

Shareholders deserve equal treatment, not selective rollovers for insiders.