Selfmaderiches, Q1) Initial cost of options (MXCOD)...

Selfmaderiches,

Q1) Initial cost of options (MXCOD) 40k*$0.025=$1,000
+ exercise of options (MXCOD) 40k*$0.065=$2,600
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Total cost base of 40k (now MXC shares) =$3,600
Sold at $0.10 per MXC share, 40k*$0.10 =$4,000
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Therefore, Capital gains =$400.
(ignoring cost of transactions eg broking commission etc)
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On how to exercise see below as taken from pages 18 and 19 of the
MCX prospectus dated: 4th May 2016 (plus supplementary prospectus dated 11th May 2016)

6.2 New Options
(a) Entitlement Each New Option entitles the holder to subscribe for one Share upon exercise of the New Option.
(b) Exercise Price Subject to paragraph (i), the amount payable upon exercise of each Option will be $0.065 (Exercise Price).
(c) Expiry Date Each New Option will expire at 5:00 pm (WST) on 30 June 2019 (Expiry Date). A New Option not exercised before the Expiry Date will automatically lapse on the Expiry Date.
(d) Exercise Period The New Options are exercisable at any time on or prior to the Expiry Date (Exercise Period).
(e) Notice of Exercise The New Options may be exercised during the Exercise Period by notice in writing to the Company in the manner specified on the New Option certificate (Notice of Exercise) and payment of the Exercise Price for each New Option being exercised in Australian currency by electronic funds transfer or other means of payment acceptable to the Company.
(f) Exercise Date A Notice of Exercise is only effective on and from the later of the date of receipt of the Notice of Exercise and the date of receipt of the payment of the Exercise Price for each New Option being exercised in cleared funds (Exercise Date).

(g) Timing of issue of Shares on exercise Within 15 Business Days after the later of the following:
(i) the Exercise Date; and
(ii) when excluded information in respect to the Company (as defined in section 708A(7) of the Corporations Act) (if any) ceases to be excluded information, but in any case no later than 20 Business Days after the Exercise Date, the Company will:
(iii) allot and issue the number of Shares required under these terms and conditions in respect of the number of New Options specified in the Notice of Exercise and for which cleared funds have been received by the Company;
(iv) if required, give ASX a notice that complies with section 708A(5)(e) of the Corporations Act, or, if the Company is unable to issue such a notice, lodge with ASIC a prospectus prepared in accordance with 19 the Corporations Act and do all such things necessary to satisfy section 708A(11) of the Corporations Act to ensure that an offer for sale of the Shares does not require disclosure to investors; and
(v) if admitted to the official list of ASX at the time, apply for official quotation on ASX of Shares issued pursuant to the exercise of the New Options. If a notice delivered under g
(vi) for any reason is not effective to ensure that an offer for sale of the Shares does not require disclosure to investors, the Company must, no later than 20 Business Days after becoming aware of such notice being ineffective, lodge with ASIC a prospectus prepared in accordance with the Corporations Act and do all such things necessary to satisfy section 708A(11) of the Corporations Act to ensure that an offer for sale of the Shares does not require disclosure to investors.

(h) Shares issued on exercise Shares issued on exercise of the New Options rank equally with the then issued shares of the Company.
(i) Reconstruction of capital If at any time the issued capital of the Company is reconstructed, all rights of an Optionholder are to be changed in a manner consistent with the Corporations Act and the ASX Listing Rules at the time of the reconstruction.
(j) Participation in new issues There are no participation rights or entitlements inherent in the New Options and holders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the Options without exercising the Options.
(k) Change in exercise price A New Option does not confer the right to a change in Exercise Price or a change in the number of underlying securities over which the New Option can be exercised.
(l) Quotation The Company will apply for quotation of the New Options on ASX.
(m) Transferability The New Options are transferable subject to any restriction or escrow arrangements imposed by ASX or under applicable Australian securities laws.

Q2) For answer, see item 6.2 (i) noted above.

E&OE. Please DYOR.