Richland accepts KNL terms, page-9

Kiss, agree with most of your comment/sentiment, apart from your brickbat.

Firstly, it's a bit altruistic to expect MDs, CEOs, and other key members of small mining companies to be doing it to just "keep their job and for the sincere appreciation they would get".

Secondly, they aren't been "given" the shares. It's called an "employee share plan" but the correct term should actually be "employee loan plan".

6. (h) "No funds will be received by the Company immediately upon the issue of the Employee Shares as Mr Spinks will receive a loan from the Company for the amount of the issue price of the Employee Shares. Such loan will be repayable in accordance with the terms of the Employee Plan (and the loan repayment date for that purpose is 5 years after the date of issue of the Employee Shares pursuant to Resolution 3);"

In my opinion, it is highly desirable that my managers/board are aligned with my interests. I don't want people managing my money just for a salary, because then their incentive is to grow their salary. I want them to be incentivised to grow their shares, which are also my shares. This structure gives them a loan to have shares at the current market price, which they could purchase anyway. Their real benefit here is not the shares, but the loan they are provided to "purchase" those shares. As at Day 1 after the loan/share issue, they are in a net $zero position. They don't make anything unless the share price increases above the value of the loan (i.e. their "purchase" price).

Thirdly, I note that the company could have done this pre-cap raise, as they could have been within the 25% issue rule. Or they could have done it in conjunction with the cap raise. They didn't, and have made an individual announcement to highlight what they are doing. Transparency is to be encouraged and commended.

Fourthly, I note that as far as we (shareholders) are concerned, John Park is Mr Merelani. If he makes some upside from 300,000 shares for which he's provided a loan for, then I am all for that. Merelani is going to be a major driver of income for Kibaran, and having John Park on board (both literally and figuratively) is to be encouraged and commended.

I have done some long term projections on the cashflow from the two mines, and so I can estimate just how much the upside on these share plans will provide for them. I hope they achieve it and even smash my own estimates, because it means my holding has grown substantially. I will be happy for them to bank a heap of upside if it means I'm banking heaps of upside. There is nothing to fear from management being aligned with shareholders in this manner.