- Dreadnought Resources (DRE) launches a long-term incentive (LTI) scheme to issue up to 29.2 million performance rights to employees and directors
- The issue of the rights will be based on Dreadnought growing the mineral resource at its Mangaroon project in Western Australia
- The company says the scheme, which is subject to shareholder approval, is designed to ensure director and employee retention and create long-term shareholder value
- Dreadnought has benchmarked the LTI against Hasting Technology Metals’ (HAS) Yangibana rare earths project, which lies 25km northeast of Dreadnought’s Yin prospect
- Shares in Dreadnought are up 2.27 per cent and trading at nine cents at 12:55 pm AEST
Dreadnought Resources (DRE) has launched a long-term incentive (LTI) scheme to issue up to 29.2 million performance rights to employees and directors.
Each performance right represents the right to subscribe for one share in the company, and the issue of the rights will be based on Dreadnought growing the mineral resource at its Mangaroon project in Western Australia.
The LTIs are divided into three equal tranches, each vesting upon the company announcing a set JORC 2012 mineral resource of total rare earth oxide (TREO) during the vesting period, starting with an inferred resource of at least 10 million tonnes at over one per cent TREO by the December 31 this year.
The second and third tranches will rely on having the inferred category at 20 million tonnes and 30 million tonnes at more than one per cent TREO by December 31 of 2023 and 2024 respectively.
The scheme, which is pending shareholder approval, is designed to help ensure employee and director alignment and retention, create long-term shareholder value and ensure Dreadnought remains a preferred employer of choice in attracting and retaining professionals.
Dreadnought said its board benchmarked the LTI against Hasting Technology Metals’ (HAS) Yangibana rare earths project, which is an immediate neighbour to Mangaroon, lying 25 kilometres northeast of Dreadnought’s Yin prospect.
Yangibana’s resource is currently at 27.42 million tonnes at 0.97 per cent TREO with 0.33 per cent neodymium and praseodymium and is in development, with its first production planned for 2024.
Of the 29.2 million performance rights to be issued, Dreadnought said 7.7 million will go to directors Paul Chapman, Dean Tuck, Ian Gordon and Paul Payne.
Mr Tuck will receive the most, at five million, and the other directors receive 900,000 each.
The remaining 21.5 million performance rights will be issued to employees.
Dreadnought will seek shareholder approval at its upcoming 2022 annual general meeting for the issue of performance rights to each director.
Shares in Dreadnought were up 2.27 per cent and trading at nine cents at 12:55 pm AEST.