| Mon 18 May 2009, 8:00 | | AEA - African Eagle to Revoke and Re-Issue Employee Incentive Options |
|
AEA
AEA
AEA - African Eagle to Revoke and Re-Issue Employee Incentive Options
African Eagle Resources plc
(Incorporated in England and Wales, registered number 3912362)
AIM share code: AFE & AIM ISIN: GB0003394813
JSE share code: AEA & JSE ISIN: GB0003394813
AFRICAN EAGLE TO REVOKE AND RE-ISSUE EMPLOYEE INCENTIVE OPTIONS
African Eagle announces that it has offered all its employees and directors
holding share options under the Company`s Share Option Plan, the opportunity
to exchange their existing share options for a smaller number of new share
options at a lower exercise price.
African Eagle`s Chairman, John Park comments, "All our outstanding share
options have become so far "out of the money" due to the impact on African
Eagle`s share price of the turbulent conditions in the world economy and
financial markets over the past 12 months, that their value to motivate our
staff has become questionable. To re-instate incentive and to recognise the
hard work and commitment our teams have shown during these difficult times,
the Board has decided to offer all staff holding share options the opportunity
to exchange their existing share options for new share options with a lower
exercise price.
"Because we were mindful of how this change might be viewed by our
shareholders we propose to issue some 36% fewer new share options than the
outstanding options they will replace, and we will set the exercise price
approximately 50% higher than the share price at the time of the award."
A total of 11,500,000 new share options are now being offered to employees in
exchange for 17,850,000 share options currently outstanding. If all share
option holders accept the change, the total number of new share options
outstanding will be equivalent to 5.81% of the Company`s shares in issue
(currently 8.8%). The award date is May 14, 2009 and the exercise price of the
new share options is 6.5p. The exercise price is determined as the average mid
market closing price over the five trading days prior to the award date, plus
50%, rounded to the nearest 0.5p. The new share options will be exercisable
from the first anniversary of the award date and will remain exercisable until
the fifth anniversary of the award date.
Directors` existing share options and new share options are as follows:
Director Awarded Awarded Awarded Awarded TOTAL New Award % of
16 Jul 28 Jul 23 Jun 25 Oct 07 (6.5p) previous
04 05 06 (15p) holding
(17.5p) (18p) (12.25p)
John Park 200,000 300,000 350,000 850,000 1,700,000 1,095,000 64.4%
Mark 250,000 375,000 375,000 875,000 1,875,000 1,208,000 64.4%
Parker
Christoph 250,000 375,000 375,000 875,000 1,875,000 1,208,000 64.4%
er Davies
Euan 150,000 225,000 250,000 800,000 1,425,000 918,000 64.4%
Worthingt
on
Bevan 100,000 300,000 350,000 850,000 1,600,000 1,031,000 64.4%
Metcalf
Geoffrey 150,000 225,000 250,000 750,000 1,375,000 886,000 64.4%
Cooper
For further information contact:
Mark Parker
Managing Director
African Eagle
+44 20 7248 6059
+44 77 5640 6899
Nicola Marrin
Seymour Pierce Limited, London
Nominated Adviser
+ 44 20 7107 8000
Charmane Russell
Russell & Associates, Johannesburg
+27 11 8803924
+27 82 8928052
Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607
+44 77 3336 3501
About the Company Share Option Scheme
The Scheme was introduced in 2001 and revised in June 2006. Options can be
exercised only between one and five years from date of grant. Under the
revised rules, options normally lapse if an employee leaves the Company by
choice or is dismissed.
The aggregate number of shares subject to options granted under the Scheme or
any other scheme cannot exceed 10% of the ordinary share capital of the
Company.
About African Eagle
African Eagle is a diversified mineral exploration and development company
operating in eastern and central Africa. The Company`s principal advanced
projects are the Mkushi Copper Mines project in Zambia, for which a draft
Feasibility Study was completed in Q4 2008, and the Dutwa nickel laterite
discovery in Tanzania, where the Company announced a significant resource at
the end of 2008.
African Eagle has also defined a gold resource estimated at half a million
ounces at the Miyabi gold project in Tanzania, and is evaluating a second
promising nickel laterite deposit which it recently discovered in Tanzania.
The Company holds a well-balanced portfolio of promising earlier stage gold
and base metal projects, including the Ndola and Mokambo projects in the
Zambian Copperbelt.
Zambia, Tanzania and Mozambique, the sites of African Eagle`s projects, are
all countries which have highly prospective geology, relatively low above-
ground risks and track records of successful major investments in the metals
and minerals industries.
African Eagle specialises in project generation and exploration. To take its
discoveries into production, it seeks to sign up industry partners with
records of successful mine development. These joint ventures and, in time, the
revenue from advanced projects, will finance future exploration and new
discoveries.
18 May 2009
Sponsor
Nedbank Capital
Date: 18/05/2009 08:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
