Strategic Minerals PLC’s (LON:SML) managing director, John Peters will double his holding in the minerals production and development company to 20 mln shares after he exercises a portion of his currently vested options.
In a stock market statement, the AIM-listed firm said Peters has provided a notice that he wishes to exercise options over 10 mln shares in the tranche, expiring 30 June 2018, at a price of 1p per share for a total of £100,000.
WATCH: 'We'll do it' - Strategic Minerals' John Peters on their 5-year £100mln market cap target
Commenting on the options move, Strategic Minerals’ managing director said: "The commitment of my personal funds to the exercise of these options reflects my confidence in the future outlook for SML and the Company's strategy.”
He added: "Consequently, I am fully committed, for the foreseeable future, to holding both these 10,000,000 new shares as well as the existing 10,000,000 shares I currently own."
In morning trading, Strategic Minerals shares held steady at 1.9p.
Last week, Strategic Minerals said it has proposed the implementation of a new options programme, consisting of three tranches, designed to incentivise its board and management to target, over the next five years, a market capitalisation of £100mln and progressing onto a share price of 10p.
The firm said the options programme is being implemented after its board received a number of enquiries, from shareholders and the general market, as to the future direction of the company and how the board and management would be incentivised.
READ: Strategic Minerals targets £100mln value as iron ore deliveries ramp up
The historic options exercised by Peters were issued 2-3 years ago when Strategic Minerals shares price was around 0.4p.
Commentators said today’s move will take pressure off liquidity in the shares, with the potential options exercise seen as an overhang on the stock.