Vanadium explorer King River Copper is offering shareholders bonus options
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King River Copper plans to give its shareholders bonus options that will cost shareholders slightly more to exercise than the vanadium explorer’s current share price.
But investors will have two years to decide whether or not they want to convert them to shares.
King River plans to give shareholders one bonus option exercisable at 12c by the end of July 2020 for every three shares held.
The company said it would “reward shareholders” with the bonus option issue back in May when its share price was trading at around 7.4c.
It then announced the pricing of 12c in early July when the share price was trading at around 10c.
Since then the share price has traded as high as 12c, but edged back slightly to close at 11.5c on Thursday – when it released its prospectus outlining the bonus option issue.
So the options are slightly “out of the money” right now.
But to be fair, King River has been somewhat of a market darling and has traded as high as 19c in the past year – rocketing from a 52-week low of 0.5c at the end of October last year.
That is a 2200 per cent gain in around eight months.
King River has a landholding in Western Australia that it says contains “one of the world’s largest titanium and vanadium in magnetite deposits”.
The company revealed in late June that it could produce 99.47 per cent vanadium pentoxide (V2O5) from its Speewah project and it is working to get that between 99.5 and 99.9 per cent V2O5 – which is higher purity and fetches a better price.