Blencowe Resources (BRES) has issued 10.7 million performance shares in relation to the completion of the drawdown of funds from the Development Finance Corporation, otherwise known as the DFC.
The DFC is one of the USA’s official overseas investment arms, and often takes an interest in strategic assets or minerals, like Blencowe’s Orom-Cross graphite project in Uganda.
The US$5 million that was granted by the DFC came in five tranches, and was used to progress Orom-Cross towards the completion of a definitive feasibility study, due soon.
The company has awarded two million shares to chairman Cameron Pearce, four million to chief executive Mike Ralston, a further 4.7 million shares divided between three other senior team members.
All will be locked in for a period of 12 months from admission or until completion of the DFS, whichever is sooner.
In addition, Blencowe has granted directors and key management the right, for a period of up to two years, to subscribe for 12 million shares at an exercise price of par value and to vest on completion and publication of the definitive feasibility study for Orom-Cross.
View from Vox
This is the way both to incentivise management and to align their interests with shareholders. The timing, of course, is not accidental, as the definitive feasibility at Orom-Cross is now very close to completion. At that point the real value of Orom-Cross is likely to start becoming apparent to the wider market. And the next step after that will be to organise construction and development finance, and start building.