NORTH077 Annual Report 2020 V5.2 DIGITAL

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17. Share-based Payments (continued)
NORTHERN MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
proceeds received net of any directly attributable transaction costs are credited to share capital when
options are exercised.
The value of shares issued to employees, financed by way of a non-recourse loan under the employee
Share Plan, is recognised with a corresponding increase in equity when the company receives funds
from either the employees repaying the loan or upon the loan termination. All shares issued under the
plan with non-recourse loans are considered, for accounting purposes, to be options.
The initial undiscounted value of the performance rights is the value of an underlying share in the
Company as traded on ASX at the date of deemed date of grant of the performance right. As the
performance conditions are not market based performance conditions, no discount is applied.
(i) Options and Performance Rights
Nil performance rights were granted to employees and directors during the year (2020: 914,000).and
153,061,226 (2020: 34,000,000) options were granted to third parties. Details on the performance rights
and options issued are included in note 11(c) and 11(d). Details on the performance rights issues to
key management personnel are included in the Remuneration Report section of the Directors’ Report.
The number and weighted average exercise price of performance rights granted are as follows:
2021 Number Weighted
average
exercise
price
2020
Number
Weighted
average
exercise
price
Outstanding at the beginning of the 17,479,900 $nil 24,013,050 $ nil
year
Performance rights issued during the
- $nil 914,000 $ nil
year
Performance rights forfeited / lapsed (11,678,150) $ nil (3,086,000) $ nil
during the year
Performance rights exercised during (5,656,000) $ nil (4,361,150) $ nil
the year
Outstanding at the end of the year 145,750 $ nil 17,479,900 $ nil
Exercisable at the end of the year 145,750 4,263,900
The outstanding balance as at 30 June 2021 is represented by:
• 145,750 performance rights with an exercise price of nil, with numerous performance
conditions – see note 11(c) for details.
The weighted average remaining contractual life for the performance rights outstanding as at 30 June
2021 is 0.00 years (2020: 0.98 years).
(ii) Share Plan Shares
To ensure that the Company has appropriate mechanisms to continue to attract and retain the services
of Directors and employees of a high calibre, the Company has an established Share Plan.
The Directors and employees of the Company have been, and will continue to be, essential to the
growth of the Company.
The Directors considered the Plan an appropriate method to:
a) Reward Directors and employees for their past performance;
b) Provide long-term incentives to participate in the Company’s future growth;
c) Motivate Directors and employees and generate loyalty in employees; and
d) Assist to retain the services of valuable employees.
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NORTHERN MINERALS _ ANNUAL REPORT 2021