Aeris Annual Report 2022

Aeris Resources Limited
Notes to the consolidated financial statements
30 June 2022
36. Share-based payments (continued)
2021
Balance at Expired/ Balance at
Exercise the start of forfeited/ the end of
Grant date Expiry date price the year Granted Exercised other the year
26/11/2020 30/06/2023 $0.000 - 35,777,281 - - 35,777,281
- 35,777,281 - - 35,777,281
For the performance rights granted during the current financial year, the valuation model inputs used to determine the
fair value at the grant date, are as follows:
Grant date
Expiry date
Share price at
grant date
Exercise price
Expected
volatility
Dividend
yield
Risk-free
interest rate
Fair value at
grant date
25/11/2021 30/06/2024 $0.1632 $0.00 90.922% - 0.950% $0.14
Each Right consists of 4 Tranches (Tranche 1: TSR, 2: Share price, 3: Gold ore reserve and 4: Copper ore reserve). Tranche
1 and 2 were fair valued at $0.12 per share and Tranche 3 and 4 at $0.16 per share.
Management options
Management options (Options) were approved by shareholders at an EGM held on 15 December 2015 with a completion
date of 31 December 2015. The options were issued to ensure that relevant managers remain employed by the Company
to deliver on the Company’s stated business plan and growth strategy.
The Options were granted for no consideration and carry no dividend or voting rights.
When exercisable, each Option is convertible into one ordinary share issued within 10 business days after the Company
receives an exercise notice. The options have a $nil exercise price.
The Options may only be exercised so as to not result in that holder having a voting power in the Company in excess of
19.99%. If a holder is unable to exercise their remaining vested Options the Company must use its best and all reasonable
endeavours to obtain any approval or consent to allow such exercise.
Upon exercise the shares will be subject to a period of voluntary escrow, with the shares being released from escrow in
progressive tranches from the third anniversary of the restructure date (31 December 2015).
Options that have not been exercised will expire 6 years after issue date (31 December 2021), or termination date
whichever is earlier. To the extent the Options have not previously vested, they will be deemed immediately vested upon
a Change of Control Event.
The number of options granted on 15 December 2015 totalled 93,410,609 at a $nil exercise price. As at 30 June 2021 all
options had vested.
The assessed fair value at grant date in circumstances where there is a $nil exercise price, the value per Option on a fully
marketable basis is equal to the value of the underlying share price less dividend ($0.04).
AERIS ANNUAL REPORT 2022
The shares are however subject to various escrow periods and as such a discount for lack of marketability to the Options
was applied to take into consideration the escrow period. A discount for lack of marketability was applied as below:
● 25 % for Tranche 1 ($0.03)
● 20% for Tranche 2 ($0.032)
● 15% for Tranche 3 ($0.034)
● 10% for Tranche 4 ($0.036)
● 0% for Tranche 5 ($0.04)
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