Panoro Minerals Grants Options: A Boost for Shareholders and Employees
Friday, Jan 10, 2025 6:38 pm ET
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Panoro Minerals Ltd. (TSXV: PML) (Lima: PML) (Frankfurt: PZM) (OTCQB: POROF) recently announced the grant of an aggregate of 4,825,000 stock options (the "Options") to directors, officers, and employees of the Company. The Options, which vest immediately, are exercisable at an exercise price of CAD $0.29 per Share for a period of five (5) years from the date of grant. This move by Panoro Minerals is expected to have a positive impact on both shareholder value and employee retention.
The immediate vesting of the options allows the recipients to exercise them right away, which could lead to an increase in the Company's share capital if the options are exercised. This could potentially dilute the value of existing shares, but if the Company's share price increases, the overall market capitalization could also increase, benefiting shareholders. The fact that the options are exercisable for a period of five years from the date of grant provides flexibility for the recipients to exercise them when they believe the share price is favorable, which could help maximize shareholder value.
The grant of these options also serves as an incentive for employees to stay with the Company, as they can now exercise their options and potentially profit from the Company's success. This could help Panoro retain key talent, especially if the share price increases and the options become more valuable. The five-year exercisable period also provides employees with a long-term incentive to remain with the Company, as they can continue to benefit from the options even if they join the Company after the grant date.
The increase in the exercise price from $0.15 to $0.29 for the granted stock options indicates a significant increase in the value of Panoro's shares. This increase can be attributed to several factors, including the company's progress in advancing its Cotabambas Copper-Gold-Silver Project and the positive results from its Preliminary Economic Assessment (PEA). The company has been working on delineating growth potential at the Cotabambas Project while optimizing project economics. The company's objective is to complete a Prefeasibility study on the project, with work programs commencing in Q1 2022. Exploration and step-out drilling from 2017, 2018, and 2019 have already identified the potential for both oxide and sulphide resource growth.
A PEA has been completed for the Cotabambas Project, with key results summarized below:
* Process Feed, life of mine: 483.1 million tonnes
* Process Feed, daily tonnes: 80,000
* Strip Ratio, life of mine: 1.25 : 1
* Before Tax NPV7.5%: $1,053 million
* IRR: 20.4%
* Payback years: 3.2
* After Tax NPV7.5%: $684 million
* IRR: 16.7%
* Payback years: 3.6
* Annual Average Payable Metals:
+ Cu: 70.5 thousand tonnes
+ Au: 95.1 thousand ounces
+ Ag: 1,018.4 thousand ounces
* Initial Capital Cost: $1,530 million
These positive results from the PEA, along with the company's progress in advancing the Cotabambas Project, have likely contributed to the increase in the value of Panoro's shares, as reflected in the higher exercise price for the granted stock options.
In conclusion, the grant of options by Panoro Minerals Ltd. is expected to have a positive impact on both shareholder value and employee retention. The immediate vesting of the options provides flexibility for recipients to exercise them when they believe the share price is favorable, while the five-year exercisable period provides a long-term incentive for employees to remain with the Company. The increase in the exercise price indicates a significant increase in the value of Panoro's shares, which can be attributed to the company's progress in advancing its Cotabambas Copper-Gold-Silver Project and the positive results from its PEA.
