Dreadnought Resources launches long-term employee incentive scheme to grow WA rare earths resources
As part of the remuneration review for the 2022-2023 financial year, Dreadnought Resources has launched a long-term incentive scheme to issue up to 29.2 million performance rights to employees and directors.
The objectives of setting these long-term incentive schemes in the remuneration review included:
- Ensuring employee/director alignment and retention;
- Creating long term shareholder value by setting significant targets that will have a material, beneficial impact on Dreadnought’s enterprise value; and
- Ensuring that Dreadnought remains a preferred employer of choice in being able to attract and retain professionals in a highly competitive market
Long Term Incentives
The Board approved long-term incentive scheme involves the issue of performance rights, with each performance right representing the right to subscribe for one fully paid ordinary Dreadnought share, to employees and directors.
A long-term incentive plan will govern the terms of the performance rights.
The adoption of the plan for the purposes of Listing Rule 7.2 Exception 13 will be subject to shareholder approval at the 2022 Annual General Meeting as will the issue of performance rights to directors.
The essential terms of the long-term incentive scheme
The long-term incentive scheme is divided into three equal tranches, each vesting upon the company announcing a set JORC 2012 mineral resource of total rare earth oxide (TREO) during the vesting period, starting with an inferred resource of at least 10 million tonnes at over one per cent TREO by the December 31 this year.
The second and third tranches will rely on having the inferred category at 20 million tonnes and 30 million tonnes at more than one per cent TREO by December 31 of 2023 and 2024 respectively.