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(Alliance News) - Zanaga Iron Ore Co Ltd on Friday said it has approved an incentivisation scheme for management due to work being carried at on its Zanaga iron ore project in the Republic of Congo.
Shares in Zanaga were up 17% at 10.27 pence in London in morning trade.
Zanaga introduced a 'one-off' incentivisation scheme back in 2014 but this was curtailed by "a very significant downturn in the global iron ore market" which necessitated cost cuts.
The firm has decided to grant 13.6 million share option to management team members, excluding directors, as an incentive for new performance targets.
When a performance target is met, 50% of relevant share options will vest, with the other 50% vesting a year later. The options have a 0.01 pence exercise price per share and are exercisable within seven years of being awarded.
A retention fee package was also approved, which the management team has agreed to use to subscribe for new shares when fees are paid in October.
Non-Executive Chair Clifford Elphick said: "It is important that the company's management team are appropriately incentivised to secure the milestones and objectives established by the [Zanaga] board and to align their interests closely to those of shareholders. We are pleased with the work being undertaken by the [Zanaga] management team as well as the opportunity for this work to advance the potential development phase of the Zanaga project."
