Last checked at 28 Oct 2008 16:13
GRIFFIN MINING LIMITED
60 St James's Street, London SW1A 1LE, United Kingdom
Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773
E mail: griffin@griffinmining.com
28th October 2008
WITHDRAWAL OF ISSUE OF 23.75 MILLION OPTIONS
SUBSTANTIALLY REDUCED ISSUE OF OPTIONS
Griffin Mining Limited ("Griffin" or the "Company") has agreed to withdraw the proposed grant of options over 23.75 million ordinary shares in the Company to key personnel and directors announced at the time of the placing of new ordinary shares with Citadel in July 2007. It was deemed inappropriate by the Board to do so in the current market conditions. Instead, it has been agreed to grant a more appropriate set of options (the "new options") over 5,000,000 new ordinary shares to directors and key employees of the Company (the "Options") in order to maintain key personnel in a still extremely tight employment market in line with standard industry practice.
Each Option will entitle the holder to subscribe for new ordinary shares in the Company at an exercise price of 20 pence per new ordinary share on or before 31st October 2013. The Options will vest with each option holder in 3 separate and equal instalments as follows:
I. The first third of each holder's options will vest immediately;
II. The second third of each holder's options will vest on 31st December 2009; and
III. The last third of each holder's options will vest on 31st December 2010.
The Options will not vest if an employee or a director resigns or leaves the Company for cause prior to the vesting event taking place. All the Options will vest immediately upon a takeover offer being made or a change in control of the Company taking place prior to the Options expiring.
Upon exercise of these and existing options granted, the resulting new ordinary shares will represent approximately 9.8 per cent of the Company's enlarged issued share capital. Existing options currently vested represent approximately 5.1 per cent of the Company's enlarged share capital.
These Options have been allocated as follows:
| Number of Options to subscribe for one new ordinary share in the Company | ||||||
| New Options granted | Total number of Options now held | Total number of Options vested | ||||
| Directors: | ||||||
| Mladen Ninkov (Chairman) | 3,000,000 | 11,000,000 | 5,000,000 | |||
| Roger Goodwin (Finance Director) | 600,000 | 2,375,000 | 1,175,000 | |||
| Dal Brynelsen (Director) | 200,000 | 800,000 | 400,000 | |||
| William Mulligan (Director) | 200,000 | 800,000 | 400,000 | |||
| Management: | ||||||
| Key personnel | 1,000,000 | 4,800,000 | 3,266,667 | |||
| Total | 5,000,000 | 19,975,000 | 10,241,667 | |||
Further information
| Mladen Ninkov - Chairman | Telephone: +44(0)20 7629 7772 |
| Roger Goodwin - Finance Director | |
| Griffin Mining Limited | |
| Adrian Hadden | Telephone: +44(0)20 7523 8353 |
| Collins Stewart Europe Limited |
Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM).
The Company's news releases are available on the Company's web site: www.griffinmining.com