Non-Issue of Performance Shares

RNS Number : 3351E

Harvest Minerals Limited

27 February 2020

 

Harvest Minerals Limited / Index: LSE / Epic: HMI / Sector: Mining

27 February 2020

Harvest Minerals Limited ('Harvest' or the 'Company')

Non-Issue of Performance Shares

Harvest Minerals Limited, the AIM listed remineraliser producer, announces that it will not be awarding the performance shares that were due to be issued on receipt of the full mining licence at the Company's 100% owned Arapua Fertiliser Project in Brazil ('Arapua'). The Company announced earlier today that the full mining licence had been granted.

As announced on 5 February 2018, the Company put in place an incentive scheme for Executive Directors and Senior Management (together, 'Management'). Under the incentive scheme, on receipt of the full mining licence, which was the final Tranche 4 performance condition, the Company was to issue, in aggregate, 1.5 million performance shares to Management. The Board has decided not to issue these performance shares at this time and as such, no further performance shares under this scheme will be issued.

The granting of the full mining licence is a significant achievement and the Board recognises and congratulates the tremendous effort of the Harvest team in reaching this achievement.  However, the incentive scheme was implemented to improve the alignment of the interests of Management with those of the Company's shareholders.  Recently, the share price has become disconnected from the success being achieved at Arapua and it is the Board's view that these performance shares should now not be issued.

The Company may look at implementing a new incentive scheme in the future, which is aligned with the current interests of the Company's shareholders.

Brian McMaster, Executive Chairman of Harvest stated,  "It has become clear that operational and share price performance are no longer aligned. As a result, the Board recommended, and all the intended recipients agreed, that the performance shares which were now due should not be issued.  The granting of the performance shares was intended to more closely align Management with shareholders interests.  Whilst we remain fully committed to realising value for shareholders, accepting shares for nil consideration at a time where share performance is languishing does not, in the Board's view, appear to represent an alignment of interests.  We therefore believe it to be more appropriate that we relinquish the right to the shares whilst Management continue to drive development for the benefit of all."

*ENDS*

For further information, please visit www.harvestminerals.net or contact:

Harvest Minerals Limited	Brian McMaster (Chairman) Dr Mark Heyhoe (COO)	Tel: [phone]
Strand Hanson Limited Nominated & Financial Adviser	James Spinney Ritchie Balmer Jack Botros	Tel: [phone]
Shard Capital Partners Broker	Damon Heath	Tel: [phone]
St Brides Partners Ltd Financial PR	Charlotte Page Beth Melluish	Tel: [phone]

Notes

Harvest Minerals Limited (HMI.L) is an AIM-quoted low-cost and high margin Brazilian remineraliser producer, located in the heart of the largest and fastest growing fertilizer market in Brazil.

Our product, KPFértil, is a registered and approved organic multi-nutrient direct application fertiliser. It contains many of the essential nutrients and minerals required by plants and, unlike most fertilisers, it does not require any complex processing or chemically alteration, instead it can be applied directly to crops.

KPFértil is produced at the wholly owned Arapua project, that consists of a fully permitted mine, production and storage facilities able to produce and deliver KPFértil to customers. Known mineralisation at the Project is expected to support 100+ years' production at 450Ktpa.

Our focus now remains on growing our business and we have the dedicated in-country sales and marketing team with the skills, experience and contacts to sell KPFértil into the potential multi-Mtpa market on the doorstep of the Project.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

 

END

 

 

MSCUBSWRROUUURR