f1c13fc8-7884-46a8-889c-38c51ba3cf25.pdf
11 January 2016
MANAGING DIRECTOR'S EMPLOYMENT CONTRACT
INTRODUCTION
Syrah Resources (ASX:SYR) is pleased to announce that it has finalised the terms of a new Employment Contract with its Managing Director, Mr. Tolga Kumova. This follows the appointment of Mr. Kumova as Managing Director of the Company, effective from 2 October 2014.
Syrah Chairman, Mr. Jim Askew commented: "In the past year, Syrah has achieved numerous significant milestones, including the completion of a feasibility study, the raising of finance and the, commencement of construction activities for the Balama Project in Mozambique. These achievements have necessitated a review of the Managing Director's employment terms to better reflect Syrah's progression from an exploration company to a development company. The new Employment Contract has been structured to better reflect comparable remuneration benchmarks for a company of Syrah's size and complexity."
The key terms of the New Employment Contract, effective from the 1 January 2016, are set out below.
Contract duration
Mr. Kumova will remain appointed as Managing Director until terminated by either himself or Syrah under the terms of the new Employment Contract.
Remuneration
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Annual Base Salary - Mr. Kumova's annual salary will be revised from $181,818 per annum (plus 10% superannuation) to $450,000 per annum (plus 9.5% superannuation), and will be reviewed annually by the Remuneration and Nomination Committee with oversight from the Board of Directors.
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Short Term Incentive (STI) - As with other senior executives of the Company, the Managing Director will receive a STI benefit payable in cash on an annual basis. Target performance will result in a payment of up to 30% of Base Salary (exclusive of superannuation). The Managing Director's Key Performance Indicators (KPI's) will initially be split 50/50 between corporate and individual performance targets. The KPI's will be set and agreed annually by the Remuneration and Nomination Committee with oversight from the Board of Directors.
Post-employment restraints
On termination of his employment, Mr Kumova will be subject to customary post employment restraints.
Options
Subject to Shareholder approval, Mr. Kumova will be issued one million options in the Company. Each option will entitle Mr. Kumova to subscribe for and be issued one Share at the exercise price of $4.58, which is set at a 30% premium to the volume weighted average price (VWAP) of Shares trading on the ASX, measured over a 20 day period immediately before the date of entering into the new Employment Contract.
The options will vest one year from the date of grant and may not be exercised before that time. Each option will be exercisable for a period of up to three years following the date of grant, following which the options will lapse. Any shares issued by the Company pursuant to this option will rank equally with, and carry the same rights and privileges as, existing shares.
Bonus
In recognition of the significant milestones achieved by the Company since Mr. Kumova's appointment as Managing Director, the Board has resolved to award Mr. Kumova a once-off bonus of 142,745 shares, subject to Shareholder approval. The Board believes that this once-off payment appropriately recognises the significant contribution Mr. Kumova has made over the past 15 months to ensure the success of the Company's fundraising activities, the commencement of mine development in Mozambique and the on-going work to establish key sales and marketing targets as the mine moves towards commissioning.
Melanie Leydin Company Secretary Syrah Resources Limited
Office Contact - +61 3 9670 7264
About Syrah Resources
Syrah Resources (ASX code: SYR) is an Australian resource company that is rapidly progressing its flagship Balama Graphite and Vanadium Project in Mozambique to production. The Project hosts the largest graphite ore reserves in the world with an Australasian Joint Ore Reserves Committee (JORC) compliant Ore Reserve of 81.4 Mt at 16.2% total graphitic carbon. Balama is a 110 km2 granted Mining Concession located within the Cabo Delgado province in the district of Namuno in northern Mozambique. The Project is approximately 260 km by road west of Pemba and is accessible by a sealed, main road, running directly from Pemba Airport. The Port of Nacala is approximately 490 km by road south east of the Project and is the deepest port in Southern Africa.