93
CONSOLIDATED FINANCIAL STATEMENTS
DRIVING GROWTH FROM WITHIN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(All amounts in US$‘000’s unless otherwise stated)
13. Share Capital
a) Unlimited Common Shares Without Par Value
During the year ended December 31, 2014, the Company issued nil (2013: 11,415) common shares of the Company, at
a fair market value of $nil (2013: $4.38) per share and paid $nil (2013: $50) cash to Radius, under the option to acquire
a 60% interest in the Tlacolula silver project located in the State of Oaxaca, Mexico. (Refer to Note 7. a)).
b) Share Options
Shareholder approval of the Company’s Stock Option Plan (the “Plan”), dated April 11, 2011, was obtained at the
Company’s annual general meeting held on May 26, 2011. The Plan provides that the number of common shares of the
Company issuable under the Plan, together with all of the Company’s other previously established or proposed share
compensation arrangements, may not exceed 12,200,000 shares, which equals 9.92% of the current total number of
issued and outstanding common shares of the Company, as at April 11, 2011. As at December 31, 2014, the number
of common shares available for issuance under the Plan is 3,719,067.
Option pricing models require the input of highly subjective assumptions including the estimate of the share price volatility,
risk-free interest rate and expected life of the options. Changes in the subjective input assumptions can materially affect
the fair value estimate. The following is a summary of share option transactions:
December 31, 2014
December 31, 2013
Weighted
Weighted
average
average
Shares
exercise price
Shares
exercise price
(in ‘000’s)
(CAD$)
(in ‘000’s)
(CAD$)
Outstanding at beginning of the year
6,437
$ 3.42
6,117
$ 3.42
Granted
828
4.30
1,153
3.38
Exercised
(2,564)
3.68
(694)
1.01
Forfeited
(70)
5.26
(84)
4.69
Expired
(1,687)
4.55
(55)
2.27
Outstanding at end of the year
2,944
$ 3.25
6,437
$ 3.42
Vested and exercisable at end of the year
1,776
$ 2.80
3,949
$ 3.55
During the year ended December 31, 2014, 828,242 share purchase options with a term of three years were granted
with an exercise price of CAD$4.30, vesting 50% after one year and 100% after two years from the grant date.
During the year ended December 31, 2014, 2,563,776 share purchase options with exercise prices ranging from
CAD$1.55 to CAD$4.46 per share were exercised, 70,255 share purchase options with exercise prices ranging from
CAD$4.03 to CAD$6.67 per share were forfeited, 1,686,654 share purchase options with an exercise prices ranging
from CAD$4.46 to CAD$6.67 per share expired, and 865,895 share purchase options were accelerated to expire as
follows:
Shares
Exercise price (CAD$)
Original Expiry Date
Accelerated Expiry Date
170,000
$ 4.03
May 29, 2015
July 13, 2014
79,038
3.38
May 29, 2016
July 13, 2014
60,307
4.30
March 23, 2017
July 13, 2014
37,500
4.03
May 29, 2015
July 27, 2014
65,510
6.67
February 20, 2017
August 29, 2014
71,134
3.38
May 29, 2016
January 20, 2015
108,553
4.30
March 23, 2017
January 20, 2015
253,853
3.79
July 31, 2017
January 20, 2015
20,000
4.03
May 29, 2015
February 8, 2015
865,895 Total
During the year ended December 31, 2014, the Company recorded a share-based payment charge of $2,108 (2013:
$2,734) in respect to options granted and vested.
