Are the options fully exercisable immediately or subject to performance milestones?

Answer

Based on the information contained in the news release, there is no explicit statement about whether the 985,000 stock options granted by Fredonia Mining Inc. are:

• fully exercisable immediately (i.e., the holder can purchase the shares at any time after the grant), or
• subject to performance milestones, time‑based vesting, or other conditions that would restrict immediate exercise.

Why the release does not clarify this

The release focuses on the grant itself—how many options were issued, to whom, and at what price. It does not include the typical language that would define the exercise eligibility (e.g., “the options will vest over a 4‑year period” or “the options are contingent upon achieving a 2025 production milestone”).

How this is usually handled in practice

In most Canadian junior‑resource companies (TSX/TSXV listed), stock‑option grants to directors, officers, and employees are not immediately 100 % exercisable. Instead, they are commonly structured with one or more of the following:

1. Time‑based vesting – e.g., 25 % of the options vest on the grant date, with the remainder vesting in equal monthly or quarterly installments over 2–4 years.
2. Performance‑based vesting – options become exercisable only after the company meets specific operational or financial targets (e.g., achieving a certain production volume, revenue level, or net‑income threshold).
3. Hybrid vesting – a combination of time and performance criteria.
4. Lock‑up periods for insiders – even after vesting, directors/officers may be restricted from exercising or selling shares for a set period (often 30–90 days) to protect market stability.

Because the release does not disclose any of these typical terms, we cannot definitively state the exercisability status of the options.

What you should do next

1. Review the company’s filing(s) – The detailed terms of the option grant are usually disclosed in the accompanying Management Discussion & Analysis (MD&A), Form 51‑1 (TSX Venture Exchange filing), or the press release’s attached exhibit (often a “Option Grant Agreement” or “Board Resolution”). These documents will list:
   • Vesting schedule (time‑based or performance‑based)
   • Expiration date (commonly 5–10 years from grant)
   • Any conditions tied to milestones or corporate events
2. Contact Investor Relations – If the public filing does not clearly spell out the vesting, a brief inquiry to Fredonia’s Investor Relations team can confirm whether the options are immediately exercisable or subject to future conditions.
3. Monitor subsequent announcements – Companies sometimes issue follow‑up releases clarifying the “exercise timeline” or “performance conditions” after the initial grant announcement.

Bottom line

• The news release itself does not specify whether the 985,000 options are immediately exercisable or contingent on performance milestones.
• In the absence of that detail, the safest assumption is that the options are subject to a vesting schedule or performance conditions, as is typical for TSX/Venture‑exchange issuers, but you will need to consult the formal option‑grant documentation (e.g., the company’s filing with the TSX Venture Exchange) to know the exact terms.