RE:Option and GrantFrom the YE Financials:
11. SHARE BASED COMPENSATION (continued) During the year ended December 31, 2016, an amount of $1.1 million (2015 – $0.7 million) was charged to operations in recognition of stock-based compensation expense, based on the vesting schedule for the options granted. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions and resulting values for grants as follows: 2016 2015 Assumptions: Risk-free interest rate (%) 0.80 0.80 Term (years) 4.00 4.00 Expected life (years) 3.68 3.63 Expected volatility (%) 47.46 47.48 Expected dividend CA$0.015/share quarterly CA$0.02/share semi annually Results: Weighted average fair value of options granted (per option) $ 0.78 $ 0.74 b. Share units The Company has a share unit (“SU”) plan that provides for the issuance of SUs. The value of a SU at the issuance date is equal to the closing value of one Lucara common share. The SU vests in three years and each SU entitles the recipient to receive one common share and the cumulative dividend equivalent SU earned during the SU’s vesting period. For the year ended December 31, 2016, the Company recognized a share-based payment charge against income of $0.9 million (2015: $0.2 million) for the SUs granted during the year. Number of shares issuable pursuant to share units Weighted average price per share (CA$) Balance at December 31, 2014 - $ - May 14, 2015 grant 520,000 2.07 June 18, 2015 dividend 5,304 1.96 December 17, 2015 dividend 4,585 2.29 Balance at December 31, 2015 529,889 2.07 February 26, 2016 grant 645,000 2.43 March 31, 2016 dividend 6,380 2.76 June 16, 2016 dividend 4,550 3.89 September 15, 2016 dividend 137,847 4.00 Employee termination vesting (261,589) 2.44 December 15, 2016 dividend 5,416 2.94 Balance at December 31, 2016 1,067,493 $ 2.46