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Emerald Resources NL has submitted an Appendix 2A application to the ASX to list 342,835 new fully paid ordinary shares following the exercise of 412,500 EMRAK options under its Incentive Plan. These options, with a $1.09 exercise price and security code EMRAK, were exercised on 16 July 2026. The conversion occurred in two tranches on the same day: one via a cashless exercise facility and the other settled in cash at $1.09 per share. After the new shares are quoted, Emerald Resources’ total ordinary shares on issue will increase to 662,167,668.
Key Points
- Emerald Resources NL (ASX:EMR) operates the Okvau Gold Mine in Cambodia, focusing on gold production
- On 16 July 2026, 412,500 EMRAK options (expiring 29 July 2026, exercise price $1.09) were exercised, resulting in 342,835 new fully paid ordinary shares
- Of these, 280,335 shares were issued through a cashless exercise facility; 62,500 shares were issued for cash at AUD $1.09 each
- Total quoted ordinary shares will reach 662,167,668 following the listing of the new shares
- Investors should monitor the remaining 50,000 EMRAK options still outstanding before their 29 July 2026 expiry
Emerald Resources Files to Quote 342,835 New Shares After EMRAK Option Conversion
On 16 July 2026, Emerald Resources NL lodged an Appendix 2A form with the ASX requesting quotation of 342,835 new fully paid ordinary shares. These shares were issued following the exercise of 412,500 EMRAK options, each priced at $1.09 and set to expire on 29 July 2026. The exercise took place approximately two weeks before the options’ expiry, with 16 July 2026 serving as both the initial and final conversion date for this transaction.
The newly issued shares will rank equally with existing EMR ordinary shares from their issue date, 16 July 2026, in accordance with ASX Listing Rules. This standard practice ensures parity in rights and privileges between new and existing shares. The announcement marks a routine yet significant securities event impacting Emerald Resources’ share capital and option register.
Breakdown of the 412,500 EMRAK Options Exercised into Two Tranches
The 412,500 EMRAK options exercised on 16 July 2026 converted into 342,835 new ordinary shares split into two tranches reflecting different settlement methods. The first tranche of 280,335 shares was issued via a cashless exercise facility under the company’s Incentive Plan, where the option holder surrendered a portion of shares to cover the exercise price instead of paying cash. This explains why fewer shares were issued than the total options exercised.
The second tranche consisted of 62,500 shares issued for cash at the exercise price of AUD $1.09 per share. Together, these two tranches total the 342,835 shares applied for ASX quotation. The company did not disclose the identity of the option holder or additional terms beyond those outlined in the Appendix 2A filing.
Cashless Exercise Facility Underpins Share Quantity Discrepancy
The cashless exercise facility available under Emerald Resources’ Incentive Plan allows option holders to exercise options by surrendering a portion of the shares instead of paying cash. This process reduces the total number of shares issued relative to options exercised. In this case, 412,500 options were exercised but only 280,335 shares were issued from the cashless tranche, with the remainder withheld to cover the exercise cost.
This mechanism aligns with common market practices for equity-based remuneration in Australia. The company did not provide details on the exact calculation formula or share price reference used in the cashless exercise beyond the estimated figures in the Appendix 2A.
Total Ordinary Shares to Reach 662,167,668 After New Shares Are Quoted
Following the listing of 342,835 new fully paid ordinary shares, Emerald Resources’ total quoted ordinary shares will increase to 662,167,668, as detailed in Part 4 of the Appendix 2A form. The company noted that this figure may not fully reflect current issued capital if other filings are processed concurrently by the ASX, a standard disclosure disclaimer.
While the increase represents a small proportion of the total shares outstanding, option exercises can provide insight into holder sentiment, especially when exercised well before expiry. The EMRAK options were exercised roughly two weeks prior to their 29 July 2026 expiry, indicating a deliberate decision to convert rather than let them lapse.
Remaining EMRAK Options and Wider Unquoted Option Register
After this partial exercise, 50,000 EMRAK options remain outstanding with the same $1.09 exercise price and 29 July 2026 expiry. Holders have approximately two weeks to exercise these options before they expire worthless.
Emerald Resources also holds a large unquoted option register with multiple series and varying exercise prices and expiry dates. These include EMRAN options (1,490,000 on issue, expiring 17 October 2027, exercise price $1.37), EMRAW (700,000 on issue, expiring 4 February 2031, exercise price $8.27), and EMRAX (650,000 on issue, expiring 18 June 2031, exercise price $6.88). This inventory represents potential future share issuance as option expiry dates approach, which investors should monitor.
Emerald Resources and the Okvau Gold Mine: Company Background
Emerald Resources NL is an ASX-listed gold mining company operating the Okvau Gold Mine in Mondulkiri Province, Cambodia. It is among the few ASX-listed gold producers with active Southeast Asian operations. The company’s Incentive Plan, under which the EMRAK options were issued, forms part of its equity-based remuneration strategy for executives and employees.
Using options as remuneration aligns management and employee interests with shareholder value, a common governance approach among ASX-listed mining companies. Exercising options—whether via cash payment or cashless facility—results in share issuance, a routine capital management activity disclosed through ASX filings. Understanding this operational context helps investors assess the impact of capital structure changes.
Employee Incentive Scheme and Key Management Personnel Involvement Confirmed
The Appendix 2A filing confirms the EMRAK options exercised were issued under an employee incentive scheme, a key regulatory disclosure under ASX Listing Rules. The company also indicated that some options exercised are held by key management personnel (KMP) or their associates, answering "Yes" to the relevant disclosure question.
This KMP involvement may trigger related party or remuneration reporting requirements depending on regulatory thresholds. The filing did not specify which KMP or associates held the options, as such detail is not required in Appendix 2A forms. Investors seeking more detailed KMP option holdings should consult the company’s annual report, remuneration report, or director interest notices.
Implications for Investors Monitoring Dilution
The issuance of 342,835 new shares represents a modest dilutive event relative to Emerald Resources’ total share base of over 662 million shares. However, the company’s extensive unquoted option register, spanning multiple classes and expiry dates, could lead to significant future dilution as options are exercised.
Exercise prices range from $1.09 for near-expiry EMRAK options to $8.27 for longer-dated EMRAW options expiring in 2031. Options with exercise prices near market value are more likely to be exercised, while those priced higher may lapse. The immediate share price impact of this transaction was not publicly available at the time of the announcement. Investors should review full option register disclosures and market data to evaluate potential dilution risks.
