Haranga Resources Director Michael Davy Converts Performance Rights, Boosting Indirect Shareholding Beyond 4.7 Million Shares

Michael Davy's Indirect Holdings in Haranga Resources Prior to 30 June 2026 Conversion

Before the 30 June 2026 update, director Michael Davy held his interests indirectly via Davy Corp Pty Ltd, where he is the sole director and shareholder. His holdings were split between two accounts: the Davy Investment A/C and The Davy Investment A/C. These accounts held 2,189,003 fully paid ordinary shares and 240,000 fully paid ordinary shares respectively, totaling 2,429,003 shares prior to conversion.

Additionally, Davy possessed a significant portfolio of performance rights across multiple classes. The Davy Investment A/C held 450,000 Class A, 450,000 Class B, 1,013,200 Class A, 1,266,500 Class B, 1,266,500 Class C, and 1,519,800 Class D Performance Rights before conversion. These rights are contingent entitlements converting into ordinary shares upon meeting specific board-approved milestones, reflecting a common incentive structure among junior listed companies to align director interests with company performance.

Conversion Triggered by Vesting of Milestone A and Milestone B

The company confirmed that the share issuance followed the conversion of performance rights due to the vesting of Milestone A and Milestone B. As of 30 June 2026, Haranga Resources determined the conditions for Class A and Class B performance rights were met, triggering their conversion into fully paid ordinary shares. The earlier 30 June 2026 update details the milestone conditions, though this notice does not specify them.

This conversion issued 2,279,700 fully paid ordinary shares to Davy Corp Pty Ltd under the Davy Investment A/C at a nominal consideration of $0.0001 per share. This nominal price aligns with standard practice for performance rights conversion, where the rights represent earned entitlements and a minimal cash amount facilitates legal issuance. No shares were sold in connection with this transaction, and no changes were noted in Part 2 of the notice relating to contracts.

Updated Shareholding of Davy Corp Pty Ltd Across Both Accounts

Following the conversion, Davy Corp Pty Ltd holds 4,468,703 fully paid ordinary shares in the Davy Investment A/C, up from 2,189,003, while the 240,000 shares in The Davy Investment A/C remain unchanged. Combined, Michael Davy's indirect shareholding now totals 4,708,703 fully paid ordinary shares in Haranga Resources Limited.

This marks a significant increase, effectively more than doubling the shares held in the primary account. For investors tracking insider holdings as indicators of confidence, this increase via performance rights conversion—rather than open market purchases—demonstrates the company’s incentive framework delivering results contingent upon milestone achievements.

Remaining Performance Rights After Milestone A and B Conversion

Although Class A and Class B Performance Rights related to Milestone A and B have converted, several tranches remain outstanding. The Davy Investment A/C still holds 450,000 Class A, 450,000 Class B, 1,266,500 Class C, and 1,519,800 Class D Performance Rights. These represent potential future conversions upon achievement of their respective milestones.

The presence of Class A and B rights alongside Class C and D rights after the recent vesting suggests multiple tranches with distinct conversion triggers. The company did not disclose specific conditions, timelines, or thresholds for Class C or D rights in this notice. Investors seeking full milestone details should consult Haranga Resources' broader performance rights framework and related company updates.

Nominal $0.0001 Consideration and Conversion Economics

The 2,279,700 shares issued were priced at a nominal $0.0001 per share, a typical feature in Australian listed company performance rights schemes. The rights represent compensation for service or milestone attainment, with the nominal strike price ensuring the conversion is treated as fulfillment of an incentive arrangement rather than a market-value share acquisition.

The economic value to Davy depends on Haranga Resources’ market price at conversion, not the nominal consideration. The immediate market impact is unclear from public data. Such conversions are routine in executive remuneration and do not necessarily indicate director open market purchases.

Role of Davy Corp Pty Ltd as Registered Holder

All of Michael Davy's Haranga Resources interests are held indirectly via Davy Corp Pty Ltd, where he is sole director and shareholder. This structure is common among Australian directors and executives for holding listed securities, often for remuneration and tax planning purposes.

Under ASX Listing Rule 3.19A.2, directors must disclose changes in relevant interests, whether direct or indirect. The indirect nature does not lessen disclosure obligations. This notice complies with applicable rules and the Corporations Act 2001 (Cth), section 205G. The company confirmed no trades occurred during a closed period requiring prior clearance.

No Closed Period Trading Issues with This Interest Change

Part 3 of the notice confirms no securities were traded during a closed period requiring written clearance. Haranga Resources stated the conversion and share issuance did not occur during such a period. This compliance confirmation is important as trading during closed periods without clearance breaches company policy.

This clarity reassures investors and market participants. Performance rights conversions upon milestone vesting are generally treated differently from discretionary director trading, but the closed period declaration adds transparency to governance processes.

Implications of Milestone Vesting for Haranga Resources' Progress

The vesting of Milestone A and B, referenced here and in the 30 June 2026 update, indicates Haranga Resources has met internal corporate or operational benchmarks tied to these performance rights. Although specific milestone details are not included in this notice, the board’s approval of conversion signals progress toward company objectives established when the rights were granted.

Investors following Haranga Resources’ development should review the 30 June 2026 update for full context on milestone achievements. Remaining Class C and D performance rights held by Davy represent potential future conversions pending milestone satisfaction, which will be key for monitoring ongoing company performance.

Previous Director Interest Disclosure and Reporting Frequency

This notice states Michael Davy’s prior director interest disclosure was dated 17 July 2025, making this the first update since then. The nearly eleven-and-a-half-month interval reflects that disclosures occur only upon changes in relevant interests, not on a fixed schedule.

The earlier notice is not included here, nor were its details disclosed. Investors seeking a comprehensive view of Davy’s holdings over time should consult all historical director interest notices filed under ticker HAR, available publicly via the exchange announcements platform.