International Tower Hill Mines Ltd. (NYSE American:THM), a metal mining company with a "GOOD" financial health rating according to InvestingPro, has entered into a consulting and stock option agreement with Phenom Ventures LLC, the company disclosed in an SEC filing dated December 2, 2024. Despite showing strong liquidity with a current ratio of 10.37, the company is not currently profitable.
Under the terms of the agreement, Phenom will provide communication services to promote the project and the company's narrative to the investor market. This comes as the stock has experienced a 23% decline over the past six months, with a market beta of 1.04 indicating average market volatility. In return, International Tower Hill Mines will grant Phenom 2.5 million stock options at a price of CAD$0.64, under the company's 2006 Incentive Stock Option Plan.
The options will vest in three stages: 1 million options vested on the date of the agreement, December 2, 2024. Another 500,000 options will vest on June 2, 2025, provided the company's shares outperform the VanEck Junior Gold Miners ETF (NYSE:GDX) (GDXJ Shares) by at least 25%.
The remaining 1 million options will vest between December 2, 2025, and December 2, 2026, if the shares' trading price reaches or exceeds US$1.50 and outperforms the GDXJ Shares by 50% or more.
The consulting agreement is set to terminate on December 2, 2026, or earlier in the event of the consultant's death or incapacity. The company retains the right to terminate the agreement with a 30-day notice if Phenom materially breaches the terms and fails to remedy the breach.
The stock options will expire on the earlier of December 2, 2026, or 90 days after Phenom ceases to provide services under the agreement. Furthermore, Phenom is required to protect the company's confidential information during and after the term of the agreement.
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