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Sirius option holders cash in
The West Australian

The final parcel of 60� options in market darling Sirius Resources have been cashed in, ending a 4 1/2 -month period in which 35 million options were converted to net holders a potential $44 million windfall.

Sirius announced its last option conversion for 2012 yesterday, with 2.6 million units due to expire on December 31 converted to give Sirius a $1.56 million cash boost.

It came after one holder cashed in a 3.65 million options last week, generating $2.2 million for Sirius and creating a potential windfall of $6.5 million for the holder, based on the Perth explorer's closing price yesterday.

Over the past 4 1/2 months, Sirius' estimated volume weighted average share price has been $2, meaning options converted at 60� gave holders a paper gain of $1.40 each. This has produced an estimated overall gain of $44 million for option holders.

The 35 million options had been sitting well out of the money before Sirius in July announced its Nova nickel-copper discovery.

The discovery news propelled Sirius' share price from 5.7¢ to as high as $3.28 by November.

The option conversions have contributed about $21 million to exploration work at the Nova deposit, 100km north-east of Norseman.

The conversions could keep coming, with 28 million options convertible at 60¢ owned by veteran prospector Mark Creasy, who is Sirius' biggest shareholder and also owns 30 per cent of Nova. These options, and an extra three million not held by Mr Creasy, need to be cashed in by August 31 next year.

Sirius, which was one of the best sharemarket performers last year, has begun this year well and yesterday jumped a further 13¢ to $2.39.