The options will have an exercise price of $0.05c and an exercise period of four years from the date of grant for Platinum’s past forbearance in not calling a bridging loan extended on 30 January 2015 which was due for repayment on 6 August 2015, Cokal executive chairman Peter Lynch said.

The grant of the options is subject to shareholder approval on or before the next annual general meeting.

The options will be exercisable at any time before expiry. The options will not be listed but will be transferrable. Payment of the exercise price may be satisfied by the holder paying the exercise price in cash or causing the provider of the bridge loan or project finance to reduce the principal owing by the amount of the exercise price.

Shares issued on exercise of an option rank equally with all other ordinary shares then on issue. If after grant trading in Cokal shares has been suspended for more than 10 days during the 12 months before or if Cokal is delisted or its substantial assets privatised, the option expiry date will be extended to eight years after the date of grant.

Customary provisions apply in relation to the adjustment of the option terms in the event of capital reconstruction, rights issues or bonus share issues, Cokal said in a statement.

The company said it is now engaged in active discussions of a confidential and incomplete nature in relation to two potential alternative transactions as well as being open to a revised bid by Cakra.

The ASX listed entity seeking to merge with Cokal has an experienced board and management and it has conducted technical due diligence investigations of Cokal including site visits and has advised that its diligence enquiries have substantially been completed, the company said in an announcement in February.