Those warrants probably have something to do with his acquiring part of the 18% shares of FNC he has accumulated previously.

From Fancamp's INFORMATION CIRCULAR AS AT AND DATED SEPTEMBER 19, 2008 that is available on Sedar.

- Name of Member: Sheridan Platinum Group Ltd.
- Approximate Number of Shares and Outstanding Shares: 5,160,000
- Percentage of Issued: 18.74%

To be clear, Sheridan did not exercise 1 million warrants (so my guess is they expired and his costs would have been for more than what he would pay on the open market).

And on the question of price tied to options granted to directors. This was the price last go around but at a time when FNC was trading at much higher levels.

Over the past reporting period, before these most recent options to directors, incentive stock options, for the purchase of up to 1,525,000 common shares, at a price of $1.90 per share, exercisable on or before October 30, 2012, were granted to directors of the Company during the year. During the year, 1,537,000 options held by directors were exercised.

If the most recent options were granted fairly recently, they are in all probability very cheap for the benefactors. Guessing same as flow through at 0.50 but am not sure.