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Flinders Mines Inks Pact with BBIG for Pilbara Iron Ore Project

Mining News - Published on Mon, 02 Dec 2019

Image Source: ausimmbulletin.com
Flinders Mines Limited advised that it has negotiated binding agreements and associated documents with BBI Group Pty Ltd in relation to a farm-in incorporated joint venture for Flinders flagship Pilbara Iron Ore Project, subject to Flinders' shareholder approval. Flinders and BBIG will form an incorporated joint venture PIOP Mine Co to hold and develop the PIOP. BBIG has agreed to fund feasibility studies for the PIOP development in return for an initial 10% voting interest in PIOP Mine Co.

If a final investment decision subsequently occurs, BBIG and any prospective funding partners will fund development and construction of the PIOP1 mine in return for a further 50% shareholding, 60% in aggregate as between BBIG and any prospective funding partners, in PIOP Mine Co. At that point, Flinders will elect to either
Continue as a 40% shareholder of PIOP Mine Co, free-carried1 to production
Or
Subject to Flinders' shareholder approval at that time, with TIO excluded from voting, convert its 40% shareholding in PIOP Mine Co to an ongoing 2.5% gross revenue stream over the life of the mine production from the PIOP

While the PIOP development is being progressed, BBIG will develop the Balia Balia infrastructure project.

Source :

Posted By : Rabi Wangkhem on Mon, 02 Dec 2019
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