- Flinders Mines (FMS) and BBI Group’s proposed joint venture for the Pilbara Iron Ore Project will go ahead after final conditions were satisfied
- The farm-in joint venture entity, called PIOP Mine Co NL., will initially have a board composed of three Flinders representatives and one from BBI Group
- BBI Group will continue to advance feasibility studies to earn its initial 10 per cent voting power in the joint venture
- Once a decision to mine is made, Flinders will elect to either retain a 40 per cent economic and voting interest in PIOP Mine — free carried to production — or convert its interest into a 2.5 per cent gross revenue royalty over the life of the mine
- Shares have been trading 1.5 per cent lower at 6.5 cents
Flinders Mines (FMS) and BBI Group’s joint venture for the Pilbara Iron Ore Project will go ahead after final conditions were satisfied.
In March, Flinders shareholders voted to approve the proposed farm-in joint venture . Today, the company announced all precedent conditions have either been met or waived.
The Pilbara Iron Ore Project is located 60 kilometres northwest of Tom Price in Western Australia.
It is situated in close proximity to several other iron ore reserves, including Rio Tinto’s Caliwingina iron ore resource and Brockman 2 operations, FMG’s Solomon iron ore hub and Eliwana development project and API’s West Pilbara Iron Ore Project.
Flinders’ Independent Non-Executive Chairman, Neil Warburton, thanked shareholders for their patience in progressing the joint venture to this point.
“This is an important milestone for Flinders as there is now a pathway to bring PIOP iron ore to market and the first step of this is for BBIG to advance the necessary feasibility studies,” he said.
The farm-in joint venture entity, called PIOP Mine Co NL., will initially host a board composed of three Flinders representatives and one from BBI Group.
Under stage one of the transaction, BBI Group will complete feasibility studies up until a decision to mine, to earn a 10 per cent voting interest and no economic interest in the joint venture entity.
Following a decision to mine, Flinders can elect from two options: first, the company could retain a 40 per cent economic and voting interest in PIOP Mine, free carried to production. Alternatively, Flinders can choose to convert its interest into a 2.5 per cent gross revenue royalty from iron ore sales or disposals, over the life of the mine.
Shares have been trading 1.5 per cent lower at 6.5 cents at 11:00 am AEST.