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- Flinders Mines (FMS) has received shareholder approval for a joint venture with BBIG Group at its Pilbara Iron Ore Project (PIOP)
- Flinders Chairman Neil Warburton considers this is a significant milestone for the company
- The companies will set up a farm-in joint venture to develop the iron ore project
- Under the agreement, BBIG can earn up to a 60 per cent interest in the Pilbara project if it funds infrastructure plans
- Flinders Mines is down 10 per cent on the market this morning, trading at 2.7¢ apiece
Flinders Mines (ASX:FMS) has received shareholder approval for a joint venture with BBIG Group at its Pilbara Iron Ore Project (PIOP).
In November, the company announced it had entered into binding agreements with BBIG subject to shareholder approval.
The companies will form a farm-in joint venture to hold and develop PIOP.
Under the agreement, BBIG can earn up to a 60 per cent interest in the project. It aims to create a $6 billion port and rail project within the Pilbara, which potentially provides a transport solution to Flinders.
Chairman Neil Warburton says the approval marks a significant milestone for Flinders and all of its shareholders.
“This asset has sat stranded for too long and finally we have a commercial, logical and achievable development proposition to unlock the value of the PIOP for all shareholders,” Neil said.
“We are pleased that the majority of eligible voting shareholders have seen the significant opportunity that the independent directors also saw in this transaction,” he added.
“While not wanting to sound negative, it is important to point out there
is no other deal on the table and we don’t believe there is any opportunity to improve on this deal currently in front of us,” Neil told the shareholders.
In the voting, Chinese institutional investor, OCJ investments had the upper hand, as it holds a 22 per cent interest in Flinders.
Flinders Mines is down 10 per cent on the market this morning, trading at 2.7¢ apiece at 11:48 am AEDT.
