PERTH (miningweekly.com) – ASX-listed Flinders Mines has abandoned its plans to acquire the Balla Balla infrastructure project in the Pilbara.
The company in January this year entered into binding agreements with BBIG Group to acquire the shares in Forge Resources Swan, which owns assets related to the infrastructure project.
Flinders said on Tuesday that the proposed transaction had been terminated owing to the conditions precedent being unable to be satisfied in the timeframe specified in the agreement.
“It is disappointing the proposed transaction is not able to be completed. While we have worked with Todd Corporation and BBIG over many months to close this transaction, unfortunately, satisfaction of the conditions precedent is out of our control. We will, however, continue to progress development options for the Pilbara iron-ore pro (PIOP) with the aim of producing iron-ore in 2025,” said Flinders chairperson Cheryl Edwardes.
Following termination of the proposed transaction, Flinders will retain the A$3.3-million purchase consideration and eliminate an expenditure commitment of approximately A$2-million a year for tenement expenditure and maintenance. The cost reductions allow Flinders sufficient funds to complete the scoping study on the PIOP, including heritage and environmental programs, and continue direct shipping ore (DSO) resource evaluation at the Champion and Blackjack deposits, which are adjacent to the Delta deposit.
The scoping study is based on mining shallow, low strip ratio openpits at the Delta and Paragon deposits to produce more than 60% iron DSO at a sustainable rate of up to three-million tonnes a year.