part 2 FMS DELIST 25 January 2017 ASX ANNOUNCEMENT BBI GROUP...

part 2 FMS DELIST

25 January 2017
ASX ANNOUNCEMENT BBI GROUP SIGNS STATE AGREEMENT WITH WESTERN AUSTRALIAN GOVERNMENT

The Directors of Flinders wish to make it clear that the Company does not have any existing commercial agreements in place with BBIG and any future negotiations with BBIG may or may not result in a commercial agreement to use BBIG infrastructure


BBI 24 March 2017
BBI group signs a Memorandum of Understanding with China State Construction engineering corporation Limited
Flinders Mines Limited (Flinders or the Company) has been advised that BBI Group Pty Ltd (BBIG) has signed a Memorandum of Understanding (MOU) with China State Construction Engineering Corporation Limited or the construction of the Balla Balla Infrastructure project (BBIProject).
BBIG
The Directors of Flinders wish to make it clear that the Company does not have any existing commercial agreements in place with BBIG. Flinders has a strategic review underway which will examine infrastructure solutions to bring the PIOP project iron ore resource any future negotiations with BBIG may or may not result in a commercial agreement to use BBIG infrastructure

Yes, no commercial agreement but the RAIL agreement mentions FMS PIOP in writing.
Has BBI committed itself and needs to acquire FMS yes option DELIST

  BBI 24 March 2017
Group signs a Memorandum of Understanding with China State Construction engineering corporation Limited
Flinders Mines Limited (Flinders or the Company) has been advised that BBI Group Pty Ltd (BBIG) has signed a Memorandum of Understanding (MOU) with China State Construction Engineering Corporation Limited or the construction of the Balla Balla Infrastructure project (BBIProject).
BBIG
The Directors of Flinders wish to make it clear that the Company does not have any existing commercial agreements in place with BBIG. Flinders has a strategic review underway which will examine infrastructure solutions to bring the PIOP project iron ore resource any future negotiations with BBIG may or may not result in a commercial agreement to use BBIG infrastructure

Stuart McKinnonThe West Australian
Wednesday, 25 January 2017 4:15PM
Flinders today welcomed news of the State Agreement, saying it represented a potential transport and infrastructure solution for the company’s Pilbara iron ore project.
Investors cheered the news, sending Flinders shares as high as 8.2 cents in early trade after the stock emerged from a trading halt.
However, Flinders cautioned it did not have any existing commercial agreements in place with BBIG.
“Any future negotiations with BBIG may or may not result in a commercial agreement to use BBIG infrastructure,” the company said.

  Delisting
The reasons
Why the Board is proposing the De-Listing is outlined below.
Lack of capital support from public markets
I disagree as per the Railway agreement Stranded Miners will now have access to the rail.
It was also suggested the FMS will pay for using the transport network via each iron ore loaded per ton. This will Fund FMS mining and its operation in the future one the railway becomes operation condition was it would be available to stranded miners so capital support is a matter of time.  BBI have already negotiated off take agreement and must use FMS iron ore to satisfy minimum tonnage.
This is not a reason do delist as it only will benefit BBI long term

Low levels of trading liquidity
Ridicules. I expect FMS to become a key supplier and profit Australia in taxes and income. Low level of trading liquidly is not a factor contributing to delist, it depends on announcements and perception. If shareholders don’t want to sell it’s because long term, they want to profit
I believe shareholders will be unable to trade and be totally disadvantaged.  I strongly suggest modifying the delist option as not in shareholder's favor and disadvantage there future options.

Costs and administrative burden associated with maintaining the ASX listing
Shareholder have consistently provided for cost via issues this argument is irrelevant
This can also be reduced via budgeting in the future by reducing Directors income.
Director charged $2500 for 4 days' work Minority shareholders sure would like to know why.
Most of the testing and PIOP asset maturating program have been completed look at FMS announment to see the high value of leases already completely currently tested so this will only be reduced and the company will benefit from outstanding leases of high value.

De listing to unlock additional access to funding
FMS PIOP has been used to obtain a state agreement I would suggest FMS enter in a optional care Maintenance program until further development but I doubt it as PIOP are already calculated in tonnage for the BBI contracts  I believe FMS PIOP is already been researched and assays tested and will profit.
I believe with the right directors we can access funding due to the high value of FMS vanadium, gold and iron ore. I believe we can pursue other access to funding.

BBI has already committed to supply 50 million tones and need FMS desperately within the next 2 years therefore they must delist FMS to control it as previous method FAILED


Future capital requirements of the Company
BBI has Grinded FMS shareholders. But not getting majority, spending capital on already estimated asset maturity I believe future capital raising is not an argument.

BBI have established contacts and agreement and NEED FMS and from 2015 have been trying to deregister FMS

Why delist now it's because they are running out of time to fulfill the contractual obligation.

I suggest we do not at this point of time enter a delist option because it’s just plainly disadvantages in its 50.1 vote if anything.

Ordinary resolution
I believe this should be reversed as it’s unethical to business of high value as FMS and potential all ASX registered company shareholders could be under threat due to this decision.  To provide for fairness across the board this must be modified to Special resolution ensuring minority holders are not disadvataged.

Given the history and activity of BBI I believe FMS at this time should be given grace to justify the reason for delisting.

I believe investigation should take place in the nature of the Rail agreement that mentions FMS and Investigate the Director in common.

Board’s unanimous view that it is in the best interests of Flinders’ shareholders that the Company de- list from the ASX at this time. I believe FMS minority shareholder will lose as its unfair 50.1 percent is needed and other shareholder cannot have a vote so it’s also biased. And totally wrong. ​