Flinders Mines signs Pilbara infrastructure deal

THE DRILL SERGEANT: Flinders Mines (ASX: FMS) has entered into an Alliance Agreement with the Balla Balla Joint Venture formed between subsidiaries of Rutila Resources (ASX: RTA) and New Zealand-based company Todd Minerals.

The upshot of the agreement is Flinders will secure access to the JV’s proposed port and rail infrastructure facilities for the company’s 100 per cent-owned Pilbara iron ore project (PIOP) in the Hamersley Ranges of Western Australia.

 

Location of Flinders Mines’ PIOP and the proposed Balla Balla Mine
Export Facility in the Pilbara, Western Australia. Source: Company
announcement

 

Flinders described the Alliance Agreement as a game changer for the company as it will enable it to it to develop PIOP.

Flinders will be the Foundation User of the surplus capacity of the Balla Balla Mine Export Facility (BBMEF).

The agreement is conditional upon completion of Bankable Feasibility Studies, however it is ultimately expected to provide rail services, port handling and ship loading services to Flinders.

“This is an historic moment for Flinders and marks the point in time where we can realistically expect to develop our Pilbara iron ore project with a strong path to market,” Flinders Mines executive chairman Robert Kennedy said in the company’s announcement to the Australian Securities Exchange.

“These arrangements break the deadlock that we have faced in having stranded high-quality assets without access to rail and port services.

“We considered a number of options in looking to monetise the Pilbara iron ore project and believe this far and away delivers the strongest economic returns to our shareholders.

“We hold the largest independently held hematite resource in the Pilbara and are committed to its development in conjunction with the Eastern Guruma people as our fellow stakeholders in this development initiative.”

Email: info@flindersmines.com

Website: www.flindersmines.com