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Flinders ASX ANNOUNCEMENT MINES 22 July 2021 HIGHLIGHTS • Quarterly Report For the period ended 30 June 2021 Flinders Mines Limited ( Flinders ) and BBI Group Pty Ltd ( BBIG ) continue to advance the Pilbara Iron Ore Project ( PIOP ) pursuant to the farm - in incorporated joint venture . Flinders negotiations with BBIG on the non - binding indicative offer ( NBIO ) to acquire the BBIG rail , port and marine infrastructure remain ongoing . In parallel , and as another option to the NBIO , Flinders held discussions with BBIG on a staged development approach that would accommodate a potential trucking operation prior to rail under the existing Farm - in Agreement ( FIA ) . BBIG contributes $ 2,000,000 of the predicted shortfall amount to PIOP Mine Co NL as a " Shortfall Advance " . Pilbara Iron Ore Project ( PIOP ) During the quarter ended 30 June 2021 , BBIH Pty Limited ( BBIH ) , a wholly owned subsidiary of BBI Group Pty Ltd , as Manager of Flinders ' flagship Pilbara Iron Ore Project ( PIOP ) , continued to progress the development of the PIOP integrated project pursuant to the ( FIA ) that was completed with BBIG in the September 2020 quarter . During the June 2021 quarter , BBIH carried out a range of activities associated with the advancement of the PIOP Feasibility Study including : • • The first phase of Blacksmith rehabilitation ( capping of existing open holes ) was completed . Water dipping and monitoring activities were also conducted to capture essential monitoring data . Site familiarisation activities were undertaken by members of the team to gain a better understanding of the PIOP areas including mining , heritage and environmental risks . The Department of Mines Industry Regulation and Safety ( DMIRS ) have provided final approval for the consolidated programme of works ( POW ) that agglomerates some 20 pre - existing POWs with outstanding rehabilitation obligations , all relating to the PIOP tenements . The award of contracts and safe mobilisation of contractors for the Blacksmith camp upgrade and rehabilitation programme will be a major focus area for July and August . Key activities planned for next period include : • • The Blacksmith rehabilitation programme is anticipated to commence in mid - August upon completion of camp upgrade works . A scope of work has been issued to civil contracting companies with a request for quotation . Civil contractors will be engaged to execute this work with selection and prequalification anticipated for late July . Review and approval of the Camp and Rehabilitation contractors Health , Safety and Environmental Management Systems ( HSEMS ) will commence pending issue of all signed contracts and PO's . Contractors are only permitted to mobilise once compliance to the BBI HSEMS has been achieved . As announced on 9 June 2021 , BBIG advised that they expected a shortfall in project expenditure for the first year ( ending 2 September 2021 ) under the terms of FIA that requires BBIG to procure a minimum annual spend on the PIOP mine feasibility study of $ 15 million . Under the FIA , if BBIG does not procure this minimum spend in any year , it must contribute the difference to PIOP Mine Co NL , which is then required to be escrowed and distributed to Flinders . As such , BBIG agreed to contribute $ 2,000,000 of the predicted shortfall amount to PIOP Mine Co NL who then paid the amount to Flinders by way of a selective capital reduction ( Shortfall Advance ) in early July 2021 . NBIO As previously advised on 14 December 2020 , the Company received a non - binding indicative offer ( NBIO ) from BBIG in relation to a potential ownership restructuring opportunity of the infrastructure associated with the PIOP integrated project ( Potential Transaction ) . The Potential Transaction would result in Flinders retaining 100 % ownership of the PIOP as well as 100 % of BBIG's port and rail infrastructure assets , as an integrated project within