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Flinders MINES 26 October 2021 ☑ASX ASX ANNOUNCEMENT HIGHLIGHTS • • • • Quarterly Report For the period ended 30 September 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 . Discussions with BBIG on the non - binding indicative offer ( NBIO ) to acquire the BBIG rail , port and marine infrastructure remain ongoing . Negotiations with BBIG on a staged development approach that would accommodate a potential trucking operation on a private haul road owned by BBIG prior to rail under the existing Farm - in Agreement ( FIA ) remain ongoing . BBIG confirms $ 5,486,279 , being the shortfall under the FIA to PIOP Mine Co NL . • General Manager , Dr Andrew Whitehead's contract extended until 16 September 2022 . Pilbara Iron Ore Project ( PIOP ) During the quarter ended 30 September 2021 , BBIH Pty Limited ( BBIH ) , a wholly owned subsidiary of BBIG , 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 September 2021 quarter , BBIH carried out a range of activities associated with the advancement of the PIOP Feasibility Study including : • • • Completion of the Blacksmith camp remedial works . The camp is now fully operational and being used to support current rehabilitation activities . The Blacksmith rehabilitation activities are progressing well . Initial efforts are concentrated at Eagle . One of Wintawari Guruma Aboriginal Corporation ( WGAC ) traditional owner contracting arms , Muntulgura Guruma Pty Ltd , was awarded the rehabilitation works contract . A geophysics contractor has been selected to conduct downhole logging of existing water bore holes . A proposal has been received from a hydrological consultant and is currently under consideration for the replacement / re - instatement of disused groundwater monitoring data loggers at Blacksmith . On the 17 August 2021 , BBI's extension to the State Rail Agreement ( SRA ) was passed . As announced on 15 October 2021 , BBIH informed the Company of the occurrence of a bushfire nearby to the Blacksmith Camp and as a result , rehabilitation activities were suspended and the Blacksmith / PIOP camp evacuated . There was no damage sustained to equipment or facilities at PIOP and no injuries to BBIG personnel or contractors currently on - site . BBIG has subsequently advised that it has suspended further rehabilitation work on site ahead of the summer cyclone season ( approximately one month earlier than initially planned ) . Rehabilitation activities are re - forecast to commence in April 2022 when conditions are considered more favourable and the likelihood of program disruption from either cyclone or bushfire events significantly reduced . Key activities planned for the next period include : • • Re - assessment of the rehabilitation programme ( extent of works required , schedule and cost ) based on recent site reconnaissance and DMIRS feedback . Progress discussions with WGAC on cultural heritage , social surrounds and the Flinders Native Title Agreement over PIOP . Progression of further studies relating to a phased private road - based integrated development strategy . As announced on 30 September 2021 , BBIG confirmed the 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 was net $ 5,486,279 ( FIA Shortfall ) following an earlier pre - payment of $ 2m in June 2021. BBIG will be required to pay this FIA Shortfall to PIOP Mine Co NL by 30 November 2021 , following which it will be paid to the Company by way of a selective capital reduction .