It's worth having another read of the ASX release dated 17 Jan...

It's worth having another read of the ASX release dated 17 Jan 2023.

FMS state the termination of the agreement to acquire Forge Resources (FRS) was due to the inability of the parties to fulfill the Conditions Precedent in the timeframe in the original agreement.

That timeframe was 6 mths from date of the agreement.
So time-up was July 2023 ?

My point is that it should have been a very simple process for the parties to the agreement, to simply extend that timeline by say another 6 mths.
If that was not possible - then why not?
I would have thought those reasons were material - because if one reads the 17 Jan ASX release, the board claim that the acquisition of FRS and the BBIG Project was a big deal.
Have a read of that announcement to get the drift.

As I read it, the Conditions Precedent related to Todd/BBIG being able to transfer assets out of FRS, FIRB approvals, and Indigenous approvals, and the second stage relating to the transfer of the Rail agreement.

In that 17 Jan statement, it all talks about the necessity of getting the PIOP and Port/Rail into a common corporate structure -- and that was ALWAYS the big issue for Todd/BBIG - witness all the various moves by Todd in T/O attempts, delisting etc etc.

So now they have been forces to walk away.

That means that BBIG Project is dead, because no ore = no project.

So what I am wondering is whether FMS had come to the conclusion that they simply did not wish to continue with the project anyway? Too big, too costly, too hard to raise capital and project funding etc.

Remember Todd is about 94% owner of BBIG, and has poured absolutely Millions $$ into the BBIG grand plan. I think Todd has put way, way more funds into BBIG Project than it ever has into FMS.

So now FMS can concentrate on this smaller operation of around 3mtpa and trucking the ore to Port Headland or where ever.

It now looks like FMS board has the power to pursue a direction without the undue influence of its biggest shareholder.
Probably, the smaller short term revenue from a 3mtpa operation might be the only way Todd will recoup even a small portion of its investment in WA iron ore dream?

What will be interesting, is whether Todd supports the inevitable capital raising that FMS will need to conduct to build the infrastructure to mine PIOP.