Ann: Fortescue to continue sole funding Lake Torrens Project, page-2

WHY would FMG be doing this unless they are liking what they see?


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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT
30 May 2022
Fortescue elects to continue sole funding Lake Torrens Project
As announced by Tasman Resources Ltd (“Tasman” (ASX:TAS) on 21 April 2022, it had
received a notice from FMG Resources Pty Ltd (“Fortescue”, a wholly owned subsidiary of
Fortescue Metals Group Ltd (ASX: FMG), advising that Fortescue had satisfied the Initial
Earning Obligation by expending in excess of the minimum Farm-in Expenditure of $4,000,000
within the Initial Earning Period on Exploration Licence 6416 (“EL 6416”, pursuant to the Lake
Torrens Farm In & Joint Venture Agreement (“Lake Torrens FJVA” entered into on 13 June
2019, and in consequence had earned a 51% Initial Interest in EL 6416 and a corresponding
Joint Venture Interest.
As also announced, Fortescue had 60 days from the earning of the Initial Interest of 51%,
within which to give Tasman the notice of its election to earn an additional 29% Joint Venture
Interest (“Additional Interest”. Subject to the terms of the Lake Torrens FJVA, Fortescue may
earn the Additional Interest (and increase its Joint Venture Interest to 80%) by sole funding a
further A$7,000,000 plus GST on exploration expenditure within a further 5-year period.
Fortescue will not be entitled to the Additional Interest if it does not sole fund this amount
during the relevant period or elects to discontinue.
On 26 May 2022 Fortescue gave notice to Tasman that it has elected to earn the Additional
Interest subject to the terms of the Lake Torrens FJVA. Subject to the terms of the Lake Torrens
FJVA, Fortescue will continue as the manager during the future operation of the Joint Venture.
Fortescue’s current drilling program at Vulcan South is ongoing. Tasman will provide a market
update when Fortescue provides further information.