Dont forget FEL...!!! ASX Announcement, 14 May 2021.Mining...

Dont forget FEL...!!! ASX Announcement, 14 May 2021.

Mining Rights Agreement Amendments

The Company and GWR, have agreed a number of amendments to the JWD Mining Rights Agreement. One of the key elements of the changes has been to adjust the methodology by which royalty and rehabilitation obligations are funded, thereby assisting FEL’s working capital during ramp up. FEL has agreed to guarantee its subsidiary company’s obligations to GWR as part of these changes.The other key change is to extend the timeframe by which FEL has to extract the first 300,000 tonnes of ore (from October 2021 to January 2022), providing additional operational flexibility to FEL. As a consideration for GWR agreeing to the changes FEL will make a payment of $125,000 in cash, increase the royalty it pays by A$1 per tonne when the headline iron ore price is above US$145 and grant GWR an option to purchase up to 50,000 tonnes of JWD fines material from the mine gate at estimated cost plus A$10.