Ann: Variation to General Manager contract, page-33

Don't be like that Spekulator. They have to summarise:

Over the last year or so the FMS board:
- endorsed and encouraged shareholders to approve a company making JV back in March 2020 with an unlisted company, BBIG, which is majority owned by the No 1 shareholder in Flinders Mines.
- As part of this JV the Board advised FMS shareholders it was more beneficial to initiate a framework to possibly later transfer our most valuable asset, the PIOP from a listed entity, in to an unlisted entity that could potentially be used by the JV partner to secure finance to build the rail, port and mine. But please note, although the PIOP could be used as collateral to secure finance to build a port and rail line, FMS will have no proportional ownership of this port and rail and FMS will be charged several fees to use this port and rail service. (I see the BBIG infrastructure service as similar to a Courier / Uber driver, we should pay a fee for transport but we should not take out a loan to pay for the purchase of their van, van registration and insurance also).
- The Board advised it was necessary to have a significant 25:1 shares on issue reconciliation to increase liquidity and attract investors, however sadly liquidity appears to have decreased whilst new daily iron ore price records are achieved and other iron ore companies who moved to production are paying very significant dividends.
- Paid themselves handsome success fees for the signing of the JV in March 2020, however in Dec 2020 with the ink still wet on the signed contract, the JV proponent proposed a transfer of the state agreement and associated opportunity to build a rail and port to FMS because apparently it is more beneficial to get funding if all three components (mine, rail, port) are in one consolidated listed entity for $1. However the JV proponent wanted a 5% royalty for the product shipped, even though a royalty is generally paid to the owner of the ore, not the UBER driver. This royalty at current iron ore prices would be worth several hundred million dollars per annum.
- The Board has been given this proposed alternative company structure back in December 2020 but they are still assessing this proposal over several months again to ensure the appropriate checks and balances are in place and that they negotiate a great deal for all shareholders again.

PS When talking about checks and balances the Board stated they negotiated for the JV, they should have negotiated a "lack of progress fee" for requesting a time extension to the state agreement and there should have been claw back provisions for the success fees bonus.