Draft IER.

Have had a quiet read of the full documents for the EGM and thought a number of items outlined were of interest. When I have time I will dissect and post more but for tonight I thought it of note that the first draft IER was sent back to FMS and Todd etc with a “not fair but reasonable” call. No wonder this thing took so long to see the light of day. So to get it across the line they tossed in an extra “maybe” $5m pa on the DFS work. They still are not obliged to spend $60m on the DFS and FMS (McAdam) own suggestion has been $40 - $50m will cover it. Many speculate it may cost significantly less given the substantial work done to date and paid for by FMS shareholders. As stated previously there is nothing in this agreement to stipulate a minimum spend on the DFS by BBIG so if they can do it for $15m and make a FID then FMS are obliged to vote for the project. So I have 2 initial issues ;

1. BBIG should have to pay the full amount of $15m each and every year no matter what. They are after all getting a valuable right/option as outlined by the IER. So our Directors should ensure we get full payment.

2. Why was it not highlighted that this initial view was provided ? Guess how many pages into the booklet before you find out ? 148 pages !! Given that the IER was only changed on the basis of effectively a promise to spend some more money - would it be reasonable and fair to assume that if the full amount is not spent or provided to FMS then the offer is once again not fair. Without that guaranteed spending and/or receipt by FMS I don’t believe the Independent Directors should be even allowing this offer to be voted upon.

it was also disclosed by the IER (page 148 also) that we only got the scoping study released on ASX recently due to ASX/ASIC intervention. Knowing that, now go back and read the bottom paragraph of page 1 of the ASX release of January 7th 2020. Interesting hey.

IMO this deal still looks like a dog with fleas and when they can correctly provide a control number I can vote against it.

Will try and highlight more issues when I get some time, but everyone should do your own research and read/understand the agreement and the dangers it contains. A quick read of the history of Gindalbie (gbg) would be helpful to many on how things can go wrong when your J/v partner has control of the cheque book and operations. Trust in our proposed j/v partner is essential.