Flinders Mines Ltd (ASX: FMS), which has announced plans for delisting the company, has written to minor shareholders on the sale of unmarketable parcels.
The rich Todd family from New Zealand took control of the company after an aggressive takeover bid last year, which saw a lift in the share price and fresh capital brought into the struggling company that holds the Pilbara Iron Ore Project (PIOP) in Western Australia’s Pilbara hinterland.
There was dissention from some minority shareholders at the recent annual general meeting, claiming a lack of disclosure but they were told – as reported in recent company reports – that a lot of capital and technical work was still required to produce an iron ore project of significant grade.
In the letter sent to shareholders, chairman Neil Warburton said that the price from the Todd family linked largest shareholder TIO (NZ) Ltd to holders of unmarketable parcels would be $A0.075 per share, equal to the 30 day volume weighted average price of shares sold on the Australian Securities Exchange (ASX).
Warburton said Flinders will be all expenses (excluding tax consequences) and there will be no brokerage charge on unmarketable parcels.
The last day to receive share retention forms will be January 29 and proceeds would transfer on or about January 31 through to February 13.