Strategic Partners

FYI Resources has the capabilities and resources to undertake a major strategic mineral project, including the exploration, development, operational and marketing phases.

FYI has formed strategic partnerships with key technical, financial, operating and marketing organisations that have complimentary and compatible businesses and whom are aligned to FYI’s development strategy.

The project partners were selected on the basis of their provision and excellence of service and strong core values. The benefits in the alliances are based on a strong relationship, reliability and dependability in achieving a common goal of developing first class resource projects.

Equity Funding Facility with GEM

A strategic project development equity financing facility (‘Equity Commitment’) of up to A$80m has been entered onto between FYI and Luxembourg based private equity group, GEM Global Yield LLC SCS (GEM). The funding provides FYI with capital support for the Company’s development of its HPA project, particularly at key funding requirement stages.

GEM was founded in 1991 and is a USD $3.4 billion alternative investment group that manages a diverse set of investment vehicles focused on emerging markets across the world. GEM has completed over 370 transactions in 70 countries. GEM is focused on emerging markets and undervalued or growth opportunities. The Equity Commitment reflects GEM’s strong conviction in the robust project metrics of FYI’s long life, high quality, high margin HPA project.

The Equity Commitment is primarily directed towards the capital requirements of the HPA project and provides up to 30% of FYI ’s forecasted project capital costs of US$189m as outlined in the DFS.

 The funding also could potentially represent 100% of the equity component required (if the Equity Commitment were to be fully drawn down).

The Company has been actively pursuing a number of financing options, including offtake and project finance, to assemble a syndicated financing solution for the total capital requirements of its HPA project; Therefore it is envisaged that with this Equity Commitment secured, other components of the overall financing needs of the Company will be more accessible.

The Equity Commitment Agreement is a staged facility, at FYI’s election, and will enable an accelerated project development schedule. As this facility is not intended to be an on-going working capital facility. It will not preclude FYI from undertaking capital raisings through its shareholders or other investors.

The FYI Board believe the GEM funding facility will be positive and a transformative step for the Company.