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History
Flinders' initial and flagship project is the Springfield
Diamond Project, located in the Southern Flinders Ranges, where 369 diamonds
have been located to date. The current mineral rights to the project were
obtained by the Initial Licence Holders (ILH) in 1992. The ILH consists
of Mr James Allender, Mr Anthony Le Brun and Inca Resources Pty Ltd. After
carrying out exploration between 1992 and 1997, the ILH farmed the project
out to Tiger International Resources Inc (Tiger) in February 1998. Tiger
is a Canadian company listed on the CDNX. In 1998, the President of Tiger,
Mr Patric Barry, engaged Dr Kevin Wills to manage Tiger's diamond exploration
activities in Australia. Between February 1998 and December 1999, Tiger
carried out an exploration program on the Springfield Project, and while
spending about $1.3 million, located further diamonds and exploration targets.
In early 2000, due to difficulties in raising funds in Canada, Tiger decided
to sell its interests in the Springfield Project to Flinders for vendor
shares.
After the Springfield Project was secured Flinders set
about adding additional projects to its portfolio, with the intention of
organising an IPO. Mineral rights to the Adelaide Hills and G2 projects
were obtained by direct application for Exploration Licences and by entering
a joint venture with AKD Limited and Statelink Holdings Pty Ltd on EL 2585.
The Strangways Project in the Northern Territory was introduced to Flinders
by Mr Alistair Mackie of Tennant Creek Gold (NT) Pty Ltd. This project
was also acquired by a combination of direct application and purchases
for vendor shares.
Flinders' Skeleton Flat Project in Western Australia
is a joint venture between Flinders and the vendors Mr John Towie and Mr
Leslie Field. This and other agreements were described in the Material
Contracts, Section 4, of Flinders' Prospectus. Flinders has also been granted
an additional Exploration Licence at Tom Hill near Leigh Creek and has
negotiated with the owners of the Leigh Creek Mining Leases, NRG Flinders,
to carry out a diamond exploration program at Leigh Creek.
Flinders Diamonds developed a plan to create a small
diamond marketing division and Mr Peter Taylor became a Director in order
to manage diamond marketing. Flinders IPO opened on 30 July 2001 but the
events of 11 September 2001 caused a decline in share applications. This
created a necessity to extend the duration of the IPO with supplementary
prospectuses that were issued on 21 November and 18 December 2001. During
these months, Mr Peter Taylor and Mr Patric Barry resigned as Directors
for personal reasons. Flinders was fortunate to be able to welcome Mr Bob
Kennedy to the Board on 10 December 2001, and soon after he was elected
Chairman. Following an improvement in the exploration floats market caused
by the announcement of Minotaur Resources Limited's Prominent Hill copper-gold
discovery on 14 November, interest in Flinders IPO increased and the issue
closed above the minimum subscription on 8 February 2002 with $3.35 million
raised. The company listed on the Australian Stock Exchange on 20 February
2002.
Following listing, the company set about establishing
and equipping a modest exploration base in Adelaide at 20 Boskenna Avenue,
Norwood. A highly-motivated and competent exploration team has been assembled.
Field work on the Springfield Project commenced
on 21 March - 1 month after listing. Preparation for target drilling at
five of Flinders six projects is underway.
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