Brockman Resources and FerrAus have refuted claims they are embroiled in merger discussions.
Brockman and FerrAus are both in separate negotiations for rail deals with larger Pilbara players, including BHP Billiton and Fortescue Metals, so they can transport future ore output to port.
Outgoing FerrAus chief executive Bryan Oliver told reporters at a meeting of shareholders yesterday that a tie-up could be a logical move, but working out valuations would be tricky.
"One of the difficulties always comes with the stage of development ... the market cap ... which may not necessarily reflect the underlying intrinsic value until you get through the de-risking," Mr Oliver said.
"At some stage, I'd expect that we'll move closer together (valuation-wise) and if you get to a point where each party can put up a proposition that's of interest to the shareholders, then is probably the time we will see some movement."
But today Brockman announced in a statement to the ASX that it was not currently in merger discussions with FerrAus, and the firm remained focused on delivering its Marillana project.
FerrAus also issued a statement this morning to clarify that merger discussions had not been entered into.
Brockman did say, however, that negotiations with Fortescue Metals Group over a port and rail agreement were progressing well.
"We believe that this stands to be a company-transforming agreement which will provide the earliest opportunity to bring Marillana into production," Brockman's statement said.
