07/01/2009 - 15:19

Brockman appoints UBS as advisor

07/01/2009 - 15:19

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Iron ore hopeful Brockman Resources has appointed UBS Investment Bank as its corporate advisor to help capitalise on the current global market conditions and assess business opportunities.

Iron ore hopeful Brockman Resources has appointed UBS Investment Bank as its corporate advisor to help capitalise on the current global market conditions and assess business opportunities.

 

The announcement is below:

 

Western Australian Iron Ore Company, Brockman Resources Limited (ASX Code: BRM), is pleased to announce the appointment of UBS Investment Bank as the Company's strategic corporate advisor.

UBS is one of the world's leading financial firms, with a presence in all major financial centres worldwide and offices in over 50 countries.

UBS has an investment banking office in Perth, Western Australia. The appointment of UBS will assist Brockman in positioning the Company to capitalise on the current global market conditions and assess any strategic business opportunities, while at the same time progressing the development of its core asset, the Marillana Stage 2 Iron Ore Project.

Brockman's engagement of UBS follows several months of due diligence to ensure that both companies had an optimal strategic fit and corporate alignment.

During the coming months the Brockman and UBS teams will work together to develop a strategic program to optimise Brockman's long-term value for the Company's shareholders.

Brockman is in a unique position in the Australian junior iron ore sector with a world-class JORC compliant resource of 1.6 billion tonnes, uncommitted cash reserves of $103 million and close proximity to existing rail, road and port infrastructure.

Managing Director of Brockman, Mr Wayne Richards, said: "This appointment establishes a key strategic alliance for Brockman with a global investment bank which has the capacity to assist the Company with both the Marillana Project and the Company's broader strategic corporate development. The team at UBS is extremely professional, diligent and very highly regarded, and we look forward to their ongoing strategic input and support".

At a time of volatile international capital markets and low commodity prices, prudent management of our strong uncommitted cash position remains a priority for the Brockman board. The board is determined to strike the appropriate balance between advancing the Marillana Project to a development decision whilst preserving our cash position.

The appointment of UBS additionally provides Brockman with the opportunity to diligently review alternate strategic corporate opportunities. Brockman recently announced the appointment of Ausenco to complete its Stage 2 Pre-Feasibility Study for the Marillana Project. Stage 2 comprises a 15 - 25Mtpa mining operation with a forecast mine life of up to 40 years.

The development will provide for production of two high-grade iron ore products, with both channel iron deposit (CID) and beneficiated haematite ores being mined and exported. Brockman is also a founding member of the North West Iron Ore Alliance (NWIOA) which is currently completing a Scoping Study on the development of two "inner harbour" berths and associated ore handling facilities at Port Hedland.

 

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