Brockman Resources has replaced most of its board of directors in the wake of Hong Kong investment house Wah Nam International taking a controlling stake in the iron ore junior.
The board changes will allow Brockman to pursue funding for the next phases of development at its Marillana project near Newman, including feasibility studies, project strategies and ultimately a final investment decision, the Perth-based miner said in a statement today.
Chairman Barry Cusack, managing director Wayne Richards and non-executive directors Ross Ashton and David Nixon all resigned, to be replaced by Wah Nam chairman Peter Luk as chairman; and Hancock Prospecting director Richard Wright and mining engineer Robert Brierley as non-executive directors.
Brockman said it would also immediately begin the search for a permanent chief executive to succeed incumbent boss Colin Paterson.
“The company also intends to appoint additional non-executive directors at the earliest possible opportunity with the aim of having a majority of independent non-executive directors,” Brockman said in a statement.
Wah Nam took a 53.33 per cent stake in Brockman in June, when its $900 million plus takeover offer concluded.
Brockman said it remains focused on developing the Marillana project, which it hopes will produce 426 million tonnes of direct shipping hematite iron ore.
Brockman said it was currently in advanced discussions with FMG regarding the use of port and rail infrastructure to transport ore from Marillana, and has thrown open the door to the possibility of developing the project in a joint venture.
“The company is now entering a critical new phase of its development in which financing becomes a priority, possibly with a joint venture partner taking a minority share in the project,” Brockman’s statement said.
At 10:00AM (WST) Brockman’s stock had gained 0.7 per cent, to trade at $2.78.
Brockman's full announcement is below:
ASX Release
19 September 2011
BOARD AND MANAGEMENT CHANGES TO DRIVE NEXT PHASE OF COMPANY’S DEVELOPMENT
Brockman Resources Limited (Brockman or the Company) announces a number of changes to its Board and management.
- Barry Cusack has resigned as Chairman of the Brockman Board and Peter Luk has been appointed a Non-Executive Director and Chairman of the Board.
- Ross Ashton and David Nixon have also resigned as Non-Executive Directors.
- Richard (Dick) Wright and Robert Brierley have been appointed as Non-Executive Directors of Brockman to fill the casual vacancies.
- Wayne Richards has resigned as Managing Director of Brockman on mutually agreed terms.
- Colin Paterson, previously General Manager – Exploration and Resource Development and a founding Executive Director of Brockman, has been appointed Interim Chief Executive Officer. He will continue as an Executive Director of the Company.
In addition to Colin Paterson, the Directors continuing in office are Ross Norgard (Joint Deputy Non- Executive Chairman), Warren Beckwith (Joint Deputy Non-Executive Chairman) and Hendrianto Tee (Non-Executive Directors).
The Board wishes to acknowledge the contribution of the outgoing members of the Board, and in particular it recognizes the commitment and dedication exercised by Wayne Richards during his time with the Company in advancing the Marillana Project.
Brockman will immediately commence an executive search for a permanent Chief Executive Officer. The Company also intends to appoint additional Non-Executive Directors at the earliest possible opportunity with the aim of having a majority of Independent Non-Executive Directors in accordance with the Company’s existing Corporate Governance Policy.
The new Board appointees bring a wealth and diversity of experience in project management, construction and iron ore operations in the Pilbara as well as corporate and financing expertise.
New phase in Brockman’s Development
The Board wishes to reiterate its commitment to the successful and timely development of the Marillana Project, including advancing current discussions with FMG for a rail and port solution. The Company is now entering a critical new phase of its development in which financing the Marillana project becomes a priority, possibly with a joint venture partner taking a minority share in the project. The new Board appointees have the skills and networks, along with continuing Directors and the Brockman executive team, to successfully implement the new project phase, including completion of the Bankable Feasibility Study (BFS), development of the Project Execution Strategy and EPC contract, Final Investment Decision (FID) and project funding.
The Board believes that the new Board members will enhance the Company’s ability to deliver optimum outcomes during this critical new phase. Between them, Dick Wright (formerly Managing
Director of Fluor Daniel Australia) and Rob Brierley (formerly a Yandi iron ore project Registered Mine Manager) have strong Australian mining industry experience, including the delivery and management of important new iron ore projects. Peter Luk is an experienced investment banker with extensive experience in financial markets in Hong Kong and the USA.
Welcome to the New Board Members
Colin Paterson, Brockman’s Chief Executive Officer, said “I welcome the appointment of the new Board members and am confident that their skills and experience, particularly in project finance, will enhance our internal capabilities and prove invaluable as we continue to advance the Marillana Project.”
Peter Luk, Chairman, said “I am very pleased to join the Brockman team and I am delighted to have been able to assemble such a strong Board team to drive this critical phase for the Company. I have the utmost confidence in achieving expeditious development of Marillana under the guidance of the high-quality and dedicated project team headed by Paul Bartlett.”
Founding Chairman and current Joint Deputy Chairman, Ross Norgard stated “The Board welcomes the experience of Peter Luk, Dick Wright and Rob Brierley in the finance, development, and
construction stage, which will be critical as Marillana advances. It is a new stage, in which we are looking forward to completion of a rail and port infrastructure solution and the financing of the Project. I expect the new appointments will strengthen relationships with the majority shareholder and facilitate working with them on project funding options.” Mr Norgard also extended his gratitude and appreciation for all the hard work and contributions made by Wayne Richards, Barry Cusack, Ross Ashton and David Nixon.
Background of New Board Members
- Luk Kin Peter Joseph
Peter Luk has been the Chairman of Wah Nam international Holdings Limited, a company listed on both the Hong Kong Stock Exchange (HKEx) and the Australian Stock Exchange, since February, 2009. Peter holds a Master Degree in Business Administration and the professional qualification of Chartered Financial Analyst. Peter has worked in several international financial institutions in the United States of America and Hong Kong and he is well-experienced in international financial and investment management. He also has extensive experience in the mining industry, including being the past Executive Director and CEO of China Mining Limited, a HKEx listed company with operating mines in China. - Richard (Dick) Melville Wright
Dick Wright has held numerous directorships in private and publicly listed companies in Australia, Europe and the United States of America. He has significant expertise in the development of strategy, implementation and delivery of multi-billion dollar resource projects. Dick commenced his career in Broken Hill with CRA and graduated from the University of NSW as a Mechanical Engineer. At CRA, he was engaged on expansion projects at Hamersley Iron, Comalco and Bougainville Copper involving engineering, construction, procurement, construction and start up. After a period as Managing Director of Johns Perry UIE, a major contractor for the fabrication of the process modules for the North Rankin A offshore platform, he returned to Rio Tinto and undertook major feasibility studies for iron ore developments in the Pilbara. Dick was appointed Managing Director Australia of Fluor Daniel providing engineering, procurement and construction management and maintenance services for mining, oil and gas and industrial plant and infrastructure. After working for Fluor in the USA, he was appointed Executive Chairman of Adrail for the construction of the Darwin to Alice Springs Railway and after the completion of the railway project he took the position of Executive Chairman of Novacoat Holding Limited, now Decmil Group Limited, an ASX-listed company. Recently, Dick was engaged by Hancock Prospecting Pty Ltd as Director, Roy Hill and Central Pilbara iron ore projects, to undertake the prefeasibility and bankable feasibility studies.
- Robert Brierley
Rob is a Mining Engineer with senior executive management and major project and mine management experience. He has multi-commodity experience in several geographical regions with particular emphasis on iron ore, having been Mine Superintendent, Production Superintendent and ultimately Registered Mine Manager at the Yandi iron ore mine in the Pilbara region of WA during its growth from a 5mtpa to 15mtpa operation, presently producing around 50mtpa of iron ore. Rob has also spent eight years in the stockbroking industry, most of which was spent in the role of Head of Equities Research for an Australian national stockbroking firm. He is currently Chairman of ASX-listed BrazIron Limited, an iron ore company operating in Brazil, and Managing Director of Alchemy Resources Limited, a Western Australian based gold and copper exploration company. Rob is a graduate of the Western Australian School of Mines, Curtin University, and holds a Graduate Diploma in Applied Finance and Investment, Financial and Securities Institute of Australia. He is also a Graduate of the Australian Institute of Company Directors.
