04/12/2007 - 14:17

Brockman raises $8m for iron ore project

04/12/2007 - 14:17

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Subiaco-based mineral explorer Brockman Resources Ltd has raised $8.14 million via the placement of 7,750,000 shares at $1.05 per share, predominantly to domestic and international financial institutions.

Subiaco-based mineral explorer Brockman Resources Ltd has raised $8.14 million via the placement of 7,750,000 shares at $1.05 per share, predominantly to domestic and international financial institutions.

The proceeds of the placement will be utilised for the ongoing development of the company's 100 per cent owned Marillana Iron Ore Project, located in the Pilbara region of Western Australia.

The company intends to use funds to accelerate drilling and exploration at Marillana in order to achieve its previously announced growth objectives, completion of the Scoping Study and commencement of a Pre-Feasibility Study, and detailed exploration of other iron ore tenements within Brockman's portfolio.

Patersons Securities Limited (acting as Lead Manager) undertook the share placement, which is to be made pursuant to the "excluded offer" provisions of the Corporations Act, 2001.

Brockman managing director Wayne Richards said the calibre of the institutions which participated in the share placement providing a strong indication of the level of support for the Marillana Iron Ore Project and the company's business strategy.

Brockman Resources recently announced an initial JORC compliant Indicated Mineral Resource of 43.5 million tonnes at 57.6 per cent Fe (63 per cent calcined Fe grade) for the North-West Sector at Marillana.

Drilling is continuing to increase this resource inventory and test other exploration prospects within its portfolio.

This announcement is that referred to on 28 November 2007 by the company as the reason for a trading halt in its securities and subsequent suspension.

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