Brockman Resources and Wah Nam International say the timely development of the Marillana iron ore project is top priority following the conclusion of Wah Nam's $900 million plus takeover offer.
Brockman Resources and Wah Nam International say the timely development of the Marillana iron ore project is top priority following the conclusion of Wah Nam's $900 million plus takeover offer.
Brockman released a statement today which said business was proceeding as normal for the company, after Wah Nam emerged as its majority shareholder with a 53.33 per cent interest.
In the same statement, Wah Nam reiterated its support for Brockman's current strategy.
Brockman hopes the Marillana project will produce 426 million tonnes of direct shipping hematite ore.
Wah Nam said it intended to provide all the capability at its disposal to support the Brockman board in its "successful and timely development" of the Marillana project.
A scoping study last year indicated a value for the project ranging from $876 million to $1 billion based on a 10 million tonne per annum production rate.
Brockman is now attempting to secure finance for the project, with construction at the site slated for early next year.
The two groups also announced two new non-executive directors to the Brockman board.
The existing Brockman board will remain in place, with former partner of Ernst & Young's Hong Kong predecessor firm Warren Beckwith and Wah Nam chief investment officer Hendrianto Tee joining it as representatives of Wah Nam.
Brockman chairman Barry Cusack said he was pleased to provide certainty for shareholders with the conclusion of Wah Nam's offer.
"We have held detailed discussions with Wah Nam in recent times regarding strategy, governance and operational matters and there is a shared commitment and determination to work together to realise the enormous value from the Marillana project for the benefit of shareholders," Mr Cusack said.
Brockman managing director Wayne Richards said the company would continue to advance the project through to a proposed final investment decision by the end of the year.
During the takeover period that closed on June 15, Wah Nam offered 30 of its own shares for each Brockman share held, valuing the target at $932.2 million.
Wah Nam chairman Peter Luk said he was pleased the takeover offer was behind the two companies.
Mr Luk said Wah Nam believed the consolidation of iron ore projects in the Pilbara, and its continuing evaluation of other opportunities, would be a positive next step in group development.
At 1450 AEST, Brockman was up 13 cents at $3.63, while Wan Nam's Australian listed shares were steady at 11 cents.
