25/06/2009 - 11:34

Hong Kong firm buys $17m Brockman shares

25/06/2009 - 11:34

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A Hong Kong-based investment group has spent more than $17 million buying shares in Brockman Resources in a move the iron ore hopeful said is a positive reflection of the company.

Hong Kong firm buys $17m Brockman shares

A Hong Kong-based investment group has spent more than $17 million buying shares in Brockman Resources in a move the iron ore hopeful said is a positive reflection of the company.

Wah Nam International Holdings, through subsidiary Race Master, first came onto the Brockman radar earlier this week when it lodged a notice to the stock market that it had acquired a 5.89 per cent holding.

The investment group has spent more than $8.3 million since February this year building up its initial major shareholding in Brockman.

However last night, Wah Nam notified the stock market that it had increased its holding to 11.326 per cent after buying a further $9 million worth of shares at around $1.23 a share.

Shares in Brockman last traded at $1.27 at 13:05 AEST, up three cents.

In a statement today, Brockman said it has met with Wah Nam during marketing visits to China over the past year and "understands its investments is based on a positive view of the potential of Brockman and the Marillana iron ore project".

Brockman is currently completing a prefeasibility study on Marillana, located in the Pilbara, based on a 15-25 million tonne a year operation with a forecast mine life of more than 25 years.

The project has a total resource of 1.4 billion tonnes.

 

 

The announcement is below:

 

 


Brockman Resources Limited (ASX Code: BRM) notes the recent acquisition by Hong Kong-based investment group Wah Nam International Holdings Limited of an 11.3% interest in the Company.

Wah Nam lodged a substantial shareholder notice on 23 June 2009 disclosing a 5.9% interest which it acquired through on-market purchases. Yesterday (24 June), Wah Nam lodged a notice indicating that it had increased its interest to 11.3% through additional on-market purchases.

Brockman has meet with representatives of Wah Nam during marketing visits to China over the past year and understands that its investment is based on its positive view of the potential of Brockman and the Marillana Iron Ore Project.

Brockman's Managing Director, Wayne Richards, said Brockman acknowledges Wah Nam's interest in the Company, which is reflective of growing investor support and interest in the emerging Marillana Project as the foundation for a robust, long-term iron ore business.

Brockman is in a unique position in the Australian junior iron ore sector with a world-class JORC compliant resource of 1.4 billion tonnes (incorporating 605 million tonnes of Indicated Resources and 787 million tonnes of Inferred Resources), uncommitted cash reserves of $100 million and close proximity to existing rail, road and port infrastructure.

The Company is currently completing its Pre-Feasibility Study for the Marillana Project, comprising a 15-25Mtpa mining operation with a forecast mine life of greater than 25 years. The development will provide for production of two high-grade iron ore products, with both channel iron deposit (CID) and beneficiated hematite ores being mined and exported.

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