Announcement re board changeover
ASX RELEASE - 24 DECEMBER 2015
NULLAGINE JOINT VENTURE - COMMENCEMENT OF LITIGATION AGAINST WATPAC
BC Iron Limited (ASX:BCI) advises that on behalf of the Nullagine Joint Venture ("NJV") partners, it today commenced legal proceedings against its former mining services contractor Watpac Civil & Mining Pty Ltd ("Watpac"). The NJV is an unincorporated 75:25 joint venture with FMG Pilbara Pty Ltd (a wholly owned subsidiary of Fortescue Metals Group Limited).
As announced on 22 December 2015, the NJV and Watpac are in dispute in relation to matters arising under the mining services contract between Watpac and BC Iron Nullagine Pty Ltd (in its capacity as manager of the NJV) ("BCIN").
Today, BCIN (in its capacity as manager of the NJV) filed a writ of summons and statement of claim in the Supreme Court of Western Australia against Watpac seeking the recovery of damages and those documents are being served on Watpac. BCIN considers that during numerous periods of the term of the mining services contract, Watpac failed to comply with its primary contractual obligations owed to BCIN as manager of the NJV causing damage to BCIN.
The Company will continue to keep the market informed of further developments in respect of these matters.
- ENDS -
FOR FURTHER INFORMATION: MEDIA ENQUIRIES:
TONY KIERNAN / MORGAN BALL DAVID TASKER / TONY DAWE
CHAIRMAN / MANAGING DIRECTOR PROFESSIONAL PUBLIC RELATIONS
BC IRON LIMITED TELEPHONE: +61 8 9388 0944
TELEPHONE: +61 8 6311 3400
ABOUT BC IRON LIMITED
BC Iron is an iron ore mining and development company with assets in the Pilbara region of Western Australia, including the Nullagine Joint Venture ("NJV"), Iron Valley and Buckland. BC Iron is listed on the ASX under the code 'BCI'.
The NJV is an unincorporated 75:25 joint venture with Fortescue Metals Group Limited ("Fortescue"), which commenced exports in February 2011. The NJV has the capacity to rail and export up to 6Mtpa of ore on Fortescue's infrastructure. Direct shipping ore operations at the NJV are currently being suspended due to market conditions, with the potential for an ongoing low grade operation being assessed.
Iron Valley is a mine located in the Central Pilbara that is operated by Mineral Resources Limited ("MIN") under an iron ore sale agreement. MIN operates the mine at its cost and purchases Iron Valley product from BC Iron at a price linked to MIN's realised sale price. MIN is currently evaluating a range of initiatives that have the potential to improve the long term viability of Iron Valley and its value to both parties.
Buckland is a development project located in the West Pilbara region. It has Ore Reserves of 134.3 Mt at 57.6% Fe, a completed and announced feasibility study, its own proposed infrastructure solution comprising a haul road and transhipment port at Cape Preston East, and all primary tenure and licences secured. BC Iron is currently evaluating all options to determine the optimal development and financing path for Buckland.
BC Iron also has an interest in a number of other exploration stage projects in the Pilbara and potential royalties over the Koodaideri South and North Marillana tenements.
KEY STATISTICS
Shares on issue:
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196.2 million
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Cash and cash equivalents:
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A$71.8 million
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as at 30 September 2015
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Board:
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Tony Kiernan Morgan Ball Martin Bryant Andy Haslam Brian O'Donnell
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Chairman and Non-Executive Director Managing Director
Non-Executive Director Non-Executive Director Non-Executive Director
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Hayley McNamara
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Company Secretary
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Major shareholders:
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Wroxby Pty Ltd
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19.0%
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Website: www.bciron.com.au