Brockman
Resources Limited (ASX: BRM)
BROCKMAN COMPLETES A$112.5M RAISING TO UNDERPIN EARLY PRODUCTION PUSH
4
Shareholder approval
received for second tranche of combined A$112.5 million capital raising,
comprising 45M fully paid shares at A$2.50 per share.
4
Placement well
supported, closing heavily oversubscribed and introducing several new
Australian and International institutions to Brockman?s register.
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Funds will be used to
underpin accelerated development at Brockman?s 100%-owned Marillana Project to
achieve first ore production in late 2009.
Western
Australian iron ore company, Brockman Resources Limited (ASX Code:
BRM), has achieved a significant milestone in its strategy of targeting
first iron ore production by late next year after today receiving shareholder
approval for its recently announced A$112.5 million capital raising.
Shareholders
in the Perth-based Company today approved the second tranche of the recently
announced placement, comprising 32.6 million shares at A$2.50 to raise A$81.5
million, to international and domestic institutional and sophisticated
investors, as well as ratifying the first tranche of the placement, comprising
12.4 million shares at A$2.50 to raise A$31.0 million.
The first
tranche of the placement was completed on 12 June 2008 under the Company?s 15%
placement capacity and in accordance with ASX Listing Rules. Australian
stockbroking firm Patersons Securities Limited acted as lead manager to the
placement.
The
substantial raising will be used accelerate the development of Brockman?s
flagship Marillana Iron Ore Project, located 100km north of Newman in Western
Australia, to achieve first ore production through a 2 million tonne per annum
(Mtpa) mining and trucking operation commencing in late 2009. The funds
will also be utilised to develop exploration programs for several of the other
100%-owned tenements within the Company?s portfolio.
?This is a
significant milestone in the Company?s history, marking the culmination of our
efforts over the past year to establish the Marillana Project as the core of a
long-term iron ore business for Brockman,? said the Company?s Managing
Director, Mr Wayne Richards.
?We are
delighted to welcome a number of new major long-term institutional and
strategic investors to Brockman?s share register, resulting in a significant
expansion of our investor base,? Mr Richards commented. ?The second tranche of
this capital raising completes the funding required by Brockman to fast-track
our production plans at Marillana to take advantage of strong iron ore prices.
?The recently
announced iron ore price settlements of up to 95% for 2008 has reinforced the
very favourable market environment for the development of new iron ore projects
in the Pilbara region,? he said. ?We believe that Marillana, together with our
portfolio of other projects, has the potential to re-rate Brockman in the
months and years ahead as we deliver on our production strategy.?
In March 2008,
Brockman announced a major upgrade in the JORC Code Compliant Mineral
Resource estimate for the Marillana Project to 1.1 billion tonnes.
The expanded Indicated and Inferred Mineral Resource estimate encompasses an
Indicated Resource of 47.2Mt @ 57.6% Fe of Channel Iron Deposit (CID)
mineralisation, an Inferred Resource of 9.0Mt @ 56.5% Fe of CID and detrital
mineralisation, an Indicated Resource of 291Mt @ 43.9% Fe of CID and detrital
beneficiation feed mineralisation and Inferred Resource of 771Mt @ 44.3% Fe of
CID and detrital beneficiation feed mineralisation.
Brockman
recently announced positive metallurgical results confirming improved
beneficiation recoveries of the detrital ore mineralisation. With an increase
in recoveries of greater than 25%, (i.e. from 47% - 59% - post beneficiation)
the Marillana Project now has the potential for +680 Mt of DSO and
beneficiated haematite ore available for marketing.
Brockman also
completed a positive Scoping Study for the Marillana Project in April which
indicated a potential A$1 billion Net Present Value (NPV) for a 10Mtpa
project development. The Scoping Study was commissioned prior to the
recent resource upgrade, and was based on the previously announced conceptual
exploration target of 100 million tonnes of Direct Shipping Ore.
The Marillana
Project is located 100km north of Newman between the Hamersley
Ranges and Fortescue
River Valley
in Western Australia?s
world-class Pilbara iron ore region. The tenements surrounding the
Marillana licence area, E 47/1408, are held by high-profile iron ore producers
and developers Rio Tinto, BHP Billiton, Hancock Mining and Fortescue Metals
Group.
- ENDS -
Released by:
On behalf of:
Nicholas
Read / Kate
Bell
Mr Wayne Richards
Read
Corporate
Managing Director
Telephone: (+61-8) 9388
1474
Brockman Resources Limited
Telephone: (08) 9388-0866
This announcement is not an offer of securities for sale in the United
States. The securities referred to in this
announcement have not been, and will not be, registered under the US
Securities Act of 1933 and may not be offered or sold in the US
in the absence of registration or an applicable exemption from the registration
requirements.
References to
Exploration/Production targets and Potential
Brockman has not yet reported any
ore reserves from its Marillana Project. While the Company remains
optimistic it will report reserves in the future, any discussion in relation to
production targets is only conceptual in nature as there has been insufficient
work to define a Mineral Reserve and it is uncertain if further work will
result in the determination of a Mineral Reserve.
Competent Person?s Statement
The information in this report
that relates to Mineral Resources is based on information compiled by Mr M
Nimmo and Mr A Zhang.
Mr M Nimmo, who is a Member of
the Australasian Institute of Geoscientists and a full-time employee of Snowden
Mining Industry Consultants Pty Ltd produced the Mineral Resource estimate
based on the data and geological interpretations provided by Brockman. Mr
Nimmo has sufficient experience that is relevant to the style of
mineralisation, type of deposit under consideration and to the activity that he
is undertaking to qualify as a Competent Person as defined in the 2004 edition
of the ?Australasian Code for Reporting of Exploration, Results, Mineral
Resource and Ore Reserves. Mr Nimmo consents to the inclusion in this
report of the matters based on his information in the form and context that the
information appears.
Mr A Zhang, who is a Member of
the Australasian Institute of Mining and Metallurgy and a full-time employee of
Brockman Resources Ltd provided the geological interpretations and the
drillhole data used for the Mineral Resource estimation. Mr Zhang has
sufficient experience that is relevant to the style of mineralisation, type of
deposit under consideration and to the activity that he is undertaking to
qualify as a Competent Person as defined in the 2004 edition of the
?Australasian Code for Reporting of Exploration, Results, Mineral Resource and
Ore Reserves. Mr Zhang consents to the inclusion in this report of the
matters based on his information in the form and context that the information
appears.
READ CORPORATE
Public Relations
Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8)
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