Posted in | News | Iron Ore

Brockman Resources Knocks Back Chinese Offer

By Joel ScanlonNov 17 2010

Brockman Resources has decided to reject the offer made by the Chinese company Wah Nam International. The iron ore producing company chairman Barry Cusack said that the board of directors would be calling unanimously for share holders to refuse the $930 million offer from the Hong Kong listed company.

Mr Cusack said that the directors had considered the lack of experience of Wah Nam in the mining sector and also questioned the value of the offer. There was insufficient evidence to support the fact that Wah Nam would be able to successfully develop the Marillana project. He said that the reasons for the rejection were to be explained in detail to shareholders in a target statement.

Wah Nam has offered 30 of its shares for each of the Brockman Resources shares. However they intend to takeup 50% of all issued Brockman shares as a condition. It has also made an offer for another iron ore company, FerrAus.

FerrAus released a pre-feasibility study that valued the Pilbara iron ore project of the company between $1.12 to 1.34 billion. There would be an initial rate or return of about 24 to 26%. The company is still considering the offer made by Wah Nam.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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