Brockman eyes $100m for Pilbara iron project

June 2, 2008

June 1st (The West) – Buoyed by Atlas Iron’s successful capital raising, fellow iron ore junior Brockman Resources was last night working on an up to $100 million book-build for its billion-tonne Marillana project in the Pilbara.
  
Brockman put its shares in a trading halt yesterday morning, with the stock sitting at $2.70, only 30¢ below its record close three weeks ago.
  
The timing of the capital raising is opportune given that a year ago Brockman was trading as low as 35¢.
  
It is understood Patersons Securities was arranging a book-build of existing shareholders and new investors to raise between $75 million and $100 million.
  
The book-build should be finalised by late next week, with the placement price expected to be at a discount of between 10 and 20 per cent to Brockman’s last trade. Shareholders are likely to have to approve the capital raising.
  
It is unclear whether Brockman’s board, led by former Arthur Andersen Perth managing partner Ross Norgard who owns $47 million worth of scrip, will participate in the capital raising.
  
Atlas raised $100 million at $2 a share — a 10 per cent discount to its prevailing price — through rival broker Hartleys a month ago.
  
The success of the raising proved the market’s appetite for up-andcoming iron ore producers, despite the continued upheaval on global money markets.
  
Participants in the raising have been rewarded handsomely, with Atlas shares closing at $4.08 yesterday. Atlas is more advanced than Brockman and expects to be producing first iron ore from its Pardoo project east of Port Hedland later this year.
  
Brockman is raising the funds to finance a feasibility study for Marillana, which contains 1.1 billion tonnes grading an average 44.2 per cent.
  
Brockman is eyeing first production next year.

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