United Minerals Corporation and Brockman Resources
There's a rumour going around of a merger between Pilbara iron ore explorers United Minerals Corporation and Brockman Resources. The rumour is based, it seems, largely on the fact that both operate in the same area and have similar channel iron deposits. Nevertheless, Brockman has cash, and lots of it. The company has a market can of approximately $139.6 million and cash at the end of the last quarter of $103.2 million. Indeed, it earned more in interest than it spent in exploration in the three months to March 31. UBS is said to be advising one of the parties.
UMC Price at posting:
99.0¢ Sentiment: Hold Disclosure: Held
