candidate for takeover, page-32

Wah Nam wields axe to remodel Brockman board

Matt Chambers
From:The Australian
September 20, 201112:00AM

HONG Kong's Wah Nam has cleaned out Brockman Resources' boardroom, moving on chairman Barry Cusack, managing director Wayne Richards and two other directors, three months after taking control of the Perth iron ore junior.

The move is hardly surprising following an at-times acrimonious takeover process in which Brockman went to the Takeovers Panel with allegations of questionable trading behaviour by offshore investors associated with Wah Nam and sought an Australian Securities & Investments Commission investigation.

"Wayne Richards has resigned as managing director of Brockman on mutually agreed terms," Brockman, 55 per cent owned by Wah Nam, said yesterday.

"The board wishes to acknowledge the contribution of the outgoing members of the board, and in particular it recognises the commitment and dedication exercised by Wayne Richards during his time with the company in advancing the Marillana project."

Wah Nam chairman Peter Luk will become Brockman's chairman and Brockman executive director, Colin Paterson will become acting chief executive.

The two other non-executive directors removed were Ross Ashton and former Atlas Iron chairman David Nixon.

They have been replaced by Dick Wright, a former managing director of Fluor Daniel Australia, and Rob Brierley, a former mine manager and analyst at Patersons in Perth.

Brockman is aiming to produce about 17 million tonnes of iron ore annually from Marillana from 2014.

As with most Pilbara iron ore juniors, getting the iron ore to port is the main problem.

With Atlas spoiling Wah Nam's attempt to buy FerrAus by lodging its own bid, Wah Nam's plan to build its own rail by combining Marillana with FerrAus's project has also been spoiled.

Yesterday, Brockman said it was seeking discussions with the notoriously hard-bargaining Fortescue Metals Group for a rail and port decision. Brockman said it may take a minority joint venture partner to help fund Marillana.

http://www.theaustralian.com.au/business/mergers-acquisitions/wah-nam-wields-axe-to-remodel-brockman-board/story-fn91vdzj-1226141231211