(SEHK Stock Code: 159) (ASX Stock Code: BCK) BROCKMAN SIGNS MEMORANDUM OF UNDERSTANDING WITH FLINDERS
Brockman has executed a Memorandum of Understanding with Flinders Mines Limited regarding development of their respective iron ore projects in the East Pilbara region of Western Australia.
The Board of Brockman Mining Limited ("Brockman") advises that its subsidiary Brockman Mining Australia Pty Ltd ("Brockman Australia") has executed a non-binding Memorandum of Understanding ("MOU") with Flinders Mines Limited ("Flinders") to work towards an Aggregation Arrangement and related transactions ("Agreement") which would cover iron ore production from the respective companies' projects and may include infrastructure and transportation solutions as agreed between the parties. Under the terms of the MOU, Flinders and Brockman propose to: • form a representative working group; • fund their respective internal costs and share of any contractor costs; • regularly meet and, where appropriate, jointly present to stakeholders regarding the subject matter of the MOU; and • resolve the form of the Aggregation Arrangement and/or related transactions, which may include joint ventures, mine gate sales or other transactions. Following execution of the MOU, Brockman Australia's Chief Executive Officer Russell Tipper said:
"We are pleased to have signed this Memorandum of Understanding with Flinders. The potential aggregation of tonnages ensures a critical mass that could further enhance the economic viability of any proposed shared infrastructure solutions for junior iron ore miners in the Pilbara."
FMS Price at posting:
3.4¢ Sentiment: ST Buy Disclosure: Held
