Brockman Resources and China's Wah Nam have agreed to put aside their differences and work together to deliver the Marillana iron ore project in the Pilbara.
Wah Nam has emerged with a 55 per cent stake in the aspiring iron ore miner following the close of its takeover bid despite Brockman maintaining its steadfast opposition to the Chinese company's all scrip offer since it was launched in November last year.
Brockman announced today it had buried the hatchet with its new majority shareholder following discussions with Wah Nam and would allow two of the company's nominees, Warren Beckwith and Hendrianto Tee, onto its board.
Wah Nam said today it supported the existing board's strategy for Marillana and would work with it on the timely development of the project.
"Wah Nam intends to provide all the capability at its disposal to support the Brockman board in its (Marillana's) successful and timely development," the company said in statement.
Brockman chairman Barry Cusack said the company was pleased to be able to provide increased certainty for all shareholders with the conclusion of Wah Nam's bid.
"We have held detailed discussions with Wah Nam in recent times regarding strategy, governance and operational matters and there is a shared commitment and determination to work together to realise the enormous value from the Marillana Project for the benefit of all shareholders," he said.
Wah Nam chairman Peter Luk said he appreciated Mr Cusack's continuing involvement and that of the other continuing directors.
"Wah Nam believes that the consolidation of iron ore projects in the Pilbara, which is demonstrated by Wah Nam's takeover bid for FerrAus Limited and its continuing evaluation of other opportunities, would be a positive next step in group development," he said.
Brockman shares were up 15 cents, or 4.29 per cent, to $3.65 at 11.30am
BRM Price at posting:
$3.61 Sentiment: None Disclosure: Held
