Hi fellow BRMers,Found this posted on SS by Trustydemon. It's...

Hi fellow BRMers,

Found this posted on SS by Trustydemon. It's the response he received from Wayne Richards about the rationale for share placement. Judging by the SP price moving up, it may vindicate the decision to not give 1800 punters the chance of topping up and dumping. WR's email reply begins below.



Thank you for your E-Mail and your ongoing support for Brockman Resources.

There was considerable discussion around an SPP and Rights issue – as part of this fund raising proposal.

Based upon the increased number of shareholders since July (1100 – 1800) without increasing our liquidity (i.e. # of fully paid ordinary shares) – it means that that the average shareholding per person was in the order of 5000-10000 shares.

Therefore, there would have been potentially a low take-up on say a $5000 SPP or a rights issue – AND we would have more of the same investors on the register. Also the Rights issue would result in the share price hovering around the “set-price� for longer – while the rights issue was instigated.

This round of raising was exclusively designed to bring Institutional investors onto the register – to support the larger raisings of the future. We have been successful in placing to TWO corner-stone Institutes – one domestically and one in the U.K. One insto in particular has $40b under management, and the domestic group is known to all Australians.

Also, the placement was kept to approx 10% of issues Capital - to minimize dilution of existing shareholders and gain the necessary funds to support some of the strategies currently in play.

Please feel assured, that I am appreciative of all shareholders support – but hopefully you will support/understand what I am trying to accomplish with the company going forward.

Again, thanks for your comments and support – and please feel free to call me should you have any further concerns.

Best regards

Wayne Richards

Managing Director
Brockman Resources Limited

Suite 6 Churchill Court
331-335 Hay Street
Subiaco WA 6008

Phone: 08 9388 0866
Fax: 08 9388 0855
Mobile: 0417 951 245
e-mail: [email protected]