Brockman Mining and China Guoyin have entered into a share subscription agreement whereby China Guoyin will subscribe for 195 million shares at an aggregate subscription price of Aus$11.3 million. Brockman has also entered a separate agreement with Ocean Line for 292.5 million shares at an aggregate subscription price of about Aus$16.76 million. Proceeds from both will be used for the development of Brockman’s iron ore mining projects in Western Australia.
China Guoyin is an investment holding company, and Ocean Line is a multinational conglomerate with shipping operations as its strategic focus. Both companies are based in Hong Kong, and Ocean Line is an existing substantial shareholder in Brockman.
Before the agreement China Guoyin held about 7.36% of Brockman and the 195 million new shares represent around 2.41% of the issued share capital. Ocean Line held about 19.57% of Brockman with the new shares representing around 3.57% of issued share capital.
Brockman’s hematite projects are in the Pilbara region of Western Australia, adjacent to the core tenements of Western Australia’s other major iron ore developers. Brockman’s principal projects include the Marillana project, Ophthalmia project and few other minor exploration projects in the area.
Brockman Mining, through its 90%-owned subsidiary, Luchun Xingtai, also owns the Damajianshan Mine in Yunnan Province in China.