At the time of writing, shares of Brockman Mining Ltd [ASX:BCK] are up by 23.33%, to 3.7 cents, in today’s trading. Brockman Mining is an iron ore developer listed on the ASX and Heng Seng stock exchanges.
Why did Brockman Mining share price do this?
The company announced that it’s on track to early production. Brockman Iron (a wholly-owned subsidiary of the company) and Polaris (a wholly-owned subsidiary of Mineral Resources Limited [ASX:MIN] entered into a farm-in and joint venture agreement today. Polaris has the option to farm-in and earn a 50% interest in the Marillana Iron Ore Project, located in Western Australia.
Mineral Resources must satisfy a number of conditions to earn a 50% interest in the world-class project, such as completing major parts of the Definitive Feasibility Study (DFS).
What now for Brockman Mining?
Here’s the mineral resource for Marillana:
Source: Brockman Mining
Marillana is an enormous high-grade iron ore project. You normally want to see iron ore grades of around 55%+ these days, with low phosphate as a bi-product.
Marillana fits the bill and could make a lot of money for shareholders.
The joint-venture is a smart decision for the company. It reduces the maximum capital commitment to roughly AUD$150 million for the company. That’s a lot more manageable, considering the company’s market capitalisation stands at $275 million today.
Indeed, it’s still early days for shareholders — the project must go through the DFS process. But if the company can prove its lucrative nature over the next 6–12 months, shareholders could be significantly rewarded.
Resources Analyst, Markets & Money
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