IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Perth-based iron ore junior FerrAus is set to accept Hong Kong limousine and investment company Wah Nam International’s $170m takeover offer after the HK company gained a controlling stake in another miner in the region Brockman Resources.
ASX-listed FerrAus said last month it will consider reversing its rejection of Wah Nam’s bid because of the logic of developing FerrAus and Brockman neighbouring deposits together. Ferraus stock added over 5% on Tuesday, while Brockman had lost more than 12% at the close of the Australian bourse.
The initial offer of $931m in Wah Nam stock to take over both companies was announced in November last year. Brockman’s Marillana iron ore project in Australia’s Pilbara region is scheduled to start output in 2013 and will produce in excess of 426Mt of final DSO equivalent product which at current prices is worth over A$50 billion according to the company website. Ferraus also owns iron ore exploration assets in the Pilbara close to where BHP Billiton and Rio Tinto are currently operating mines.
FerrAus is of the view that having now acquired a substantial shareholding and controlling position in Brockman, the underlying value and quality of Wah Nam’s scrip has improved significantly since the offers were announced in November 2010.
