Iron ore junior Brockman Resources has called for shareholders to decline a wholly scrip offer from Chinese company Wah Nam International.
Brockman chairman Barry Cusack has stated that the board had unanimously called for company shareholders to refuse the offer.
Cusack questioned the value of the scrip offer, and Wah Nam’s value, as well as its experience in the mining sector.
“Our analysis of the bid and the reasons for our recommendation will be contained within our target statement which will be sent to all shareholders,” he said.
“Irrespective of the merits of the bid, it does demonstrate that we have a very attractive project and prospect.”
Wah Nam has put forward a trade of 30 shares for every Brockman share.
However, it is conditional on a takeup of 50% of all issued Brockman shares.
At the same time, Wah Nam has also made advances towards another Australian iron ore company – FerrAus.