BC Iron to challenge withdrawal of Hong Kong takeover bid

The W. Australian junior has applied to Australia's Takeovers Panel to challenge the validity of Regent Pacific's decision to terminate a takeover bid for the company

By Ross Louthean
Mon, 21 Mar 2011

PERTH - BC Iron (ASX: BCI) said today it had written to Regent rejecting its "purported" termination of the Scheme Implementation Agreement (SIA) relating to its intention to takeover BC Iron, and requesting that it be withdrawn.

BC Iron's managing director Mike Young said the company intends to file an application with the Takeovers Panel shortly, seeking a declaration of "unacceptable circumstances and orders requiring it (Regent) to proceed in accordance with the SIA."

Young said the company remains committed to ensuring all its shareholders have an equal opportunity to consider the merits of the scheme of arrangement in a fully informed manner.

Prior to the purported termination of the SIA, the Scheme Booklet and associated documents were well progressed.

Young said should the Takeovers Panel decide to intervene and provide the requested relief, BC Iron will resume the process of finalising the Scheme Booklet and Independent Expert's Report and, as a first step, will be in a position to promptly lodge the Scheme Booklet with ASIC (Australian Securities & Investments Commission).

When the original bid by Hong Kong-based Regent was made BC Iron directors recommended the bid. The takeover would have valued BC Iron at A$345 million (US$346.7 million).

BC Iron had been placed in a trading halt last Thursday after its share price dipped more than 4% to around A$2.54 (US$2.55) after Regent Pacific confirmed it was dropping the bid.

The company became an iron ore producer last month when the first shipment of its ore from Nullagine in Western Australia's Pilbara was shipped from Port Hedland to China in its 50/50 joint venture with Fortescue Metals Group. Fortescue provides the rail and port infrastructure.
(sourced mineweb)

BC Iron sends first Nullagine iron-ore shipment to China

Feb24, 2011
By Esmarie Swanepoel

PERTH (MiningWeekly)− ASX-listed BC Iron on Thursday joined the ranks of Australian iron-ore producers and exporters when it loaded 20 000 t of iron-ore from the Nullagine joint venture (JV) onto a ship in Port Hedland, for export to China.

The overland transport of the Nullagine iron-ore to port on partner Fortescue Metal’s rail line, marked the first time in Pilbara history that a junior miner had been able to transport iron-ore on a third party’s rail infrastructure.

“This loading today marks the newfound ability by smaller mining companies to use third-party rail and port access to develop otherwise stranded assets into revenue generators and job creators for the Australian economy,” said Fortescue Metals CEO Andrew Forrest.

BC Iron MD Mike Young said that the first ore ship from the Nullagine JV represented not only a significant milestone for the JV and its respective stakeholders, but also a wider significance to the iron-ore industry in the Pilbara region.

“First and foremost, we are pleased and excited that BC Iron has successfully transitioned from an explorer to producer, and we would like to acknowledge everyone that has played a role in making this milestone possible.

“The fact that we have the flexibility to put out a partial shipment is a testament to the close working relationship we have with Fortescue,” Young added.

The Nullagine project hosts a direct shipping ore (DSO) reserve of 36-million tons at 56,9% iron within a DSO resource of 50,7-million tons at 57% iron and an overall channel iron deposit resource of 89,1-million tons at 54,1% iron.

The project would have an initial production capacity of three-million tons a year, which would increase to five-million tons once Fortescue increased its infrastructure capacity.

The project remained on track to have shipped one-million tons of iron-ore by the end of June.

BC Iron is the third company to use Fortescue's Herb Elliott port to start iron-ore exports from Port Hedland.

The ship carrying the Nullagine JV ore was expected to set sail over the weekend.

Edited by:Mariaan Webb Tags: third party rail and port access, Direct Shipping Iron Ore DSO,