Oakajee port deal close: Murchison

Murchison Metals drilling at its Jack Hills iron ore project At the company’s annual general meeting today in Perth, Murchison executive chairman Paul Kopejtka told shareholders the agreement would underpin the development of the Oakajee project with a feeder rail network allowing the Mid West miners to bring their product to port for export.In July, Oakajee Port and Rail (OPR) – the infrastructure provider backed by Murchison and Japan’s Mitsubishi Corporation – won the right to develop the Oakajee port over Yilgarn Infrastructure, the infrastructure arm of rival iron ore play Midwest Corporation.“When the development agreement is completed, OPR will move to finalise commercial arrangements with customers,” Kopejtka said. “As the infrastructure provider for the Mid West, OPR expects to commence detailed negotiations with the Mid West miners early in 2009.“Once the development agreement is finalised things move very quickly, with customers entering into formal arrangements and suppliers locked in for what is a major project by any standard.” Meantime, Kopejtka said Crosslands Resources – the company’s 50%-owned iron ore business – continues to prove up its Jack Hills stage two project and is moving closer towards wrapping up the bankable feasibility study into the project in late 2009. The company currently has cash reserves of $162 million.

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