The West Australian reported that Murchison Metals has moved another step closer to finalizing the sale of its 50% stake in the troubled Oakajee port and rail development and associated Jack Hills iron ore project in the State's Mid West.

The company announced that the Foreign Investment Review Board has no objection to the AUD 325 million transaction, which would give its joint venture partner, Japan's Mitsubishi, full control of Oakajee and Jack Hills.

FIRB approval was a condition of the sale.

Murchison also announced a State Development Agreement for Oakajee would remain in force beyond its original deadline of December 31, subject to various amendments.

The SDA is the key agreement between the State Government and Oakajee Port and Rail, for the design, construction, commissioning and financing of a deepwater port at Oakajee and a railway line to Mid West iron ore mines.

Murchison said in a statement “As expected, OPR's exclusive right to negotiate implementation agreements for the project will lapse at the end of the month, and the State will be entitled to explore options with other parties. However, the State and OPR will each remain obliged to use reasonable endeavors to finalize the implementation agreements, port services agreement, third party access regime, port and rail leases, and other relevant documentation.”

Murchison struck a deal to sell its stake in Oakajee and Jack Hills to Mitsubishi last month after admitting it could not raise the funds to proceed with the projects.

(Sourced from thewest.com.au)