Murchison Metals Ltd an Australian iron ore company said its second largest shareholder Harbinger Capital Partners LLC sold most of its holding in the Perth based company.

According to Mr Paul Kopejtka executive chairman of Murchison, Harbinger sold 27 million shares and there was strong institutional demand for the stock. Harbinger held 27.5 million shares.

Harbinger, the New York based hedge fund run by billionaire Philip A Falcone has sold the last of its shares in another Australian iron ore company Fortescue Metals Group Ltd.

Mr Kopejtka said that Murchison is expanding its AUD 3 billion Jack Hills iron ore mine in Western Australia and has agreed to sell ore to mills in China, South Korea and Japan. A study into the expansion is expected to be finished in the fourth quarter.