Murchison Metals has received a fillip with two Government agreements announced.

The Foreign Investment Review Board (FIRB) has given its approval for the proposed sale of the company’s interests in Crosslands Resources and Oakajee Port & Rail to Mitsubishi Development Pty Ltd for AUD 325 million.

Mitsubishi will acquire Murchison's interests in the Oakajee project as well as the Jack Hills iron ore mine. The deal requires approval from Murchison shareholders in February.

Meanwhile, the Government of Western Australia has confirmed that the State Development Agreement for the Oakajee Port and Rail infrastructure project will be extended beyond 31 December 2011.

The amended SDA, which has been approved by all parties, will take effect from 1 January 2012.

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.

Murchison is a 50% shareholder in Crosslands Resources Ltd, the owner of the operating Jack Hills iron ore project, and also has a 50% interest in Oakajee Port & Rail, a dedicated infrastructure provider which is developing a major deepwater iron ore port at Oakajee and an associated heavy haulage rail network. The remaining 50% of Crosslands and OPR is held by Japan’s Mitsubishi Development Pty Ltd

(Sourced from proactiveinvestors.com.au)