Mitsubishi and Murchison execute agreements

Murchison Metals has signed binding agreements with Mitsubishi Corporation....

  Murchison Metals has signed binding agreements with Mitsubishi Corporation subsidiary, Mitsubishi Development Pty Ltd, to establish new iron ore mining and infrastructure businesses in the Mid West region of Western Australia.The definitive agreements were signed at a ceremony in Tokyo yesterday attended by senior representatives of Mitsubishi and Murchison. The event was witnessed by senior officials from the Australian Embassy and a representative of the Western Australian government. Murchison Executive Chairman, Paul Kopejtka said the signing of the agreements was a momentous step forward for Murchison. “The signing of these agreements ensures that Murchison is now much closer to realising its ambition of becoming a world class iron ore and infrastructure company in joint venture with Mitsubishi,” Mr Kopejtka said. “Mitsubishi is Japan’s largest general trading company and we are understandably proud to have them as our partner to accelerate the expansion of the Jack Hills Project and develop the associated rail and port infrastructure. “We are delighted to have signed binding transaction documents and now look forward to working with Mitsubishi to rapidly implement our iron ore and infrastructure plans,” he said.Under the agreements, Mitsubishi has agreed to acquire 50 percent of Crosslands Resources, which is the company that holds Murchison’s iron ore mining business, including its flagship Jack Hills Project. The agreements also establish new jointly held independent infrastructure businesses to develop the Mid West rail and port infrastructure. Mitsubishi will make two payments to Crosslands to acquire its 50 percent holding, with the first payment of A$150m expected to be made on September 27, 2007. “With our strong cash position and binding agreements with Mitsubishi, we now have transparent funding arrangements in place to deliver the proposed expansion of the Jack Hills Project and the associated rail and port infrastructure,” Mr Kopejtka said. “Oakajee Port and Rail (OPR) will benefit enormously from gaining immediate access to the significant amount of infrastructure feasibility studies already completed by Murchison, as well as the strong financial arrangements now in place.