Mitsubishi Development Ltd., a wholly owned subsidiary of Mitsubishi Corporation, has entered into a conditional agreement to buy Murchison Metals Ltd. interests in Crosslands Resources Ltd., the owner of the Jack Hills Expansion Project, and the Oakajee Port and Rail Project.
Currently Mitsubishi Development has 50/50 ownership of Crosslands Resources in partnership with Murchison Metals, and under the agreement will acquire the outstanding 50 per cent of the company.
At the same time, Mitsubishi Development has agreed to buy the outstanding 25 per cent of the Oakajee Port and Rail Project owned by Murchison Metals, which together with Mitsubishi Development’s current 25 per cent and Crosslands 50 per cent ownership, will give Mitsubishi Development full ownership of the Oakajee project.
Crosslands Resources currently operates the Jack Hills iron ore mine 380km northeast of Geraldton, which produces approximately 2 million tonnes of premium grade iron ore lump and fines per year. The Jack Hills Expansion Project, which aims to expand current operations from nearly 2 million tonnes per annum to an excess of 35 million tonnes per annum, with an extended mine life of 25 years, has recently received a recommendation from the Environmental Protection Authority of Western Australia to undertake the expansion.
The Oakajee Port and Rail Project is designed to accommodate Crosslands’ growth and the development of other mines in the region, with the building of 500 kilometres of new rail line to Oakajee, 25km north of Geraldton, where a new deep sea port, associated rail infrastructure and a purpose-built, world class industrial estate for major new resources processing and export industry will be developed.
Murchison Metals shareholders are expected to vote to approve the sale in February 2012.