Murchison Metals (ASX:MMX) has denied any truth to rumors regarding the ongoing role Mitsubishi, its partner in the Jack Hills Iron ore project. A statement in response to an ASX query stated that the company found “no substance to the suggestion that Mitsubishi is intending to withdraw or dilute its involvement” in the joint venture. The statement went on to point out the contracts signed with Mitsubishi back in 2007 were legally binding and that the company had already spent approximately $280 million on the project.
The company also quashed rumours that there was a change in the support and commitment to the OPR project by the Premier and government of WA.
Murchison Metals shares yesterday dropped as low as $1.51 today before the trading halt but have regained ground today and are currently trading at $1.67.
Investors have been understandably wary of the stock since it dropped from it’s April 15th high of $3.12 to less than half of that six months later. And last week’s full year results did nothing to stem the decline with the company posting an FY2010 loss of $21.5 million.