Murchison Metals Limited (ASX:MMX)
Perth, April 24, 2009 AEST (ABN Newswire) - Murchison Metals Limited (ASX:MMX)(PINK:MUMTF) As at 31 March 2009 the Company was debt free and had cash and liquid investments of A$143 million, a decrease of A$18 million from the previous quarter. Included in this cash outflow are amounts paid to Crosslands and OPR of A$17 million to finance feasibility studies and exploration costs. Interest earned on investments for the quarter amounted to A$1.9 million.
The international iron ore market showed signs of stabilisation and price recovery following the New Year after a sharp decline in October 2008. Steel producers, particularly in China, ran through stockpiled inventory and began the process of restocking. Shipment deferrals declined and the major bulk shipping indices recovered from historic lows as shipments began moving again.
Notwithstanding this potential stabilisation, price volatility remains a feature of the market with spot prices again showing a retreat towards the end of the March quarter. Product quality and specification also remain key drivers for sales, with buyers favouring certain product specifications.
Crosslands maintained shipments throughout the quarter, through booked forward sales and excellent customer relationships. The high quality Jack Hills ore and product specification continues to be well received by buyers.
During the quarter the Company strengthened its Board and management with a number of key appointments. Mr Rod Baxter was appointed as a Non-Executive Director of the Company. Mr Baxter was most recently Managing Director of Consolidated Minerals. Prior to joining Consolidated Minerals Mr Baxter held various senior executive and business development roles at Anglo American and Anglo Platinum. Mr Baxter brings to the Board a track record of operational achievement and outstanding corporate success.
The Company also strengthened its management team with the appointment of Mr Luca Rocchi in the role of Chief Mining Engineer and Mr Jamie Wright in the role of Manager - Corporate Development.
Mr Rocchi has 28 years experience in the mining industry in Australia. During this period he has held a number of operational and technical roles ranging from supervisory and management through to technical positions. In his previous role as Manager Resource Strategy for BHP Billiton - Illawarra Coal, he was responsible for the long term planning of the operations as well as developing the future development options for the organisation. Mr Rocchi is a Member of the Australian Institute of Mining and Metallurgy. He also holds a First Class Mine Managers Certificate of competency as well as a Masters Degree in Mining Management from the University of Wollongong.
Mr Wright has more than eight years experience in corporate finance, investment banking and the mining industry. Prior to joining Murchison, Mr Wright worked with RFC Corporate Finance Ltd, a specialist resources-focused investment bank, where he advised on mergers and acquisitions, strategy assignments and public markets listings for Australian and international mining companies. His qualifications include a B Eng (Mining) and BSc (Geology) as well as a Graduate Diploma in Applied Finance and Investment.
On 11 February 2009, a general meeting of shareholders of the Company approved the adoption of a new Constitution.
The new Constitution is up to date with the current laws and is drafted in a clear modern style. The Constitution includes a proportional takeover approval rule which will allow members to decide whether any proposed proportional take over bid for the Company is acceptable and should be permitted to proceed.
Chameleon Litigation
On 29 November 2007, Chameleon Mining NL ("Chameleon") commenced legal proceedings in the Federal Court against Murchison, Crosslands and several other parties. Chameleon is claiming an interest in the Jack Hills and Weld Range projects and / or Murchison's shares in Crosslands, arising out of a series of transactions that occurred in 2004 before the current Board and management of Murchison were appointed.
The hearing that was scheduled to commence on 30 March 2009 was deferred. An application to vacate the trial date was brought by one of the respondents by reason of Chameleon's late filing of evidence which could unfairly prejudice the respondents.
At a directions hearing held in the Federal Court on 2 April 2009, the Court, in addition to making a number of programming orders, listed the matter for a further directions hearing on 25 June 2009 stating that it would do everything possible to ensure that the matter would be allocated a hearing date on that day.
For the Full Murchison Metals Quarterly Report, please see the link below;
http://www.abnnewswire.net/media/en/docs/60520-ASX-MMX-444296.pdf
Contact
Trevor Matthews
Managing Director
Murchison Metals Ltd
Tel: +61-8-9492-2600
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