In response to the queries in your letter I advise as follows:
- Murchison Metals Ltd (Murchison) is not aware of any information concerning it that has not beenannounced which, if known, could be an explanation for recent trading in the securities of the Company.
Murchison notes a report on Dow Jones Newswires on 21 June in which the Chief Executive of QR National (QR) is reported to have said that QR would seek to invest in the OPR project if the existing partners are unable to follow through on their plans.
Murchison confirms that it is not currently in discussions with QR in relation to the divestment of Murchison's direct (or indirect) stake in the OPR project.
Murchison has previously announced that it is evaluating a wide range of potential funding options with respect to its funding obligations for OPR and Crosslands Resources' Jack Hills Expansion Project, and that divestment of all or some of the Company's direct stake in OPR is one of the several potential options open to Murchison.
As previously announced Murchison expects to receive feasibility studies for the OPR and JHEP projects from Crosslands and OPR by the end of the June quarter.
On 21 June Murchison announced that the Commonwealth Department of Sustainability, Environment, Water, Population and Communities has granted approval under the Environment Protection and Biodiversity Conservation Act for OPR's proposed rail development.
- Not applicable.
- See 1 above.
- Murchison confirms it is in compliance with the listing rules and, in particular, listing rule 3.1.
PRICE AND VOLUME QUERY
We have noted a change in the price of the Company's securities from a closing price on Tuesday 21 June 2011 of 66 cents to an intra-day high today, Wednesday, 22 June 2011, of 78 cents. We have also noted an increase in the volume of trading in the securities over this period.
In light of the price and volume change, please respond to each of the following questions.
1. Is the Companyaware of any information concerning it that has not been announced which, if known, could be an explanation for recent trading in the securities of the Company?
Please note that as recent trading in the Company's securities could indicate that information has ceased to be confidential, the Company is unable to rely on the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering this question.
2. If the answer to question 1 is yes, can an announcement be made immediately? If not, why not and when is it expected that an announcement will be made?
Please note, if the answer to question 1 is yes and an announcement cannot be made immediately, you need to contact us to discuss this and you need to consider a trading halt (see below).
3. Is there any other explanation that the Company may have for the price and volume change in the securities of the Company?
4. Please confirm that the Company is in compliance with the listing rules and, in particular, listing rule 3.1.