Murchison Metals may be reinvented and recapitalised after its major shareholder said it was unlikely to sell its 17 per cent stake in the company into a proposed equal access share buyback.
Murchison announced plans for the buyback, to be priced between four and 4.2 cents, this morning as it seeks to return cash to shareholders following its failed attempts to develop the Jack Hills iron ore project and the Oakajee Port and Rail project in the State's Mid West.
But Sir Ron Brierley's Mercantile Investment Company may have other plans for the shell company after indicating it was unlikely to take part.
Meanwhile, Murchison's other major shareholder, South Korean steelmaker POSCO (13.45 per cent), says it is yet to form a view on the proposed buyback as it must follow internal review and approval processes before making such a decision.
Murchison said in a statement its board believed the proposed buyback offered shareholders a choice between exiting their investments in the company and retaining their shares.
A meeting of shareholders to discuss the proposed buyback is expected after February 20.
Murchison has been looking to hand cash back to shareholders since it arranged the $325 million sale of its stakes in Oakajee Port and Rail and the Jack Hills mine to former joint venture partner, Japan's Mitsubishi.
Murchison shares were flat at 4.1 cents at 7.20am.