The company has opted not to exercise its option to acquire 25% stake in the project for A$5m ($5.09m) that is due to expire on 13 May 2013.
Despite the potential prefeasibility study results, the uncertainty in the market poses high risk for the development of project unless the seller offers some lenient acquisition terms, the company said.
WPG chairman Bob Duffin stated, "There is a very limited pool of investors willing to fund the estimated A$40 million required to complete the project’s BFS, let alone those willing to fund the A$1.5 billion capital expenditure required to bring the project into production."
The operations at the Giffen Well project included development of a 5 million mt per year iron ore mine, a magnetite ore concentrator and an open pit coal mine at Penrhyn.
WPG is, meanwhile, accelerating its program of reviewing new project investment opportunities.
