Flinders Mines remains hopeful of finding a new suitor despite a takeover deal with a Russian steel maker falling through.
Flinders said Magnitogorsk Iron & Steel Works OJSC had terminated its scheme implementation agreement (SIA) in relation to the $554 million proposed takeover.
The news sent Flinders shares one cent lower to close at 12.5 cents.
It means that Flinders is now free to negotiate with other parties.
A Flinders spokesman said the company remained focused on developing its Pilbara iron ore project.
"There was substantial interest in the data room that the company opened late last year as the project's maturity had reached the point where the company could commence senior level negotiations with potential joint venture partners," the spokesman said in a statement.
"That scenario hasn't changed."
Flinders and MMK had originally agreed that the Russian steel maker would acquire 100 per cent of Flinders' issued shares by June 30.
But that was thrown off course when minority shareholder Elena Egorova took legal action challenging the move and was granted an injunction by a Russian court.
Ms Egorova argued that the planned acquisition presented operational and financial risks to MMK and, therefore, would adversely affect her investment.
The Arbitration Court of the Chelyabinsk Region of Russia adjourned the legal proceedings until July 2, after the due completion date.
MMK said in a statement, issued in Russia, that uncertainty surrounding the court action played a part in its decision to terminate the deal.
MMK launched its 30 cents-a-share takeover offer in November, valuing Flinders at $554 million.
Flinders has projects in the Hamersley Ranges, 70km northwest of Tom Price in the Pilbara and also in the emerging Mid West iron ore province.