Padbury Mining has been forced to screw up its $6.5 billion funding deal with Alliance Super Holdings and Roland Bleyer for the Oakajee port and rail project in the State's Mid-West.
In a statement to the ASX after the market closed, Padbury said the parties involved had signed a deed of termination and release agreement.
"Padbury will continue to actively explore all available opportunities to exploit its existing intellectual property with respect to the Oakajee project," the company said in a brief statement.
Padbury shares have been suspended for the past two weeks, with the company expected to disclose the identity of its $6.5 billion backer as well as details of the funding deal.
But the company missed several of its own self-imposed deadlines to reveal details of the deal.
The news follows comments by Premier Colin Barnett earlier this month that there was "very little prospect" of the State Government lending any support to Padbury's Oakajee bid.
"It seems to me there is very little substance behind Padbury. I have not met with them, and I don't intend to," he said.
"I don't think it is realistic. It's as simple as that."
Shares in Padbury more than doubled after the $6.5 billion funding announcement on Friday, April 11, but were placed in a trading halt and subsequent suspension later that day.
Padbury shares last traded for 3.3 cents.
The shares are expected to come under heavy selling pressure if they rejoin the boards tomorrow.