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Market:	ASX
Sector:	General Mining
EPIC:	CFE
Latest Price:	0.56 (-2.63% )
52-week High:	0.73
52-week Low:	0.36
Market Cap:	361.96M

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Cape Lambert Resources

Cape Lambert (ASX: CFE) is an Australian based exploration and development company with interests in a geogrphically diverse portfolio of mineral assets and investments in several exploration and mining companies.

Cape Lambert Resources sells Lady Annie for A$135m

Friday, March 12, 2010

Australian resources and investment company, Cape Lambert Resources (ASX: CFE) inked a conditional sale agreement with Hong Kong listed company China Sci-Tech Holdings Limited, for the sale of its 100% interest in the Lady Annie Project for A$135 million.

China Sci-Tech has completed its due diligence and paid a A$5M deposit, with a further A$125M to be paid on completion of Sale Agreement.

The remaining A$5M is payable in two tranches on achievement of certain production and reserve milestones.

Cape Lambert will undertake an A$0.08 to A$0.10 return of capital to CFE shareholders following receipt of A$125M.

China Sci-Tech has been granted a right of first refusal over any sale of Cape Lambert’s interest in Lady Loretta project.

CST is proposing to fund the acquisition from existing cash reserves and liquid assets.

The sale is conditional on a number of matters including CST receiving Foreign Investment Review Board and its shareholders’ approval, and other regulatory approvals and third party consents. CST has already filed an application with FIRB.

This will be the second cash return to our Shareholders in 18 months, with A$100 million paid in October 2008.

The Company’s cash and receivables position will be approximately $300 million, which does not include the mark-to-market value of its listed securities of approximately $70 million.

Following the sale of Lady Annie, Cape Lambert will still retain a number key assets acquired as part of the CopperCo Limited transaction, including: a 25% interest in the high-grade Lady Loretta leadzinc-silver project located near Lady Annie, the high-grade Sappes gold project located in Greece,the early definition Australis rock phosphate land package, and controlling interest in listed NiPlats Australia Limited (ASX: NIP), Corvette Resources Limited (ASX: CVX) and Fe Limited (ASX: FEL).

With the sale of Lady Annie and other non-core assets, the Company will have realised approximately A$159 million in cash (does not include Lady Annie Milestone Payments).

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