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Cape Lambert Resources to sell Leichhardt Project to Malaysian buyer

Cape Lambert Resources to sell Leichhardt Project to Malaysian buyer

Cape Lambert Resources (ASX: CFE) has executed a new agreement to sell its Leichhardt Copper Project in Queensland for A$14.75 million to a private Malaysian buyer due to delays with the previous transaction.

The company has received a $1 million non-refundable deposit, with a further AU$1million non-refundable deposit payable by 25 April 2013.

It will receive the remaining $12.75 million plus costs incurred in operating the Leichhardt Project from 1 May 2013 on completion of the transaction, which is expected to occur on 31 May 2013.

Cape Lambert had on 28 November 2012 announced the sale of the project for $15 million, payable in three tranches, the last of which would be paid 36 months after completion.

However, delays in finalising that transaction led to the company being approached by, and subsequently entering into a binding agreement, with the Malaysian buyer.

The Leichhardt Copper Project comprises a copper cathode process plant capable of producing 9,000 tonnes per annum of copper cathode and surrounding landholding.

Cape Lambert had acquired the project in August 2010 from Matrix Metals for $7.75 million.

Leichhardt Copper Project, which has an existing cathode off take agreement with Glencore International AG, has been on care and maintenance since its acquisition by the Company.

The company will have about $40 million in cash upon completion of the sale. This will leave the company well-funded for its activities and compares well with its current market capitalisation of $113.7 million.

Separately, Cape Lambert has confirmed that it has received several formal approaches from parties interested in acquiring its royalty rights in the Mayoko Iron Ore Project in the Republic of Congo.

This comes after the chief executive officer of Exarro Resources Limited, the owner of the Mayoko Project, was quoted as saying that the company would start mining iron ore in the Republic of Congo this year with plans to produce up to 10 million tonnes per annum.

 

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