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Cape Lambert Resources rockets higher as cobalt and copper off-take discussions commence in China

Cape Lambert's shares have jumped by over to $0.026 a third intra-day.
Cape Lambert Resources rockets higher as cobalt and copper off-take discussions commence in China
Cape Lambert is trading heavy volume

Cape Lambert Resources Ltd's (ASX:CFE) shares have jumped 37% to $0.026 on heavy turnover of 11 million intra-day.

The company's board and technical team have taken up an invitation to visit China to negotiate potential strategic investment and partnerships over the company's planned production of cobalt and copper from its Kipushi Cobalt Project in the Democratic Republic of Congo.

The meetings follow successful site visits completed by a major Chinese industrial group in August 2017.

The site visit included metallurgical testwork by the group of the tailings material to review potential construction and funding of leaching technology to produce a high value cobalt hydroxide product.

Demand for cobalt continues to rise with pricing remaining robust, providing the opportunity for Cape Lambert's advanced Kipushi Project to benefit both in the short and long term.

Negotiations

Cape Lambert said that the negotiations will focus on a strategic investment in, and partnership with, the company proposed by them to secure planned cobalt and copper production from Kipushi.

The proposed investment, which is early stage and non-binding, is planned to be structured by way of a commodity linked debt instrument, with the proceeds to be used to fund all plant works and upgrades required at the Kipushi Processing Plant in order to commence the re-treatment of the Kipushi tailings.

In addition, addition further working capital funding is under negotiation that is proposed to assist the company in its broader strategy of acquiring other advanced cobalt and copper projects in the Democratic Republic of Congo and in Zambia.

Discussions continue in Europe and the U.S.

Cape Lambert also confirmed discussions with several major international trading groups based in Switzerland, the U.S. and Europe have advanced over the past month.

Discussions will continue over coming weeks as the company's technical consultants finalise the metallurgical test work in South Africa to optimize the process flow sheet and upgrade work for the Kipushi Processing Plan.

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