PERTH (miningweekly.com) – The share price of ASX-listed Cape Lambert tumbled by nearly 13% on Wednesday as it announced plans to abandon financing efforts for the Kipushi cobalt/copper tailings project, in the Democratic Republic of Congo (DRC), to focus on the Marampa iron-ore project, in Sierra Leone.

Cape Lambert executive chairperson Tony Sage on Wednesday said that after an "exhaustive effort" the company has been unable to source project funding to develop the Kipushi project, saying that the falling cobalt price, the challenging security situation in the region, and the recent outbreak of Ebola, had all contributed to making the DRC a difficult jurisdiction to work in.

The joint venture (JV) over Kipushi, in which Cape Lambert held a 50% interest, along with local entity Paragon Mining, has now been terminated.

“We wish Paragon all the very best for the project and thank them for their patience in giving us the additional few months to find the project finance for the JV,” Sage said.

With the Kipushi project now off the cards, Cape Lambert’s focus will turn to its Marampa project, which hosts a Joint Ore Reserves Committee-compliant mineral resource of 680-million tonnes, at 28.2% iron, over four deposits.

Sage said that the relatively high iron-ore price throughout 2019 has resulted in third parties showing an interest in the Marampa project, while the government of Sierra Leone has expressed an interest for Cape Lambert to acquire the Marampa mine, with a view of merging the two projects and using the existing Pepel port and rail to export product.

Sage said that Cape Lambert would now refocus its effort on pursuing the interested third parties, and others, with the hope of progressing Marampa to development, with Cape Lambert also starting the application process for the reissue of the relevant licences.

“I am pleased that there has been renewed interest in the Marampa project, which has suffered due to the low iron-ore price preventing its development. We look forward to working with interested parties and the government of Sierra Leone to merge the Marampa project with the Marampa mine, and bring it to its long-awaited production.”

Marampa shares were trading at a low of 0.5c a share on Wednesday, down from a high of 0.7c a share.