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Cape Lambert reaches new sales agreement for Leichhardt

19th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Cape Lambert Resources has executed a new sales agreement for its Leichhardt copper project, in Queensland.

The minerals investment company had previously announced that it had entered into a conditional agreement to sell the Leichhard project for A$15-million, payable in three tranches.

However, Cape Lambert said on Friday that as a result of delays in finalising the terms of the transaction, the company subsequently entered into a new binding agreement with a private Malaysian company.

The new sales price of A$14.75-million would see Cape Lambert receive a A$1-million non-refundable deposit, while a further A$1-million would be paid by April 25. At completion of the transaction, Cape Lambert would receive the final A$2.75-million, plus costs incurred in operating the project.

Additionally, following the completion of the transaction, Cape Lambert would have A$5.6-million of environmental and cash bonds returned.

The Leichhard copper project includes a copper cathode process plant with a capacity of 9 000 t/y of copper cathode, as well as surrounding landholding. The project has an existing offtake agreement with international mining company Glencore International, and has been on care and maintenance since Cape Lambert acquired the project in 2010.

Meanwhile, Cape Lambert also noted that it was advancing discussions to sell its royalty rights to the Mayoko iron-ore project, in the Republic of Congo.

Operator Exarro Resources recently said that the project would likely start mining this year, and would ramp-up to a production of ten-million tons a year.

Cape Lambert noted that the announcement had given development certainty to the project, prompting several formal approaches from interested parties, all of which were currently being advanced.

Edited by Creamer Media Reporter

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