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Cape Lambert settles MCC dispute

Cape Lambert settles MCC dispute

Photo by Bloomberg

14th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Resource investment company Cape Lambert Resources has reached a settlement with Metallurgical Corporation of China (MCC) over the final A$80-million payment on the sale of the Cape Lambert iron-ore project, in 2008.

In November last year, MCC transferred A$80-million into an escrow account following an order by an arbitrator.

Cape Lambert said on Monday that A$30-million of this would now be released back to MCC, with the balance, of around A$51.6-million to be paid to Cape Lambert. The funds would likely be received within a week.

The two parties have informed the arbitrator that a settlement has been reached, and the Singapore International Arbitration Centre was expected to immediately issue a procedural order suspending the arbitration.

Cape Lambert executive chairperson Tony Sage told shareholders that the company was happy to see a resolution of the matter, adding that it was a good outcome for all parties involved.

The company had previously received A$320-million of the agreed A$400-million sales price.

Following the receipt of the final funds, Cape Lambert would have cash, receivables and listed securities valued at around A$100-million, including unrestricted cash of A$70-million.

Edited by Creamer Media Reporter

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