Cape Lambert completes sale of Lady Annie Project to China Sci-Tech
Cape Lambert Resources (ASX: CFE) has reported that it has completed
the sale of its Lady Annie Project in Queensland, to Hong Kong listed
company China Sci-Tech Holdings Limited (CST).
In a statement the
company said the completion of the sale occurred on 31 May 2010 with
Cape Lambert receiving a cash payment of approximately $132 million
after various settlement adjustments, including re-imbursement of
holding costs for the past three months and cash backed guarantees and
securities.
In addition, and in due course, a further $12
million of Cape Lambert’s existing restricted cash will be freed-up on
the release of cash backed environmental performance bonds.
The
company may also receive up to a further $5 million in two deferred
payments of $2.5 million each, which are payable on certain production
and reserve related milestones being achieved.
Tony Sage,
executive chairman, said “the sale of Lady Annie inside 12 months
provided the company with an immediate return of approximately 52% on
its investment to acquire the project."
"Coupled with the disposal of non-core shareholdings for $28 million
earlier in the year, cash realisations now exceed the acquisition cost
of the entire portfolio of CopperCo assets with significant, high value
assets like the Sappes gold project and a 25% interest in the Lady
Loretta lead-zinc-silver project yet to be monetised," he added.
The
company said it plans to return a portion of the cash received from the
sale of Lady Annie to shareholders as a partially franked special
dividend and pursue other business development.
This makes the
second cash return by Cape Lambert in the in the past 18 months, with
A$100 million paid to shareholders via a return of capital and special
dividend in October 2008.
Cape Lambert also plans to ramp up its
drilling program at the Marampa iron ore project and to commence drill
assessment of the Pinnacle assets, both located in Sierra Leone, West
Africa.
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