Cape Lambert completes sale of Lady Annie proj
Australian resources and investment company Cape Lambert Resources Ltd announced that it has completed the $315 million sale of its Lady Annie mine in Queensland to China Sci-Tech Holdings Ltd.
The sale was completed yesterday with Cape Lambert receiving a cash payment of approximately $312 million, after various settlements adjustments. The company is also expected to receive additional $5 million in two deferred payments of $2.5 million each as payment for production and reserve related milestones being achieved.
Cape Lambert executive chairman Tony Sage said that the sale of Lady Annie provided the company with an immediate return of approximately 52% on its investment to acquire the project.
"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 Sappens gold project and a 25 per cent interest in the Lady Loretta lead-zinc-silver project yet to be monetized," said Sage.
Cape Lambert acquired the Lady Annie mine and other assets from CopperCo Ltd last year for about $106 million.
The resources company announced in May that it intends to pay between $0.08 and $0.10 a share to shareholders once the $130 million cash is received.
Cape Lambert also plans to use a part of the funds received to ramp-up its drilling programme at the Marampa iron-ore project, and to start drill assessment at the Pinnacle assets, both located in Sierra Leone, West Africa.