Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed resources firm Cape Lambert Resources has launched a second on-market share buy-back to regain about 10% of the company’s issued share capital.
In the first on-market buy-back, which ended at the start of January, Cape Lambert acquired and subsequently cancelled more than 21.1-million shares for more than A$3-million.
The company told shareholders this week that the new on-market buy-back would comply with both the Corporations Act and the ASX listing rules, and would not require shareholder approval.
The earliest that the company would be permitted to buy back any shares on market will be January 23.
“Cape Lambert retains significant cash and liquid assets and despite being presented with a range of investment opportunities, following review of these opportunities, the board has determined that at the current share price, it is more prudent to undertake an on-market buy-back rather than look to make investments outside of the company,” said executive chairperson Tony Sage.
Cape Lambert is developing the Marampa iron-ore project, in Sierra Leone. A 15-million-tonne-a-year scoping study was completed in late 2012, based on a Joint Ore Reserves Committee-compliant resource of 681-million tonnes, at 28.2% iron, covering four deposits.