PERTH (miningweekly.com) – ASX-listed Cape Lambert has entered into a binding term sheet with fellow-listed FE Limited to assign its rights over the Kasombo copper-cobalt project, in the Democratic Republic of Congo.
Cape Lambert established rights to the Kasombo project in May this year after signing a joint venture agreement with Paragon Mining.
Once the agreement with FE has been settled, that company would assume all responsibilities and obligations in regards to exploration and development of the Kasombo project, allowing Cape Lambert to focus its efforts and funds on bringing the adjacent Kipushi tailings project, and the Kitwe tailings project, in Zambia, into production within the earliest possible timeframe.
In return for its rights over the project, Cape Lambert will be issued 25-million fully paid ordinary shares in FE, a A$50 000 nonrefundable deposit on the execution of a term sheet, A$75 000 three months after the settlement, and a further 10-million fully paid ordinary shares in FE will be issued to the facilitator of the transaction.
The agreement was subject to a number of conditions, including shareholder approval, the completion of due diligence, and the execution of a formal agreement.
The Kasombo project comprises three mineralised areas of around 600 ha within two granted mining licences.