PERTH (miningweekly.com) – ASX-listed Cape Lambert has struck a joint venture (JV) deal with Paragon Mining to develop advanced and near-term cobalt and copper projects in the Democratic Republic of Congo (DRC).
“The JV agreement with Paragon is a major milestone for the company and follows a period of extensive legal and technical due diligence in the DRC by our consultants and management team,” Cape Lambert executive chairperson Tony Sage said on Wednesday.
“The JV sets up a clear path for Cape Lambert to now reposition itself as a cobalt concentrate producer at a time when cobalt continues to benefit from significant growth in demand and substantial price increases.”
The JV will include the Kipushi cobalt tailings project, which includes a one-million-tonne-a-year processing plant, as well as the Kasombo copper/cobalt project, both in the Katanga copperbelt.
Tailings from the Kipushi and hard rock material from the Kasombo project will be processed through the Kipushi plant, which itself will undergo some modifications to optimise cobalt and copper concentrate production.
In exchange for a 50% JV shareholding in the projects, Cape Lambert will be responsible for providing all the necessary technical resources to the JV vehicle, to enable exploration and mining activities, while also fully funding the working capital costs to start mining at Kipushi, and to complete exploration and a feasibility study at Kasombo, and to start mining.
Cape Lambert will also be expected to secure funding to upgrade the Kipushi processing plant.
The ASX-listed company said that some $7.5-million will be advanced as equity into the JV vehicle, with the balance of the funds advanced as shareholder loans, which will be repaid from cash flow.