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Cape Lambert concludes A$14.75m Leichhardt sale

8th July 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Australian resources and investment company Cape Lambert Resources on Monday announced that it had completed the sale of its Leichhardt project to an unnamed buyer for A$14.75-million.

The ASX-listed company said it would have A$5.6-million of environmental and cash bonds returned to it over the next month, as well as transitional funding associated with the Leichhardt project from May 1 until completion.

The Leichhardt project, in Queensland, comprises a copper cathode processing plant capable of producing 9 000 t/y of copper cathode.  The project has been on care and maintenance since its acquisition from Matrix Metals for A$7.75-million in August 2010.

Executive chairperson Tony Sage said in a statement that, with the transaction now complete, Cape Lambert would have available cash reserves of some A$35-million, which ensured that the company would remain largely unaffected by the uncertainty in global equity markets.

“With the sale process for both the Marampa iron-ore project and the royalty associated with the Mayoko iron-ore project both advancing positively, we expect this cash position to be enhanced significantly over the coming six months,” he commented.

Sage added that the new owners of the Leichhardt copper project intended to return it to production as soon as possible.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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