Cape Lambert wraps up Q Copper IPO

Shares in Cape Lambert Resources have entered a trading halt as it prepares to release details of the completed $214 million initial public offer for Q Copper.

Cape Lambert today said it expects to release details by the start of trade on Thursday. Q Copper is aiming to list on the Australian Securities Exchange on December 21.

Q Copper will buy the Lady Annie copper operation in Queensland from Cape Lambert for $158 million if full subscription is achieved. A minimum target of $203 million has been set.

Cape Lambert has proposed to return funds from the sale of Lady Annie to shareholders.

Q Copper is aiming to restart operations at Lady Annie by July next year before ramping up to an annual copper production target rate of 20,000 tonnes for the remainder of 2010.

The company will then ramp up operations to 25,000t of copper a year in 2011.

The mine life is planned to be extended to seven years.

Lady Annie was placed on care and maintenance in February this year, primarily due to heavy rains.