Cape Lambert gets cracking at Lady Annie

Cape Lambert Resources is going ahead with exploration plans at the Lady Annie copper project, which it plans to spin off into a separate company in a $165 million float.

The Tony Sage-led Cape Lambert today said that exploration drilling at the Mt Isa project will start late next month, with Perth outfit Swick Mining Services to carry out the work over a two year period.

Cape Lambert said the reverse circulation drilling program will initially focus on upgrading and adding to currently defined resources at the Mt Kelly mining area, and increasing the resources at the nearby Anthill-Python prospects.

Cape Lambert plans to divest its interest in Lady Annie, which it acquired from collapsed company CopperCo, into new company Q Copper, which plans to float on the local bourse in February.

Last year, Q Copper was the state's largest resource float, aiming to raise up to $214 million through its initial public offer.

However at the last minute a United Kingdom investor, courted by Cape Lambert, had to pull out of their commitment to the IPO, forcing the company to delay the float plans for Q Copper.

Q Copper is now aiming to raise up to $174.5 million and a minimum of $164.5 million in its current IPO, which is scheduled to close early next month. Patersons Securities is the lead manager to the offer.

Shares in Cape Lambert today climbed one cent to 60.5 cents at 13:11 AEDT.

Yesterday Cape Lambert pocketed nearly $28 million after selling its non-core shareholdings.