Cape Lambert gets green light from UK investors

Cape Lambert Iron Ore Ltd has announced that it expects to have the approximately $18 million minimum subscription required to go ahead with its plans to buy its namesake project.

Formerly called International Goldfields Ltd, Cape Lambert confirmed that it had received notification from the lead manager in the placement to raise $33 million that the minimum subscription orders required to complete the offering have been received.

As most of the funds are coming from the UK, transfer and clearance of funds will take approximately three to five days, the company said. The company said it will allow prospectus to remain open until the process is complete.

The 2.5 billion tonne (30 per cent iron) Cape Lambert iron ore project is located in the Pilbara between Karratha, Roebourne and Wickham.

Cape Lambert executive chairman Tony Sage has previously been reported by WA Business News that the deal is via the acquisition of Mt Anketell Pty Ltd for $20 million, plus 140 million IGL options, to be funded out of the $33 million placement.

Cape Lambert also said the placement will fund a bankable feasibility study on the project, previously owned by Rio Tinto unit Robe River Mining, which will take 12 to 18 months.