The Tony Sage-chaired Cape Lambert Iron Ore will acquire the assets of collapsed company CopperCo for an additional $27 million.
The Tony Sage-chaired Cape Lambert Iron Ore will acquire the assets of collapsed company CopperCo for an additional $27 million.
Earlier this year, Cape Lambert bought CopperCo's secured debt for $72.7 million.
CopperCo's assets include the Lady Annie copper mine in Queensland, where production has been suspended.
Cape Lambert said it intends to conduct an exploration program at the operation.
The announcement is below:
- Cape Lambert has successfully bid for the assets of Australian resources company CopperCo as part of a sale process conducted by the receivers and managers of the CopperCo group;
- CopperCo asset base includes a significant portfolio of quality projects in Queensland and Greece and shareholdings in a number of listed resources companies with assets throughout the world.
Australian resources company Cape Lambert Iron Ore Limited (the "Company" or "Cape Lambert") (ASX: CFE) is pleased to advise that it has signed binding formal agreements to acquire the assets of listed resources company CopperCo Limited ("CopperCo") (ASX: CUO).
The CopperCo assets include the Lady Annie copper project in northern Queensland. Mining at the project has been suspended and Cape Lambert intends to conduct an exploration program in relation to that project and the associated regional tenements also to be acquired.
The CopperCo assets also include a 25% stake in the Queensland based Lady Loretta copper project, a 100% interest in the Sappes gold project in Greece and shareholdings in various listed resources companies, including Platmin Limited (TSX/AIM: PPN).
"The CopperCo asset portfolio is attractive and extensive and current market conditions now provide an opportunity to unlock value for Cape Lambert and its shareholders through this acquisition," Cape Lambert Chairman Mr Tony Sage said.
As previously announced, on 6 February 2009, Cape Lambert acquired the secured debt owed by CopperCo and its subsidiaries. This debt will be repaid at completion of the asset acquisition in the amount of approximately A$78 million. In addition, Cape Lambert has provided working capital facilities to CopperCo's receivers, which will be repaid at completion of the asset acquisition in the amount of approximately $30 million.
Under the terms of the asset acquisition agreements, after the repayment of secured debt and receivers' working capital facilities, CFE has agreed to pay an additional approximately A$27 million on completion of the asset acquisition.
The recent environmental incident at the Lady Annie mine, following record rainfall and significant flooding in the region, has been well publicised. CopperCo's receivers have been co-operating with the Department of Environment and Resource Management and the local community to remedy its effects, a process expected to be largely completed prior to completion of the acquisition.
Cape Lambert will continue to work with all stakeholders following the acquisition.
The transaction is subject to a number of conditions, including regulatory and court approvals and third party consents, and is expected to be completed in mid to late June when these conditions have been satisfied.
