Cape Lambert plans share buy-back

Cape Lambert Resources has announced an on market share buy-back for up to 10 per cent of the company's fully paid ordinary shares as part of a capital management program.

"The board has determined to introduce the on-market buyback for up to 10 per cent of the company's fully-paid ordinary shares," Cape Lambert said on Thursday.

The company said the earliest date on which it would be permitted to buy back any shares on market would be October 22, 2010.

Cape Lambert has appointed Patersons Securities as broker to the on-market buyback.

Cape Lambert has about 625.8 million shares on issue.

Cape Lambert also said that it intended to issue about eight million unlisted options exercisable at 45 cents each on or before September 30, 2011 to reward and retain directors, key staff and consultants.

See company statement below:

The Board of Cape Lambert Resources Limited (Cape Lambert or Company) (ASX:CFE) is pleased to announce that, as part of a capital management program, it intends to implement an on market share buy-back (On Market Buy-Back).

The Board has determined to introduce the On Market Buy-Back for up to 10% of the Company's fully paid ordinary shares (Shares).

The On Market Buy-Back will comply with the provisions set out in the Corporations Act and the ASX Listing Rules and does not require shareholder approval.

Patersons Securities Limited has been appointed by Cape Lambert to act as broker to the On Market Buy-Back. The earliest that the Company will be permitted to buy-back any Shares on market will be 22 October 2010.

Attached to this announcement is an Appendix 3C detailing Cape Lambert's intention to implement the On Market Buy-Back.
Option allocation to Directors, Staff and Consultants
The Company plans to issue and allot unlisted options exercisable at $0.45 on or before 30 September 2011 to reward and retain directors, key staff, and consultants.
In total 8,000,000 options will be issued, of which 4,900,000 will be allocated to directors of the Company (subject to shareholder approval) as follows:
Name Number of options
Tony Sage 2,800,000
Tim Turner 900,000
Brian Maher 600,000
Ross Levin 600,000
The remaining options will be allocated to staff and consultants of Cape Lambert as determined by the Board.