Cape Lambert proceeds with acquisition

An injunction preventing Cape Lambert Iron Ore Ltd from acquiring a stake in an African iron ore project has been dropped following mediation talks with a disgruntled shareholder.

In a statement released yesterday, Cape Lambert said as a result of extensive discussions with shareholder Power United Ltd, the interim injunction enforced by the Supreme Court had now been dropped.

Late last week, Power successfully applied for the injunction to be placed on Cape Lambert that would stop it from acquiring a major stake in the Marampa iron ore project in Sierra Leone without shareholder approval.

The Supreme Court was due to make a decision on whether the injunction should be extended on Tuesday however the judge residing over the matter decided to reserve his decision until the end of the week.

Power, which holds an 11 per cent stake, had previously said it was concerned that Cape Lambert was embarking on another significant transaction so soon after selling its namesake project to a Chinese company for $400 million.

"As a result of extensive discussions with Power United and the company, the parties have resolved the proceedings by consent with the interim injunction being dischared and with each party bearing their own costs of the proceedings," Cape Lambert said.

The acquisition of the 30 per cent of the Marampa project is expected to be signed before an October 15 shareholders meeting, requisitioned by Power which is seeking to remove several Cape Lambert directors including executive chairman Tony Sage.

Power has nominated four people to replace the directors on the Cape Lambert board including Lavan Legal lawyer Martin Bennet and Melbourne identity Leo Khouri.