Cape Lambert pulls $165m Q Copper IPO

Shares in Cape Lambert Resources have dropped after it today withdrew the initial public offer of spin-off Q Copper Australia due to "recent adverse market conditions".

The company, together with lead manager Patersons Securities, decided to pull the IPO that was due to raise $164.5 million with shares priced at $1 each. The IPO was scheduled to close yesterday.

Both businesses said it was prudent to withdraw the IPO until market conditions improve.

It is the second time Cape Lambert have had to delay Q Copper's float having shaved $39 million off the initial raising amount after a UK investor pulled out in December.

The Q Copper float was to be the largest resources IPO in 2009, while the second largest, the $196.4 million IPO of Talison Lithium was pulled in December.

Cape Lambert today said it will continue with the planned exploration program at the Lady Annie project, which was supposed to the flagship operation of Q Copper's suite of projects.

The program will initially focus on upgrading and adding to the defined resources ad the Mt Kelly Mining Area and Anthill-Python prospects.

"Whilst we are disappointed with the deterioration of the market in recent weeks, and its impact on the IPO, Lady Annie remains a very good copper project within a substantial landholding in the world class Mt Isa Inlier," Cape Lambert executive chairman Tony Sage said.

Shares in Cape Lambert shed six cents, or 12 per cent to 44.5c at 11:38 AEDT.