Cape Lambert receives $80m ahead of time

Cape Lambert Iron Ore Ltd has today received the second payment as part of the $400 million sale of its namesake iron ore project to MCC Mining (Western Australian) Ltd, a wholly owned subsidiary of China Metallurgical Group Corporation.

The second payment of $80 million was received today, a week ahead of the agreed date for receipt of September 22.

Together with the first payment of $240 million, Cape Lambert has received a total of $320 million.

The final payment of $80 million is to be paid by MCC Mining on the grant of a mining lease and related construction approvals for the project.

With the second payment now received, Cape Lambert has a cash position of approximately $340 million.

Cape Lambert executive chairman Tony Sage said "the receipt of the second payment ahead of time is further evidence of the strong relationship forged between the two companies in recent times".

"MCC has shown its intention throughout the entire sale process to create a strong relationship with Cape Lambert, something which has been further reinforced by the early payment of this money," Mr Sage said.

"With these monies now received, the Company will look to finalise its accounts ahead of the proposed cash distribution to Shareholders by way of a return of capital and an unfranked dividend."