Cape Lambert says not on the acquisition trail, yet

Cape Lambert Iron Ore Ltd has sought to quash market speculation it is negotiating new aquisitions, after agreeing this week to sell its namesake project in the Pilbara to China Metallurgical Group Corporation for $400 million.

In announcing the deal this week, Cape Lambert said it intended to follow an investment strategy to acquire assets at either company or project level on completion of the proposed transaction.

Cape Lambert said today its immediate and primary focus was to complete all matters associated with the proposed sale of the Cape Lambert iron ore project to MCC.

"While the company has, and is continuing, to proactively review a number of assets for acquisition at both the project and company level, there are currently no agreements in place regarding any of these assets," Cape Lambert said.

"The board advises that until the Cape Lambert project sale is successfully completed and the company receives the majority of the funds associated with this transaction, no consideration will be given to completing an acquisition or making a partial capital return to shareholders."

The sale is subject to the successful completion of due diligence by MCC by April 30, approvals by Cape Lambert shareholders, FIRB, the Chinese government and any other necessary approvals.