Cape Lambert sells NFX gold stake for $4m

Leederville-based junior miner Cape Lambert Iron Ore Ltd has sold its 16 per cent stake in Canadian gold company NFX Gold Inc. for $4.1 million.

The decision by Cape Lambert to divest its stake in NFX, as well as the proposed spin off of its gold assets, are intended to allow the company to concentrate its resources on the development of Cape Lambert Iron Ore project, located in the Pilbara region.
The company said it may look to sell other significant assets it holds, including the Sacu Copper/Gold project in Romania, a 9 per cent stake in Jackson Gold, the Jubuk Kaolin project and shares in Republic Gold Ltd.

The sale represents a $3.5 million profit (based on carrying value at 30 June 2005) for Cape Lambert and brings the cash balance of the company to approximately $24 million.

The company retains 220,000 shares in NFX which are held in escrow until 14 June 2006 and at present the current market value of these shares is in excess of $350,000.

In January, Cape Lambert said it planned to spin off its gold assets via a $3 million public float.

The junior miner is to restructure its mineral exploration and production assets through the formation of a 100 per cent owned subsidiary, International Goldfields Ltd, which will hold Mt Ida, Evanston and other non-core gold assets.

Earlier this month, Cape Lambert said it intends to apply for admission on the Alternative Investment Market of the London Stock Exchange to maintain and enhance its global profile, and gain greater exposure and access to European capital markets.