Cape Lambert Resources has announced it will offload its Sappes gold project in north eastern Greece to Glory Resources for $46.5 million in cash and shares.
Cape Lambert and Glory have signed a binding heads of agreement for the sale, conditional on Glory raising $42.5 million, obtaining shareholder approval and complying with Chapters 1 and 2 of the ASX listing rules.
Glory's capital raising will be managed by UK-based Renaissance Capital.
Glory, which is led by Jason Bontempo, will pay Cape Lambert $32.5 million in cash and 16 million Glory Resources shares on completion of the acquisition, and also a further $5 million in cash or shares once an operating permit is granted.
An additional $5 million in cash or shares will be paid to Cape Lambert upon the sale of the first 1,000 ounces of Gold from the project,.
The Sappes gold project was acquired by Cape Lambert as part of its $135 million takeover of CopperCo in June 2009.
On completion of the sale, Cape Lambert will have earned around $250 million from the sale of CopperCo assets over the past two years.
“Cape Lambert’s focus is on iron ore and base metals, and this sale provides the best outcome for the delivery of value to our shareholders and an operating gold project to the benefit of stakeholders and our host, the Greek government, whilst still keeping a stake in the significant upside this project can deliver over the coming years,” Cape Lambert executive chairman Tony Sage said.
At 12:30PM Cape Lambert’s stock had dipped by 0.9 per cent, to trade at 54 cents.
