Tony Sage’s Cape Lambert Resources has lined up a new agreement to sell its Leichhardt copper project in Queensland for $14.75 million, after the original $25 million proposal fell over.
Cape Lambert announced today it had entered a binding agreement with a privately-held Malaysian company to sell the Leichhardt project, with the transaction expected to be complete by May 31.
The company said it had already received a $1 million non-refundable deposit, with a further $1 million deposit payable by April 25.
Cape Lambert will receive the remainder of the funds, plus costs incurred operating the project from May 1, once the transaction is completed.
The initial sale proposal for the Leichhardt project comprised a $25 million agreement and was first announced in May last year.
In November last year, however, Cape Lambert said the transaction would be subject to a variation agreement, and it would sell the project for $15 million.
That agreement was scheduled to be settled in March, according to the November announcement.
Cape Lambert said it signed today’s agreement as a result of delays in finalising the terms of the original transaction.
Once the sale is finalised, Cape Lambert said it will have $5.6 million of environmental and cash bonds returned, taking its cash on hand to around $40 million.
Meanwhile, Cape Lambert said it had received a number of formal approaches from interested parties for the sale of royalty rights held over the Mayoko iron ore project in the Republic of Congo.
The Mayoko project operator, Exarro Resources, recently said it expected to start mining later this year, eventually ramping up to a 10 million tonne per year operation.
At 11:30AM, WST, Cape Lambert shares were up 10 per cent, trading at 16.5 cents.
