Tony Sage's Cape Lambert Resources has taken a significant stake in Chameleon Mining, which is in the midst of a legal battle with Murchison Metals over iron ore tenements in the Mid West.
Tony Sage's Cape Lambert Resources has taken a significant stake in Chameleon Mining, which is in the midst of a legal battle with Murchison Metals over iron ore tenements in the Mid West.
Under the deal Cape Lambert will provide Chameleon with a $6.5 million credit facility and Mr Sage, Jason Bontempo and Paul Kelly will join Chameleon's board.
Chameleon will also raise $2.5 million in a share placement at 1.5 cents per share.
Cape Lambert will take up to $2 million worth of shares.
Mr Sage said the Strategic Alliance Agreement with Chameleon represented a unique low-cost opportunity to further increase its exposure to the emerging Mid West iron ore province.
"I have at all times stated that our aim is to be one of the largest landholders of iron ore prospective tenements in the emerging Mid West region of Western Australia," Mr Sage said.
Chameleon currently has a Federal Court action against Murchison Metals and a decision on this matter remains pending.
See full company statement below:
Diversified Australian resources company Cape Lambert Resources Limited (ASX: CFE) ("Cape Lambert Resources" or "the Company") has signed a Strategic Alliance Agreement ("Agreement") with ASX listed resources company Chameleon Mining Limited (ASX: CHM) ("Chameleon") that will not only see it become a significant shareholder of Chameleon, but also ensure it now has exposure to one of the largest iron ore prospective landholdings in the emerging Mid West region of Western Australia.
Under the terms of the Agreement Cape Lambert has agreed to provide Chameleon with a credit facility of up to A$6.5M. This facility will provide Chameleon with access to additional working capital and will also allow Chameleon to more actively pursue further mining opportunities as well as develop its existing exploration interests.
Cape Lambert will be entitled to appoint three representatives to the Chameleon board, being Mr Tony Sage, Mr Jason Bontempo and Mr Paul Kelly. Cape Lambert will also assume responsibility for all technical activities associated with the evaluation and exploration of the assets owned by Chameleon.
Chameleon has tenement holdings in the Mid West of Western Australia, prospective for iron ore and gold, which are in proximity to tenements held by Cape Lambert or its associated companies. In addition, Chameleon has in progress a Federal Court action against Murchison Metals Limited & Ors, claiming an interest in a range of Mid West iron ore tenements, a decision on this matter remains pending.
Cape Lambert Chairman, Mr Tony Sage, believes the Strategic Alliance Agreement with Chameleon represents a unique low-cost opportunity to further increase its exposure to the emerging Mid West iron ore province.
"I have at all times stated that our aim is to be one of the largest landholders of iron ore prospective tenements in the emerging Mid West region of Western Australia," Mr Sage said.
"In a short amount of time both Cape Lambert and our associated company Fe Limited has amassed a significant land position in the Mid West, something we will continue to do as I believe this area of Australia has the capacity to rival the Pilbara in terms of its world standing as an iron ore province," he added.
Cape Lambert holds 17% of Fe Limited, which has access to over 3,000km2 of iron ore prospective land in the Mid West region of Western Australia.
In addition to the provision of a credit facility Cape Lambert has also agreed to subscribe for shares via a Placement Chameleon has recently completed. In total, Chameleon has placed 166,666,667 shares at A$0.015 per share with a three for five attaching option exercisable at 1.5c on or before 31 Dec 2012 to raise A$2,500,000.
Of the total, Cape Lambert has subscribed for A$2m worth, representing 133,333,333 shares at A$0.015 per share.
The signing of the strategic alliance agreement follows extensive legal and technical due diligence conducted by Cape Lambert in recent months.
