Cape Lambert to acquire 37% of DMC

Acquisitive Cape Lambert Iron Ore is set to gain a 37 per cent shareholding in West Perth-based explorer DMC Mining and will lobby for additional board representation.

Cape Lambert will acquire its stake through wholly owned subsidiary, Dempsey Resources, through the conversion of a $2 million convertible note and exercise of 5 million options.

Under the terms of the convertible note, Cape Lambert will be issued with 20 million fully paid DMC shares, lifting its stake to 37 per cent.

The option exercise will inject $750,000 into DMC, Cape Lambert said.

Shares in DMC closed up three cents to 20c today.

Additionally, Cape Lambert said it will request additional DMC board representation.

Earlier this week, the Tony Sage-led Cape Lambert finalised its acquisition of CopperCo's assets which included major shareholdings in a string of exploration companies including Platmin, Corvette Resources and Tianshan Goldfields.

Cape Lambert is also seeking to take control of Buka Gold, which is has a 20 per cent shareholding in, and has requested a meeting of shareholders to consider the removal of the latter's board.

Cape Lambert has proposed that Buka's directors be replaced by Mr Sage, Simon McDonald and Mark Gwynne.