Cape Lambert Iron Ore Ltd has today confirmed that it is fighting a court injunction brought about by major shareholder Power United Ltd, which is seeking to block the acquisition of a stake in an African project.
Cape Lambert Iron Ore Ltd has today confirmed that it is fighting a court injunction brought about by major shareholder Power United Ltd, which is seeking to block the acquisition of a stake in an African project.
In an announcement today, Cape Lambert said the Supreme Court of Western Australia will consider tomorrow whether to extend the injunction which was granted late last week.
Power United, headed by Mick Shemesian, last week sought the court order in a bid to block Cape Lambert from acquiring a 30 per cent stake in the Marampa iron ore project in a cash and scrip deal worth more than $54 million.
Cape Lambert is acquiring the project stake from London-listed African Minerals Ltd, a company controlled by Frank Timis.
Earlier this month, Mr Shemisian requisitioned a shareholders meeting in a bid to oust several Cape Lambert directors including executive chairman Tony Sage, and replace them with Melbourne identity Leo Khouri, Blair Sergeant, Tony Roberts and Lavan Legal lawyer Martin Bennett.
Power has previously said it was concerned that Cape Lambert was embarking on a major transaction so soon after the $400 million sale of its iron ore project to Chinese company MCC Mining.
Below is the full announcement:
Cape Lamber Iron Ore Limited ("Company") (ASX: CFE, AIM: CLIO) wishes to advise that late on Friday 19 September 2008 the Supreme Court of Western Australia granted an interim injunction restraining Cape Lambert from declaring unconditional its agreement with African Minerals Limited ("African Minerals") (AIM: AMI), to acquire a stake in the highly prospective Marampa Iron Ore Project in Sierra Leone, issuing shares to complete the acquisition or entering into any other agreement with African Minerals.On 2 September 2008, the Company advised it had entered into an agreement with African
Minerals to acquire a 30% interest in Marampa Iron Ore Limited, the holder of the Marampa Iron Ore Project in a cash/scrip deal valued at more than US$45 million. Under the terms of the agreement Cape Lambert proposes, subject to satisfaction of various conditions, to issue 44 million shares to make the 30% investment (which represents approximately 10% of its current total issued capital [9% on a fully diluted basis]) and sole fund the first US$25 million toward a definitive feasibility study on the project.
Cape Lambert has also negotiated an exclusive option to acquire the outstanding shares in Marampa Iron Ore Limited, that if exercised will deliver the Company control of the Marampa Iron Ore Project.
The injunction granted on Friday is in force until 6pm Western Standard Time on Tuesday, 23 September 2008. On Tuesday 23 September the Court will consider whether the injunction should be extended.
The Company confirms that it will keep the market fully informed of all developments in relation to this matter.
