Cape Lambert to launch $34m DMC offer

Cape Lambert Resources has revealed plans to take full control of DMC Mining, launching a $34 million cash offer today for the explorer which controls an iron ore project in the Republic of Congo.

The Tony Sage-led Cape Lambert, which already holds a 36.2 per cent interest in DMC, today said it will offer 40 cents cash for each DMC share it does not own. Cape Lambert will not make a separate offer for DMC's options.

Cape Lambert is eyeing DMC's 80 per cent interest in the Mayoko iron ore project in the Republic of Congo. DMC recently increased the project's exploration target to between 0.9 - 1.3 billion tonnes of iron.

"Cape Lambert has proven over many years that it is able to acquire an early stage asset and diligently apply the required technical and financial resources to maximise value in the shortest possible time-frame," Mr Sage said.

A formal bidder's statement will be lodged with the Australian Securities Exchange and the Australian Securities and Investments Commission shortly, Cape Lambert said.

In a statement this afternoon, DMC urged shareholders to take no action on the takeover proposal until further advice from the board. DMC have hired Blakiston & Crabb to provide legal advice.

Shares in DMC closed up nine cents to 39c while shares in Cape Lambert closed unchanged at 46c today.