11/01/2016 - 09:52

Cape Lambert to raise $4m

11/01/2016 - 09:52

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Tony Sage’s Cape Lambert Resources has announced plans to undertake its first capital raising since its initial offer, which was completed when the company listed on the ASX 16 years ago.

Cape Lambert to raise $4m
Cape Lambert chairman Tony Sage.

Tony Sage’s Cape Lambert Resources has announced plans to undertake its first capital raising since its initial offer, which was completed when the company listed on the ASX 16 years ago.

Cape Lambert will place about 94 million shares at 4.25 cents each to raise $4 million.

The placement has been fully underwritten by undisclosed UK and European sophisticated investors.

The offer price is a 300 per cent premium to Cape Lambert’s last closing price of 1.4 cents on Friday, which was a record low for the company since it began trading in 2005.

“The is being conducted to enhance working capital to sufficient levels for maintenance of the company’s portfolio of assets and address other circumstances that gave rise to the emphasis of matter in the company’s 2015 annual report, during a time of uncertain market conditions,” Cape Lambert said in a statement.

“Simultaneously, the company continues to monitor and seek cost savings and opportunities to sell non-core assets.”

Mr Sage, who also owns the Perth Glory football club, said despite not raising new capital since 2005, Cape Lambert had returned more than $250 million of value to shareholders in that time.

“(However) in these tough market conditions it’s important that we can maintain flexibility to invest in our current asset portfolio to maintain and enhance value,” he said.

“The underwriting of the placement at a huge premium shows support for, and belief in, the company’s assets and management.”

Cape Lambert shares were up 50 per cent to 2.1 cents each prior to the close of trade.

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