Cape Lambert to sell royalty on Congo mine

Cape Lambert Resources has appointed international finance group Deutsche Bank to sell its royalty held over the Mayoko iron ore project in the Republic of Congo.

Cape Lambert said its internal valuations for the Mayoko royalty came in at between $55 million and $114 million, based on a 30 year mine life with initial production of 2 million tonnes per year in 2015-16, ramping up to 10mtpa from 2017 onwards.  

Chairman Tony Sage said the company was confident it would find a buyer for the royalty.

“We think now is a perfect opportunity to achieve maximum value from this royalty, which would in turn allow us to deploy funds in other areas,” Mr Sage said in a statement.

“The sale of the royalty would allow the board to consider the payment of a special dividend to shareholders as per the company model.”

Cape Lambert shares rose 8.3 per cent on the ASX today, closing trade at 19.5 cents.