Cape Lambert offloads QLD asset

Tony Sage's Cape Lambert Resources has sold out of its interest in the Lady Loretta lead-zinc-silver deposit in Queensland for $30 million.

Cape Lambert subsidiary, Cape Lambert Lady Loretta, announced today it had entered into an in-principle agreement with Xstrata subsidiary Noranda Pacific to sell its 25 per cent interest in the project.

The remaining 75 per cent interest is held under joint venture by Xstrata.

Completion of the sale is expected to occur within the next two months.

Cape Lambert obtained its interest in Lady Loretta as part of its acquisition of collapsed miner CopperCo's assets in June 2009.

Cape Lambert executive chairman Tony Sage said: "the sale was part of an ongoing process of crystallising shareholder value from the CopperCo acquisition.

"Xstrata was the natural buyer of the company's 25 per cent interest as it held the remaining 75 per cent and effectively controlled the development timetable for the asset.