🕐16.11.09 - 07:19 Uhr
CAPE LAMBERT SUCCESSFUL IN A$8.5M BID FOR LEICHHARDT COPPER PROJECT
Cape Lambert Iron Ore
ASX Announcement
16 November 2009
CAPE LAMBERT SUCCESSFUL IN A$8.5M BID FOR LEICHHARDT COPPER PROJECT
Key Points:
- Cape Lambert successful in bid for Leichhardt Copper Project located in
world class Mt Isa base metals province of north west Queensland;
- Leichhardt Copper Project is owned by Matrix Metals, which went into
external administration on 11 November 2008;
- Consideration is A$8.5M and is payable, subject to satisfaction of
conditions, in the first quarter 2010;
- Leichhardt Copper Project comprises a copper cathode process plant
capable of producing 9,000 tpa, and an extensive landholding with
considerable exploration upside; and
- Acquisition continues Cape Lamberts strategy of investing in
undervalued/distressed assets/companies, adding value through technical
and corporate support, before looking for ways to realise the
investment.
Australian resources and investment company, Cape Lambert Iron Ore Limited
("Cape Lambert" or the "Company") (ASX: CFE) continues to enhance its
significant project portfolio, confirming today that it has signed an Asset
Sale Agreement to acquire, through its wholly owned subsidiary Cape Lambert
Leichhardt Pty Ltd, the Leichhardt Copper Project from Matrix Metals
Limited (Receivers and Managers Appointed) (In Liquidation) for A$8.5M.
The
Company has guaranteed its subsidiarys obligations under the Asset Sale
Agreement.
Matrix went into voluntary administration on 11 November 2008, with
receivers and managers subsequently appointed by the secured creditor.
"We feel the consideration paid for this asset represents replacement value
for the recently upgraded plant, and does not include the considerable
upside we think can be generated from the prospective land package" said
Executive Chairman Mr Tony Sage.
The Leichhardt Copper Project is located approximately 100km north east of
Mt Isa in the highly prospective Mt Isa Inlier (refer Figure1), and
comprises;
- The Leichhardt process plant at Mt Cuthbert -- a heap leach, solvent
extraction and electrowinning facility with installed capacity of 9,000 tpa
of copper cathode,
- A granted tenement package (42) of approximately 800km2 located within
the highly prospective Mt Isa Inlier,
- A further 600km2 of tenement applications (12) also located within the Mt
Isa Inlier, and
- The established Mt Watson oxide, open pit located approximately 30km
north of the Leichhardt process plant.
Copper cathode production commenced at the project in June 2007.
In the
2008 financial year, copper sales were 4,656 tonnes at a cash cost of
US$2.24 per pound.
Heap leach metallurgical recovery was reported at 93%
for Mt Watson oxide ore.
In December 2007, a decision was taken to increase
installed capacity from 5,500 to 9,000 tpa.
Construction and commissioning
were subsequently completed in July 2008 and September 2008 respectively.
The Leichhardt Copper Project is currently on care and maintenance.
The
Company plans to commence a systematic evaluation of the exploration
dataset, with the objective of defining drill targets and commencing drill
programs to define additional oxide copper inventory.
The acquisition of the Leichhardt Copper Project is in line with Cape
Lamberts strategy of investing in undervalued/distressed assets/companies,
adding value through technical and corporate support, before looking for
ways to realise the investment.
"With established production capacity and a highly prospective tenement
package in a world class base metals province, we believe this asset can
return significant value to Cape Lambert and its shareholders in the near
to medium term" Mr.
Sage added.
As announced previously by Matrix, an incident at its project, following
record rainfall and significant flooding in the region in early 2009, may
have released contaminants into the environment.
Co-operation with the
Department of Environment and Resource Management to protect the health and
safety of staff, as well as the environment and local community, is
continuing and remediation works are expected to be completed during the
transition period for the transaction.
The transaction is subject to ministerial approval for the transfer of
tenements and Matrix incurring certain expenditure on remediation works,
and is expected to be completed in the first quarter 2010 when these
conditions have been satisfied.
Ends
Click here to view the whole announcement:
http://esp.gewru.com/download/files/12414/990662/Update%20in%20relation%20to%20Lady%20Annie%20Initial%20Public%20Offering.pdf
FOR MORE INFORMATION PLEASE CONTACT:
Cape Lambert Iron Ore Limited:
Tony Sage
Executive Chairman
Tel: +61 (0)8 9380 9555
Media Inquiries:
David Tasker
Professional Public Relations
Tel: +61 (0)8 9388 0944
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