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Cape Lambert moves to increase mid-west iron-ore exposure.

By: Esmarie Swanepoel
10th August 2010

PERTH (miningweekly.com) ASX-listed resources group Cape Lambert has signed a strategic alliance agreement with fellow-listed resources company Chameleon Mining.

Cape Lambert said in a statement that the agreement would not only see it become a significant shareholder of Chameleon, but would also ensure it had exposure to one of the largest iron-ore prospective landholdings in the emerging mid-west region of Western Australia.

Cape Lambert has agreed to provide Chameleon with a credit facility of up to A$6,5-million, which would enable it to more actively pursue further mining opportunities as well as develop its existing exploration interests.

In turn, Cape Lambert would appoint Tony Sage, Jason Bontempo and Paul Kelly to the Chameleon board as its three representatives.

Cape Lambert would also assume responsibility for all technical activities associated with the evaluation and exploration of the assets owned by Chameleon.

Sage believes the agreement with Chameleon represented a unique low-cost opportunity to further increase its exposure to the emerging mid-west iron-ore province.

"I have at all times stated that our aim is to be one of the largest landholders of iron-ore prospective tenements in the emerging mid-west region of Western Australia", Sage said.

"In a short amount of time, both Cape Lambert and our associated company Fe Limited has amassed a significant land position in the mid-west, something we will continue to do as I believe this area of Australia has the capacity to rival the Pilbara in terms of its world standing as an iron-ore province", he added.

Cape Lambert holds 17% of Fe Limited, which has access to over 3 000 km2 of iron-ore prospective land in the mid-west region.

In addition to the provision of a credit facility, Cape Lambert has also agreed to subscribe for shares through a placement Chameleon has recently completed. In total, Chameleon has placed more than 166,6-million shares at A$0,015 a share with a three-for-five attaching option exercisable at 1,5c on or before December 31, 2012, to raise A$2,5-million.

Of the total, Cape Lambert has subscribed for A$2-million worth, representing more than 133,3-million shares at A$0,015 a share.

Chameleon has tenement holdings in the mid-west of Western Australia, prospective for iron-ore and gold, which are in proximity to tenements held by Cape Lambert or its associated companies.

http://www.miningweekly.com/article/cape-lambert-moves-to-increase-mid-west-iron-ore-exposure-2010-08-10