re: Ann: Cape Lambert Finalises Marampa Infra... This is my take...

re: Ann: Cape Lambert Finalises Marampa Infra... This is my take on it and it may be completely wrong.

It lists specific changes of ownerships dealing with various types (legal types) of sales. Without going into too much detail, to retain the Infrastructure Agreement the purchaser must buy Marampa Iron Ore (SL) Limited, the company that owns the Marampa mine. They can't buy any offshore parent company or the mine itself. As a caveat, the purchaser must not own 10% or greater stake in an operating mining asset in Sierra Leone (Eg: 10% or more in London Mining, etc).

Additionally, if someone gains 50%+ controlling interest but not >90% in CFE, they can terminate by paying Marampa Iron Ore (SL) Limited $25m. This will act as a deterrent for a hostile takeover - good for management but not so good for shareholders. Want to gain control of Marampa by taking over CFE? Then build your own infrastructure - arguably one of the main advantages of the project.

If they gain 100% (90% is effectively the same as they can automatically acquire the remaining 10%) control of CFE they don't pay anything as it would fall under indirect transfer. The later is probably unlikely as African Minerals owns roughly 18% of CFE and would need to effectively 'approve' any 100% takeover. Given the buddy like relationship it is even more unlikely.

My opinion of this is that the same deal that was sold to investors before the announcement is still on. They've plugged (or partially plugged) some holes such as a CFE takeover and have accounted for loophole-like situations where they may have to oblige to the agreement when a non-ideal sale is made. 1 downside to the ann. is that the 16Mwtpa is still "subject to terms and conditions" which effectively means it hasn't been finalised and there is still risk associated with the long term metrics. At the end of the day, as a shareholder, it is nice to see progress but I doubt anything but a sale of Marampa will move the share price much.