re: Ann: Stirling Minerals completes $96milli...
Cape Lambert looking to Sierra Leone.
11-January-2011 by Dan Wilkie & AAP
Cape Lambert Resources chairman Tony Sage says his minerals exploration firm will focus on advancing its Marampa iron ore project in Sierra Leone, after completing the $83 million divestment of subsidiary DMC Mining to African Iron.
Cape Lambert will receive $47 million and 210 million African Iron (formerly Stirling Minerals) shares in the deal, and also retain a production royalty of $1 per tonne of iron ore shipped.
"Now that the divestment of DMC Mining has been successfully completed, management will begin working on the crystallisation of shareholder value from the Marampa Iron Ore Project in Sierra Leone, which may involve a trade sale or an initial public offering on either the ASX or London AIM," Mr Sage said in a statement to the ASX.
"Consistent with the Company's amended business model, Cape Lambert will retain a production royalty and an ongoing interest in the Marampa asset as part of its monetisation".
Funds raised from the DMC Mining transaction will be used for drilling and testing at Cape Lambert's 47 per cent-owned West African Pinnacle iron ore assets, and the Leichart Copper Project, located near Mt Isa.
African Iron says it has installed a team of experienced iron ore executives to oversee development of the Mayoko Project in the Republic of Congo, which is 80 per cent owned by DMC Mining.
The company expects to re-quote its securities under the name African Iron on Thursday, January 13, 2011.
On relisting, the company will have $50 million cash that will be used to complete the proposed drilling program and feasibility assessment of developing the oxide cap at an initial rate of five million tonnes per year.
African Iron says the Mayoko project has good infrastructure, including a heavy haulage mineral railway that passes within two kilometres of the main prospect at Mt Lekoumou and terminates at the port of Pointe Noire on the Atlantic Ocean.
The board of African Iron now comprises Ian Burston as non-executive chairman and Cape Lambert executives Joe Ariti and Tony Sage as non-executive directors.
Mr Ariti will act as the chief executive of African Iron until a managing director is appointed.
(20min delay)