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Cape Lambert shares jump as project sale completed
Wed Aug 6, 2008 11:14am BST

LONDON, Aug 6 (Reuters) - Shares in Cape Lambert Iron Ore Ltd (CFE.AX: Quote, Profile, Research)(CLIO.L: Quote, Profile, Research) rose nearly 17 percent on Wednesday when it said it had completed the sale announced last week of its namesake iron ore project in Pilbara, Western Australia.

The company said it had received an initial 240 million Australian dollars ($220.4 million) from the buyer, China Metallurgical Group Corp, and the next A$80 million tranche was due by Sept. 15, 2008.

The exploratory mining company's cash reserves now stand at over A$270 million, enabling it to proceed with its intended return of cash reserves to shareholders, it said.

Cape Lambert said it would continue its search for appropriate acquisitions, and was on schedule to begin drilling at its South Project in September/October.

"We have significant cash reserves, a highly prospective exploration target and a number of projects and companies that we are running the ruler over at present," Chairman Ian Burston said.

The company's Australia-listed shares were halted earlier Wednesday pending the announcement.

At 1010 GMT, the company's London-listed AIM shares were up 12 percent at 30.25 pence, having earlier touched 31.50 pence. (Reporting by Rosalba O'Brien, editing by Will Waterman)
http://uk.reuters.com/article/hotStocksNews/idUKL
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