daytrade diaries... december 11&12, page-24

CFE Q Copper in Friday paper, good read on CFE thread ?.

http://au.news.yahoo.com/thewest/business/a/-/business/6576564/q-copper-float-delayed-after-uk-investor-pulls-out/

Q Copper float delayed after UK investor pulls out
PETER KLINGER, The West Australian December 11, 2009, 12:14 pm

Cape Lambert Resources has been forced to delay the $225 million float of its Q Copper offshoot after a UK investor had to pull out of the fund-raising because of its exposure to the Dubai credit crisis.

It is understood the UK institution had planned to invest between $10 million and $20 million in the Q Copper initial public offering (IPO), which had sought to raise between $204 million and $214 million at $1 a share, but failed to meet the raising deadline after being caught up in the credit crisis engulfing the Middle Eastern emirate.

Patersons Securities, which was lead manager to Q Cooper's IPO, managed to raise its full entitlement of more than $150 million from retail and institutional clients.

The Tony Sage-headed Cape Lambert had planned to raise the remainder of the IPO target through its own network of investors, including the unnamed UK fund.

Under the original IPO plan, Cape Lambert was to have retained about $150 million of the cash proceeds in return for reducing its equity stake in Q Copper to about 10 per cent.

Assuming Patersons clients agree, Cape Lambert is likely to suggest that it scales back its cash demands to $135 million to $140 million to reflect the IPO's reduced total of money raised.

That way Q Copper's post-IPO cash position would remain unchanged from its prospectus forecast, although Cape Lambert would have to reduce the amount of cash it had promised to pay its own shareholders via a special dividend.

Q Copper represents the Lady Annie copper mine in Queensland which Cape Lambert picked up from the administrators of failed company Copperco, which collapsed earlier this year.

Cape Lambert shares have been in suspension since Tuesday, having last traded at 53¢.

The Perth-based company told its shareholders this morning that it expected to complete the Q Copper IPO by Tuesday.