Perth-based mineral investment company Cape Lambert Resources (ASX: CFE) completed a busy December quarter, ticking off significant accomplishments. Executive chairman Tony Sage has successfully shaped A$291 million-capped CFE into an corporate investor of distressed or undervalued mineral assets.
Acquiring and investing in undervalued mineral assets and companies, adding value to those assets through a hands-on approach to management, exploration and evaluation. With ultimate aim for the assets to be monetised at a multiple of purchase price. The company intends to follow a policy of distributing surplus cash back to shareholders.
Significant initiatives during the quarter included:
- Change of corporate name from Cape Lambert Iron Ore. - $59 million in cash at bank (at 28 January 2010). - Copper sales from the Lady Annie Project totalled 366.8 tonnes realising US$2.3 million. CFE is selling doww the project holding to 15 per cent. - This is to be achieved by an initial public offering (IPO) of Q Copper Australia Limited (Q Copper). Late in the quarter, the IPO closing date was extended to 3 February 2010 and the minimum raising reset to $164.5 million. On successful IPO, and under the revised terms, Cape Lambert will retain a maximum 15% interest in Q Copper and receive a minimum $108.5 million in cash. - Increased its stake in the Marampa Iron Ore Project (West Africa, Sierra Leone) to 100%. - Gained control of a 37.6% interest in NiPlats Australia Limited (ASX: NIP). - Successful in its bid to acquire the assets comprising the 9,000 tonne per annum Leichhardt Copper Project for $8.5 million. It is expected that the sale will complete late February 2010. - Acquisition of 100% of the share capital of Mojo Mining Pty Ltd was completed on 25 November 2009. Mojo holds 15 contiguous exploration tenements located in northwest Queensland, which are also contiguous with the tenement package held by 100% owned Cape Lambert subsidiary Australis Exploration Limited. - Cauldron Energy Limited (ASX: CXU) received shareholder approval to issue to Cape Lambert the balance of ordinary shares pursuant to the convertible note conversion of 15 July 2009, increasing the Companys interest to 18%. - Disposed of non-core shareholdings in Herencia Resources plc and Charaat Gold Holdings Ltd, and in January Platmin Limited to realise $27.7 million. - The Company exercised 10 million, 10 cent options in unlisted, public company, Latin Resources Pty Ltd. The Company now holds 12 million shares in, or 15% of, Latin, which has coastal iron ore interests in Peru.
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