Yes.AFX News Feed Monday, 26/03/07, 13:09 Cape Lambert sells 70...

Yes.

AFX News Feed
Monday, 26/03/07, 13:09

Cape Lambert sells 70 pct of Western Australia project for 192.5 mln usd UPDATE

LONDON (AFX) - Cape Lambert Iron Ore Ltd said it has agreed to sell 70 pct of the Cape Lambert project to Chinese investor Liguo Ding, who is the chairman of Singapore listed Delong Holdings Ltd, for 192.5 mln usd.
Under the terms of the binding agreement with Beijing-based Best Decade Ltd, which owns 78 pct of Delong Holdings, Cape Lambert will receive 30 pct of the sale price at settlement of the transaction with a further 55 pct being paid three months after that date.

It will receive the remaining 15 pct on completion of a bankable feasibility study and commencement of construction, it said.

Cape Lambert said it received a 2 mln aud deposit of which 750,000 aud is non-refundable.

The agreement is conditional on Cape Lambert providing the purchasers with a report, which is expected to be completed in the second quarter, confirming an indicated JORC compliant resource of 300 mln tonnes.

It said it expects drilling at the Cape Lambert project, located in the Pilbara region of Western Australia, to recommence in mid-April.

The company said it will retain a significant equity holding in the asset adding it now has significant cash reserves to possibly acquire other projects. [email protected] bsu/bsu/tc COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited