doublek,I would seriously reassess your position in cfe,...

doublek,

I would seriously reassess your position in cfe, especially if you've been holding for a while. Why do you think the SP is being held down, it seems very obvious to me. Don't get sucked in by the present SP.




Under these terms CFE is looking great

"Under the terms of the agreement, Cape Lambert will issue 44 million shares in the Company
(representing approximately 9% of the Company) to African Minerals and has committed to
invest, subject to paragraphs (a), (d) and (e) below, US$25million in the Marampa Project to
fund a definitive feasibility study.
Other key terms of the investment are as follows:
(a) A commitment to contribute US$25million to fund a definitive feasibility study of the
Marampa Project will be in accordance with an agreed monthly calling schedule
applicable to the Marampa Project, which shall be agreed by the parties. If the
feasibility study costs in excess of US$25million, the Company and African Minerals
will contribute to the excess cost pro rata to their respective shareholding in
Marampa. The Company will contribute an initial US$5million upon completion
occurring.
(b) The Company has the right, in its sole discretion, to withdraw from the transaction
upon expending an initial US$5million. If the Company exercises this right, it shall
retain a pro-rata interest in Marampa and will have no further expenditure
obligations, other than to make contributions pro-rata to its shareholding in
Marampa.
(c) The shares issued to Marampa in consideration for the acquisition will not be entitled
to participate in any capital reduction or dividend announced by the Company on 18
August 2008 and proposed to be paid to shareholders in October 2008.
Cape Lambert Iron Ore Limited 1 October 2008
ASX Release Page 2 of 3
(d) The Agreement provides Cape Lambert with the right to terminate the Agreement if
the exploration licence upon which the Marampa Project is located is revoked,
rescinded, terminated or cancelled, or its boundary or area is materially and
adversely changed in any manner whatsoever within 12 months of the date of
completion of the Agreement. Upon the Company exercising its right to terminate,
the parties have an obligation to do all that is possible to unwind the transaction,
including the repayment of all funds paid by the Company under the Agreement and
the buy back and cancellation of all shares issued under the Agreement for nominal
consideration. To this end, a separate share buy back agreement, which is subject to
shareholder approval, has been executed by the parties.
(e) Subject to the Government of Sierra Leone and African Minerals finalising a 99 year
lease for the Pepel Port and railway connecting the Marampa Project to the Port,
African Minerals has agreed to grant access rights to Marampa to this infrastructure.
However, in the event African Minerals is unable to grant such rights to Marampa
within 12 months of the date of completion, the Company may terminate the
Agreement with the same effect as that described in paragraph (d).
(f) As a result of the provisions referred to in paragraphs (d) and (e), the shares to be
issued to African Minerals will be subject to a 12 month voluntary escrow period.
(g) Initially, Cape Lambert Chairman Tony Sage and senior technical advisor Joe Ariti
will be appointed to the Board of Directors of Marampa, thereby giving the Company
50% Board representation.
(h) The Company has been granted an exclusive option to acquire the remaining 70% in
Marampa (resulting in the Company holding a 100% interest in the Marampa Project)
in consideration for US$200 million, less the value of the consideration paid by the
Company on completion of the 30% acquisition, which may be satisfied in cash,
shares or a combination of both. The option may be exercised by the Company
either three (3) months immediately after the finalisation of the definitive feasibility
study or the date 20 months from the completion date (whichever is the earlier).
(i) The Agreement includes usual representations, warranties and indemnities provided
by African Minerals and Marampa."