Cape Lambert settles shareholder dispute 9-October-08 by Rebecca Lawson
Lambert Iron Ore Ltd has offered a board position to disgruntled shareholder Power United as the dispute, which involved court injunctions, is settled.
The Tony Sage-led Cape Lambert announced today that a shareholders meeting scheduled for next week following a requisition by Power United had been called off.
Previously, Power was calling for most of the board members in Cape Lambert to be dumped following concerns over the purchase of an iron ore project in Sierra Leone.
Power had previously said not enough time had been allocated for the due diligence aspect of the deal, where Cape Lambert has the option to acquire the entire project for $US200 million, payable to African Minerals Ltd.
Cape Lambert already has a 30 per cent stake in the project, Marampa, after a court injunction was lifted following successful mediation talks.
Today, Cape Lambert said Power has now endorsed its assessment of the project and following extensive negotiations, all matter had now been resolved.
Cape Lambert said it will offer Power nominee Tony Roberts along with a nominee from African Minerals seats on the board, following the completion of all necessary regulation requirements.
The cashed-up iron ore company, following the $400 million sale of its Cape Lambert project, said it will continue to look at other potential acquisitions.
"With the current market situation, the company believes that there are a number of opportunities available that can be capitalised on given Cape Lambert's strong cash position and technical team," the company said.
Shares in Cape Lambert were up 0.5c to 41.5c at 14:47 AEST.
CFE Price at posting:
20.8¢ Sentiment: Buy Disclosure: Held
