CAPE Lambert Resources says it expects to issue a prospectus...

CAPE Lambert Resources says it expects to issue a prospectus later this month ahead of a proposed initial public offering of its Sierra Leone iron ore asset in London.

Tony Sage, executive chairman of the Perth-based Cape Lambert, said the IPO of its Marampa project in Sierra Leone would seek to secure up to $430 million from investors, despite the recent market volatility.

The jitters haven't affected the IPO timetable and there is "plenty of cash" available for investing in quality West African iron ore ventures such as Marampa, Mr Sage told reporters.

"We will have a full prospectus finished by the end of September, and the roadshow is planned for London in the last week of October to raise the funds," he said.

Cape Lambert plans to retain 25 per cent of the IPO, which Mr Sage hopes will be listed by late November.

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The company has received "several expressions of interest" from potential cornerstone investors, including Chinese parties, Mr Sage said.

A final "scoping study" on Marampa, which has estimated resources of 680 million tonnes of iron ore, is due for release next week, Mr Sage said.

The company has said previously that a $US655m ($516m) stage one development would be capable of exporting 5 million tonnes a year of iron ore from 2013.

Rapid industrialisation in China and India is boosting demand for iron ore, a key ingredient used in making steel.

Rio Tinto predicted yesterday the mining industry would need to produce at least another 100 million tonnes of iron ore annually over the next eight years just to meet demand growth.

Sierra Leone is one of several West African countries trying to establish a major iron ore export industry, following recent investments in the region by Chinese groups and global miners Rio Tinto, BHP Billiton and Brazil's Vale.

From The Australian