sale of sappes for 46.5m, page-2

A$46.5 MILLION SALE OF SAPPES GOLD PROJECT
Key Points: ?h Cape Lambert to sell the Sappes Gold Project to Glory Resources Limited for a total consideration of A$46.5 million. ?h Completion is conditional on, amongst other things, Glory Resources raising A$42.5 million, re-complying with Chapters 1 and 2 of the ASX Listing Rules and obtaining its shareholders approval. ?h On successful completion, the sale of Sappes will result in Cape Lambert having received approximately A$250 million from asset sales in the past 24 months.
Australian resources and investment company, Cape Lambert Resources Limited (ASX: CFE) (??Cape Lambert?? or the ??Company??) has signed a binding heads of agreement with Glory Resources Limited (ASX: GLY) (??Glory Resources??) for the sale of the Sappes Gold Project (??Sappes Project??) for a total consideration A$46.5million (??Heads of Agreement??).
Pursuant to the terms of the Heads of Agreement, Glory Resources will satisfy the consideration as follows:
(a) A$32,500,000 in cash on completion of the acquisition;
(b) 16,000,000 shares in Glory Resources (??Glory Resources Shares??) on completion of the acquisition;
(c) A$5,000,000 in cash or Glory Resources Shares, at the election of Glory Resources, on the granting of an operating permit (or equivalent) in respect of the Sappes Project; and
(d) A$5,000,000 in cash or Glory Resources Shares, at the election of Glory Resources, upon the sale of the first 1,000oz of gold (or gold equivalent in the case of copper concentrate and/or silver metal) from the Sappes Project.
The acquisition of the Sappes Project by Glory Resources is subject to a number of conditions including governmental approvals and Glory Resources obtaining its shareholders?? approval for the acquisition, re-complying with Chapters 1 and 2 of the ASX Listing Rules and completing a capital raising
A$42,500,000. All conditions must be satisfied or waived by 31 December 2011 with completion of the acquisition to take place 5 business days thereafter.
The Sappes Project is a gold development project located on a granted mining lease in north eastern Greece approximately 30km northwest of the Aegean Sea port city of Alexandropoulos. The Project has recently submitted its preliminary environmental impact study to the Ministry of Environment, Energy and Climate Change as a first step to securing an operating permit and commencing construction.
Cape Lambert acquired the Sappes Project as part of its successful A$135million bid for the assets of CopperCo Limited in June 2009. On completion of the sale of the Sappes Project, Cape Lambert will have realised approximately A$250 million from CopperCo asset sales in the past 24 months.
Cape Lambert Executive Chairman, Mr Tony Sage said ??Cape Lambert??s focus is on iron ore and base metals, and this sale provides the best outcome for the delivery of value to our shareholders and an operating gold project to the benefit of stakeholders and our host, the Greek government whilst still keeping a stake in the significant upside this project can deliver over the coming years.??
Yours faithfully
Cape Lambert Resources Limited