FIRB approves $135m Lady Annie sale.Resources:...

FIRB approves $135m Lady Annie sale.
Resources: 31-March-10.
www.wabusinessnews.com.au

Cape Lambert Resources has cleared a key hurdle in the sale of its Lady Annie copper operation to China Sci-Tech with the Foreign Investment Review Board today approving the transaction.

Earlier this month, Cape Lambert agreed to sell the operation to China Sci-Tech for $135 million after it pulled float plans earlier this year for Q Copper which was to have bought the project.

Completion of the sale was conditional on a number of matters including FIRB and shareholder approval, and other regulatory approvals and third party consents.

"Given this acquisition is being funded from existing cash reserves, the key condition needed prior to settlement was FIRB approval, with that now received CST can move towards completion of the agreement," Cape Lambert chairman Tony Sage said.

"On completion of the agreement we will be in receipt of A$130M, at which time we will be able to finalise our plans regarding a partially franked dividend to Shareholders.

"It is our intention to return between A$0.08 and A$0.10 per share to Shareholders once the sale completes and the A$130 million cash is received."

Following the sale of Lady Annie, Cape Lambert will still retain a number key assets acquired as part of the CopperCo Limited transaction, including a 25 per cent interest in the high-grade Lady Loretta lead-zinc-silver project located near Lady Annie, the high-grade Sappes gold project located in Greece, the early definition Australis rock phosphate land package, and controlling interest in listed NiPlats Australia Limited (ASX: NIP), Corvette Resources Limited (ASX: CVX) and Fe Limited (ASX: FEL)