As mentioned further down, it looks like there is a chance from some shareholder returns which would be nice. fingers crossed...
Iron ore winner for CopperCo assets
May 11, 2009 Article from: The Australian
IRON ore explorer Cape Lambert Iron Ore has beaten stiff competition to acquire the assets of failed copper miner CopperCo for about $106 million.
Receivers Deloitte said Cape Lambert had been selected as the preferred bidder for the assets, including the Lady Annie copper mine near Mt Isa, in Queensland, which had been purchased as a going concern.
Also included in the purchase are shareholdings in various listed resources companies and the Sappes gold project in Greece.
Cape Lambert announced in February it had acquired about $78 million in secured debt owed by CopperCo and its subsidiaries, which would be repaid once the asset acquisition was complete.
The explorer has agreed to pay about $27 million extra on completion of the acquisition, bringing the total consideration to about $106 million.
Deloitte said Cape Lambert's had been the superior proposal among several bids.
"It is an excellent outcome because there will be some return to unsecured creditors," Deloitte receiver Gary Doran said. "That's always difficult with any insolvent company."
He said the sale process had been made more difficult by "huge environmental damage" at the Lady Annie mine site following widespread flooding in Queensland early this year.
An environmental remediation program is under way.
"Importantly, under the sale agreement, the receivers and managers will ensure that sufficient sale proceeds are set aside to complete all agreed remediation works," Deloitte said.
The sale is subject to court and creditor approval.
CopperCo was placed in administration in November after it was unable to retire a $45 million debt with Macquarie Bank.
AAP
CUO Price at posting:
5.0¢ Sentiment: None Disclosure: Held
