Commenting on the Equatorial announcement, Cape Lambert Executive Chairman Tony Sage said, "The Cape Lambert investment model is to acquire substantial stakes in companies or assets that over time can be realised in a manner that achieves maximum value to the Company and its shareholders.
"The investment in African Iron represents a strategic investment for the Company, one which will realise significant value to the Company as the Mayoko Project evolves and achieves its production targets.
"While we acknowledge that Equatorial has acquired a major stake in African Iron, we would like to reiterate our long-term commitment to the board and shareholders of African Iron.
?We see this move as purely opportunistic by Equatorial, given African Iron?s strategy to commence production within 18 months, following which it is the Company?s expectation that African Iron?s market capitalisation would be up to A$1 billion based on other similar iron ore producers? Mr Sage added.
EQX Price at posting:
$2.60 Sentiment: Buy Disclosure: Held
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