Queensland copper sale earns quick profit

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 14 Aug 2013   Posted by admin


PERTH-based miner Cape Lambert has sold its Leichhardt copper project to a private Malaysian buyer for $14.75 million.
The sale of the Queensland project represents a tidy profit for the company – Cape Lambert purchased the project from Matrix Metals for $7.75 million in August 2010.
The transaction was delayed several times before being completed. Leichhardt – which has been on care and maintenance since 2010 – includes a copper cathode process plant capable of producing 9000t of copper per annum and has an existing offtake agreement with Glencore International.
Cape Lambert chairman Tony Sage said he expected the project would return to production following the sale.
“With this transaction now complete, Cape Lambert will have available cash reserves of approximately $35 million, which ensures we continue to remain largely unaffected by the uncertainty being created in global equity markets,” he said.
Mr Sage said the sale of several other projects would also boost Cape Lampert’s cash reserves.
“With the sale process for both the Marampa iron ore project and the royalty associated with the Mayoko iron ore project both advancing positively, we expect this cash position to be enhanced significantly over the coming six months,” he said.
“For the various stakeholders of the Leichhardt project I am delighted that the sale has now been completed and that the project is proposed to be returned to production in the earliest possible time frame by its new owners.”