CLIO Cape Lambert

 

TIDMCLIO 
 
RNS Number : 0729M 
Cape Lambert Iron Ore Limited 
22 January 2009 
 

 
 
22 January 2009 
 
 
CAPE LAMBERT IRON ORE LIMITED 
Cape Lambert increases investment in Marampa Iron Ore Limited 
Australian domiciled iron ore company Cape Lambert Iron Ore Limited ("Cape 
Lambert" or the "Company") (ASX: CFE, AIM: CLIO) has today reached agreement 
with Marampa Iron Ore Limited ("Marampa"), a subsidiary of African Minerals 
Limited ("African Minerals") (AIM: AMI), to increase its investment in Marampa, 
the holder of the Marampa Iron Ore Project in Sierra Leone to approximately 35%. 
 
 
The consideration payable by Cape Lambert for its increased investment in 
Marampa is the issue of 17 million fully paid ordinary Cape Lambert shares to 
Marampa. These shares are to be issued to Marampa under the Company's 15% 
threshold in accordance with the ASX listing rules. 
 
 
Prior to entering into the Initial Marampa Agreement on 1 October 2008, the 
Company conducted extensive due diligence on the Marampa Project and believes 
that the Project has the potential to become a significant iron ore project, and 
as such, the Company could return such value to the Company and its 
shareholders. 
 
 
This view has been enhanced by discussions with potential off-take partners and 
other parties interested in the joint development of the Marampa Project and/or 
related infrastructure and desktop studies of the Marampa Project by 
Cape Lambert technical advisors. 
 
 
For predominately these reasons the directors of Cape Lambert feel it timely to 
increase the Company's investment in Marampa. 
 
 
On 1 October 2008, Cape Lambert announced that it had entered into an agreement 
to make a 30% investment in Marampa, owner of the Marampa Iron Ore Project, 
through the issue of 44 million Cape Lambert shares and agreement to sole fund 
the first US$25 million toward a definitive feasibility study at the Marampa 
Project ("Initial Marampa Agreement"). The Company notes that its announcement 
of 1 October 2008 incorrectly stated that the 44 million Cape Lambert shares, 
issued pursuant to the Initial Marampa Agreement, were issued to African 
Minerals. These shares were in fact issued to Marampa. 
 
 
Under the Initial Marampa Agreement, the Company also holds an exclusive option 
to invest further in Marampa by acquiring from African Minerals the outstanding 
shares in Marampa, which would result in Marampa becoming a wholly-owned 
subsidiary of Cape Lambert, at a price of US$200 million, less the aggregate of 
(i) US$25 million and (ii) the value of the 44 million Cape Lambert shares 
(already issued) and the 17 million shares (to be issued) as at the date of 
closing of the transaction. The option may be exercised at any time during the 
feasibility study period and for a period of three months immediately after its 
finalisation. 
 
 
As manager of the Marampa Project, Cape Lambert has completed planning and 
definition of the initial work program, which included recruitment of several 
expatriate project management personnel, who have now mobilised and are in 
country. 
 
 
The initial work program at Marampa has commenced, which will involve regional 
mapping, geophysics, drilling and metallurgical test work on the tailings 
(including recovery of a bulk sample for pilot scale work in Australia) and 
drill testing of the known geophysical anomalies. 
 
 The Company has also held discussions with parties interested in joint 
development of the Marampa Project and/or the development of the related 
infrastructure. These parties will visit the Marampa Project in the coming weeks 
so as to progress these discussions. 
Application to the London Stock Exchange has been made for these new Ordinary 
Shares to be admitted to trading on AIM ("Admission"). It is expected that 
Admission will become effective on 28 January 2009. 
The new ordinary shares will rank pari passu with the existing ordinary shares 
of the Company. 
Following the issue of these shares the Company has 523,787,213 fully paid 
ordinary shares in issue. 
 
 
 
 
 
 
 
 
For more information please contact: 
 
 
Cape Lambert Iron Ore Limited: 
Tony Sage +61 (0)8 9380 9555 
 
 
Australian Enquiries: 
Professional Public Relations 
David Tasker +61 (0)8 9388 0944/ +61 433 112 936 
 
 
UK Enquiries: 
Nominated Adviser: 
Grant Thornton UK LLP 
Fiona Owen +44 (0)20 7383 5100 
 
 
AIM Broker: 
Collins Stewart Europe Limited 
Adrian Hadden +44 (0)20 7523 8353 
 
 
Conduit PR: 
Jos Simson +44 (0)20 7429 6603/+44 (0)7899 870 450 
Gareth Tredway +44 (0)20 7429 6612 
 
 
Website: www.capelam.com.au 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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