Cape Lambert Iron Ore has today reached an agreement with Marampa Iron Ore Limited, a subsidiary of African Minerals Limited, 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.
The Company has conducted extensive due diligence on the Marampa Project and believes that the Project has the potential to become a significant iron ore project. 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.
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 also holds an exclusive option to acquire 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 shares issued and to be issued to the vendor and the initial payment.
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.
Source: Proactive Investors
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