Australian mineral investment company Cape Lambert Resources has announced that it will complete the sale of its wholly-owned subsidiary DMC Mining Ltd, which owns the Mayoko iron ore project in the Republic of Congo, to Australian resource mineral exploration company Stirling Minerals Ltd on or about January 10, 2011, following the successful AU$96 million (about $95.2 million) capital raising announced by Stirling Minerals.
Accordingly, Cape Lambert will receive AU$47 million (about $46.6 million) in cash, together with 120 million shares in Stirling Minerals, equivalent to approximately 25 percent of Stirling Minerals' undiluted capital, and a production royalty of AU$1 per metric ton of iron ore shipped from DMC Mining's Mayoko iron ore project.
Once the transaction is completed, Cape Lambert will hold about 25 percent of the issued capital of Stirling Minerals, and Cape Lambert executives Tony Sage and Joe Ariti will sit on the board of Stirling Minerals.
"The board of Cape Lambert intend to keep the AU$47 million cash realized from the Mayoko project divestment inside the business to fund drilling and assessment activities at its 37 percent-owned Pinnacle iron ore asset in West Africa, and its Leinchhardt copper project in Queensland," Cape Lambert executive chairman Tony Sage said.