Cape Lambert finds new buyer for Leichhardt copper project

THE BOURSE WHISPERER: Cape Lambert Resources (ASX: CFE) ran out of patience with its potential buyer for its wholly-owned subsidiary Cape Lambert Leichhardt, the holder of the Leichhardt copper project.

The company had previously announced it had entered into a conditional agreement for the sale of the Leichhardt project for a total consideration of $15million, payable in three tranches, the final tranche payable 36 months after completion.

As delays held off finalising the terms of that transaction, Cape Lambert was approached by another buyer for the project.

It has now subsequently entered into, a new binding agreement with a private Malaysian company for a total consideration of $14.75million and has received a $1million non-refundable deposit, with a further U$1million non-refundable deposit payable by 25 April 2013.

At completion of the Transaction, Cape Lambert will receive the final $12.75million plus costs incurred in operating the Leichhardt project from 1 May 2013 until completion.

The company will have $5.6million of environmental and cash bonds returned.

Completion of the transaction is to occur on 31 May 2013, subject to the buyer receiving a “no objection” letter for the acquisition pursuant to the Foreign Acquisition and Takeover Act 1975 (Cth), final due diligence enquiries and execution of a formal share sale agreement, which is expected in the coming weeks.

The Leichhardt copper project comprises a copper cathode process plant capable of producing 9,000 tonnes per annum of copper cathode and surrounding landholding.

Cape Lambert acquired the Leichhardt project in August 2010 for $7.75million.

The Leichhardt project has an existing cathode off take agreement with Glencore International AG and has been on care and maintenance since its acquisition by Cape Lambert.