Cape Lambert Resources (ASX:CFE) now has cash and liquid assets of over $4 million, following the sale of its wholly-owned royalty over the Mayoko iron ore project.
Cape Lambert sold the royalty for $1 million in cash which is only subject to the formality of the new owners signing off on the transaction.
Tony Sage, executive chairman, commented:
"Given Exxaro recently sold the entire project it purchased for approximately $313 million for only $3 million and assumption of liabilities, I am extremely pleased that we have been able to sell the royalty for $1 million."
The company’s strategy is to acquire and invest in undervalued and/or distressed mineral assets and companies, and then add value.
Analysis
Sage and Cape Lambert have a history of making money for shareholders based on strategic deals.
Now with the company having a strong cash balance in an improving commodity market, investors will be waiting for the next deal to be revealed.
Investment portfolio
Timis Mining Corporation Royalty
Cape Lambert will receive a royalty of US$2 per tonne of iron concentrate exported from the Timis Marampa Iron Ore Mine, which is payable on a quarterly basis.
The royalty of US$2 per tonne is payable on production of 24 million tonnes from the mine, which remains on care and maintenance.
Cape Lambert owns 15.26% of shares in European Lithium, which recently upgraded the resource at its 100%-owned Wolfsberg lithium project located in Austria.
Cauldron Energy (ASX: CXU)
Cape Lambert owns 16.3 6% of shares in Cauldron which has two project areas covering more than 4,500 square kilometres in two known uranium provinces in South Australia and Western Australia.
The company also has interests in:
- Marampa iron ore project (100%)
- Dempsey Resources (100%)
- Metal Exploration (Mauritius) Ltd (100%)
- Metals Exploration Cote D’Ivoire SA Ltd (100%); and
- Mining International Pty Ltd (100%).