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Mining

Cape Lambert Resources completes $1 million sale of royalties from iron ore project

The rights to royalties from the Mayoko project were acquired in 2011.

Cape Lambert Resources Limited (ASX:CFE) has completed the sale of its 100%-owned royalty in the Mayoko Iron Ore Project in the Republic of Congo for total consideration of $1 million.

The company has received $500,000 in cash with the remaining $500,000 to be received as a deferred consideration.

Royalty right acquired in 2011

The Mayoko royalty right was acquired by Cape Lambert as part consideration when it sold its 100% interest in the Mayoko project to African Iron Limited in January 2011.

African Iron was subsequently taken over by Exxaro Resources Limited (JSE:EXX) in March 2012.

In June 2014 Exxaro announced the impairment of the Mayoko project as a result of a collapse in iron ore prices.

Exxaro divested from the project in 2015 and after a number of expressions of interest were received, the sale to a Congolese company, SAPRO SA, was completed in September 2016.

Diverse portfolio across four continents

Cape Lambert has a diverse portfolio of mineral assets and interests in exploration companies providing exposure to iron ore, copper, gold, uranium, manganese, lithium and lead-silver-zinc assets in Australia, Europe, Africa and South America.

In Africa it is focusing on tailings retreatment projects in Zambia and the Democratic Republic of Congo, aiming at cobalt recovery.

READ: Cape Lambert Resources to begin engineering review at cobalt project

The company has begun an engineering review at the Kipushi Tailings Project in the DRC and has also appointed Philippe Bouchart as general manager of this cobalt joint venture.

READ: Cape Lambert Resources secures environmental clearance for cobalt exploration in Zambia

Cape Lambert also recently received environmental approvals in Zambia which will allow it to begin exploration work at the Kitwe Cobalt-Copper Tailings Project.

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