Cape Lambert Iron Ore Limited (CLIO) – Increases investment in Marampa Iron Ore Limited
• Cape Lambert issues 17 million shares to Marampa Iron Ore Ltd raising its stake in the Marampa project to 35%
• Cape Lambert has commenced its initial work program at Marampa
Australian domiciled iron ore company Cape Lambert Iron Ore Limited has today reached agreement with Marampa Iron Ore Limited, a subsidiary of African Minerals Limited (AMI), 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. These shares are to be issued to Marampa under the Company's 15% threshold in accordance with the ASX listing rules.
Prior to entering into the Initial Marampa Agreement on 1 October 2008, the Company conducted extensive due diligence on the Marampa Project and believes that the Project has the potential to become a significant iron ore project, and as such, the Company could return such value to the Company and its shareholders.
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.
For predominately these reasons the directors of Cape Lambert feel it timely to increase the Company's investment in Marampa.