ASX-listed resources and investment company, Cape Lambert Resources, has completed a placement to raise US$210 000.
The funds raised from the placement of 5 250 000 fully paid ordinary shares, at an issue price of $0.04 per share, will be used towards funding its exploration expenditure activities at the Kipushi cobalt-copper tailings project in the Democratic Republic of Congo (DRC) and for general working capital purposes.
Cape Lambert Resources will also be issuing one free attaching unquoted option for every share applied for under the placement, which are exercisable at $0.04 (4 cents) expiring on 31 March 2020.
The company confirms it has resolved to raise the capital by way of a placement to sophisticated and professional investors as this was considered to be the most expedient mechanism for raising funds in a timely manner.
European sophisticated investors are really showing confidence in our DRC and Zambian located copper/cobalt projects,” says Cape Lambert chairman Tony Sage.
Cape Lambert is fast-tracking the start-up of its Kipushi project, comprising a process plant and tailings dam, on the back of escalating cobalt prices.
The Kipushi cobalt-copper tailings project at a glance
The company acquired the project in May 2017 after signing a 50/50 joint venture with DRC-based Paragon Mining which led to the establishment of a new joint venture company – Soludo-Lambert Mining SAS (SLM) – to develop and operate FELimited’s cobalt-copper assets in the DRC.
This also includes the Kasombo project (including three cobalt-rich mineralised areas in the Kasombo region).
Cape Lambert Resources is targeting production start-up from the Kipushi cobalt-copper tailings project by year end and in so doing will generate significant new profits on the back of soaring cobalt prices.
And this is just the start as the company looks to confirm a ‘super high’ grade cobalt resource at its nearby Kasombo project which will position the company as a quality cobalt focused producer.