Cape Lambert Resources
ASX-listed Cape Lambert Resources has executed a binding terms sheet to conditionally acquire 70% of the shares in Zambian entity Australian Mining Company Zambia.

Australian Mining Company Zambia is the holder of the exploration licence that covers a historic cobalt-copper rich tailings dump located near Kitwe in Zambia which Cape Lambert Resources intends to acquire.

[quote]“The acquisition of this significant high-grade cobalt-copper tailings dam emphasises the company’s commitment to becoming a significant player in the cobalt sector,” says Cape Lambert Resources executive chairman, Tony Sage.

“There will be obvious synergies available to Cape Lambert Resources with our recently acquired Kipushi tailings project located just over 170 km away across the border in the Democratic Republic of Congo (DRC).

“Cape Lambert Resources looks forward to advancing both these projects to production for the benefit of our shareholders and stakeholders in the projects,” continues Sage.

The project is located approximately 3 km from the outskirts of Kitwe, in the Copperbelt region of Zambia. Kitwe is the second largest city, in terms of size and population, in Zambia and is one of the most developed commercial and industrial areas in the nation, alongside Ndola and Lusaka.

The Copperbelt is centred around the towns of Ndola, Kitwe, Chingola, Luanshya and Mufulira – a string of towns on Zambia’s northern border with the DRC.

The Copperbelt is one of the world’s largest producing regions of high grade cobalt and copper concentrates and LME grade copper metal with several of the world’s largest copper producing companies operating in the area.

The tailings dam has a footprint of approximately 750 m x 650 m and is up to 15 m in height.

Under the terms of the binding terms sheet, Cape Lambert Resources is to pay US$25 000 on execution of the terms sheet.

On executing the terms sheet, Cape Lambert Resources will have six months to decide whether it wishes to exercise an option to expend $500 000 within six months from the date of exercising the option.

Feature image credit: Cape Lambert Resources