cobalt
ASX-listed Cape Lambert Resources has successfully completed its due diligence to acquire 70% of the shares in Australian Mining Company Zambia (AMCZL).

Cape Lambert Resources, the Australian resource and investment company will gain access to AMCZL’s exploration licence No 21853-HQ-SEL through this acquisition.

The licence covers a historic cobaltcopper rich tailings dump located near Kitwe in Zambia.

[quote]“We have moved very quickly to secure this strategic and significant cobalt and copper asset for the company in one of the world’s largest cobalt producing regions,” says Cape Lambert executive chairman, Tony Sage.

“The acquisition follows the completion of our cobalt production joint venture in the Democratic Republic of Congo (DRC) last month. These acquisitions will see the company be a significant player in the cobalt market in the years to come,” he continues.

“Our management and consultants completed a thorough legal and technical due diligence review and we are obviously pleased that the outcome was positive and now allows us to finalise the share purchase agreement with our lawyers.”

“We are committed to establish ourselves firmly in the cobalt sector and to use our resource experience in Africa to advance this project,” adds Sage.

Cape Lambert Resources

The Kitwe cobalt-copper tailings project is located approximately 3 km from the city of Kitwe, in the Copperbelt region of Zambia and approximately 170 km from the Cape Lambert Resource’s Kipushi cobalt tailings and Kasombo cobalt projects located near the town of Kipushi in the DRC.

Cape Lambert Resources announced on 22 May 2017 that it had executed a binding terms sheet to conditionally acquire a 70% interest in the project.

The binding terms sheet was subject to completion of due diligence on AMCZL and the project and the execution of a share sale agreement.

During May 2017, the company’s management team and technical consultants completed a site visit to the tailings dam, reviewed the extensive historical data and collected seven samples from the tailings dam, which were assayed for cobalt and copper at the Kalalushi laboratory of SGS Inspection Services in Zambia.

The site visit which was completed with a representative of the Zambian Ministry of Mines and Minerals Development, Geological Survey Department confirmed the extent and size of the tailings dam with a survey completed by them on 9 May 2017 estimating the license to contain 17.72 Mt of tailings.

The assay results from the samples further confirmed the historical grade data of the tailings that was reviewed.

The company’s lawyers are now preparing the share sale agreement under which it will complete the acquisition of the 70% interest in the project.

Under the terms of the share sale agreement, the company has a six month option to secure its interest in the project by spending US$500 000 within six months from the date of exercising the option.

If Cape Lambert Resources does not exercise the option, or fails to spend the $500 000 within the six months option period, then the 70% shareholding will be returned to AMCZL.

Feature image credit: Wikimedia