Major corporate board shuffle gives new home to Cape Lambert asset

18 December 2010 | 04:54 Code : 20363 Geoscience events
Cape Lambert Resources Ltd (ASX: CFE) announced it was selling its wholly owned subsidiar....

Cape Lambert Resources Ltd (ASX: CFE) announced it was selling its wholly owned subsidiary DMC Mining Ltd into Stirling Minerals Ltd (ASX: SMZ) for $A83 million ($US84.25 M) including $A47 M ($US47.7 M) in cash.It was, in effect, a backdoor listing that now gives Stirling a stronger corporate purpose as the West Perth-based company had a package of base metal and polymetallic prospects that had not set the market alight.Assuming Stirling is renamed it will end some market confusion over two Stirling companies on the Australian Securities Exchange, as there is also Stirling Resources Ltd now run by a major Austrian metal house after it removed high profile entrepreneur Michael Kiernan from that board.Cape Lambert will also get 120 million Stirling Minerals shares, post consolidation, which would represent 25% of Stirling’s diluted capital.The sale of DMC is conditional on Stirling raising not less than $A96 M on the sharemarket and for its entire board to depart and a new board appointed, including a managing director not yet identified, and well known Australian iron ore mining identity Ian Burston becoming non executive chairman.Leading Perth business man Tony Sage, who undoubtedly engineered the deal as principal shareholder of Cape Lambert, would become a non executive director along with Joe Ariti.DMC Mining owns the Mayoko iron ore project in the Republic of Congo.As part of the deal Cape Lambert will be granted a royalty of $A1 per tonne of iron ore shipped -- whether direct shipping ore, beneficiated DSO or magnetite concentrate -- from Mayoko.

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