Cape Lambert sells DMC

Cape Lambert has sold its subsidiary DMC Mining just months after acquiring it.

Cape Lambert has sold its subsidiary DMC Mining just months after acquiring it.

It sold the company to Stirling Minerals for a total of $83 million, split into $47 million in cash, and a scrip offer of 120 million shares of Stirling, plus a production royalty of $1 per tonne of iron ore shipped.

This sale has also given Cape Lambert a 25% stake in Stirling.

However, the deal is conditional upon Stirling receiving shareholder and regulatory approval.

Cape Lambert divested DMC to recoup its cash investment in the company, while still maintaining a hand in DMC’s Mayoko iron ore project through Stirling.

Tony Sage, head of Cape Lambert, stated that production from Mayoko would provide future cash flow to Cape.
 

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