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.