Australian iron ore miner Cape Lambert has divested its Lady Annie project under the name Q Copper, via a $214 million IPO.
As set out in the prospectus, Cape Lambert will receive approximately $169 million for the sale of the Lady Annie project through cash and shares in Q Copper.
Cape Lambert chairman Tony Sage said the spin-out of Q Copper was part of Cape Lambert’s successful incubation, value-adding and divestment strategy.
“This level of return for the Lady Annie Project asset is an excellent outcome for Cape Lambert and its shareholders,” he said.
“Particularly, considering the company acquired the entire asset portfolio of CopperCo and its relevant subsidiaries for approximately $135 million.
“Q Copper is aiming to raise the $214 million through issue of 214 million shares at $1 each.
The Lady Annie Project comprises open pit mines and a heap leach process plant that has been on care and maintenance since February 2009.
As of 30 June 2009, the Lady Annie Project had a total oxide mineral resource of 24 million tonnes.
The Lady Annie Project also includes a large and prospective tenement holding, covering approximately 1,640km2 of granted exploration permits and mining leases and 1,500km2 of exploration applications.