COMPLETION OF ACQUISITION TAKES CAPE LAMBERT’S INTEREST IN PINNACLE TO 90%
Key Points
- Cape Lambert completes its acquisition of a further 42.8% of Pinnacle Group Assets Limited (“Pinnacle”);
- Cape Lambert now holds greater than 90% of Pinnacle;
- Pinnacle’s key assets are the Kukuna Iron Ore Project in Sierra Leone and the Sandenia Iron Ore Project located in the Republic of Guinea; and
- In acquiring the additional 42.8% of Pinnacle, the total consideration paid on completion was A$49,005,000 satisfied in cash and Cape Lambert Shares (issued at a deemed issue price of A$0.60 per Share, being a 40% premium to the closing share price of A$0.43 on 15 June 2011).
Further to its announcement to ASX on 19 May 2011 (“19 May ASX Release”), Australian resources and investment Company, Cape Lambert Resources Limited (ASX: CFE) (“Cape Lambert” or the “Company”) is pleased to announce that it has now completed the acquisition of shares in Pinnacle Group Assets Limited (“Pinnacle”), increasing its interest in Pinnacle to 90.2%.
Pinnacle owns the Kukuna Iron Ore Project located in Sierra Leone (“Kukuna Project”) and the Sandenia Iron Ore Project located in the Republic of Guinea (“Sandenia Project”).
Further details on the Kukuna Project and Sandenia Project are set out in the 19 May ASX Release.
The consideration paid at settlement for the acquisition of the additional 42.8% of Pinnacle comprised:
- A$32,670,000 through the issue of 54,450,000 Cape Lambert shares (“Shares”) at a deemed price of A$0.60 per Share, which is a premium of 40% to the closing Share price of A$0.43 on 15 June 2011; and
- A$16,335,000 payable in cash.
A further amount of A$16,335,000 is payable in cash on or before 31 December 2011.
Attached is an Appendix 3B for quotation of the 54,450,000 Shares issued in part consideration for the acquisition of 42.8% of the shares in Pinnacle. The Shares are part of a class of securities quoted on ASX Limited.
The Company gives this notice pursuant to Section 708A(5)(e) of the Corporations Act.
The Shares were issued without disclosure to the recipient under Part 6D.2, in reliance on Section 708A(5) of the Corporations Act.
The Company, as at the date of this notice, has complied with:
- The provisions of Chapter 2M of the Corporations Act; and
- Section 674 of the Corporations Act.
There is no excluded information for the purposes of Section 708A(7) and (8) of the Corporations Act.
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