Cape Lambert Resources Ltd
(ASX:CFE) has finalised the divestment of DMC Mining Ltd for $83 million to gold and base metals explorer African Iron Ltd, formally Stirling Minerals Ltd
(ASX:SMZ).
The resources and investment company says it has received $47 million in cash and a 25 per cent interest in Stirling.
In addition Cape Lambert will receive a production royalty of $1 per tonne of iron ore shipped from the Mayoko Project, which DMC Mining has an 80 per cent stake in.
The company plans to inject the funds from the sale of DMC Mining into its 37 per cent owned Pinnacle iron ore assets in West Africa and the Leichardt Copper Project in Queensland.
Cape Lambert Resources generated a net profit of $72.25 million in the 2010 financial year.
