Cape Lambert, MCC Sign A$400 million sale deal

June 11, 2008

June 11th (Hemscott) – Cape Lambert Iron Ore Ltd. said in a statement that it and MCC Mining (Western Australia) Pty. Ltd. signed a formal sale agreement in Beijing on June 11, 2008 for the A$400 million sale of Cape Lambert’s iron ore project in Western Australia.

MCC Mining is a wholly owned Australian subsidiary of China Metallurgical Group Corp., the statement said.

Cape Lambert chairman, Ian Burston, said, ‘The finalisation of the sale agreement with MCC achieves one of the remaining two Cape Lambert controlled milestones for the completion of the sale, with only shareholder approval outstanding.’

It is expected a shareholder meeting will be held in July and MCC is progressing its required government approvals, Cape Lambert said.

It said the A$400 million is payable in three cash tranches, A$240 million or 60 percent at settlement, to take place 50 days after the date of the formal sale agreement, A$80 million or 20 percent, 45 days after settlement, and A$80 million on the grant of a mining lease and related construction approvals.

On completion of the sale, Cape Lambert intends to continue with its exploration programme on its remaining tenements and also to maintain its strategy of identifying, developing and exploiting mining assets, the statement said.


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