It has been advised that the two exploration licences that make up the project will be renewed for a further two years from the current expiry in August 2015 subject to lodgement of a formal application.
In addition, a Terms Sheet was recently executed with power generation company Africa Energies Development for the negotiation of a power purchase agreement to supply electrical power to the Marampa Project.
Cape Lambert had earlier this month executed its strategy of returning surplus cash to shareholders by paying $0.04 per share in fully franked dividends over two payments, or a total of $25 million.
This followed its recent positive settlements with the Australian Taxation Office and Metallurgical Corporation of China.
"Cape Lambert is happy to work with the authorities in Sierra Leone in any effort that provides positive outcomes for all stakeholders in Sierra Leone," executive chairman Tony Sage said.
"Granting of the mining licence and renewal of the exploration licences as well as securing an agreement for third party supplied power for the Stage 1 development will be another milestone achievement for Marampa and will provide another level of confidence for potential acquirers of the project."
Mining and Exploration Licences
The National Minerals Agency recently advised the company that its application for a large scale mining licence has been under review and is expected to be granted at its next scheduled meeting.
Once the mining licence has been granted the company will then negotiate the terms of Marampa's mine lease agreement.
In addition, the Minister of Mines has advised that exploration licences EL46A/2011 and EL46B/2011, which are due to expire in August 2015, will be renewed for a further two years subject to lodgement of a formal application.
Relinquishment of Land
Cape Lambert has also decided to relinquish 13.91 square kilometres of land from exploration licence EL46A/2011 so that it can be used by London Mining (LON:LOND) for additional tailings storage facilities.
This land borders Marampa's mining licence application area and does not contain any identified commercially exploitable iron mineralisation.
The company has not requested, nor will it receive any commercial compensation from London Mining for the relinquished ground.
Marampa Power Supply
Cape Lambert's wholly-owned subsidiary Marampa Iron Ore (SL) Limited has recently executed a Terms Sheet with power generation company Africa Energies Development (NYSE:AED).
This allows for Marampa to access 25 MW of power, which is sufficient for the requirements of the proposed Stage 1 development.
AED are proposing to build a 100 megawatt coal fired power station within the Port Loko district, which is a short distance from the Marampa Project.
This allows for the power purchase agreement to be finalised by September 2016.
Marampa Iron Ore Project
Marampa is a specular hematite project currently at the permitting and development stage located 90 kilometres northeast of Freetown in Sierra Leone.
It was issued its environmental licence for the project, which marked the first key step in the permitting process.
In November 2013, an application for a large scale mining licence was lodged with the relevant Sierra Leone authorities.
Cape Lambert progress towards securing the large scale mining licence for its Marampa Iron Ore Project in Sierra Leone will provide potential project acquirers another level of confidence.
This could lead to the company repeating its previous successes that led to its recent decision to pay shareholders $25 million through two fully franked dividends totalling $0.04 per share.
The company has a healthy $69 million in cash, receivables and listed securities to evaluate and take advantage of any investment opportunities as well as $62 million in available carry forward losses to utilise against future taxable income.
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