Australian resources and investment company Cape Lambert Resources (ASX: CFE) is proposing to acquire the remaining 37% of the Marampa Project, located in Sierra Leone, West Africa.
The company currently owns 63% of the Marampa Project, with the latest proposal subject to Cape Lambert shareholder approval at a general meeting of shareholders scheduled for 25 January 2010.
Cape Lambert notes an announcement made by AIM listed African Minerals (AIM: AMI) on 6 January 2010 where it has signed a conditional strategic agreement with China Railway Materials Commercial Corporation in respect of its 5.1billion tonne Tonkolili iron ore project, located approximately 100km north-northeast of the Marampa Project.
The Agreement provides for, amongst other things, an investment by CRM of £152.6million in new shares in African Minerals and off take agreements for hematite and magnetite production from Tonkolili.
Following from this investment, and as part of its Stage 1 development of Tonkolili, African Minerals intends to upgrade both the Pepel port and Pepel to Lunsar railway, including auxiliaries required for operation.
Pursuant to Cape Lambert’s investment in the Marampa Project, the Company has access rights to the Infrastructure Facilities on commercial terms to be agreed.
The Marampa Project is connected to the deep water, port, stockpiling and ship loading facility located at Pepel via the 84km Pepel to Lunsar railway.
Cape Lambert Executive Chairman Tony Sage said “the return to operations of the Pepel port and Marampa railway ideally positions Cape Lambert to extract full value for our Marampa investment”.
Disclosure: The author holds no positions in the company