Cape Lambert Resources has successfully managed to raise US $201,000. These funds will be used to further its exploration activities at the Kipushi cobalt-copper tailings project in the Democratic Republic of Congo (DRC). According to media reports, the funds were raised from the placement of 5 250 000 fully paid ordinary shares, at an issue price of $0.04 per share.
Furthermore, Cape Lambert Resources will also be issuing one free attaching unquoted option for every share applied for under the placement. These are exercisable at US $0.04, with an expiry date of 31 March 2020.
The company further elaborated on its choice of placement as a method of payment to investors as the most suitable and forthcoming means of raising funds in this particular situation. According to Cape Lambert chairman Tony Sage, European investors are fully behind the company’s DRC and Zambian located copper/cobalt projects..
The Kipushi project comprises a process plant and tailings dam. It has been riding on the back of escalating cobalt prices for a while now, hence the fast-tracked start up by Cape Lambert Resources.
The company acquired the project early last year. This is after signing a 50/50 joint venture with DRC-based Paragon Mining, leading to the establishment of a new joint venture company – Soludo-Lambert Mining SAS (SLM). This was for the purposes of development and operation of FELimited’s cobalt-copper assets in the DRC. This also inclusive of the Kasombo project.
Presently, Cape Lambert Resources is targeting production start-up from the Kipushi cobalt-copper tailings project by the end of this year. This is set to generate significant new profits on the back of soaring cobalt prices. Meanwhile, the company is also looking to confirm an even higher grade of cobalt resource at its nearby Kasombo project. The realization this will no doubt position the company as a quality cobalt focused producer.