LONDON (ShareCast) - Cape Lambert moved higher Friday as the firm said the A$400m sale of its namesake iron ore project in Western Australia to MCC Mining (Western Australia) Pty Ltd (MCC) is on target.
A non-binding Memorandum of Understanding was signed a month ago for the sale of the project located in the Pilbara region of Western Australia, which comprises four key exploration licenses.
MCC has already paid a A$10m deposit, of which half is non-refundable, to secure an exclusive right until 30 April to conduct due diligence for the acquisition.
The proposed sale is subject to the successful completion of this due diligence, and shareholder, Foreign Investment Review Board (FIRB) and Chinese government approvals, said Cape.
MCC has told the company that it has lodged an application with FIRB.
“MCC has quickly progressed the FIRB application and is expediting due diligence, which gives us a clear indication of its intention to complete the sale and achieve completion in the quickest possible time-frame,” said Cape chairman Ian Burston.