Xstrata has acquired the remaining 25% stake from Cape Lambert Resources in the Lady Loretta lead, zinc, silver project for $30 million. The deal sees Xstrata as the 100% owner of the mining resource post approvals which are expected in the coming months.
The Lady Loretta Project (Lady Loretta) comprises an advanced underground high grade zinc-lead-silver massive sulphide deposit located approximately 120km north of Mt Isa. The total Mineral Resource for Lady Loretta is 13.6Mt at 17% Zn, 5.8% Pb and 96 g/t Ag (Measured: 7.5Mt @ 17.4% Zn, 6.7% Pb, 105g/t Ag; Indicated: 5.1Mt @ 16.3% Zn, 4.7% Pb, 84g/t Ag; Inferred: 1Mt @ 17% Zn, 5% Pb, 86g/t Ag).
The Western Australia based Cape Lambert Resources had picked up the Lady Loretta stake from CopperCo in May 2009 along with the Lady Annie copper mine in Queensland, the Sappes gold project in Greece, the Australis rock phosphate land package and an interest in NiPlats Australia, Corvette Resources, Platmin and Fe for a total value of $105 million.
Of these resources it sold Lady Annie copper mine for $144 million cash to China SciTech Holdings, which is a Hong Kong listed company. It has also disposed of stakes in NiPlats and Platmin to generate another $40 million and now it has sold its stake in Lady Loretta.
Cape Lambert is managed by Perth based entrepreneur Tony Sage. The company shares jumped up by 1.6% to 62 cents after the news of sale to Xstrata broke. Sage also said that the company would be selling its Marampa iron ore project in Sierra Leone this week for about $500 million.