Australian company expects imminent approval of Kitwe tailings project acquisition

Australian Resources and Investment Company, Cape Lambert Resources expects imminent approval on its acquisition of the Kitwe tailings project.

Earlier in 2017, the company announced that it had executed a binding terms sheet to conditionally acquire 70% of the shares in Zambian entity Australian Mining Company Zambia Limited (AMCZL), which is the holder of exploration licence of the Kitwe copper-cobalt tailings project.

After extension requests with AMCZL, the share sale agreement was executed on December 4, with completion of the acquisition expected within the coming weeks. Subsequent to the execution of the terms sheet, AMCZL lodged an environmental project brief (EPB) with the Zambia Environmental Management Agency (ZEMA), which is needed for the exploration work to commence.

ZEMA, in the first week of 2018, issued its decision letter approving the EPB.

“The acquisition of this significant high-grade cobalt-copper tailings dam emphasises the company’s commitment to becoming a significant player in the cobalt sector,” said Cape Lambert Resources executive chairman, Tony Sage.

“There will be obvious synergies available to Cape Lambert Resources with our recently acquired Kipushi tailings project located just over 170 km away across the border in the Democratic Republic of Congo (DRC).

Tailings samples for metallurgical test work, to be undertaken at the laboratory of Mintek in South Africa, have now been collected. The export paperwork needed to dispatch the sample is currently being organised and it is planned that the metallurgical test work will commence by month end.

The Kitwe tailings were produced from the nearby Nkana concentrator that processed copper sulphide-oxide ores from the Mindola mine in the 1970s and 1980s.

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