Cape Lambert soars on capital raise

PERTH (miningweekly.com) – The share price of junior Cape Lambert jumped by 50% on Monday, after the company's A$4-million capital raise.

Under the terms of a share placement, agreed to with UK and European sophisticated investors, Cape Lambert would issue some 94-million shares, at a price of 4.25c each.

The share price represented a 300% premium on the company’s last closing price.

Cape Lambert chairperson Tony Sage pointed out that the placement would be the first capital raising that the company had undertaken since 2005, and was being conducted to enhance working capital to sufficient levels to allow maintenance of assets.

“We are proud of the fact that we have not raised new capital since 2005, and during that same period returned over A$250-million of value to shareholders through dividends, capital returns, in specie distribution and share buy-backs, but in these tough market conditions, it is important that we can maintain flexibility to invest in our current asset portfolio, to maintain and enhance value,” Sage said.

The share placement would be fully underwritten.

Cape Lambert shares were trading at a high of 2.8c a share, up from a low of 2.1c a share.