Cape Lambert Iron Ore (CFE) will proceed with caution when it comes to potential new interests in the business after $270 million sale agreement fell through earlier in the year, the business told its shareholders. Speaking at the annual general meeting today, chairman Ian Burston said the business will not take success for granted.
"We believe our company to be sufficiently valuable to attract continuing interest – and to appeal to the quality end of the market." Burston said.
"It is also why, we ultimately terminated our dealings with interests who had sought to acquire a large stake in our project when those interests did not satisfy conditions to which they had agreed despite various concessions and extensions," Burston said.
In early October, Cape Lambert terminated the proposed sale of 70% of its iron ore project to Chinese investor Ding Liguo, chairman of Delong Holdings.
Ding had entered into a $240 million sale agreement with the Australian iron ore explorer in March.
But Cape Lambert said Ding had failed to satisfy the conditions for the transaction and had breached a memorandum of understanding (MOU).
"As a shareholder, I am disappointed with the fall in the company's share price following the termination of dealings with a potential Chinese investor," said Burston.
On the back of the news of the termination, the market sold the stock down 12% to 44 cents. Since then, the stock has failed to recoup its previous losses, and has slid gradually, closing at 40 cents on Friday.
