The Chinese company that bought a 70 per cent stake in Cape Lambert Iron Ore Ltd's namesake project on Tuesday will sign it over to its sole beneficiary, Ding Liguo, after he agreed to buy 40 million options in the company from a third party.
Cape Lambert said, in an announcement, that Mr Ding would convert the options in the near future, making him a major shareholder in the company with 13.7 per cent of issued capital.
The full text of a company announcement is pasted below
Iron ore exploration and development company Cape Lambert Iron Ore Limited (ASX: CFE, AIM: CLIO) ("Cape Lambert") has been advised by Mr Ding Liguo that he has entered into a contract to acquire 40 million Cape Lambert Options from a third party.
The purchase of these Options by Mr Ding follows the announcement earlier this week that Best Decade Holdings Limited had entered into a binding conditional agreement with Cape Lambert to acquire 70 per cent of its namesake iron ore project in Western Australia for AUD$250 million.
The Options to be acquired are due to expire on 31 October 2010, with an exercise price of AUD 37.7 cents, however Mr Ding has formally indicated to the company that he intends to convert the Options to ordinary shares in the near future (this would generate $15.08 million for the Company).
On conversion of the Options Mr Ding will hold approximately 13.7 per cent of the issued capital in Cape Lambert and will become one of the company's top five shareholders.
In addition to the acquisition of the Options the Company has accepted a request from Best Decade Holdings Limited that the purchaser of the 70% interest in the Cape Lambert Project (as announced to ASX/AIM on 27 March 2007) will be Mr Ding Liguo the sole beneficiary and a Director of Best Decade Holdings Limited.
Cape Lambert Director Tony Sage said: "We believe that Mr Ding's acquisition of these Options and confirmation to us that he intends to convert them into a significant equity position in the company proves how highly he regards our management and technical teams, and most importantly our plans moving forward."
