Negotiations to bring Chinese backing to Cape Lambert Resources Limited’s (ASX: CFE) in the Kipushi Cobalt Tailing Projects in the Democratic Republic of Congo with CFE representatives receiving an exclusive invitation to China on advance strategic investment discussions.
This week’s Chinese meetings follows a technical site visit to the Kipushi Project from representatives of the un-named major Chinese industrial group in August.
The Chinese team assessed the potential construction and funding of leaching technology to treat the Kipushi tailings in order to produce a high value cobalt hydroxide product and copper cathode that will be acquired for sale into the Chinese market. Members of the Cape Lambert Board and the company’s technical team were on site with the Chinese group.
In a positive sign meetings have been scheduled and confirmed this week in Beijing, Shanghai and Hong Kong wit Cape Lambert director Jason Brewer leading the negotiations on behalf of the company.
Cape Lambert Executive Chairman Tony Sage said the negotiations will focus on a strategic investment in and partnership with the company proposed by them to secure planned cobalt and copper production from the Kipushi Cobalt Project.
He said the proposed investment, which is early stage and non-binding, is planned to be structured by way of a commodity linked debt instrument, with the proceeds to be used to fund all plant works and upgrades required at the Kipushi Processing Plant in order to commence the retreatment of the Kipushi tailings.
In addition, further working capital funding is under negotiation that is proposed to assist the Company in its broader strategy of acquiring other advanced cobalt and copper projects in the DRC and in Zambia.
Cape Lambert has also announced that discussions with several major international trading groups based in Switzerland, the United States and Europe have advanced over the past month.
Mr Sage said the discussions with these groups will continue over the coming weeks whilst the Company’s technical consultants finalise the metallurgical test work in South Africa to optimize the process flow sheet and upgrade work for the Kipushi Processing Plant.
Several meetings with these trading groups, MRM and the Company have now been scheduled and confirmed to take place during London Metal Exchange Week between October 30 and November 3, 2017.