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PERTH (miningweekly.com) – ASX-listed resource group Cape Lambert on Tuesday announced that it had received its first royalty payment of A$400 000 from Timis Mining Corporation, as part of a funding agreement with the junior.
Cape Lambert in October last year entered into a $20-million funding agreement with Timis Mining, under which the Australian company would provide Timis with funding for its November acquisition of the Marampa iron-ore project, in Sierra Leone, from the administrators of London Mining.
Under the terms of the agreement, Cape Lambert provided an $8-million bridging finance facility, and some $12-million to purchase a royalty.
Cape Lambert said on Tuesday that the first royalty payment was now received on the shipment of first iron concentrate from the Marampa mine, in December last year.
“Our first royalty from Timis Mining represents a significant milestone. The Timis Mining Marampa mine is planning to produce and sell 5.9-million tonnes of iron-ore concentrate in 2015, which means a potential royalty income stream to Cape Lambert of $12-million for this year,” said Cape Lambert executive chairperson Tony Sage.
Under the agreement, Cape Lambert would receive $2/t of iron concentrate exported by the mine, which would be payable on a quarterly basis.
“The next royalty payment due to Cape Lambert is for the March 2015 quarter, and is forecast to be around $3-million, and will be received in April,” he added.