Cape Lambert Resources Ltd said it will sell a 9.4% stake to a small number of UK based institutions, raising the shareholding held by institutions to 37%, as the company moves its focus towards an initial public offering in London of its Marampa iron ore project.

The Australian company said 65 million shares will be sold for a total of AUD 36.4 million as part of an on-market transaction.

Mr Tony Sage chairman said that "We have, for some time, been experiencing strong interest from several large UKbased institutions who have been frustrated by their inability to secure the level of stock they require through on-market purchases.”

The shares have been held by sellers of the Pinnacle assets that Cape Lambert acquired last year.

Mr Sage said that “Once we became aware that a significant holder of our shares was interested in reducing their position, we moved quickly to facilitate a transaction that would allow for an orderly sale of these shares to a small number of very supportive institutions.”

(Sourced from www.mining-journal.com)