A site visit by two African banks, which may provide the funding for the project, was completed last week.
Cape Lambert’s technical staff were on site assisting joint venture partner Paragon Mining SARL with the banks’ due diligence visit and in preparing all the necessary paperwork.
Cape Lambert executive chairman Tony Sage said: “Given the difficulties over the past six months in this jurisdiction it is pleasing that the Company has been able to encourage several banks to complete a due diligence process on the project.
“Once the funding is complete, Paragon and the Company will renegotiate the JV to help progress the project.
“We sincerely thank Paragon for their ongoing commitment to the project that will allow us to be part of its future subject to Cape Lambert being able to secure funding.”
Cape Lambert is also in discussions with a large Chinese bank which has indicated it can provide a 6-month rolling $US40 million letter of credit facility to the company by onselling the offtake.
Cape Lambert recently revealed encouraging news from the Kipushi project, including a maiden JORC-compliant resource with contained metal valued at close to $1 billion.
The maiden copper-cobalt tailings resource amounts to 2.3 million tonnes at 0.33% cobalt and 1.0% copper.
Drilling has also revealed large high-grade zinc resources which provide the potential for an increase in project revenues.