xargs usually puts its substituted arguments last. You could just do:
$ cp `cat /tmp/foo` /tmp/fred/.
If these are really just lib files, then it cp /lib/?.lib /tmp/fred/.will work fine.
And in order to do this with xargs, here is an example of entering an argument:
0:~$ (echo word1; echo word2) | xargs -I here echo here how now
word1 how now
word2 how now
0:~$
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