Discovery Metals Limited has appointed Foster Stockbroking Pty Ltd to act as corporate advisor in respect of a proposed equity recapitalisation.

“Foster Stockbroking Pty Ltd is a highly regarded growth focused investment bank based in Sydney, Australia. Their client base spans across Australia, Asia, US and the UK and comprises both institutional and strategic investors”.

Discovery Metals and its lenders agreed to a legally binding term sheet for the reduction of its existing interest bearing debt and re-profile repayments of outstanding debt, thereby reducing existing interest bearing debt from US$159 million to US$100 million (Debt Re-Profile).

“The company and its lenders are currently completing long form documents for the Debt Re-Profile, which are on schedule for completion by 11 July. On 29 May 2014, the Company then completed a placement to Transamine Trading S.A. at AUD$0.03451 per share, raising AUD$2.8 million,” advised DML.

“This Proposed Recapitalisation forms part of Discovery Metals previously announced fundraising strategy to fulfil the strategic transition from open pit operations to an underground miner at the Company’s flagship Boseto Copper Project in Botswana, in order to unlock value in the mineral resources on the Boseto Project. The Company looks forward to working with Foster Stockbroking Pty Ltd on this transaction.”