Chinese company bids for Discovery Metals

 

The Discovery Metals Limited Board has advised that it has received an indicative, nonbinding proposal from Cathay Fortune Corporation (CFC) and China-Africa Development Fund (CAD Fund) (collectively the Bidder) to acquire all the shares (not currently held by the Bidder) in Discovery Metals for A$1.70 per share (Indicative Proposal).

 

The Board is currently evaluating the Indicative Proposal and will respond to the Bidder as soon as that evaluation is further progressed.

 

“There is no certainty that the Board will agree to enter into an agreement with the Bidder regarding the Indicative Proposal on the terms proposed, or at all, or that a transaction will result from the Indicative Proposal.”

 

The Discovery Metals Board will update the market following consideration of the Indicative Proposal and its terms. In the meantime, shareholders do not need to take any action in response to the Indicative Proposal.

UBS is acting as financial advisor and GRT Lawyers is acting as legal advisor to Discovery Metals.

 

Discovery Metals is an ASX/BSE listed copper exploration and production company focused on the emerging Kalahari Copperbelt in north-west Botswana. The Company is a copper producer at its 100% owned Boseto Copper Project. The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper Project is similar in style to the well-known and large deposits of the Central African Copperbelt of Zambia and the Democratic Republic of the Congo.

Discovery Metals has prospecting licences covering 11,872 km2 along the Kalahari Copperbelt.