Discovery Metals Limited (Discovery Metals or Company) said it had met with representatives and advisers from Cathay Fortune Corporation (CFC) and China-Africa Development Fund (CAD Fund) to discuss the unsolicited, indicative, non-binding proposal to acquire all the shares (not currently held by CFC) in Discovery Metals for A$1.70 per share (Indicative Proposal).

The Directors have considered the Indicative Proposal and its terms and have taken advice from the Company’s financial advisers, UBS.

“The Directors have advised the representatives of CFC and CAD Fund that the price proposed by CFC and CAD Fund is inadequate and does not reflect, in the context of a change of control, the value of the Company’s operations and expansion plans, the potential to increase the resources on the Company’s tenements through further exploration, the strategic value of the Company with an operating project and management team in Botswana, and the scarcity value of the Company,” the company said on its website.

“The Directors have advised the representatives of CFC and CAD Fund that if they wish to put a new proposal to the Board, the Board will consider and assess that new proposal on its merits. Shareholders do not need to take any action in respect to the Indicative Proposal.”