Discovery Metals says times are not ‘normal’ as it has released a detailed presentation that is likely to influence investor decisions over a hostile takeover bid a Chinese joint venture.
The company, which is producing copper at its Boseto Copper Project says it cannot wait for the Annual General Meeting and release target statement and the state of company development after the AGM.
Gordon Galt, Chairman, Discovery Metals Limited says to date the board has normally had occasion to send direct messages and presentations via the Annual Report and the Annual General Meeting.
Similarly he says between those occasions the company has kept investors up to date with corporate progress via the company’s website and via regular releases of information to the stock exchanges on which the company is listed.
However he reveals: “These are not normal times, however, because your company is now the subject of a hostile takeover bid which is offering you $1.70 per share for all your shares”.
“Accordingly, rather than waiting until the AGM, and then the release of our target statement after the AGM, we have prepared this presentation so that you can understand where the company is in its development,” he explains.
Galt says with this understanding ‘we hope that you will be in a better position to continue to form a view of the value of your shares in the context of a change of control as contemplated by the Bidders.’
Discovery Metals Limited has been a subject of a takeover bid by Cathay Fortune Corporation (CFC) and China-Africa Development Fund (CAD Fund.
But the bid has been rejected as DML says it has advised the representatives of CFC and CAD Fund that the price 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.
Discovery Metals’ significant shareholders are Cathay Fortune 13.8%, Blackrock 11.1%, Genesis 7.7%, M&G Investments 7.6% and Transaminvest 7.2%.
In a development update to shareholders, the board advised that the company has made the transition from explorer to developer to producer by building our flagship project (Boseto in Botswana) and a management team to run it. We built the project on time and within budget and we are now commissioning it.
“We have made it clear for several years that we believe we would find more resources on our tenements, and that when we did we would formulate plans to expand and otherwise optimise the value of these assets.”
The company’s AGM will be held on 16 November 2012.
