Discovery Metals Limited said it has successfully completed its rights issues raising money that could start the mine construction, which will be partly financed through debt.
The ASX/AIM/BSE listed copper exploration and development company said there was strong demand from shareholders with 90 percent take up.
“This successful Rights Issue completes the equity raising requirements for the Boseto copper project and reflects the strong shareholder support we received. The debt portion of the project financing is progressing well,” Brad Sampson, DML Managing Director said.
The 1 for 4 nonrenounceable Rights Issue, which was announced on 4 November 2010, raised proceeds of approximately A$91 million (about P594. 7 million) before expenses at an issue price of A$1.05 (BWP6.825) per share.
Funds will be applied to the construction of the Boseto copper project in northwest Botswana. The project is still subject to mining license.
The move follows the successful completion of the underwritten placement, which raised approximately A$51 million.
Discovery Metals accepted applications for approximately A$82.1 million being 78,183,434 shares, including applications for up to 50 percent additional entitlements from existing shareholders.
“We are pleased to announce we have accepted all complying additional entitlement requests from our retail shareholders As the Rights Issue was fully underwritten, subscriptions for the remaining 8,692,212 Rights Issue Shares have been obtained under the terms of the underwriting agreement,” the company said.
Discovery Metals will issue 86,875,646 shares in relation to the Rights Issue. Final allocations are subject to a reconciliation and audit process currently being conducted by Discovery Metals’ share registry.
The allotment of Rights Issue Shares will be completed on 10 December 2010. The Rights Issue Shares are expected to commence normal trading on the Australian Securities Exchange on 13 December 2010. Holding statements will be dispatched to participants from 16 December 2010.
The company still requires Botswana Department of Mines approval for the mining license, with discussions and exchange of information with the department well advanced.