Following the appointment of voluntary administrators by Discovery Metals Limited (DML), the company has also announced that it suspended shares from quotation. The company is listed at the Australian Stock Exchange as well as the Botswana Stock Exchange.
Country Manager, Mokwena Morulane said Friday that DML has appointed FTI Consulting as Voluntary Administrators, effective 27 February 2015.
“The listing of DML on both the Australian and Botswana Stock Exchanges has been suspended,” Morulane said.
The suspension came as a result of the financial difficulties experienced by DML at their Boseto Mine located in Toteng village, some kilometres away from Maun. The mine has since been placed on care and maintenance. Morulane said the new administrators are working with DML’s management team, the Lender Group and Creditors on the options available to DML.
“The Administrators recognise the significance of Boseto Mine to the Botswana economy and are committed to timeous and transparent engagement with the government of Botswana, relevant statutory bodies and union representatives to ensure the best possible outcome for all affected parties,” he added.
Late last year, DML announced it had entered into Exclusivity Period with Cupric over a potential sale of the mine.
“DML and Cupric have been unable to agree the terms of a binding Terms Sheet Agreement by 31 January 2015 and accordingly the Exclusivity Period is now at an end,” said the company in a statement.
The troubled Australian company had been having tough time with lenders and as part of the talks with Cupric, it acquired a US$5 million short term working capital facility that it now needs to pay in full before 31 March 2015..
“At the date of this announcement, the Company is of the view that it will shortly receive a Terms Sheet offer from alternative sources, which will allow for the settlement of all existing debt facilities, and to provide the required capital to allow DML to expedite the progression of the Zeta underground development (refer to ASX announcement of 11 September 2014) and to provide additional working capital,” Discovery Metals said.
The Boseto Copper Project which was officially opened by President Ian Khama in 2012 was DML’s first producing copper mine and is believed to have been brought on stream on time and within budget. The Project is designed to produce an average of approximately 36,000 tonnes copper and 1.1 million ounces silver per annum in concentrate from 3 million tonnes per year (3Mtpa) of ore feed to the concentrator.┬á