Botswana Stock Exchange listed, Discovery Metal this week announced that it has successfully completed a placement with Transamine Trading S.A, raising AUD$2.8 million for the company.
The Company issued 84,005,163 fully paid ordinary shares at the price of AUD$0.03451 cents per share. The placement price was calculated according to the 5-price for the Company up to and including 27 May 2014, which is an 8 percent premium to the closing share price on 28 May 2014.
Prior to the placement, Transamine held 6.4 percent in the Company and was the second largest shareholder. Transamine will now hold an 18.6 percent stake in DML, making it the largest shareholder.
As part of the placement, the Company has agreed to appoint a nominee of Transamine to the board. DML Chairman, Mr Jeremy Read, said it is pleasing to announce one of the Company’s largest investors’ and commercial relationship. Transamine is one of the oldest, independent, privately held commodities trading companies in the world, specialising in raw materials. It provides services in marketing, raw material sourcing, finance and investment worldwide, with a core business focus on non-ferrous metals. Founded in 1953, Transamine has proven its adaptability, reliability and flexibility in increasingly globalised markets and the changing needs of its client base. Today headquartered in Geneva Switzerland, Transamine is an energetic and alert outfit that moves quickly with the times while remaining true to its core values. Throughout the decades Transamine has continued to be a trusted and acknowledged name in the mining industry.
In April, DML also announced a USD105 million recapitalization proposal agreed with Montsant, which comprised a share placement of 100 million new shares at AUD0.05 to raise AUD5 million to be completed in two tranches; and a convertible Notes – USD100 million 10 percent p.a. interest rate, 5 year secured notes, convertible to ordinary shares in the Company at AUD0.05 per share. The proceeds of the deal were to be used to discharge obligations under existing debt facilities in full, USD40 million for working capital purposes, including advancement of the Zeta underground mine, and transaction costs.
“The agreements we have reached with Montsant Partners LLC and our existing lenders is extremely positive for the Company as they reduce our net debt on financial close to USD65 million and will provide funding for the commencement of underground mining on the Zeta Mineral Resource,” Discovery Metals Chairman Jeremy Read, said at the time.
“The Montsant Partners LLC investment is a vote of confidence in the long term potential of the Kalahari Copper Belt,” he said.