Discovery Metals (ASX: DML) combines a portfolio of mineral assets in Africa and joint ventures in Australia. Discovery Metals is focused on developing the Boseto Copper Project in north west Botswana and to create shareholder wealth through discovery and development of economic mineral deposits.
The Company’s major asset and current focus is its Boseto Copper Project in north west Botswana. The company also controls the Dikoloti Nickel Project in north east Botswana. There are two smaller Australian projects which are joint ventured with the JV partners potentially earning into 51 percent equity.
Discovery Metals H1 results show ongoing progress as it moves towards mine development
In its first-half results statement, Discovery Metals Limited (ASX: DML, AIM: DME) said it has made significant progress and is on the cusp of moving from being an exploration company to becoming a mine development company. In the six months ended 31 December, it continued to focus its activities on the Boseto copper project in north-west Botswana. During the period, Discovery also signed a joint exploration agreement with the Japanese government agency, JOGMEC, to develop its Dikoloti nickel project in eastern Botswana.
By the half-year end, the company had increased its total assets by 51% to A$49.1m and similarly total equity increased by 53% to A$47.4m. The company also noted that it raised a further A$15.5m through its placement and a share purchase plan in the first half.
For the six-months, the exploration company reported a loss of A$1.8, and Discovery’s held cash was A$17.6m
"Discovery Metals continues to advance towards its goal to commission Botswana's largest copper mine in late 2011", Discovery MD Brad Sampson commented. “[We] expect to realise the first development of the Kalahari Copper Belt in north-west Botswana. The year ahead is full of excitement and plenty of hard work".
Additionally, since the end of the period Discovery has made substantial progress at Boseto, most notably with yesterday’s announcement of a new strategic partner, Transamine. The raw-material trading company has signed an off-take agreement for Boseto and agreed a A$19m equity-based financing, to partially facilitate the project’s development into production.
The agreement will cover 100% of the Boseto concentrate for a minimum five year period. According to Discovery, the deal minimises its risk exposure and enhance working capital. Transamine will subscribe for 25 million Discovery Metals’ shares at A$0.7623 per share, which is an 11% premium to the 4 week VWAP. The A$19 million will be paid by Transamine within 5 business days.
The Bankable Feasibility Study for the Boseto copper project is nearing completion and remains on track for end of March 2010.
