Funds to develop Boseto Copper Project; shares sold at 10.4% discount
By Devika Patel
Knoxville, Tenn., Nov. 4 - Discovery Metals Ltd. said it will conduct a private placement of shares by way of an institutional bookbuild.
The company will sell ordinary shares at A$1.12 per share for about A$51 million. The per share price represents a 10.4% discount to the A$1.25 closing share price on Nov. 3.
UBS AG, Australia Branch, is the lead manager, bookrunner and underwriter. Blackswan Equities Pty Ltd., Fairfax I.S. plc, RBS Morgans Ltd. and Capital Corporate Finance (Pty) Ltd. are co-managers.
Proceeds will be used to progress and develop the company's Boseto Copper Project in Botswana.
The company also plans a A$91 million rights issue at the same price per share.
"The structure of this equity raising recognizes the long term support of existing shareholders while also providing the opportunity to further enhance the shareholder register," managing director Brad Sampson said in a press release.
"This equity raising further strengthens Discovery Metals' funding position. Within weeks, we expect to mandate a bank in the lead role to provide the underwritten debt portion of the project finance. Construction mobilization has commenced and we are on track to commission the project in first half 2012. We are confident that Boseto's value is clearly demonstrated by the robust economics outlined in the BFS and Boseto Development Plan and supported by a favorable mining jurisdiction in Botswana.
"Further, we believe that potential to find a second Boseto remains across our significant exploration tenements, which extend over 1,300km from Boseto to the Namibian border," Sampson said in the release.
Based in Brisbane, Australia, Discovery Metals acquires nickel-copper exploration and development projects.
| Issuer: | Discovery Metals Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$51 million
|
| Price: | A$1.12
|
| Warrants: | No
|
| Managers: | UBS AG (lead), Blackswan Equities Pty Ltd., Fairfax I.S. plc, RBS Morgans Ltd. and Capital Corporate Finance (Pty) Ltd.
|
| Pricing date: | Nov. 4
|
| Stock symbol: | Australia: DML
|
| Stock price: | A$1.25 at close Nov. 4
|
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