Discovery Metals reduces debt by P520m

The Botswana-focused copper and silver miner reported it had signed a term sheet with its lenders to reprofile its debt, reducing the gross interest bearing debt from $159-million to $100-million.

The lenders have also waived all continuing defaults under the project finance facility and the revolving credit facility and agreed to a 12-month standstill on principal and interest payments. “The debt reprofile with the company’s lenders brings certainty to DML. With the significant reduction in overall debt and effective 12-month standstill in place, DML can now focus exclusively on its operating strategy to transition the Boseto project to underground mining and, in doing so, supply the processing plant with consistent higher grade, higher recovery sulphide copper ore and start the Zeta underground mine,” said DML chairperson Jeremy Read.