Boseto Mine sale talks inch forward

No Image

Copper mining company, Discovery Metals Limited (DML) has engaged in exclusive discussions with Cupric Canyon Capital in a process to sell its mining project, Boseto Copper Operation.

The company has entered into a US$5 million short-term working capital facility with Cupric.  A condition to the facility agreement grants Cupric a period of exclusivity to allow it to complete due diligence, and to allow time for both Discovery Metals and Cupric to finalise and agree definitive terms of the potential transaction.

In a statement released on Wednesday, Discovery Metals country manager Botswana, Mokwena Morulane, said the exclusivity period extends until the execution of legally binding sale and purchase agreement with Cupric. “DML will be required to seek approval from its shareholders prior to any transaction with Cupric being finalised. These approvals will be sought from the relevant regulatory government authorities in Botswana and elsewhere,” he said. Cupric Canyon Capital LP, which is owned by its management and the Barclays Natural Resource Investments division of Barclays, is focused on acquiring interests in undeveloped copper assets with a known resource and adding value to them by assisting in the advancement of the projects through the stages of development, construction and operations. The company completed the acquisition of Hana mining, which controls five prospecting license blocks in Botswana covering 2,149 square kilometres in area, situated south of Maun.  The facility will be used to provide support to DML’s current operations arising from operating cash-flow shortfalls in November 2014 and for working capital purposes. The company’s existing project finance lenders are supportive of both the potential transaction and their facility agreement.

Editor's Comment
Has life become worthless?

As many wondered what wrong the young boy could have done to end up killed, it emerged that his own cousin was a suspect in the murder after he claimed P50,000 from Botswana Life. Thato Tsametse, who was last week sentenced to death for the murder of his cousin, had reportedly taken out two Mmoloki Funeral Covers valued at P25,000 each.Over the years, the media has been covering the murder case, and some revelation has come up that certain...

Have a Story? Send Us a tip
arrow up