Deadline for Boseto Mine takeover extended

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Chinese company, Cathay Fortune Investment (CFI) announced this week that it has extended the deadline for it's P6.5 billion takeover offer for Boseto Mine promoters, Discovery Metals, following a significant write-down in reserves at the Zeta open pit in Maun.

In a second target statement released last week, Discovery Metals indicated that an ore reserve model had over-estimated the amount of sulphide ore and underestimated the amount of oxide and transitional ore in the Zeta open pit ore body, for the material mined to the end of December last year.

Discovery also said its cash cost for the six months ended December 31 was $4.28 a pound (0.45 kilograms), compared with the $1.28 a pound average estimated in its feasibility study, because of lower ore grades and higher energy costs.
With the new ore reserve and cash costs information, Cathay announced on Wednesday that it is evaluating the new information and its bid offer will now be extended by seven days to February 15.

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