The company, which has been the subject of a hostile takeover since last October, put itself up for sale last month after failing to win the support of its Chinese shareholder Cathay Fortune Corporation (CFC), to raise $245 million (P2.01 billion) in capital.In a statement released to the Botswana Stock Exchange (BSE) this week, Discovery announced that it has managed to get some breathing space after lenders waived the mining company’s obligation to invest the P255 million through equity.“Lenders have waived a requirement that Discovery be required to make an additional equity contribution of $30 million to the project by 15 August 2013“.
However, an additional event of default will be deemed to occur if the board has not recommended a bid to acquire Discovery by July 31, 2013 or the company has not agreed investment terms with a cornerstone investor that is satisfactory to the lenders,” read the statement.The Chinese firm, founded by billionaire Yu Yong, currently holds 13.7 percent equity in Discovery and has tabled several offers for dominant control since October.In May, Discovery Metals announced it had signed confidentiality agreements “with a number of parties to date” and that it would be accepting binding proposals until June 10.
