BOSETO FINANCING CREDIT APPROVAL
Highlights
- The US$180m Boseto debt project finance has received credit approval from the banking syndicate.
- The debt syndicate comprises Standard Chartered Bank, Standard Bank, Credit Suisse and Caterpillar Finance as Joint Lead Arrangers.
- The Board of Discovery Metals has approved the debt package.
- First draw down of debt funding is anticipated in July 2011.
- The Boseto Copper Project remains on track for commissioning and first
production in the first half of 2012.
Boseto Debt Finance
Discovery Metals Limited (‘Discovery Metals’ or ‘Company’) announces that it has received confirmation that the banking syndicate credit committees have approved the Boseto debt facility. This follows an extensive due diligence process by the banks. The debt facility will fund the completion of the Boseto Copper Project and is subject to normal conditions precedent for financing arrangements of this nature. The remaining conditions precedent are expected to be completed within one month.
Funding will be applied to the Boseto processing plant for US$105 million and the Boseto mine mobile fleet for US$75 million. In addition to the US$180 million project and equipment finance, the banking syndicate will provide a US$25 million overrun and working capital facility plus hedging lines for both copper and silver production.
The facility will be secured over the Boseto Copper Project assets and 100% of the shares the Company owns in the project subsidiary entity (Discovery Copper Botswana Proprietary Limited).
The Boseto Copper Project is currently under construction and is expected to be commissioned in the first half of 2012.
The Company will complete its required equity contribution to the Boseto project by the end of June 2011 and will have in excess of US$70 million in cash reserves at that time.
Discovery Metals’ Managing Director, Brad Sampson, commented; “the progress on the construction at Boseto is pleasing and the availability of the debt finance will allow the construction works to continue in line with our published timetable. Shareholders should gain further confidence that the Boseto project complies with the due diligence requirements of such a well-credentialed debt syndicate.”
Discovery Metals Background
Discovery Metals is an ASX/AIM/BSE listed copper exploration and development company focused on the emerging Kalahari Copperbelt in northwest Botswana. The Company is currently developing its 100% owned Boseto Copper Project towards production in the first half of 2012.
The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper Project is similar in style to the well-known and large deposits of the Central African Copperbelt of Zambia and the Democratic Republic of the Congo.
Discovery Metals has prospecting licences covering 9,656 km2 along the Kalahari Copperbelt.
Further information on the Company including Mineral Resources and Ore Reserves is available on our website: www.discoverymetals.com
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