Discovery share acquisition receives approval

Company News

Discovery Metals Limited (ASX:DML) has advised that the Botswana Competition Authority has approved the acquisition of all remaining Discovery shares by Cathay Fortune Investments.

The Competition Authority subjected the proposed acquisition to analysis and found there were no substantive competition concerns in the copper and silver mining industry in Botswana.

The authority concluded the proposed transaction is unlikely to result in a lessening of competition or endanger the continuity of service from the involved parties.

In regard to potential redundancies created by a possible transaction, the Authority says it expects Discovery and Cathay Fortune to exercise restraint in view of a growing unemployment rate in Botswana. 

The acquisition proposal remains subject to several other conditions.

Discovery Metals reported a net loss of $20.6 million in the 2012 financial year.