Discovery suitors question production levels

Company News

Discovery Metals Limited (ASX:DML) Chinese suitors Cathay Fortune Corporation and China-Africa Development Fund have expressed concern over the forecast production levels at the group’s Boseto copper project in Botswana.

The two companies issued an $830 million takeover bid late last year and extended the closing date to tomorrow.

Cathay Fortune Corporation which already holds over 13 per cent of Discovery, says there has been no disclosure of any internal or third party analysis of the reserves and grades and is seriously concerned that they have been overstated.

The Chinese companies have requested that additional information be provided.

Discovery Metals posted a net loss of $20.7 million in the 2012 financial year.