Discovery shares dip on takeover doubts

Company News

Shares in Discovery Metals Limited (ASX:DML) dipped yesterday as doubts emerged its suitor, Chinese private equity fund Cathay Fortune, will complete its proposed $830 million takeover. 
 
The copper miner’s shares fell below Cathay’s $1.70 per share offer price following a release detailing production costs, reserves and grades at its flagship asset in Botswana. 
 
Among the information Discovery Metals revealed cash costs at its Boseto mine came in above the copper price at an average of $4.28 per pound of copper in the first half of the current financial year. 
 
Cathay Fortune launched its initial bid in October 2012 and the offer is expected to lapse on February 8, 2013 unless it is again extended.
 
Shares in Discovery Metals dipped 7.24 per cent yesterday to finish at $1.41. 
 
Discovery Metals reported a net loss of $20.7 million in the 2012 financial year.