07 Dec 2014

Discovery Metals Limited (DML) is engaged in exclusive discussions with Cupric Canyon Capital for the potential sale of Boseto Copper Mine.

The company said in a statement recently that they had entered into a P45 million (U$ 5 million) short term capital facility with Cupric.

“A condition of the facility agreement grants Cupric a period of exclusivity to allow it to complete due diligence and to allow time for both DML and Cupric to finalise and agree definitive terms of the potential transaction.”

The statement said the exclusivity period extended until the earlier of the execution of the legally binding sale and purchase agreement with Cupric. However, the facility had a final termination date and the company would seek approval from its shareholders prior to any transaction being finalized.

The facility will be used to provide support to DML’s current operations rising from operating cash flow shortfall in November 2014 and for working capital purposes. ends