DML halts Botswana underground development on funding issue
PERTH (miningweekly.com) – Copper miner Discovery Metals Limited (DML) has placed the development of its Zeta underground mine, at the Boseto copper project, in Botswana, on hold.
The miner said this week that a proposed A$25.7-million rights issue, which was announced at the start of September this year, would not proceed, after the company’s lenders claimed a breach.
The lenders claimed that an updated business plan provided by DML in August, had not been in the correct form, and had been deemed unsatisfactory. The lenders have reserved their rights.
The rights issue, under which DML had proposed to undertake a two-for-one renounceable rights issue, priced at 2c a share, had been aimed at providing funding to allow DML to transition the Boseto project from an opencut to an underground mine.
DML was granted government approval to develop the Zeta underground mine in April this year. At steady levels, the Zeta underground mine would produce about 1.5-million tonnes a year, at 1.3% copper.
DML said this week that it was now in discussions with its lenders.
In the interim, the company would continue to operate the opencut operations at Boseto. The company’s shares would also remain in suspension until the end of October.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
