DML recapitalisation deal falls through
PERTH (miningweekly.com) – ASX-listed Discovery Metals Limited (DML) has seen its recapitalisation deal with Montesant Partners collapse.
At the beginning of April, DML signed a $105-million recapitalisation proposal with Montesant Partners, which would have seen the company’s net debt reduce by $91-million.
The recapitalisation proposal included a share placement of 100-million shares, at 5c each, to raise the first $5-million. The share placement would be completed in two tranches, with the second tranche subject to shareholder approval.
The recapitalisation proposal also included a $100-million convertible note, under which Montesant Partners had agreed to subscribe for 100 000 five-year, 10%-a-year interest rate, secured convertible notes with a face value of $1 000 each.
However, DML said on Tuesday that Montesant had not advised the company of its intention to proceed with the recapitalisation at the required date, rendering the proposal mute.
As the Montesant deal fell through, DML said that its conditional, nonbinding term sheet with its lenders, under which the two parties had agreed to a full payout of the existing finance facilities, had also lapsed.
DML said that it was now in direct discussions with its lenders to negotiate a binding term sheet for the re-profiling of the company’s project finance facility and its single currency revolving facility agreement.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
At Airshrink - CiP, we surpass customer expectations with innovative MV and LV cable accessories, including heat shrink joints, terminations,...
VISIT SHOWROOM
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
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
