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Possible deal for Boseto - Discovery

5th February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Discovery Metals went into a trading halt on Thursday, flagging a "potential transaction" regarding its Boseto copper project, in Botswana.

Earlier this week, the junior miner revealed that its negotiations with Cupric Canyon Capital regarding the possible sale of Boseto mine had failed. At the time, the company said that it had restarted negotiations with a number of other interested parties with regards to either the provision of short-term working capital or an asset transaction.

Discovery was expected to resume share trading on February 9.

The Boseto mine was expected to be mothballed in the next six months, after a review of the openpit operations determined that the prevailing high strip ratio would result in a high operating cost environment, which was not sufficiently cash flow positive in light of the prevailing copper price.

However, Discovery was still pursuing the development of the Zeta underground mine.

The company announced in December that it would implement cost management and reduction strategies in order to reduce the operating costs at Boseto.

Edited by Creamer Media Reporter

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