Photo by: Bloomberg
PERTH (miningweekly.com) – Copper miner Discovery Metals Limited (DML) would raise up to A$25.7-million to develop its Zeta underground mine at the Boseto copper project, in Botswana.
The miner announced its intention to undertake a two-for-one renounceable rights issue, priced at 2c a share, with one option to be attached to each new share.
The rights issue would be conditional upon the raising of a minimum of A$10-million.
“The funds raised by the proposed rights issue will allow DML to commence the transition of the Boseto copper project from openpit to underground mining, in order to unlock value contained within the significant mineral resource inventory which exists at Boseto,” said chairperson Jeremy Read.
“Within a two-year period, we are aiming to have commenced two declines at the Zeta underground mine, with ultimately three underground mines to be developed at Boseto.”
Read said that this would allow the concentrating facility to be filled with higher-grade sulphide ore, leading to significant improvements in the recovery of copper and the overall tonnes of copper produced on a yearly basis.
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.