Photo by: Bloomberg
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.