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Discovery closes out hedges

27th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Embattled metals miner Discovery Metals has closed out its copper and silver hedges, generating some A$26-million in cash.

Earlier this month, the miner launched the search for a buyer, signing a number of confidentiality agreements with interested parties. Binding proposals were expected by June 10.

The miner said on Monday that as of May 24, Discovery had some A$37.3-million in cash, which included A$12.4-million of hedge close-out proceeds, with the balance of A$13.6-million expected by May 28.

Some A$22-million of the hedge close-out proceeds would be applied to loan repayments, with the balance to be transferred to the Debt Service Reserve Account.

Project debt on the Boseto copper project had now been reduced to A$129-million, Discovery said, while total group interest-bearing debt was at A$154-million.

The company’s remaining hedge book now comprised copper hedging from June to December of 8 521 t at a weighted average forward price of A$8 875, and a marked-to-market value of around A$13-million.

Edited by Creamer Media Reporter

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