DML agrees recap to slash debt by $91m
PERTH (miningweekly.com) – ASX-listed Discovery Metals Limited (DML) has signed a $105-million recapitalisation proposal with Montesant Partners, which would see the company’s net debt reduce by $91-million.
DML reported on Tuesday that 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.
DML told shareholders that $65-million of the funding would be used to discharge obligations under existing debt facilities, while a further $40-million would be used for working capital purposes.
At the close of the transaction, DML would have reduced its gross debt from $158-million to $65-million.
“The agreements we have reached with Montesant Partners and our existing lenders are extremely positive for the company as they reduce our net debt on financial close to $65-million and will provide funding for the start of underground mining on the Zeta mineral resource,” said DML chairperson Jeremy Read.
He added that Montesant Partners’ investment into the company was a vote of confidence in the long-term potential of the Kalahari copper belt, which hosts the Boseto copper project, in Botswana.
DML was hoping to establish three underground mines to increase the mine life at Boseto.
The Montesant Partners transaction was subject to shareholder approval and the execution of definitive transaction documents.
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
Sika South Africa is a trusted partner for the nation’s infrastructure, commercial, residential, and industrial sectors.
VISIT SHOWROOM
ECG provides specialised electrical engineering services to the Mining, Utilities, Materials Handling and Industrial industries, with extensive and...
VISIT SHOWROOM
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
