24 June 2011
Discovery Metals Limited
('Discovery Metals' or 'Company)
Boseto Financing Credit Approval
* The US$180m Boseto debt project finance has received credit approval from
the banking syndicate.
* The debt syndicate comprises Standard Chartered Bank, Standard Bank, Credit
Suisse and Caterpillar Finance as Joint Lead Arrangers.
* The Board of Discovery Metals has approved the debt package.
* First draw down of debt funding is anticipated in July 2011.
* The Boseto Copper Project remains on track for commissioning and first
production in the first half of 2012.
Boseto Debt Finance
Discovery Metals Limited ('Discovery Metals' or 'Company') announces that it has
received confirmation that the banking syndicate credit committees have approved
the Boseto debt facility. This follows an extensive due diligence process by
the banks. The debt facility will fund the completion of the Boseto Copper
Project and is subject to normal conditions precedent for financing arrangements
of this nature. The remaining conditions precedent are expected to be completed
within one month.
Funding will be applied to the Boseto processing plant for US$105 million and
the Boseto mine mobile fleet for US$75 million. In addition to the US$180
million project and equipment finance, the banking syndicate will provide a
US$25 million overrun and working capital facility plus hedging lines for both
copper and silver production.
The facility will be secured over the Boseto Copper Project assets and 100% of
the shares the Company owns in the project subsidiary entity (Discovery Copper
Botswana Proprietary Limited).
The Boseto Copper Project is currently under construction and is expected to be
commissioned in the first half of 2012.
The Company will complete its required equity contribution to the Boseto project
by the end of June 2011 and will have in excess of US$70 million in cash
reserves at that time.
Discovery Metals' Managing Director, Brad Sampson, commented; "the progress on
the construction at Boseto is pleasing and the availability of the debt finance
will allow the construction works to continue in line with our published
timetable. Shareholders should gain further confidence that the Boseto project
complies with the due diligence requirements of such a well-credentialed debt
Discovery Metals Background
Discovery Metals is an ASX/AIM/BSE listed copper exploration and development
company focused on the emerging Kalahari Copperbelt in northwest Botswana. The
Company is currently developing its 100% owned Boseto Copper Project towards
production in the first half of 2012.
The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper
Project is similar in style to the well-known and large deposits of the Central
African Copperbelt of Zambia and the Democratic Republic of the Congo.
Discovery Metals has prospecting licences covering 9,656 km(2) along the
Further information on the Company including Mineral Resources and Ore Reserves
is available on its website: www.discoverymetals.com
Forward Looking Statements
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this discussion, other than statements of
historical facts, that address future activities and events or developments that
Discovery Metals expects, are forward-looking statements. Although Discovery
Metals believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
market prices, continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in forward-looking
Standard Chartered - leading the way in Asia, Africa and the Middle East
Standard Chartered PLC is a leading international bank, listed on the London,
Hong Kong and Mumbai stock exchanges. It has operated for over 150 years in
some of the world's most dynamic markets and earns more than 90 per cent of its
income and profits in Asia, Africa and the Middle East. This geographic focus
and commitment to developing deep relationships with clients and customers has
driven the Bank's growth in recent years.
With 1,700 offices in 70 markets, Standard Chartered offers exciting and
challenging international career opportunities for around 85,000 staff. It is
committed to building a sustainable business over the long term and is trusted
worldwide for upholding high standards of corporate governance, social
responsibility, environmental protection and employee diversity. The Bank's
heritage and values are expressed in its brand promise, 'Here for good'.
Standard Chartered's Award Winning Project Finance Solutions - Standard
Chartered offers project finance solutions ranging from financial advisory,
valuation and modelling to structuring and underwriting of financing solutions.
ThomsonReuters' Project Finance International (PFI) magazine most recently named
Standard Chartered the Bank for the Year 2010. Deals led by the Bank have also
won several awards including Americas Mining Deal of the Year 2010, which is
testament to the strength of the Bank's franchise in mining and metals project
For more information on Standard Chartered, please visit:
ABOUT CATERPILLAR FINANCE
Caterpillar Financial (Zurich) is the structured trade and project finance arm
of Cat Financial. For nearly 30 years, Cat Financial, a wholly-owned subsidiary
of Caterpillar Inc., has been providing a wide range of financing alternatives
to customers and Caterpillar dealers for Cat machinery and engines, Solar® gas
turbines and other equipment and marine vessels. Cat Financial has offices
located throughout the Americas, Asia, Australia and Europe, with headquarters
in Nashville, Tennessee in the U.S.A.
About Standard Bank
Rooted in Africa with strategic representation in key sub-Saharan and other
emerging markets, Standard Bank is a bank with a global sweep. A mainstay of
South Africa's financial system for over 145 years, its international expansion
has taken it to 17 countries on the African continent and 15 countries outside
Africa including Brazil, Russia and China. Its headquarters are in Johannesburg
and it is listed on the Johannesburg Stock Exchange. Standard Bank's Corporate
and Investment Banking division is a leading global emerging markets corporate
and investment bank and offers its clients banking, trading, investment, risk
management and advisory services in developing economies throughout the world.
It has specific sector expertise in mining & metals; oil, gas & renewables;
telecommunications & media; power & infrastructure and financial institutions.
In Turkey, Standard Ünlü (a member of the Standard Bank Group) is a market
leader in corporate finance transactions specializing in cross border merger and
acquisitions, disposals, formation of strategic alliances and joint ventures,
and public offers. Standard Bank Plc in London is the bank's principal
international subsidiary. It is authorized and regulated by the Financial
Services Authority, and is a member of the London Stock Exchange, the London
Bullion Market Association, the London Metal Exchange, the London Platinum and
Palladium Market and the New York Mercantile Exchange (COMEX Division).
For further information, visit: standardbank.com/cib
About credit Suisse
Credit Suisse AG is one of the world's leading financial services providers and
is part of the Credit Suisse group of companies (referred to here as 'Credit
Suisse'). As an integrated bank, Credit Suisse offers clients its combined
expertise in the areas of private banking, investment banking and asset
management. Credit Suisse provides advisory services, comprehensive solutions
and innovative products to companies, institutional clients and high-net-worth
private clients globally, as well as to retail clients in Switzerland. Credit
Suisse is headquartered in Zurich and operates in over 50 countries worldwide.
The group employs approximately 50,500 people. The registered shares (CSGN) of
Credit Suisse's parent company, Credit Suisse Group AG, are listed in
Switzerland and, in the form of American Depositary Shares (CS), in New York.
Further information about Credit Suisse can be found at: credit-suisse.com
For further information contact:
Discovery Metals Limited
Tel: +617 3218 0200
Fairfax I.S. PLC
Ewan Leggat / Laura Littley
Tel: +44 (0)20 7598 5368
Jos Simson/Emily Fenton
Tel: +44 (0) 207 9203150
Mobile: +44 (0)7899 870 450
Further information on the Company is available on its website:
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Discovery Metals Limited via Thomson Reuters ONE