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TRANSAMINE Trading S.A. has become the largest shareholder in Discovery Metals (ASX: DML), increasing its stake by more than 12 per cent through a $2.8 million placement.
The South African raw metals trading company has evolved from the second largest shareholder in Brisbane-based copper exploration and production company DML with a 6.4 per cent stake to an 18.6 per cent primary holding in the company.
DML will also appoint a Transamine nominee to its board.
DML chairman Jeremy Read says the announcement is a significant development in the company’s relationship with Transamine, following the establishment of a long term strategic alliance through a copper concentrate sales contract in 2010.
“Transamine is one of our most important strategic partners which we have a productive and value adding relationship with.
“I look forward to working with the Transamine nominee on the board as this will further strengthen our commercial relationship.”
Following the announcement, the company issued 84,005,163 fully paid ordinary shares at a placement price of $0.03 cents per share, an 8 per cent premium to its closing price yesterday.
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