COPPER DEAL FOR DISCOVERY METALS
Written on the 1 April 2010
COPPER company Discovery Metals Limited (DML) has signed a 100 per cent off-take agreement with a global raw materials company, forming the final piece of the puzzle of commercialisation for the junior explorer.
Global non-ferrous raw materials company Transamine has agreed to buy all copper concentrate from DML’s Boseto mine in Botswana, while also subscribing to 25 million shares worth $19 million.
Discovery Metals managing director Brad Sampson (pictured), says it’s the result of two years work securing concentrate off-take from the Boseto Copper Project.
“The establishment of this strategic alliance with Transamine represents delivery of another significant milestone in the development of the Boseto Copper Project,” said Sampson in a statement to the ASX.
The deal was facilitated by Hynes Lawyers head of corporate advisory Glenn Vassallo. He says it equates to a ‘significant amount’ of money, but would not speculate what the deal might be worth.
“This significant transaction puts our client in a fantastic position and it’s a fantastic opportunity for our client to move forward with its Boseto program,” says Vassallo.
“Transamine subscribed to 25 million shares at a premium of 11 per cent over the full week volume weighted average price (VWAP).”
The Boseto tenement consists of 10,100sqkm in the Kalahari Copper Belt, which pundits are predicting could be one of the next big boom areas for the mineral.
Construction on the mine is expected in June or July this year, with an initial targeted project life of 10 years.
Production is expected in late 2011.