THE DEMISE OF DISCOVERY METALS
Written on the 12 June 2015
DISCOVERY Metals Limited (ASX:DML) will be voluntarily wound up, closing the book on the troubled miner.
The copper and silver producer entered voluntary administration at the end of February, following a failed debt restructure facility.
Discovery Metal's lender syndicate rejected a US$110 million rescue package from international equity fund Castlepines.
The deal would have resulted in a 34 per cent stake in Discovery Metal's major asset, the Boseto Copper Project in Botswana.
The deal was seen as a breach of the existing facility agreement. A request to complete a rights issue to repay the loan was also denied.
Administrators Stefan Dopking and Michael Joseph Ryan have been appointed as liquidators.
Massimo Marcinelli of Deloitte has been appointed as provisional liquidator to the group's subsidiaries Discovery Copper Botswana and Discovery Mines.