re: Ann: MD Presentation Botswana Resources C... According to this article BFS - mid July (DML have stated July). Im happy with 40% equity and 60% debt, but would like to see it raised at a higher sp.
Obviously management are confident of a second plant -
"...previous geological studies indicate that one of these prospecting licences could support a stand alone mine, or Boseto Two"
DML focuses on funding for Boseto
MBONGENI MGUNI Staff Writer Discovery Metals Limited (DML) is due to complete key studies towards its Boseto Copper Project in Maun, enabling the Australian company to commence capital of the anticipated US$170 million (P1.1 billion) cost of the project.
Investment bankers expect DML to raise 40 percent of the capital expenditure through equity, via the issue of new shares and the balance through debt finance. When complete, the copper mine will emerge as Botswana's biggest, with the capacity to pump out three million tonnes per annum.
Capital expenditure figures as well as other technical and financial details are expected to be ironed out mid-July when the Australian company's board reviews the Bankable Feasibility Study (BFS).DML Managing Director, Brad Sampson said there is rapid progress towards the target commissioning by the end of next year.
"We will present the BFS to our board in mid- July," he told the Botswana Resource Sector Conference on Tuesday."After the BFS, we will finish the financing, then get into construction as soon as possible. We are not far away from applying for a mining licence and we are pleased with the government's target of processing these within 30 days."
The Australian company will tap into its 40 million Australian Dollar (P241.9 million) cash balances for part of the capital expenditure, while the recovering global capital market will be eager to support a project with high growth prospects.
Sampson explained that Boseto would begin as an open pit mine - a three to five year period - before going underground for the balance of the project's expected 15-year lifespan. The open pit operations are timed to coincide with the debt finance period.
In addition, the Australian company plans to aggressively investigate its other 13 prospecting licences in the Maun area, which cover a 10,100 square kilometre area up to the Namibian border.
DML and previous geological studies indicate that one of these prospecting licences could support a stand alone mine, or Boseto Two. A US$55 million (P385 million) budget is planned for drilling and analysing samples from the prospecting licences, under a resource expansion exercise.
"In the next 18 months, our job is to start exploring these other prospecting licences. We know we are sitting in a highly mineralised area and we have only explored ten percent of the 1, 300 kilometre strike length.
"As we go along and put more money in the ground, there's potential to increase the resource base," he said.Meanwhile, Sampson told BusinessWeek that the Boseto Copper Project would use diesel-generated power, upon its commissioning next year. The Mine's long term plan, however, is to eventually link to the national grid, which is a much cheaper and sustainable option.
"At the moment, the main line between Francistown and Maun cannot carry more load to support us," he explained. "We funded studies with the BPC looking at the constraints and opportunities of increasing the capacity. We know that we will have to start by generating our own, but in the long term, we will go the grid."
The BPC would have to bear the cost of increasing capacity along the Francistown-Maun line, while DML will carry the estimated P70 million of connecting itself to Maun. The Boseto Project is located approximately 80 kilometres southwest of Maun.
