another update from fairfax

Discovery metals* (LON:DME) Caterpillar to supply finance and equipment for Boseto
? Caterpillar has joined the Boseto Debt syndicate alongside Standard Chartered, Standard Bank, and Credit Suiise as a joint lead arranger. The facility is to total US$180m of which US$105m will go on the plant and US$75m on the fleet. In addition a US$25m overrun and working capital facility plus hedging for copper and silver output are to be provided.
? Caterpillar will be the largest supplier of the mining fleet to the operation. The company?s commitment to the project and the debt facility is encouraging as it demonstrates additional confidence in the asset and the management team.
? We recently went to site and observed the rapid progress the company has made, clearing and preparing the ground for the plant and tailings facility. The area that will be developed is considerable and we look forward to the progress in the coming months as the plant and mine is constructed.
Conclusion: Boseto is now fully financed and the company is on track to start production in the first half of next year. We look forward to newsflow on the construction of the project and the exploration programme that is picking up pace. The results of exploration could rapidly add value for shareholders as additional resource targets are identified and delineated that could lead to expansions or entirely new standalone mine developments. We note that the share price has been tracking sideways for some weeks and view that in light of the strong fundamentals for copper and exciting times ahead for the company, this is a good opportunity to build a position.
* Fairfax acts as Nomad & Broker to Discovery metals