Looks like my following post this morning is correct, CFC will bid again, I also think it's on market bid this time.
at 58c-85c.
Robb Stewart From: The Wall Street Journal April 24, 2013 11:51AM
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CHINESE private equity firm Cathay Fortune said it is ready to make a new cash offer for Discovery Metals on condition the Africa-focused copper explorer drops plans to raise equity.
It comes two months after Cathay walked away from an $870 million bid for the Australia-listed company on concerns about its Boseto copper project in Botswana.
quote my early post---but on one give me thumb up?
"so many scary stuffs coming up when DML SP already slumped 80%. Depending on the placement offer price which I personally think is 30c per share, if there is an underwriter SHs could expect SP recover slowly.
Copper price is the King atm, if till remains above $3/lb not that bad for DML.
The real problem with DML atm is :
"still working through oxide and transitional material while the most of the mineralisation is sulphide. "
I noticed DML already announced they have reached the sulphide ore in April, maybe that's why the board start to expect Positive cash flow in June 1/4.
Anyway, as a top 10 Africa copper mining projects, 200-300Mt resource in place, I believe DML will be always a takeover target.
Hopefully the short-term pain can be ended by the sulphide ore soon. DML could be worth much more than 80c per share(after dilution ) as long as the operation cost is less than $2/lb.
Current SP also creates an fantastic opportunity for CFC to acquire DML at 1/3-1/2 cost of its initial offer/ ie 58c--85c, if they can lunch a on market takeover offer ASAP.
99% of the SHs could sell their shares at this price range if there is a scary 25c placement offer."
DML Price at posting:
34.0¢ Sentiment: LT Buy Disclosure: Not Held
