dml to set date for blumont takeover

Discovery Metals to set date for Blumont takeover (street talk AFR)

Long-suffering Discovery Metals investors are expected receive a market update on Blumont Group’s takeover deal this week, amid ongoing concerns about the Singaporean company’s poor share price performance.

It is understood Discovery is set to unveil a date for an emergency general meeting to approve Blumont Copper’s $108 million re-capitalisation plan.

The cash infusion will be matched with the purchase of $100 million convertible notes and will deliver the subsidiary of the resources and logistics giant effective control of the Australian miner.

Discovery owes about $150 million to the banks that funded its Boseto copper project in Botswana.

Last month Blumont Copper’s CEO, Ines Scotland, batted away speculation hefty swings in its share price would stymie a deal on Discovery.

Private equity firm Cathay Fortune walked away from a bid for Discovery Metals earlier this year over concerns about the quality of its resource base.