Discovery Metals LimitedUSD108 million recapitalisation...

Discovery Metals Limited
USD108 million recapitalisation proposal
Highlights
? USD108 million recapitalisation proposal pre-fees agreed with Blumont Group Limited.
? Recapitalisation proposal comprises:
o Share placement – 15% new shares at AUD0.12 to raise approximately AUD8.75 million;
o Convertible Bonds – USD100 million 5% 5 year convertible bond issue, convertible to ordinary shares in the Company at AUD0.15 per share.
? Discovery Metals plans to offer a share purchase plan to shareholders at placement price, capped at AUD10 million.
? USD25 million revolving credit facility to be repaid in full.
? USD129 million project finance facility to be restructured, including:
o USD25 million principal repayment;
o USD104 million balance payable in 8 quarterly instalments between 31 March 2016 and 31 December 2017;
o Interest capitalised until 31 December 2015.
? Waiver of all past and existing defaults under current project finance facilities.
? Convertible Bonds subject to shareholder approval.
? The Directors intend to recommend that shareholders approve the Convertible Bonds, in the absence of a superior proposal.
Transaction
Discovery Metals (the Company) is pleased to announce that it has executed a legally binding term sheet (Term Sheet) with Blumont Group Limited (SGX: A33) (Blumont), an investment holding company listed on the Singapore Stock Exchange,