News: Discovery Metals granted trading halt

Discovery Metals (ASX:DML) is preparing to update the market in regards to the receipt of correspondence from DML’s Lender Group.

Earlier in the month DML signed a Binding Memorandum of Understanding with Castlepines Global Equities Limited.

Under the terms of the MOU, it is proposed that Castlepines will invest $US 110 million in DML’s wholly owned group subsidiary Discovery Copper (Botswana) (Proprietary) (DCB), to acquire a 34% interest in DCB under a coupon based financing arrangement.

DML will hold the remaining 66% interest in DCB.

DCB owns a 100% interest in the Boseto Copper Operation in Botswana, Southern Africa.

The ASX has granted DML a trading halt to prepare.

The halt will remain in place until the opening of trade on Tuesday 3rd March 2015, or earlier if an announcement is made to the market.