ENP Newswire - 18 February 2014
Release date- 17022014 - Discovery Metals Limited (ASX/BSE: DML) provides a further update in regards to its Boseto Project Finance Facility and its Single Currency Revolving Facility Agreement.
The principal amounts outstanding under both facilities as at today's date are US$123.8m and US$25m respectively. Discovery Metals has previously announced to the market various changes to the repayment schedule for the PF Facility (Repayment Schedule) in the form of formal waivers from its lenders.
A principal repayment of US$17.5 million was due and payable on 31 December 2013. As announced on 31 December 2013, this principal repayment and all interest owing up until 31 December 2013 under both the PF Facility and the SCRFA, totalling US$2.2 million, was deferred until 15 January 2014.
On 15 January 2014, Discovery Metals advised the market that its lenders had granted a further waiver such that the scheduled repayment date for the principal repayment was deferred until 28 February 2014, and that all interest owing up until 31 December 2013 on the PF Facility and SCRFA had been deferred until 15 February 2014.
Discovery Metals today advises the market that the Company's lenders have granted a further waiver to the Repayment Schedule such that:
the scheduled repayment date for the principal repayment has been deferred until 31 March 2014 and
all interest owing up until 15 February 2014 on the PF Facility and the SCRFA has been deferred until 28 February 2014.
Lenders have also acknowledged that that the Company may from time to time request that the lenders consent to withdrawals from the Debt Service Reserve Account (current balance US$6 million) for the purposes of paying reasonable and properly incurred operating expenses, however lenders have absolute discretion to approve or reject such request. The lenders' continued flexibility in relation to the Repayment Schedule is reflective of the ongoing support being afforded to the Company by its lenders. Discussions between Discovery Metals and various external parties as to a large-scale recapitalisation of the Company are continuing.
FORWARD LOOKING STATEMENTS
This release includes certain statements that may be deemed 'forward-looking statements'. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that Discovery Metals expects, are forward-looking statements. Although Discovery Metals believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
DISCOVERY METALS BACKGROUND
Discovery Metals is an ASX/BSE listed copper exploration and production company focused on the emerging Kalahari Copperbelt in north-west Botswana. The Company is a copper producer at its 100% owned Boseto Copper Project. The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper Project is similar in style to the well-known and large deposits of the Central African Copperbelt of Zambia and the Democratic Republic of the Congo. Discovery Metals has prospecting licences covering approximately 26,150 km2 in Botswana.
Further information on the Company including Mineral Resources and Ore Reserves is available on our website: www.discoverymetals.com
Discovery Metals Limited
Tel: +61 7 3218 0222
Tel: +61 7 3218 0222