Discovery has completed an institutional fundraising in Australia, Botswana and the United Kingdom raising AUD$11.4million before expenses. The funds raised will be primarily applied towards progressing DML's 100% owned Maun Copper project in Botswana through its feasibility stages.
Discovery Metals Ltd (AIM:DME) (ASX/BSE:DML) is pleased to announce that they have placed a total of 31.6 million shares at A$0.36 (£0.145) to raise a total of AUD$11.38 million (£4.58 million) (before expenses) from institutional and sophisticated investors in Australia, Botswana and the United Kingdom. The placement, which was handled by Capital Corporate Finance in Botswana and stockbrokers Fox-Davies Capital in London, was made pursuant to DML's 15% placement facility undersection 7.1 of the ASX listing rules and a pre-placement approval granted at the Company's recent General Meeting of Shareholders held on 30th August 2007.
Funds raised from the placement will be applied towards completing pre-feasibility and feasibility studies on the Maun Project and for on-going corporate costs.
Discovery Metals' Managing Director, Mr Jeremy Read, said that the financing, which was carried out at the prevailing market price for DML shares, provides a solid financial platform for the Company as it progresses with its pre-feasibility study of the Maun Copper Project in north-west Botswana."This is an excellent result for Discovery. We have gained the support of a number of high quality Botswana and UK investors, as well as a number of Australian investor groups, as we gear up the Company's activities on potential project development studies and ongoing exploration at Maun," Mr Read said.
"Discovery now has the financial resources to complete pre-feasibility and feasibility studies on the Maun Project and consequently we are progressing the pre-feasibility study as quickly as possible," he said.
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