DISCOVERY METALS LIMITED 1D7 ecembe2r014
REVIEWOFBOSETOOPERATIONS; INTERIMFUNDINGARRANGEMENTS; SEDGMANLIABILITY
DiscoverMy etalLsimited(ASX/BSED: ML()
DiscoverMy etals , DMLotrhe Companyt)odaaynnouncetshreesults
oafcomprehensivereviewoiftsopen-pict oppermi ningandprocessingoperationsatheBosetoCopper
OperatioinBnotswanaS,outherAnfrica.
Threeviewhabseeunndertakehnavinrgegartdboot:h
thecurrenatndcontinuingsofmt arkeotutlookfocroppeornworldcommoditmy arketsw, herecopper priceshavedeterioratedbyapproximately$US 1,000pertonneduringcalendaryear2014totheir currenftouyrealrowsa;nd
thperevailinhgigshtrippinrgatri/oestrictegdeometrincaturoetfhBeosetopepnits. Followingthecompletionotfhisreviewt,heCompanyannouncesitsdecisiontoplacetheBosetoCopper
Operatioon"nCaraenMd aintenancew" ithitnhneexstimx onths.
Thiws ilelntatilhceessationotfhceurrenotpen-pimt ini ngandprocessingoperationbstyhme iddloecfalendar yea2r015.
Thereviewhasdeterminedthatheprevailinghighst ripratioopenpitsresultinahighcostoperating environmenwt hicihnsostufficientlcyash-flowpositivielnighotfhperevailincgoppeprrice.
Thereviewconcludedthatthecurrenotutlookfocroppeprricingonworldcommoditmy arketsisexpectedto remainsofitntheshortomediumterm(andhencea recoveryintheprofitabilityotfheBosetoopenpit operationisusnlikely itnhneeafruture).
TheCompanywililmmediatelymovethecurrenftocusotfheBosetoCopperOperationtoa"Completionof
CurrenPtitss"tyloeperationth, oebjectiveoswf hicahrteo:
maximistehextractioonofrferomthceurrenotperatinpgitsw, itnnoewo,ardditionaol,pepnittsboe commenced;
maximisaeallvailablre venuefsromcurrenotpepnits;
minimisaewllastsetrippinagnwd astme ovemenotp erationtsroeducceostasncdasohutlaysa;nd
immediatelyimplemenct osmt anagemenat ndcost reductionstrategiestoreduceoperatingcosts acrosaslalreaostfhebusines(sBosetoCoppePrrojectC, orporatecostsa,ndExplorationexpenditure), withouptrejudicintghientegritoyefnvironmenht,ealths,afetayncdommunitpyrograms.
Theobjectiveotfhismodeoofperationw, hichistobe implementedimmediatelyi,stomaximisealalvailable revenuesandcashgenerationavailablefromtheBosetoCopperOperationa, ndtominimisealel xpenditure outlayascrosasallreaostfhCeompany'csurrenetxpenditure.
Thefinanciaml
odellingsupportingtherecentlycompletedreviewindicatesthat th endotfhisperiod,
sufficienrtevenueasndcashfundingiesxpectedtohave beengeneratedtorepaaylslhorttermlendingt,ofund alclreditoarndemployeeobligationsa,ndtosustainth eoperationsona"CareandMaintenanceb"asisw, hile
1D7 ecembe2r014
alternativoeptionasraeblteboaessessefdotrhBeosetCooppeOrperation.
ThDe irectorhsavdeeterminedthre quirementtiomplemen
tthistrategwy ithimmediateffecitr,respectivoef
thoeutcomoedfiscussionws itChupr iCcanyoCnapita("lCupric"a)asn nouncetdAoSoXD2necembe2r014.
TheCompaneyxpectstoprovideanupdateonthecurrenetxclusivediscussionwithCupridcuringthesecond haolJffanuar2y015.
Shoultdhperoposetdransactionwith Cupriacasnnounced oDn2 ecembe2r01n4optroceedth, enthCeompany wilblepursuingopportunitiwesithalternativeinterestedpartietsosupporttheCompany'ms ovetorecapitalise orrefinanctehoeperatioanntdhme ovteuondergrounmd ininogperations..
InterimFunding
Furthertotheannouncementon2December2014t,he Companyadvisesthatdue toprojectedcashflow shortfallisnDecembe2r014it wilnleedtodrawafurthe$rUS2millioninfunding(foatrotaol$fUS5millionin
fundingu)ndetrhIenterimFu ndinAggreemenwt itChupric
p,riotr3oD1ecembe2r014.
Discussionistnhis regaradruenderway.
Sedgman
Furthertotheannouncemenmt adeon1October2014
schedulwe itShedgmana,osutlinebdelow:
t,heCompanyadvisesan agreedrevisedrepayment
DatefoPr ayment A | mounttobePaid | |
FirsItnstalement | 30Octobe2r014 (paidalready ) | $1,800,000 |
Second Instalment | 2Februar2y015 (previousldyue31Decembe2r014) | $250,000 |
ThirdInstalment | 28Februar2y015 (previousldyue31Decembe2r014) | $250,000 |
Fourth Instalment | 31March2015 (paymendtateunchanged) | $500,000 |
FifthInstalment | 30June2015 (paymendtateunchanged) | $400,000 |
Total | $3,200,000 |
AlolthetrermsandconditionotfheDeedbetw eentheDMLGroupandSedgmanremainunchanged. TheCompantyhanksSedgmanfoirtsuppordturing thediscussionsonthese revisedpaymentterms.
1D7 ecembe2r014
DISCOVERMY
ETALSBACKGROUND
DiscoveryMetalsisanASX/BSElistedcopperexplorationandprod | uctioncompanyfocusedontheem | ergingKalaharCi opperbelitn |
north-wesBt otswanTah.Ceompanicyasoppeprroducer | ait1s00%owneBd osetCooppeOrperation. |
The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto Copper Op eration is similar in style to the
well-knownanldargdeepositostfhCeent raAlfricaCnopperbelotZfambiantdh
De emocratiRcepublioctfhCeongo.
DiscoverMy etalhsapsrospectinlgice ncecsoverinagpproximatel2y6,15k0m
inB2 otswana.
FurtheirnformatioontnhCeompaniyncludinMg ineraRleso urceasnOdrReeserveisasvailabloeonuwr ebsite:
www.discoverymetals.com
Fofrurtheirnformationonthis releaseandDiscoverMy etalLsimitedp,leasecontact:
BobFulkeC-r EO Phone+:6173218022E2/ mailB: ob.Fulker@discoverymetals.com
KerrPy arkeC-r FOandCompanSy ecretary
Phone+:61732180222
E/ mailK: erry.Parker@discoverymetals.com
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