Discovery to spend $150m on Botswana copper mine

JOHANNESBURG - Exploration company Discovery Metals plans to spend an initial $150-million developing the Boseto copper project in Botswana, MD Brad Sampson said on Thursday. Sampson said the company would use the funds to build a concentrator, tails dam and related facilities at Boseto, after completing a bankable feasibility study (BFS) next March. He said Discovery anticipated gearing the project 50%, while the final project financing would be completed after the feasibility study. The company said last week that it planned to raise project funds through debt financing and equity. "Discussions are underway with banks, potential off-takers, existing shareholders and potential new investors and these will continue through the BFS completion and into quarter 2, 2010," Sampson told Reuters. He said the company was in talks with possible off-takers for copper concentrate from Boseto in North America, Europe and Asia, but declined to name them. Discovery said on Monday it expected the Boseto project's annual copper output to reach 25 600 t and silver production to reach 691 000 oz starting in mid-2011. Sampson said the firm would for now concentrate its mining activities in Botswana because it was an A-Credit rated country and internationally recognised as a very low-risk nation and attractive for investment. He said Discovery, which also had a nickel sulphide project containing copper and platinum group metals at Dikoloti in Botswana, had agreed a joint exploration deal with state-affiliated Japan Oil Gas and Metals National Corporation (JOGMEC).