Africa-focused copper miner Discovery Metals (ASX:DML) has rejected a bid from Shanghai's Cathay Fortune on the grounds that the proposed AUD$830 million consideration is insufficient.
Discovery informed the Australian Stock Exchange yesterday evening that the bid "does not reflect…the value of the company's operations and expansion plans…the strategic value of the company with an operating project and management team in Botswana and the scarcity value of the company."
Sydney-listed Discovery Metals is the 100% owner of the Boseto copper project in the northwest of Botswana, which has annual production of 36,000 tonnes of copper and 1Moz of silver. The mine is expected to operate until 2026.
Shanghai-based private equity firm Cathay Fortune issued the unsolicited bid last week in conjunction with the China-Africa Development Fund, bucking the general trend of overseas commodities acquisitions spearheaded by state-owned enterprises.
Discovery shares edged higher a fraction of a percent in afternoon trading on Friday.