The offer of compromise for the acquisition of the provisionally liquidated Boseto Copper operation in north-west Botswana has been accepted by creditors. Information reaching this publication suggests that the offer for Discovery Copper Botswana (DCB), the owner of Boseto Copper Mine, was made by Botswana’s Cupric Canyon Capital, whose subisidiary Khoemacau Copper Mining has been in dialogue with its debt stricken counterpart as a potential acquirer for the last two years.
The cash-strapped Discovery Copper is part of Discovery Metals Limited, the shares of which were suspended on the Australian Stock Exchange in February, the month in which the Botswana company was forced into administratorship by lenders demanding immediate repayment of outstanding loans.
When put to a vote as part of a provisional liquidation process being conducted by Deloitte Botswana, Cupric’s offer of compromise won the support of all of the secured creditors who are claiming more than $103-million (close to P1 billion), all of the preferential creditors, who are claiming more than P40-million, and 83 per cent of the unsecured creditors, who are claiming nearly $23-million (close to P230 million).
Cupric and Discovery Copper must now fulfill the conditions precedent ahead of an application to the High Court on June 23. Formerly known as Hana Ghanzi Copper, Khoemacau is developing the Ghantsi-Chobe copper/silver prospect in the Kalahari copper belt, within the Ghanzi and Ngamiland districts. Khoemacau plans to complete all the drilling and feasibility work this year and begin underground mine construction in 2016.
The information further indicates that Botswana government is considering taking up a 15 per cent participation in the proposed 3.6-million-ton-a-year underground copper mine. Planned are three boxcuts with three spiral systems into the steeply dipping orebody. Grid power is scheduled to be delivered to Botswana’s North West district by the end of 2018 for supply to the mine, which is licensed for 20 years.