After in-and-out discussions that have spilled over from the forgoing year, Discovery Metals, the Aussie owner of Boseto mine in Kalahari, Botswana, has received a fresh extension on a possible takeover bid by a company from China, Cathy Fortune Investment.
The bid now extends from the earlier January 11 deadline up to February 8, a strategy that the movers and shakers in the transaction see as vital to orientate the shareholders’ final decision.
Discovery Metals has also got a nod from the Competition Authority in the country to make the switch after assessment to the effect that there is no critical competition in the silver and copper ore sector.
Boseto mine is one of the largest copper and other metal ore sites in the South African country that is famous for its thriving economy, as well as, its desert clime as it is in the Kalahari belt.
It was only recently that the Department of Minerals, Energy and Water Resources authorized Discovery Metals to halt a drilling project that was seeking to open up more caves. The state cited the dangerous overhang of rocks over the pit wall that would lead to a localized dysfunction.
Though the incident that led to the admonition resulted in no malfunction of tools or personal maiming, the firm and the state have since launched a query into the cause of the breakup in the pit wall. So far, the Boseto mine is still in high gear operation.
Most of the mining activity is concentrating on the near-surface parts of the Zeta open-pit, with the operator keen on mobilizing more machinery from hired sources to increase the velocity of retrieving more ore to bridge the deficit occasioned by the earlier debacle.
The mining industry is lucrative in Botswana, being a major supplier of various metal ores like diamond, silver and copper, a prestige that it shares with South Africa, another major producer of diamond and gold.
Botswana’s GDP does well primarily because of its cornerstone success story in the diamond mines, wise treasury decisions and a heavy presence of investors, foreign and local.
In case the takeover goes ahead at Discovery Metals, the Chinese firm will be offering about 1.70 Australian Dollars per share, though this has been part of the stalled offer prior to official bidding late December 2011.