(MENAFN - ProactiveInvestors - Australia) Discovery Metals (ASX: DML) has once again rejected a takeover offer by A1.70 per share cash takeover offer from China's Cathay Fortune Corporation (CFC), saying it was opportunistically timed to exploit a period of temporary share price weakness.
The company said the A830 million offer represented an insufficient premium of only 17% to the closing share price on 3 October 2012 of A1.455.
This is below the fair market value of between A1.74 and A2.11 estimated by the Independent Expert.
A previous indicative, non-binding proposal was also rejected on the grounds that the price offered was inadequate.
Dynasty said that it is well positioned to deliver future value to shareholders through the planned, low cost expansion of Boseto production to more than 50,000 tonnes per annum production by 2015 as well as development of future growth options, including potential parallel projects.
It added that its Kalahari Copperbelt prospecting licences are highly prospective for further growth in Mineral Resources as demonstrated by the recent maiden Mineral Resources at NE Mango 2 and Ophion.
CFC is partnered by the 5 billion China-Africa Development Fund, which has a 25% interest in the offer.
CFC already holds a 13.7% stake in Discovery, which owns and is producing from the Boseto project in the emerging Kalahari Copperbelt in north-west Botswana.