James Marlay

Former market darling and aspiring copper producer Discovery Metals DML has come out of trading halt on the back of a rescue package to the value of $108 milion. The recapitalisation package has come from Singaporian group Blumont. The fall from grace for Discovery has been one of the biggest in recent times with shares plunging from $1.80 to as low as $.10. Whilst the recapitalisation package requires a lengthy list of approvals before approval the timing does coincide with similar bail out situations such BBG which may be another indicator that PE and similar groups are seeing distressed assets as good value in a recovering market. Should the Blumont proposal go through the share capital of Discovery will be blown out by a whopping 284% and leave the new group with a 60% holding of DML. Interesting to see how shareholders respond...


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