The top shareholder in Discovery Metals Ltd, private equity firm Cathay Fortune Corp said it would not vote for the approval of the company's plan to increase capital funding. The equity firm from China was once one of the interested buyers in the Africa based copper producing company.
According to an official statement, Capital Fortune said, "We strongly oppose it and will not participate." The firm established by Chinese mogul Yu Yong had partnered with the China Africa Development Fund to place a bid for Discovery Metals amounting to Aus$824 million. The bid was pulled over concerns about its Botswana copper mine project.
As a result of the pending financial plan, Discovery Metals trading was put to a halt.
Capital Fortune further added, "In view of the continuous disappointing operation resluts which never achieve the management has planned, we cannot foresee any possibility of improvement of such sustained cash flow disequilibrium under the gloomy commodity market situation."
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