The company will use $22 million of the funds to make June and September’s loan repayments.

As a result, project finance debt for the Boseto copper project will drop to $A129 million from $151 million.

The remaining $4 million in proceeds will be transferred to the debt service reserve account, taking its balance to $9.5 million.

Once the proceeds are received, total group interest-bearing debt will be $154 million, comprising the project finance facility as well as a fully drawn $25 million corporate working facility.

The remaining hedge book comprises 8521 tonnes of copper at a weighted average forward price of $US8875 per tonne for delivery from June to December this year.

The hedge book has a marked-to-market value of about $13 million.

As of Friday, Discovery had $37.3 million cash, though the debt service reserve account balance of $5.5 million was included, as was $12.4 million of hedge close-out proceeds.

A further $20 million in loan repayments is due by the end of December.

Discovery has started the process of talks with interested parties willing to buy the company.

It has signed confidentiality agreements with several parties with final bids due by June 10.

Among the interested parties is second-largest shareholder Cathay Fortune Investment, which has proposed A35-40c per share takeover.

It comes after the Chinese company withdrew an earlier $1.70 per share bid in February.

Despite the Discovery board labelling the initial bid inadequate, shares in the company have slumped since then, including a further 38% decline last week.

Shares in the company remained at 21c today.