The company currently owns 13.7% interest in Discovery and the deal will give Cathay a 75% controlling stake in the Australian company.
The remaining 25% stake in Discovery is owned by the China-Africa Development Fund.
Cathay has agreed for an all cash payment at A$1.70 ($1.73) a share with the deal expected to be funded by China Development Bank, with a $600m loan.
The acquisition will also grant Cathay ownership of Discovery’s significant copper-silver mine in northwest Bostwana with a production capacity of 36,000 metric tons of copper and 1.1 million ounces of silver a year.
According to the Chinese Firm, the Foreign Investment Review Board of Australia had approved the deal, whereas regulatory approvals from China are still pending.
