UPDATE 1-Chinese private equity offers $847 mln for Discovery Metals

* Rare private equity approach for resource project

* CFC seeking Discovery's Botswana Copper project

* A$1.70/share offer at 51 pct premium

* Discovery shares on trading halt

(Adds details)

MELBOURNE, Oct 4 (Reuters) - China's Cathay Fortune Corp (CFC), founded by billionaire Yu Yong, has offered $847 million for Australia's Discovery Metals and its Boseto copper project in Botswana, Discovery said on Thursday.

The proposal is for a joint venture that would be 75 percent owned by CFC and 25 percent owned by China-Africa Development Fund. The offer was for A$1.70 a share in cash.

Discovery last traded at A$1.46 before being placed in a trading halt on Thursday morning. The offer was pitched at A$1.70 a share, a 51 percent premium to its 30-day average price, CFC said.

"CFC and CAD Fund value the high quality of Discovery Metals' senior management team, and are enthusiastic about the opportunity to work with them to develop and provide funding certainty to the Boseto Copper Project," Yong said in a statement emailed to Reuters.

Yu is the largest shareholder in CFC. He has a net worth of $1.4 billion according to Forbes.

CFC, which owns 13.7 percent stake in Discovery, said it has received approval from Australia's Foreign Investment Review Board and due diligence could be done in 10 days.

Citigroup is advising CFC.

China accounts for nearly 40 percent of global copper consumption. ($1 = 0.9795 Australian dollars)

(Reporting by Miranda Maxwell; Editing by John Mair)

((Miranda.Maxwell@thomsonreuters.com)(+613 9286 1464))