ZUG, Switzerland, Dec. 19, 2019 /CNW/ - Katanga Mining Limited
(TSX: KAT) ("Katanga" or the "Company") announces today that it has
completed its previously announced CDN$7,678,388,000 offering (the "Rights
Offering") of rights ("Rights") to purchase common shares of the
Company ("Common Shares").
In connection with the completion of the Rights Offering and
pursuant to the exercise of Rights, the Company issued an aggregate
of 59,292,571,428 Common Shares from treasury. Shareholders of
the Company, other than Glencore plc (together with its affiliates,
"Glencore"), subscribed for 68,746,113 Common Shares under the
Rights Offering, for gross proceeds of CDN$8,902,622.
Glencore provided a standby commitment in respect of the Rights
Offering and, in accordance with the standby commitment, accepted
59,223,825,315 Common Shares issued from treasury under the Rights
Offering and a cash payment of CDN$8,902,622 as repayment for US$5.8 billion of debt owed to Glencore under the
Glencore loan facilities. The remaining amount of the debt owed to
Glencore, being approximately US$1.5
billion, is being retained by the Company. Prior to the
Rights Offering, Glencore owned approximately 86.3% of the
Company's issued and outstanding Common Shares. Pursuant to a
standby commitment provided by Glencore, all Common Shares
available for purchase under the Rights Offering, not otherwise
acquired by shareholders of the Company, were acquired by Glencore.
As a result, Glencore acquired an additional 59,223,825,315 Common
Shares under the Rights Offering and owns 99.5% of the Company's
currently issued and outstanding Common Shares.
This news release does not constitute an offer to sell, nor
the solicitation of an offer to buy, the securities in any
jurisdiction; nor shall there be any sale of securities mentioned
in this news release in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such
jurisdiction.
About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the
Democratic Republic of Congo
producing refined copper and cobalt. The Company has the potential
to become Africa's largest copper
producer and the world's largest cobalt producer. Katanga is listed
on the Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
This press release may contain forward-looking statements.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Although Katanga has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except in accordance with
applicable securities laws.
SOURCE Katanga Mining Limited