Katanga Mining Limited
TSX : KAT

Katanga Mining Limited

November 20, 2006 08:56 ET

Katanga Announces Completion of $ 115,000,000 Million Debt Offering

TORONTO, ONTARIO--(CCNMatthews - Nov. 20, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION INTO THE UNITED STATES

Katanga Mining Limited (TSX:KAT) ("Katanga" or the "Company") announced today that it has completed its previously announced offering of units ("Units") in the aggregate amount of $115,000,000 million which included the exercise by the underwriters of their option to purchase an additional $15,000,000 million of Units.

Each Unit consisted of a $1,000 unsecured subordinated note ("Notes") and 40 common share purchase warrants ("Warrants"). The Notes will mature on November 30, 2013, with an annual interest rate of 14%. Interest payable on the Notes from the date hereof to June 30, 2007 will be capitalized, with cash interest payments commencing January 1, 2008. Each Warrant entitles the holder to purchase one common share of the Company at anytime on or before November 20, 2011 at a price of $8.50 per common share. The Notes and Warrants will commence trading on the TSX today under the symbols KAT.NT and KAT.WT respectively.

The Units were sold through a syndicate of underwriters led by GMP Securities L.P. and included Sprott Securities Inc, Haywood Securities Inc., RBC Capital Markets, CIBC World Markets Inc. and Dundee Securities Corporation.

The Company intends to use the net proceeds of the offering to continue the refurbishment and development of the Kamoto/Dima mining complex in the Democratic Republic of Congo and for general corporate purposes including working capital. With the completion of this Unit offering, Katanga now has sufficient funds to complete the first phase of reconstruction at the Kamoto Mine, bringing the operations into commercial production.

Katanga Mining Limited is staged to become a copper and cobalt producer through its investment in the long-lived, high-grade Kamoto Mine, located in the Katanga Province of the Democratic Republic of Congo. For over 70 years, the Katanga Province has been an important producer of copper and cobalt to the world markets.

To learn more about Katanga Mining, please visit our website at www.katangamining.com.

This news release does not constitute an offer to sell or on a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Contact Information

  • Katanga Mining Limited
    Arthur H. Ditto
    President & Chief Executive Officer
    Office: (416) 369-4340
    Mobile: (416) 456-3308
    or
    Katanga Mining Limited
    Anu Dhir
    VP Corp. Development
    Office: 44 (0) 20 3008 5280
    Mobile: 44 (0) 79 834 38942
    Website: www.katangamining.com