Katanga Mining Limited
TSX : KAT

Katanga Mining Limited

October 19, 2006 15:59 ET

Katanga Announces Filing of Preliminary Prospectus for Debt Offering

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 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 filed with the securities regulatory authorities in Ontario, British Columbia and Alberta a preliminary short form prospectus with respect to a proposed offering of units ("Units"). Each Unit will consist of a $1,000 unsecured subordinated note ("Notes") and 40 common share purchase warrants ("Warrants"). The Notes will have a maturity of seven years from the date of issue, with an annual interest rate to be determined. Each Warrant will entitle the holder to purchase one common share of the Company anytime within five years from the date of issue at a price per share to be determined. The Units will not trade and will separate into Notes and Warrants immediately upon issue.

The Units will be offered through a syndicate of underwriters led by GMP Securities L.P. and includes Sprott Securities Inc., Haywood Securities Inc., RBC Capital Markets, CIBC World Markets Inc. and Dundee Securities Corporation. Completion of the offering is subject to regulatory approval.

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.

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 or Mobile: (416) 456-3308
    or
    Katanga Mining Limited
    Anu Dhir
    VP Corp. Development
    Office: 44 (0) 20 3008 5280 or Mobile: 44 (0) 79 834 38942
    Website: www.katangamining.com