Katanga Mining Limited
TSX : KAT

Katanga Mining Limited

November 10, 2006 13:23 ET

Katanga Announces Pricing of Public Offering of Units

TORONTO, ONTARIO--(CCNMatthews - Nov. 10, 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 the terms for its previously announced offering of units ("Units") of the Company.

The Company will issue 100,000 Units at $1,000 per Unit for gross proceeds to the Company of $100,000,000. Each Unit will consist 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 issue date to June 30, 2007 will be capitalized, with cash interest payments commencing January 1, 2008. Each Warrant will entitle the holder to purchase one common share of the Company anytime on or before five years from the issue date at a price of $8.50 per common share.

The offering is being underwritten through a syndicate of underwriters led by GMP Securities L.P. and including Sprott Securities Inc, Haywood Securities Inc., RBC Capital Markets, CIBC World Markets Inc. and Dundee Securities Corporation. The Company has granted the underwriters an option exercisable until the closing date to purchase up to an additional 15,000 Units to cover over-allotments, if any, and for market stabilization purposes.

The offering is scheduled to close on or about November 20, 2006, and is subject to certain conditions including, but not limited to, execution of a definitive underwriting agreement, filing of a final prospectus, and receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the Canadian securities regulatory authorities.

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. Upon completion of the offering of Units, Katanga will have sufficient funds to complete first phase reconstruction at the Kamoto Mine and to take 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