Glencore Congo RDC (Bloomberg)

Bloomberg Katanga Mining Ltd. (KAT CN): The company restarting the Democratic Republic of the Congo's biggest underground copper mine said in a statement distributed by Market Wire that shareholders approved a tripling in its issued share capital to 300 million. The shares fell C$1.20, or 8.2 percent, to C$13.49.LONDON, UNITED KINGDOM-- - Katanga Mining Limited and Glencore Finance (Bermuda) Limited ("Glencore") today announce the completion of the previously announced US$150 million loan facility (see Katanga press release October 4, 2007). The loan bears interest at LIBOR plus 4% per annum payable upon maturity. During the term of the loan facility, the principal amount of the loan is convertible at any time in whole or in part at the option of Glencore into up to 9,157,509 common shares of Katanga at a price of US$16.38 per share. This would represent approximately 10.4% of the total issued and outstanding shares of Katanga, calculated on a partially diluted basis assuming the conversion in full of the principal amount of the loan facility, and based on 78,887,743 Katanga common shares being issued and outstanding. At the current time, Glencore does not beneficially own or have control or direction over any Katanga common shares. As previously announced, Katanga and Glencore have agreed to a 10 year off-take contract under which Glencore will buy 100% of Katanga's annual copper and cobalt production at market terms. The agreement provides for payment by Glencore of 90% of the expected sales value upon loading at the mine gate with the balance payable upon delivery of the metal at the discharge port.
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