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BRIEF-Katanga Mining Settles DRC Legal Dispute With Gecamines

Published 2018-06-12, 02:30 p/m
BRIEF-Katanga Mining Settles DRC Legal Dispute With Gecamines
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June 12 (Reuters) - Katanga Mining Ltd KAT.TO :

* KATANGA MINING ANNOUNCES SETTLEMENT OF DRC LEGAL DISPUTE WITH GÉCAMINES AND AGREEMENT FOR THE RESOLUTION OF KCC CAPITAL DEFICIENCY

* KATANGA MINING - GÉCAMINES, KATANGA & KCC AGREED ON A RECAPITALIZATION PLAN THAT WILL ALLOW RECONSTRUCTION OF NET EQUITY OF KCC

* KATANGA MINING - SETTLEMENT AGREEMENT INCLUDES ONE-TIME SETTLEMENT PAYMENT BY CO TO GÉCAMINES, PAYABLE ON JUNE 14, OF $150 MILLION

* KATANGA - ENTERED AGREEMENT WITH JV PARTNER LA GÉNÉRALE DES CARRIÈRES ET DES MINES TO TERMINATE LEGAL PROCEEDINGS BROUGHT BY GÉCAMINES IN DRC COURTS

* KATANGA MINING - ON CLOSING DATE, GÉCAMINES WILL WITHDRAW LEGAL PROCEEDINGS COMMENCED ON APRIL 20, 2018 IN KOLWEZI COMMERCIAL COURT

* KATANGA MINING - $150 MILLION SETTLEMENT PAYMENT WILL BE FUNDED BY NEW LOANS TO KMFL UNDER NEW CREDIT FACILITY

* KATANGA MINING - KCC AGREED THAT IT WILL WAIVE CONTRACTUAL RIGHT TO RECEIVE REPLACEMENT RESERVES OR EQUIVALENT CASH PAYMENT OF $285 MILLION

* KATANGA MINING - TRANSACTIONS WILL NOT IMPACT CO'S PREVIOUSLY REPORTED CONSOLIDATED NET ASSETS OR CONSOLIDATED LIABILITIES

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