Dec 18 (Reuters) - Katanga Mining Ltd KAT.TO :
* KATANGA MINING ANNOUNCES APPROVAL OF AGREEMENT TO SETTLE ONTARIO SECURITIES COMMISSION MATTERS
* KATANGA WILL MAKE A VOLUNTARY PAYMENT IN AMOUNT OF C$28.5 MILLION
* CEO JOHNNY BLIZZARD WILL RESIGN AS A DIRECTOR AND OFFICER OF COMPANY
* WILL MAKE REIMBURSE COMMISSION COSTS IN AMOUNT OF C$1.5 MILLION
* BLIZZARD'S RESIGNATION IS SUBJECT TO A SHORT TRANSITION PERIOD UNTIL HIS REPLACEMENT IS APPOINTED
* WILL SUBMIT TO REVIEW BY AN INDEPENDENT CONSULTANT OF METAL ACCOUNTING WITH RESPECT TO REPORTING OF PRODUCTION, FINANCIAL ACCOUNTING
* FOLLOWING INTERNAL REVIEW, COMPOSITION OF BOARD OF DIRECTORS WAS CHANGED TO INCLUDE THREE NEW DIRECTORS
* IN SETTLEMENT, AGREES CO MISSTATED ITS FINANCIAL POSITION AND RESULTS OF ITS OPERATIONS
* INTENDS TO ENTER INTO A MANAGEMENT AGREEMENT IN EARLY 2019 WITH ITS MAJORITY SHAREHOLDER, GLENCORE INTERNATIONAL AG
* IN SETTLEMENT, AGREES IT FAILED TO DISCLOSE MATERIAL WEAKNESSES IN ITS INTERNAL CONTROLS
* "KATANGA BELIEVES THAT MANAGEMENT AGREEMENT WILL ALLOW OPERATIONS TO BE MANAGED MORE EFFECTIVELY"
* FAILED TO ADEQUATELY DESCRIBE HEIGHTENED RISKS ASSOCIATED WITH RELIANCE ON INDIVIDUALS, ENTITIES ASSOCIATED WITH DAN GERTLER
* IN SETTLEMENT, AGREES IT FAILED TO MAINTAIN ADEQUATE DISCLOSURE CONTROLS, PROCEDURES, INTERNAL CONTROLS OVER FINANCIAL REPORTING