TSX-listed Katanga Mining has announced that, together with Kamoto Copper, it has entered an agreement with Gécamines to terminate the legal proceedings brought by Gécamines in the DRC courts and resolve KCC’s previously disclosed capital deficiency.
Pursuant to the agreement, amongst other things, Gécamines, Katanga and Kamoto Copper (KCC) have agreed on a recapitalization plan that will allow the reconstruction of the net equity of KCC and satisfy the requirements provided for by Democratic Republis of Congo (DRC) corporate law, subject to the satisfaction of certain conditions precedent.
The recapitalization plan will be formally effected on the date that KCC completes the necessary corporate proceedings to approve the agreement.
These proceedings are expected to be completed on a date within the next two weeks.
On the closing date, Gécamines will withdraw the legal proceedings it commenced on April 20, 2018 in the Kolwezi Commercial Court to dissolve KCC, and certain other outstanding commercial matters between the parties will be resolved.
“We are pleased to have reached an agreement to resolve the KCC capitalization issues and preserve and revitalize the partnership between KCC and Gécamines,” comments Hugh Stoyell, non-executive chairman of the board of directors of the company.
“Throughout the discussions and negotiations that resulted in this settlement, we have been well supported by our majority shareholder Glencore, and we look forward to the next phase of development at KCC, which we believe will provide significant benefits
to Katanga and its stakeholders, as well as Gécamines and all stakeholders in the DRC.”